Court of Appeals affirms constitutionality of Planned Community Act for pre-1999 communities

The Court of Appeals has recently ruled that the application of the Planned Community Act, specifically, the fining provisions in G.S. §47F-3-107.1, can be constitutionally applied to pre-1999 communities, and such application is not a violation of the contracts clause of the constitution. In the case of Reidy v. Whitehart Association, 648 S.E.2d 265 (N.C. App. 2007), a homeowner brought suit against his homeowners association contending that the fines imposed by the association on the homeowner for the homeowner’s failure to follow the architectural approval process, was an unconstitutional violation of the contracts clause and a deprivation of the homeowners procedural and substantive due process rights. The Court of Appeals rejected all the homeowners’ arguments and affirmed the trial court’s order granting injunctive relief to the association and imposing fines of $25 per day against the homeowner.

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