In Southeastern Jurisdictional Administrative Council, Inc. v. Emerson, (NC Sup. Ct., Oct. 9, 2009), the North Carolina Supreme Court upheld the 1996 levy of annual service charges on property of homeowners in a development that was created 100 years ago by an arm of the Methodist Church. The development is a center for religious conferences and retreats as well as a private residential community. It includes 700 private homes plus a lake, meeting facilities, hotels, campgrounds and museums. Owners of two properties objected to paying assessed fees. Their deeds contained covenants providing that the land is held subject to community rules adopted from time to time by the Lake Junaluska Assembly. The court found the new service charges reasonable and enforceable, emphasizing that "the Assembly has existed for nearly a century and has spent that entire time purposefully developing its unique, religious community character."
Justice Edmunds, concurring, emphasized the unique nature of the Lake Junaluska Development. Justice Hudson, dissenting, argued that "the restrictive covenants at issue do not contemplate any affirmative financial assessment on defendants" and the unique religious community character of the development should be irrelevant. The Lincoln (NC) Tribune reports on the decision.
