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Fayetteville council sets hearing after condo owners request removal from MSD
Summary
Council members agreed to schedule a public hearing after condo owners and an HOA requested removal of 47 condominium units from a Municipal Service District; the city attorney said state law requires a written request from property owners and any removal ordinance would need two readings and not take effect until the following fiscal year.
Fayetteville City Council on Monday agreed to schedule a public hearing after receiving requests from condominium owners asking to be removed from a Municipal Service District (MSD).
The council discussion opened with concerns from a speaker who said the issue first appeared on their tax bill and asked whether the general statute required written requests from property owners to trigger removal. A city attorney’s office representative said, "The statute just says a written request from the property owners," and that a public hearing is required before the council can make a determination and an ordinance must pass at two meetings before taking effect.
Council members debated whether a homeowners association (HOA) president can bind all 47 unit owners or whether each owner must submit a separate written request. One councilor argued, "When you purchase the property knowing you're in the MSD... it's like knowing you have to pay HOA dues," saying it may be unfair to change the rules after purchase. Other members noted the distinction between a legally constituted HOA (whose president can speak for members) and volunteer associations where individual written requests would be needed.
Councilman Davis moved to set a public hearing; the council discussed dates and agreed staff should first attempt to contact the HOA president and, if necessary, hold the hearing at the council's first meeting in February to ensure broad notice and to post required notices. City staff were asked to notify owners of the hearing outcome and prepare public postings.
The attorney noted that any decision would not take effect until the beginning of the next fiscal year, giving the council and staff time to review policy questions and, if desired, hold a work session on revisiting the MSD boundaries.
Next steps: staff will contact the HOA president, post the hearing notice as required by statute, and the council will hear public comment at the scheduled hearing before making any ordinance decision.
