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NC Legislative Update

 

HB 165 (“Planned Community & Condo Act Amends”) – RATIFIED INTO LAW

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, which started out as the omnibus bill from the House Select Committee on Homeowner Associations, has been enacted into law and 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. 

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.

 

HB 183 (“HOA Limit Foreclosures”) – REFERRED TO COMMITTEE
HB 183 would establish a legislative committee to study the issue of foreclosures by homeowners associations (not condos) for unpaid homeowners association dues or related fees and charges and examine alternatives to homeowners association assessment lien foreclosure.  The committee could also study issues related to foreclosure of property based on liens for homeowners association assessments, fees, and charges.  The bill passed the House and was referred to the Committee on Rules and Operations of the Senate, where it remains.

HB 200 (“Appropriations Act of 2011”) – RATIFIED INTO LAW
The state budget was adopted by the House and Senate, vetoed by the Governor, and the veto then overridden by the General Assembly.  The Act includes many increased court costs and filing fees, including raising foreclosure fees to $300.

HB 282 (“Homeowner Associations May Not Prohibit the Installation of Certain Water and Energy Efficiency Improvements by Homeowners”) – REFERRED TO COMMITTEE
HB 282 would prohibit homeowners associations from controlling the installation of solar and water saving devices.  The bill passed its First Reading in the House and was referred to the Committee on Rules, Calendar, and Operations of the House, where it remains.

HB 355 (“Simplify Taxation of Certain HOA Property”) – REFERRED TO COMMITTEE
HB 355 would make real property owned by a homeowners association taxable if the property was located in a different taxing jurisdiction.  While the legislation appeared aimed at associations with recreational facilities several counties away, it would impact any association straddling county lines.  The bill passed its First Reading in the House and was referred to the House Committee on Finance, where it remains.

HB 588 (“HOA/Uniform Procedure for Lien Enforcement”) – REFERRED TO COMMITTEE
HB 588, which was originally proposed by the Community Associations Committee of the NC Bar Association and supported by the NC CAI LAC, would bring uniformity to the process for filing and enforcing claims of lien as well as resolve title issues and concerns related to the process.  The bill was supported by the Administrative Office of the Courts as well as the Clerks of Court.  The Bill was referred to the Senate Judiciary I Committee, where it remains.

SB 373 (“Community Associations Managers Licensing Act”) – REFERRED TO COMMITTEE
SB 373, which has been supported by the NC CAI LAC, passed its First Reading in the Senate and was referred to the Senate Committee on Commerce, where it remains.

 

Attachments:
Revised Draft HB 165
Revised Draft HB 183

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