Hidden Oaks Apartments in Cary knowingly overcharges "court costs" to tenants threatened with eviction. They do so presumably based on an erroneous understanding of North Carolina law. When this illegal practice was brought to the manager's attention, he said, quote, "I don't care what you think."
His rationale was that the corporate counsel in Chicago for Equity Apartments/Equity Residential (Hidden Oaks' owner) had approved these practices, and they'd been in place for at least three years. Well, those attorneys should get local counsel in the states where they have apartments because, based on their work here, they appear to be committing — if not malpractice or unlicensed practice in NC— certainly shoddy lawyering.
Our church helps people in temporary emergency financial crises. We learned that Hidden Oaks (and another complex once owned by Equity Apartments - but which stopped this practice immediately when it came to their attention) has been overcharging when eviction is threatened.
Under NC law (N.C.G.S. 42-46), late fees (pursuant to a statutory formula) plus court costs incurred may be charged to a tenant being evicted.
In addition to Hidden Oaks'/Equity's late fees (which do appear to correctly track NC law), HiddenOaks/Equity charges "court costs" using a formula apparently pulled from the air.
When a resident's rent is overdue and they are facing eviction, in addition to late fees, Hidden Oaks charges "court costs" of $151 $15 "per additional resident." That $15 fee illegally includes minor children residing in the apartment. They have no explanation for these amounts.
I checked with the Clerk of Court (919-792-4200). According to the Clerk's office, only costs *actually incurred* may be charged.
The Wake County Clerk of Court confirmed that actual court costs are less than this. Not only am I concerned that poor folks struggling to make it are being gouged generally by them, but Hidden Oaks/Equity charges these so-called "court costs" whether or not they've actually had a hearing to evict the resident.
As a result, the charges for "court costs" are imposed even when no court cost expense has been —or will be— incurred by the landlord. These "court costs" are imposed even when no court order has been filed. The Clerk of Court's office confirmed that this is not legal in NC.
These are the actual court fees in Wake County:
(1) To file complaint for eviction: $76 —plus—
(2) Service fee "per defendant": $15 each
(The service fees are "per defendant, " not "per resident, " ya Bobos! Thus a single mom with three kids would pay $15, not $60! The "defendant" is the adult named in the lease as the tenant responsible for the rent — and thus is the person sued in the eviction action; it is absurd to charge this service fee "per resident"! Why? Well one reason is that the sheriff does not serve babies or other "residents"; service is only on the adult tenant named as defendant. Sometimes more than one adult is named as defendant, and so would incur the service fee. But the complaint is not served on other "residents, " especially not kids! And so no service fees are actually incurred for — or should be imposed on — (non-defendant) "residents." I complicate it by explaining it. It is so simple! Doi.)
Then - only if a hearing actually is held and an order against the defendant is entered, these are the additional court costs incurred:
(3) $25 (per case, not per defendant) to file the writ —plus—
(4) $15 per defendant for service of the order
(Again, read the rules, y'all!: It's "per case" — there's only one case per eviction! And then it's $15 "per defendant" for the service, not "per resident"! And these fees can be imposed only if they actually are incurred. They *cannot* be charged if the tenant gets the rent in and thus there is no hearing.)
SO: In a situation where a single mama has 3 babies, and has paid the rent after the complaint was filed but before any hearing and so was never evicted, she's erroneously charged $151 15 15 15 15 = $211. She should have been charged $76 15 = $91; she's being overcharged $120. This is not okay.
It also was not okay for the manager to completely blow me off and take no interest in examining the accuracy of Hidden Oaks' policies notwithstanding a polite explanation of the error.
As I noted, another complex previously owned by Equity Apartments immediately changed this practice when I informed them — the same day as Hidden Oaks — that it was erroneous under NC law.
I told the Hidden Oaks manager that I would get a measure of satisfaction in hearing his apology and learning that he had returned overcharged funds to folks struggling financially... I do hope that day comes!
Barbara G JD
Emergency Assistance Voluntee
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