The General Assembly adjourned this weekend. While members will likely come back into session this summer for several large issues, most bills will not be readdressed until next year (at the earliest). Here’s a wrap-up of some of the proposals of interest to community associations listed in numerical order (first by House, then Senate):
NC Legislative Update
There has been action since last week on HB 165 and HB 183, so I wanted to give an update. The current language of the bills is now available and attached (one minor wording change to HB 165 was made today which is not included).
Regulatory Alert – FHFA Regulation Sample Comment
Background
On February 8, 2011, the Federal Housing Finance Agency (FHFA) published a Notice of Proposed Rulemaking directing Fannie Mae, Freddie Mac and the Federal Home Loan Bank System to regulate transfer fees paid to community associations. FHFA requests comment and opinions on its proposed rule. This revised draft includes many of the changes CAI and its members requested. While the revised FHFA draft will allow community associations to continue to use deed-based transfer fees to fund association operations, FHFA is seeking to limit how associations use the funding raised by such fees. You can view our updated FAQ at this link.
We need your help to submit comments from your company, association or firm. CAI members’ strong reaction on the first set of comments was critical in convincing FHFA to revise their draft language to allow community association transfer fees. Your efforts in submitting another comment letter will help us ensure that we can protect association finances as FHFA finalizes its rule.
Legislative Update – NC HB 165
As many of you are aware, a Committee in the North Carolina House of Representatives is requesting passage of HB 165 which would impose far reaching restrictions and regulations on North Carolina homeowners associations and the Executive Boards that govern them. The bill has been referred to the Judiciary Subcommittee A for consideration by its members and a recommendation to the floor of the House of Representatives. We expect the Committee may be taking action on the bill within the next 7 days. It is urgent that all those who are concerned and opposed to the further regulation and restriction of Homeowners Associations let their voices be heard now. While it is important for them to hear the concerns of managers and attorneys, it is also very important that they hear from the men and women who serve as directors of associations.
We are writing to let you know that HB 165 is under consideration and to urge you to contact members of the House of Representatives to express your concerns and opposition to the further regulations and restrictions on North Carolina Community Associations. Opposition has already been expressed by North Carolina realtors, home builders, and by the North Carolina Bar Association, who believe the bill goes too far by seeking to impose comprehensive regulations and restrictions on Associations in an attempt to deal with random incidents of inappropriate action by associations and boards which can be adequately addressed under existing law.