HOA Rules and Multigenerational Housing: What Eastern NC Homeowners Need to Know

Courtney Leonard

Planning an in-law suite or ADU in your eastern North Carolina neighborhood? Here's why your HOA documents might matter more than local zoning laws – and what you need to know before starting construction.

You've checked with the county, confirmed that ADUs are allowed in your zoning district, and started planning your in-law suite or accessory dwelling unit. Everything looks good to go, right? Not necessarily. If your eastern NC property is governed by a homeowners association, those HOA covenants might prohibit or restrict your project regardless of what local zoning allows.

At Plank Construction, we've seen too many homeowners discover HOA restrictions after investing time and money in planning. These covenants can stop projects completely or require modifications that significantly increase costs. Understanding HOA rules before you start planning saves time, money, and frustration.

Let's explore how HOAs affect multigenerational housing projects in eastern North Carolina and what you need to know to navigate these restrictions successfully.

Why HOA Rules Often Trump Zoning Laws

Many homeowners assume that if the county allows ADUs, they can build one. This misunderstanding causes expensive problems because HOAs operate through private contracts (covenants, conditions, and restrictions) that can be more restrictive than government regulations.

When you purchased your home, you agreed to abide by the HOA's governing documents. These documents can prohibit accessory structures, limit renovations, restrict rental properties, or require architectural approval for any exterior changes. These restrictions remain legally enforceable even when county zoning would allow your project.

Courts generally uphold HOA restrictions as long as they're clearly stated in governing documents and applied consistently. This means your HOA can legally prevent your in-law suite or ADU project even if you have legitimate family needs and county approval.

The hierarchy typically works like this: HOA covenants are more restrictive than county zoning, county zoning is more restrictive than state law. You must comply with the most restrictive level, which is often your HOA.

Common HOA Restrictions on ADUs and In-Law Suites

Many HOAs prohibit accessory structures entirely or limit them to specific types like storage sheds or pool houses. These blanket prohibitions eliminate detached ADU options completely, though attached additions might still be possible depending on how restrictions are worded.

Rental restrictions in HOA documents can prevent ADU rental income even if you can physically build the unit. Many HOAs prohibit short-term rentals, while others limit long-term rentals or require owner occupancy of either the main house or the accessory unit.

Architectural review requirements mean your plans need HOA approval regardless of county permits. These reviews can reject designs for aesthetic reasons, require expensive modifications to match neighborhood character, or simply delay projects for months during review processes.

Size and height restrictions in HOA documents sometimes limit structures to dimensions that make functional ADUs impossible. Requirements that accessory structures be no more than 400 square feet or single-story only might eliminate practical living space options.

Setback requirements in HOA covenants can exceed county requirements, limiting where you can place ADUs on your lot. Some HOAs require accessory structures be completely hidden from street view, which might be impossible on smaller lots.

Guest house or temporary residence restrictions sometimes prohibit permanent occupancy of accessory structures even when county zoning allows it. These restrictions aim to maintain single-family character but can prevent multigenerational housing solutions.

Eastern NC Neighborhoods and HOA Prevalence

Newer subdivisions built in the last 20 years almost always have HOAs with detailed restrictions. These communities in growing areas like Greenville, New Bern, and Jacksonville typically include comprehensive architectural controls that often prohibit or severely limit ADUs.

Older established neighborhoods in eastern NC frequently lack HOAs or have minimal restrictions. Many neighborhoods developed before the 1990s have no HOA governance at all, giving homeowners much more freedom for additions and accessory structures.

Rural properties outside municipal limits rarely have HOA restrictions, making them ideal for multigenerational housing projects. If you're considering property purchase specifically for ADU potential, rural eastern NC offers fewer regulatory obstacles.

Master-planned communities and gated developments typically have the most restrictive HOA rules. These neighborhoods prioritize uniformity and property value protection over individual homeowner flexibility.

How to Determine Your HOA's Rules

Start by locating your HOA governing documents, which should have been provided at closing. Look for the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), architectural guidelines, and any amendments passed since the original documents were recorded.

Read these documents carefully, paying particular attention to sections about accessory structures, architectural review processes, rental restrictions, and amendment procedures. Don't rely on what neighbors tell you or assume outdated information is still accurate.

Contact your HOA board or management company directly with specific questions about your proposed project. Put questions in writing and request written responses to create documentation of what you've been told.

Many HOAs have architectural review committees that interpret rules and approve projects. Understanding this committee's composition, meeting schedule, and decision-making process helps you navigate the approval process if your project requires HOA permission.

Check if your HOA documents have been amended since you purchased your home. HOAs can change rules over time, and amendments might have added restrictions or relaxed previous limitations.

When HOAs Prohibit Your Project

If your HOA documents clearly prohibit ADUs or in-law suites, you have limited options but not necessarily zero options. Understanding your choices helps you decide whether to pursue the project, modify your plans, or explore alternatives.

Requesting a variance or exception sometimes works if your situation is unique and doesn't set precedent the HOA fears. Presenting your case to the board with emphasis on how your project maintains neighborhood character and serves legitimate needs occasionally results in approval despite general prohibitions.

Amending HOA covenants is possible but requires supermajority approval from homeowners, typically 67% to 75% depending on your documents. This process is time-consuming and uncertain but might be worth pursuing if many neighbors share your desire for more flexible rules.

Legal challenges to HOA restrictions are expensive and rarely successful unless you can prove rules are applied inconsistently, discriminatory, or violate fair housing laws. Consult attorneys specializing in HOA law before pursuing this route.

Alternative solutions within restrictions might achieve your goals differently. If detached ADUs are prohibited but additions aren't, attached in-law suites might work. If permanent occupancy is restricted, designing flexible space that can serve multiple purposes might satisfy both rules and needs.

Working Successfully with HOA Architectural Review

If your HOA allows ADUs with architectural approval, presenting your project effectively increases approval chances significantly. Understanding what committees care about helps you address concerns proactively.

Prepare comprehensive plans showing how your project complements existing neighborhood architecture. Professional drawings, material samples matching nearby homes, and landscaping plans that maintain privacy demonstrate thoughtful design that respects community character.

Address potential concerns before they're raised by showing adequate parking, explaining noise mitigation, demonstrating appropriate scale, and highlighting design elements that maintain property values.

Build support among neighbors before submitting formal applications. Informal conversations explaining your family situation and project goals can reduce opposition and sometimes generate letters of support that help with approval.

Present clear timelines and construction management plans showing minimal neighborhood disruption. HOAs worry about prolonged construction impacts, so demonstrating professional contractor management and realistic schedules addresses these concerns.

Emphasize benefits to the community like housing aging parents locally, providing workforce housing, or improving underutilized property. Framing your project as beneficial rather than merely permissible can shift committee perspectives.

Eastern NC HOA Trends

Eastern NC HOAs are generally less restrictive than those in major metropolitan areas, partly because our lower density and larger lot sizes make accessory structures less impactful on neighbors. Communities here often have more relaxed attitudes about property modifications than urban or suburban areas experience.

Recent years have seen some eastern NC HOAs updating rules to accommodate changing housing needs including multigenerational living. As more families face aging parent care and adult children housing challenges, HOAs recognize that overly restrictive rules might hurt property values by limiting buyers.

Military communities around Camp Lejeune and Cherry Point sometimes have more flexible HOA rules recognizing military families' unique needs for adaptable housing. These communities understand that military life creates situations where in-law suites and flexible housing arrangements benefit residents.

University-adjacent neighborhoods in Greenville sometimes restrict or prohibit rental ADUs to prevent student housing saturation, even while allowing owner-occupied in-law suites. These communities distinguish between family housing and investment properties.

When to Walk Away from HOA Properties

If you're shopping for property specifically to build an ADU or in-law suite, HOA restrictions should heavily influence your decision. Properties with prohibitive HOA rules might not be worth purchasing regardless of other attractive features.

Calculate the cost difference between HOA and non-HOA properties in your target area. If non-HOA properties cost 10% more but allow the ADU you need, the premium might be worth paying compared to buying restricted property that doesn't serve your long-term needs.

Consider that HOA rules can change over time, usually becoming more restrictive rather than less. Even if current rules allow your project, future amendments might prevent similar projects or limit rental use.

Remember that HOA fees are ongoing expenses that don't go away. If you're building an ADU partly for rental income, factor HOA fees into your return on investment calculations.

Getting Professional Help

Real estate attorneys specializing in HOA law can review your governing documents and advise on feasibility, variance potential, and amendment strategies. This consultation typically costs $300 to $800 but can save thousands by preventing doomed projects.

Experienced contractors familiar with local HOAs can often predict approval likelihood based on past experience with your specific community. At Plank Construction, we've worked with many eastern NC HOAs and understand which communities allow accessory structures and which don't.

Real estate agents familiar with your target neighborhoods know which communities have restrictive HOAs and which are more flexible. This knowledge helps property searches if you're looking specifically for ADU-friendly locations.

The Bottom Line

HOA restrictions can stop in-law suite and ADU projects regardless of zoning allowances, but understanding these rules before you start planning prevents expensive surprises. Many eastern NC homeowners successfully navigate HOA requirements or choose properties without restrictive covenants.

If you're in an HOA community, read your governing documents carefully and get clear answers about restrictions before investing in design and planning. If you're shopping for property, factor HOA rules heavily into your decision-making alongside price, location, and other considerations.

At Plank Construction, we help eastern NC families understand what's possible given their specific property restrictions and design solutions that work within applicable rules. Our experience with local HOAs and zoning regulations helps ensure your project succeeds.

Ready to explore in-law suite or ADU possibilities for your eastern NC property? Contact Plank Construction for a consultation that evaluates both county zoning and HOA restrictions to determine what's possible on your specific property.

This post was inspired by this article on Realtor.com.