Magnolia Cove HOA Sets $2,500 Monthly Fee for 2027

Homeowners in Magnolia Cove, a 80-home subdivision in Catawba County, North Carolina, will face a $2,500 monthly HOA charge beginning Jan. 1, 2027. The developer-controlled association raised dues from $1,225, following several increases in recent years. Residents say the added cost could make it difficult to keep their homes alongside mortgage payments, with concerns about liens, bankruptcy and foreclosure.

The association initially presented residents with a proposed assessment of $7,500 per month for each lot. That figure supported a budget totaling $2.07 million, including about $1.1 million for legal expenses. At a Monday meeting, residents were told the monthly amount would instead be $2,500. The HOA says lawsuits brought by more than 20 homeowners, along with unpaid assessments, drove up the budget. Those homeowners’ claims were dropped or dismissed, while a jury later found them liable for defamation in a countersuit; damages are to be determined at a later trial. The HOA says it hopes to reduce fees after legal bills and delinquent accounts are resolved. At least one Magnolia Cove homeowner already faces foreclosure after a lien was recorded, although the connection to HOA charges has not been confirmed.