While most NC General Assembly bill filing deadlines have passed, legislation considered appropriations or finance can be filed through next week. A bill introduced yesterday would, if adopted, significantly impact North Carolina’s HOA/condo associations as well as community managers.
House Bill 865: Community Association Property Management Act was filed April 20, 2017 by Rep. Jonathan Jordan (Ashe, Watauga), Rep. John Blust (Guilford), and Rep. Rodney Moore (Mecklenburg) and provides that:
- beginning October 1, 2017, all community association managers must have an NC real estate broker license
- association community managers would not be permitted to exercise control over (a) the reserves or investment accounts of an association, or (b) an operating account of an association, unless control of the account is allowed under a contract approved by the association board and duplicate financial statements are sent by the financial institution to the community manager and the association’s board at separate addresses
- community managers would have to be covered by a fidelity bond or insurance policy of at least $20,000
- community association contracts could not be longer than one year and must be cancellable at any time with 60 days’ notice
- all community associations must register annually with the NC Real Estate Commission by paying $100 and providing certain information, including the name of the community manager and the names and addresses of all board members
- all board members, within 60 days of election, would have to complete a minimum of 4 hours of education on the laws related to community associations provided by the Real Estate Commission at a cost of $75 per board member. Board members not completing such education must resign or risk a violation hearing, $100 violation fine, and a continuing fine of $100 per day while in violation
- the existing “Real Estate Education and Recovery Fund” would be expanded to include community associations if the monetary loss was caused by a real estate broker “acting as a community association property manager”
The full bill can be found at http://www.ncleg.net/gascripts/BillLookUp/BillLookUp.pl?Session=2017&BillID=H865
This bill and others will be updated as the legislative session progresses.
Author: Jim Slaughter
Articles have been Reprinted with permission from Black, Slaughter, Black.
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