Here’s heads up on pending association bills

newsThere are four bills pending in the N.C. General Assembly that could have a major impact on condominium and homeowners associations. Courtesy of the Legislative Action Committee of the N.C. Chapter of the Community Associations Institute, here is a brief description of the pending House and Senate bills:

Senate Bill 373, known as the “Community Associations Managers Licensing Act,” would require professional community association managers be licensed by the state. License applicants would be required to pass an exam, obtain one of several professional manager certificates issued by various HOA industry groups, or provide proof that they have been actively engaged as a community association manager the prior three years.

Managers also will have to obtain fidelity-bond coverage and take continuing-education classes to maintain a license. Similar legislation was introduced in the last few years, but the legislature never acted on it. Licensing will help protect HOAs from unqualified or dishonest managers.

House Bill 183 would prohibit HOAs from using foreclosure as a collection tool under any circumstances. This bill would have a devastating effect on N.C. HOAs and condominiums by making it much more difficult and expensive to collect unpaid assessments. Industry insiders believe that this bill has a slim chance of passage.

House Bill 165, which would make significant amendments to both the N.C. Planned Community Act and the N.C. Condominium Act, was introduced following 2010 public hearings of the House Select Committee on Homeowners Associations . While well-intentioned, the additional regulations and reporting requirements in this bill will create enormous burdens for HOA boards and their managers. HOAs will have a harder time attracting volunteers to serve on boards and committees, and managers will have to significantly increase their fees to cover the additional time and duties required by the proposed law.

House Bill 282 would prevent HOAs from regulating or prohibiting homeowners from using water-conservation measures and other energy-efficiency improvements. Industry insiders believe this bill is unlikely to pass.

To review these bills, locate them by the bill number (example: S373 or H183) at the General Assembly’s website ( www.ncga.state.nc.us/Legislation/Legislation.html). To contact your House member, go to www.ncga.state.nc.us/house/house.html. To contact your senator, go to www.ncga.state.nc.us/Senate/Senate.html.
There are four bills pending in the N.C. General Assembly that could have a major impact on condominium and homeowners associations. Courtesy of the Legislative Action Committee of the N.C. Chapter of the Community Associations Institute, here is a brief description of the pending House and Senate bills:

 Senate Bill 373, known as the “Community Associations Managers Licensing Act,” would require professional community association managers be licensed by the state. License applicants would be required to pass an exam, obtain one of several professional manager certificates issued by various HOA industry groups, or provide proof that they have been actively engaged as a community association manager the prior three years.

Managers also will have to obtain fidelity-bond coverage and take continuing-education classes to maintain a license. Similar legislation was introduced in the last few years, but the legislature never acted on it. Licensing will help protect HOAs from unqualified or dishonest managers.

House Bill 183 would prohibit HOAs from using foreclosure as a collection tool under any circumstances. This bill would have a devastating effect on N.C. HOAs and condominiums by making it much more difficult and expensive to collect unpaid assessments. Industry insiders believe that this bill has a slim chance of passage.

House Bill 165, which would make significant amendments to both the N.C. Planned Community Act and the N.C. Condominium Act, was introduced following 2010 public hearings of the House Select Committee on Homeowners Associations . While well-intentioned, the additional regulations and reporting requirements in this bill will create enormous burdens for HOA boards and their managers. HOAs will have a harder time attracting volunteers to serve on boards and committees, and managers will have to significantly increase their fees to cover the additional time and duties required by the proposed law.

House Bill 282 would prevent HOAs from regulating or prohibiting homeowners from using water-conservation measures and other energy-efficiency improvements. Industry insiders believe this bill is unlikely to pass.

To review these bills, locate them by the bill number (example: S373 or H183) at the General Assembly’s website ( www.ncga.state.nc.us/Legislation/Legislation.html). To contact your House member, go to www.ncga.state.nc.us/house/house.html. To contact your senator, go to www.ncga.state.nc.us/Senate/Senate.html.

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“Ask The Experts” Articles have been Reprinted with permission from the Charlotte Observer

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