Senate Bill 378 Update: HOA Provisions Removed—But Likely to Reappear

Senate Bill 378 was originally entitled “HOA Revisions” and would have significantly impacted North Carolina’s 15,000 HOAs and condominiums. (See our prior post: Senate Bill 378 Could Devastate North Carolina’s Community Associations—And Burden Responsible Homeowners, for details on the original proposal.
As of October 22, the bill has been completely rewritten. It is now titled “Align Medicaid Eligibility with Federal Law” and contains no HOA or condominium provisions. You can view the new version here.
For those less familiar with the legislative process, this may seem an odd development. However, it’s not unusual for North Carolina House or Senate bills to be entirely rewritten during session to address unrelated subjects. The deletion of the HOA/condo provisions does not mean those ideas are gone, as many already appear in other proposals. Also, given that the two-year legislative session continues through next year, the same language—or portions of it—could easily resurface in a different proposal.
We will provide additional information as community association legislation develops.
Law Firm Carolinas partner Harmony Taylor currently serves as Chair of the NC-LAC.
Firm brag: Law Firm Carolinas partner Steve Black previously served on the NC-LAC, and Law Firm Carolinas partner David Wilson previously served as Chair of the South Carolina-LAC!