April 11, 2025
Bill and Phyllis,
Hope this finds you both well and happy. Bill, this is a belated reply to your question concerning the obligation to pay for lighting at the entrance. Copied below are two operative paragraphs from the North Carolina Supreme Court decision upon which we rely:
“Although petitioners’ deeds contain an additional covenant requiring lot owners to pay a pro rata share of the utility bills incurred from lighting the entrance sign, it is clear from the language of this provision, together with the Declaration, the plat, and the circumstances surrounding installation of the sign, that the parties did not intend this provision to confer unlimited powers of assessment on the Association. The sole purpose of this additional deed covenant was to ensure that the developer did not remain responsible for lighting the entrance sign after the lots were conveyed. Payment of the utility bill is the single shared obligation contained in petitioners’ deeds, and each lot owner’s pro rata share of this expense totals approximately seven dollars and twenty cents per year.” (Emphasis added)
For further clarification, the Court states, “….petitioners purchased lots in a small residential neighborhood with public roads, no common areas, and no amenities. The neighborhood consists simply of forty-nine private lots set out along two main roads and four cul de sacs. Given the nature of this community, it makes sense that the Declaration itself did not contain any affirmative covenants authorizing assessments. Neither the Declaration nor the plat shows any source of common expense.” (Emphasis added)
Beginning in 2006 we’ve made an annual estimated payment to Duke Energy as we are unaware of the actual cost of lighting the entrance sign. Over the years, we’ve voluntarily increased the payment amount as a way to contribute to maintaining the entrance sign and landscaping. The two street lights were installed at a later time and the recurring cost paid by the respective lot owners.
We trust this is sufficient clarification.
Sincerely,
Robert and Vivian Armstrong
510 Red Fox Court
