THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, June 25, 1995 TAG: 9506220198
SECTION: CAROLINA COAST PAGE: 38 EDITION: FINAL
COLUMN: Real Estate
SOURCE: Chris Kidder
LENGTH: Medium: 97 lines
Reba and Leon Alston bought a lot in North Woods, a subdivision in an unincorporated area of Roanoke Island, in 1983. The tree-filled neighborhood was quiet and perfect for retirement. The neighborhood was protected by deeded covenants, or so they thought.
In 1984 the Alstons built a beautiful brick house.
In 1993, a neighboring property owner trucked in a modular house from Haskett Homes in Elizabeth City. ``It came just like a trailer,'' says Reba. ``It had tires. It was set on cinder blocks.''
For the last two years, the Alstons have been trying to figure out what happened.
The restrictive covenants specifically prohibited ``mobile'' homes. Although the house arrived on wheels and has the mobile home steel chassis, the house is an inexpensive hybrid recognized by North Carolina as an ``on-frame'' modular.
Yes, it's those confounded ``M'' words again: manufactured, modular and mobile.
Manufactured housing is the old mobile home built on a steel chassis to meet the Department of Housing and Urban Development Federal Construction and Safety Standards Act code. Methods and materials used in HUD code housing are different from those used for stick-built houses.
Modular housing is built in a factory with conventional stick-built methods and materials. In North Carolina, the Department of Insurance certifies that these houses meet or exceed the same building code on-site builders must follow.
But North Carolina, home to several large HUD code housing manufacturers, has added a twist to their definition of modular. It's a twist I've neglected to point out in previous articles defining modular construction. The state has agreed to recognize an ``on-frame'' hybrid - the mobile home steel chassis topped with conventional construction - as modular.
So part of what happened to the Alstons was the result of semantics. When the Alstons read their deeded covenants, they took the word ``mobile'' home to mean any manufactured house that arrives on its own set of attached wheels. They were mistaken.
But the biggest share of the blame lies with the subdivision's deeded covenants. The Alstons - and millions of other property owners - expected their property was protected by covenants that were, in practice, meaningless.
For years, it has been common practice for developers of small subdivisions to apply generic deed restrictions to their land.
These covenants, which most often restrict land use to single family residences and set minimum house sizes, are sales tools. Many buyers want to see some evidence of land use control.
And developers want some control of subdivision property as long as they have lots to sell. Once a development is sold out, they have little incentive to enforce covenants.
The key to covenant enforcement is an active property owners association. But because associations can be costly, time-consuming and sometimes rebellious for developers to nurture into maturity, they are seldom included in the covenants of small subdivisions.
There was no property owners association in North Woods. Even though covenants specifically required construction plans to be submitted to the developer, the Alstons knew no one in the neighborhood followed this rule.
North Woods was developed by Paul Hodge and a partner in 1975. The subdivision was sold out by the mid-1980s. Hodge says the covenants were drawn up by his attorney and he never knew he was supposed to approve building plans.
Hodge's attorney told the Alstons that he believed the North Woods restrictive covenants as written did not preclude the placement of modular houses in their neighborhood.
In fact, other modular houses had been built in the neighborhood. Even if the covenants were intended to restrict modular construction, even if the developer began approving building plans, the right to enforce the covenants was already jeopardized.
When the Alstons realized that Hodge was not going to take any action to keep the modular house off their neighbor's lot, they went to Dare County.
The county's hands are tied, says Planning Director Ray Sturza. In North Carolina, county and municipal governments must get special legislative approval to implement architectural or aesthetic requirements beyond the state building code.
``The problem is the incompatibility of two distinct styles of architecture. It was a problem that should have been controlled by covenants,'' says Sturza. ``State standards are painted with a wide brush.''
There's no easy solution to the Alstons' dilemma. They've even considered purchasing the property - it's on the market now - and moving the modular house somewhere else. But, then, the same thing could happen on the empty lot across the street, says Reba. ``We can't afford to buy it all.''
The saying is trite but true: An ounce of prevention is worth a pound of cure. Before you buy property, make sure that the zoning, deeded covenants and other mechanisms for land use and architectural control you deem important are in place and working.
The attorney handling your real estate transaction should be able to answer any questions you have about these matters. All you have to do is ask. by CNB