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).
HB 165 (“Planned Community & Condo Act Amends”) from the House Select Committee now has four primary purposes:
1. No lien can be foreclosed on unless the assessment remains unpaid for 90 days or more;
2. An association cannot foreclose a claim of lien unless “the executive board votes to commence the proceeding against the specific lot;”
3. There will be created a new HOA/condo disclosure form (“owners’ association and mandatory covenants disclosure statement”) for the sale of property similar to the NC Residential Property Disclosure Statement;
4. The NC Real Estate Commission must create a brochure for the public on HOA/condos and how the failure to pay assessments can lead to foreclosure.
If adopted, HB 165 will apply to foreclosures filed on or after October 1. The bill passed both 2nd and 3rd Readings in the House today and will now be forwarded to the NC Senate for review.
HB 183 (“HOA Limit Foreclosures”) currently reads as follows: “The General Assembly may establish a committee to study the issue of foreclosure of property by homeowners associations for unpaid assessments liens based on unpaid homeowners association dues or related fees and charges. The committee may examine alternatives to homeowners association assessment lien foreclosure as a part of its study. The committee may also study issues related to foreclosure of property based on liens for homeowners association assessments, fees, and charges.” The bill has been referred to the Committee on Rules, Calendar, and Operations of the House.
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