SB 378 Passes Senate
Senate Bill 378 (“HOA Revisions”) passed its third reading in the North Carolina Senate today. However, this does not mean its provisions are now law. For any bill to become law, it must be approved by both the Senate and the House in identical form. SB 378 now moves to the North Carolina House for further consideration.
Here’s a summary of key provisions:
- Management Contracts: Limited to 2 years; auto-renewals must allow termination with 90 days’ notice.
- Prohibited Fees: Management companies cannot be paid based on fines collected.
- Parking Rules: Associations cannot enforce parking restrictions on public streets, public roads, or public rights-of-way without express declaration or government authorization, which could allow parking on sidewalks and yards in associations.
- Home-Based Lessons: No fines allowed for small group music or educational lessons (5 or fewer), even in condos or townhomes with shared walls.
- Lender & Transfer Fees: Capped at $200 per request ($300 if expedited); other charges banned unless expressly allowed.
- Copying Costs: Must reflect actual photocopying expense only.
- Architectural Reviews: Decisions required within 90 days; written, reasoned responses and reconsideration process must be provided.
- Violation Hearings: 10 days’ notice required; fines capped at $100/day, $2,500 total per violation; liens expire after 1 year without action.
- Assessment Collections: Foreclosure barred until 180 days overdue; new notice and service rules; judicial foreclosure eliminated for fines.
- Contract Access: Owners may inspect association-management contracts upon proper notice.
- License Plate Readers: Associations must maintain written policies governing use.
- Mandatory Mediation: Required before lawsuits (except assessments), unless both parties waive.
- DOJ Complaint Tracking: DOJ to collect and publish homeowner complaint data, but won’t intervene directly.
- Attorney’s Fees: For both non-payment of assessments and violations, courts could shift collection costs to the association.
The full bill can be found at Senate Bill 378.