The question I’ve been asked most often this summer by association board members and industry professionals has been “What’s going on with House Bill 542?” There’s not been an easy answer. That’s because the provisions in the legislation have been such a moving target. On the NC General Assembly website, you’ll see four editions of the bill. Each adds a host of new requirements for North Carolina homeowner and condominium associations. Not listed on the website are at least eight prior “drafts” of HB 542, as different proposals were floated and either added or dropped from the proposed legislation following … Continue reading →

Legislative proposals are always in flux. However, since I previously reported on HB 542 and other bills impacting community associations, I wanted to share that HB 542 (“HOA Revisions/Foreclosure Trustee Auctions”) was passed by the Senate Judiciary committee yesterday and will likely be voted upon by the entire Senate before long. Various stakeholders and legislators are working on the proposals. The bill as currently written would drastically change North Carolina community association law. The following provisions would apply to all HOAs and condos, whenever created, and whether the association is under the control of the developer or the homeowners: The … Continue reading →

As the short session continues and the legislature continues to negotiate House Bill 542 with interested parties, a new bill was introduced on May 1, 2024 by Representatives Frank Iler, Steve Tyson and Ya Liu. House Bill 959, entitled an AN ACT TO MAKE VARIOUS CHANGES TO THE NORTH CAROLINA CONDOMINIUM ACT AND THE NORTH CAROLINA PLANNED COMMUNITY ACT, TO MANDATE PRELITIGATION MEDIATION OF DISPUTES BETWEEN OWNERS’ ASSOCIATIONS AND THEIR MEMBERS, AND TO REQUIRE THE DEPARTMENT OF JUSTICE TO COLLECT AND REPORT ON COMPLAINTS SUBMITTED TO IT INVOLVING SUCH DISPUTES, AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON HOMEOWNERS’ ASSOCIATIONS, … Continue reading →

Law Firm Carolinas partner Harmony Taylor serves on the NC Legislative Action Committee (NC-LAC), a committee of the Community Associations Institute. The NC-LAC monitors and makes recommendations on legislation that affects community associations, and its members talk with legislators on issues of concern to HOAs and condos. The NC-LAC has allowed the firm to share the following update on two proposals of interest. The legislature continues to consider a number of laws this session which would significantly impact community associations in North Carolina. HB 542 has been referred to the Committee on Rules, Calendar, and Operations of the House. HB 551 … Continue reading →

As described in my recent NC Community Association Legislative Update, one bill moving through the NC General Assembly is HB 542 “Protect Homeowners’ Rights.” In addition to placing further requirements on associations as to the collection of past due assessments, the proposal would prohibit the filing of a lien against an owner who fails to pay obligatory association assessments unless the amount is $2,500 “or one year of unit owners’ association assessments, whichever is lesser.” The bill’s attempts to add protections to owners not paying obligatory dues may be well intentioned, but such a dollar cap before a lien can … Continue reading →

Ahh, Spring has arrived! Bees are buzzing. Birds are singing. The deadline for filing HOA/condo bills in the legislature has arrived…. For the current two-year session of the NC General Assembly (2023-2025), several important dates have just passed. There are exceptions to all rules, but generally the filing deadline for Public Bills in the North Carolina Senate and House ended at 3 pm today. That makes now a good time to look at proposed legislation that, if adopted, would impact North Carolina’s homeowner and condominium associations. The following bills are not in order of the impact they would have upon … Continue reading →

In an opinion issued yesterday (December 18, 2019), the South Carolina Supreme Court ruled that an HOA foreclosure for $250 was unconscionable given the specific facts of that case. The ruling is in Winrose Homeowners’ Association, Inc. and Regime Solutions, LLC v. Hale. In Winrose, the homeowners bought their property in 1998 for $104,250, but in 2011 fell behind in their association assessment payments. The HOA filed a Complaint seeking foreclosure for nonpayment of dues. After the Complaint was filed, the homeowners received and paid a bill to the Association for $250, which they thought resolved the assessment dispute. Because … Continue reading →