BILL FILING DEADLINE PASSED LAST WEEK
Spring is officially here—longer days, blooming flowers, and a flurry of legislative activity!
Last week marked an important milestone for anyone keeping an eye on North Carolina laws that impact community associations (homeowner and condominium associations). As part of the two-year 2025–2026 session, lawmakers just hit a key deadline: the general cutoff for filing bills in both the NC Senate and House was last Thursday. There are always exceptions, of course, but for the most part, what’s been filed is what we’ve got—for now.
So, this is a good time to take stock of the proposed legislation that could affect how North Carolina’s nearly 15,000 community associations operate moving forward.
Here’s a rundown of some of the bills filed this spring, listed in the order they were filed—not necessarily by how much impact they might have.
(1) House Bill 444 – “Homeowners Association Reform Bill”
HB 444 was filed March 18, 2025, by Rep. Ya Liu (D-Wake) and Rep. Frank Iler (R-Brunswick), primary sponsors, along with Rep Mary Belk (D-Mecklenburg), Rep. Gloristine Brown (D-Pitt), Rep. Bryan Cohn (D-Granville/Pitt), Rep. Mike Colvin (D-Cumberland), Rep. Carla Cunningham (D-Mecklenburg), Rep. Allison Dahle (D-Wake), Rep. Zack Hawkins (D-Durham), Rep. Frances Jackson (D-Cumberland), Rep. Carolyn Logan (D-Mecklenburg), Rep. Tim Longest (D-Wake), Rep. Garland Pierce (Hoke/Scotland), and Rep. Lindsey Prather (D-Buncombe).
The bill is 20-pages long and was written about in this recent longer blog: NC Community Association Legislative Update – March 20, 2025. Here’s a summary of key provisions:
- Declaration Amendments: Changes to declarations would only apply to new owners, leading to inconsistent rules within the same community.
- Access to Records: Associations must provide certain records within 30 days but only need to keep three years of financial records.
- Management Contracts: Management agreements would be capped at one year, with easy cancellation of auto-renewals.
- Public Street Enforcement: Associations could only enforce public street parking rules if their declarations explicitly allow it.
- Limits on Fines: No fines allowed for small-scale tutoring, music, or swim lessons—even in shared-wall housing.
- Fee Caps: Preparation fees for lender questionnaires or assessment statements capped at $200 ($300 if expedited); no other closing-related fees allowed.
- Copy Charges: Copying costs must reflect actual expenses—no markups allowed.
- Architectural Reviews: Requests must be decided within 90 days, with clear procedures and reasons for denials.
- Assessment Restrictions: Dues increases over 10% or budget increases over 5% would require owner votes, even in emergencies.
- Collections: Foreclosure allowed only if six months of dues or $2,500 is owed, with mandatory payment plan offers.
- Fines and Violations: Max fines capped at $2,500 total; proceeds must go to the state, not the association, and liens have tighter deadlines.
- Civil Penalty Fund: Fine revenues would be redirected to the state’s Civil Penalty and Forfeiture Fund, not the association.
- Mandatory Mediation: Pre-litigation mediation would be required for HOA/condo disputes unless both sides waive it.
- Complaint Reporting: DOJ would collect and publish homeowner complaints against associations but not intervene in disputes.
The full bill can be found at House Bill 444
(2) Senate Bill 378 – “HOA Revisions”
SB 378 was filed on March 20, 2025 by Sen. Benton Sawrey (R-Johnston), Sen. Todd Johnson (R-Union), and Sen. Vickie Sawyer (R-Iredell/Mecklenburg), primary sponsors, as well as Sen. Gale Adcock (D-Wake), Sen. Val Applewhite (D-Cumberland), Sen. Woodson Bradley (D-Mecklenburg), Sen. Jim Brinson (R-Craven/Pamlico), Sen. Danny Britt (R-Robeson/Columbus), Sen. Amy Galey (R-Alamance/Guilford), Sen. Steven Jarvis (R-Davidson/Davie), Sen. Michael Lazzara (R-Onslow), Sen. Paul Lowe (D-Forsyth), Sen. Julie Mayfield (D-Buncombe), Sen. Tim Moffitt (R-Henderson/Polk/Rutherford), Sen. Natalie Murdock (D-Durham), Sen. Gladys Robinson (D-Guilford), Sen. Eddie Settle (R-Alexander/Wilkes/Surry/Yadkin), Sen. Lisa Grafstein Smith (D-Wake), Sen. Caleb Theodros (D-Mecklenburg), and Sen. Joyce Waddell (D-Mecklenburg).
Senate Bill 378 was written about in this recent longer blog: NC Community Association Legislative Update – March 20, 2025. 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 public street or right-of-way parking 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 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: Courts could shift collection costs to the association and owners at large, not the non-paying delinquent owner.
The full bill can be found at Senate Bill 378.
(3) Senate Bill 497 – “Middle Housing”
SB 497 was filed on March 25, 2025, by Sen. Tim Moffitt (R-Henderson/Polk/Rutherford) and Sen. Julie Mayfield (D-Buncombe), primary sponsors, as well as Sen. Gale Adcock (D-Wake), Sen. Woodson Bradley (D-Mecklenburg), Sen. Sophia Chitlik (D-Mecklenburg), Sen. Lisa Grafstein Smith (D-Wake), Sen. Caleb Theodros (D-Mecklenburg).
Senate Bill 497 would require local governments to permit “middle housing” types—including townhomes—in any area zoned for residential use, even where only single-family homes are allowed. The bill prohibits local regulations that would discourage middle housing development through excessive costs, design restrictions, or delays, and prevents governments from requiring HOAs or condominiums to manage shared spaces or amenities for these developments. Adoption of the bill would mean local zoning could no longer exclude townhomes from single-family neighborhoods, significantly expanding where they could be built.
The full bill can be found at Senate Bill 497.
(4) House Bill 776 – “NC Religious Freedom Restoration Act“
HB 776 was filed on April 3, 2025, by Rep. Brian Echevarria (R-Cabarrus), Rep. Dean Arp (R-Union), Rep. Neal Jackson (R-Moore/Randolph) and Rep. Ben Moss (R-Richmond/Montgomery), primary sponsors, as well as Rep. Jonathan Almond (R-Cabarrus), Rep. Brian Biggs (R-Randolph), Rep. John Blust (R-Guilford), Rep. Alan Branson (R-Guilford), Rep. Celeste Cairns (R-Carteret/Craven), Rep. Jimmy Dixon (R-Duplin/Wayne), Rep. Blair Eddins (R-Wilkes), Rep. Larry Johnson (R-Cabarrus), Rep. Keith Kidwell (R-Beaufort/Hyde/Pamlico), Rep. Donnie Loftis (R-Gaston), Rep. Jeff McNeely (R-Iredell), Rep. Dennis Riddell (R-Alamance), Rep. Michael Scott (R-Onslow), Rep. Bill Ward (R-Camden/Gates/Hertford/Pasquotank), Rep. Donna White (R-Johnston), Rep. David Willis (R-Union).
House Bill 776 would make it an unlawful discriminatory housing practice for any governmental entity or homeowners’ association to “restrict religious gatherings in a dwelling or to burden the practice of religion in the neighborhood or area in which the dwelling is located.” While the intent of the bill is unclear, our firm is not aware of instances where an association attempted to regulate private religious gatherings by owners. However, if the bill’s effect is to allow for-profit religious institutions to operate actual church services out of private residences or condominium units, that could raise significant concerns for residential communities.
The full bill can be found at House Bill 776.
(5) House Bill 856 – Clarify Deed Restrictions/Solar Collectors
HB 856 was filed on April 10, 2025, by Rep. Julia Greenfield (D-Mecklenburg), Rep. Carolyn Logan (D-Mecklenburg) and Rep. Julie von Haefen (D-Wake), primary sponsors, as well as Rep. Ya Liu (D-Wake), Rep. Mary Belk (D-Mecklenburg), Rep. Deb Butler (D-New Hanover), Rep. Becky Carney (D-Mecklenburg), Rep. Maria Cervania (D-Wake), Rep. Aisha Dew (D-Mecklenburg), Rep. Pricey Harrison (D-Guilford), Rep. Zack Hawkins (D-Durham), Rep. Frances Jackson (D-Cumberland), Rep. Jordan Lopez (D-Mecklenburg), Rep. Marcia Morey (D-Durham) and Rep. Renée Price (D-Orange/Caswell).
House Bill 856 would remove current association authority over solar panels by community associations that are visible from public or common areas and located on façades or front-facing roofs. The bill would also prohibit any filed real estate covenant from regulating the “location or screening” of a solar collector if it would “decrease the efficiency or performance of the solar collector by more than ten percent (10%) of the amount that was originally specified for the solar collector.”
The full bill can be found at House Bill 856.
(6) House Bill 992 – HOA Organization and Reporting Act
HB 992 was filed on April 10, 2025, by Rep. Laura Budd (D-Mecklenburg) and Rep. Frank Iler (R-Brunswick) and Rep. Ya Liu (D-Wake), primary sponsors, as well as Rep. Mary Belk (D-Mecklenburg) and Rep. Frances Jackson (D-Cumberland).
HB 992 would create new reporting requirements for HOAs and condos, including:
- Requires all HOAs and condo associations to be organized as corporations or LLCs, not as unincorporated associations.
- Mandates that HOAs and condo associations file annual reports with the NC Secretary of State beginning in 2027.
- Annual reports must include:
- Association name and registered/principal office addresses
- Names and contact information for at least one board member or officer
- Contact information for any community management company
- A link to the register of deeds where covenants/declarations are recorded
- Failure to file an annual report within 60 days of the deadline would result in suspension of the association’s power to:
- Collect assessments
- Impose or collect fees or fines
- The Attorney General would be permitted to take legal action to restrain associations from operating in violation of the requirements.
The full bill can be found at House Bill 993.
If you have specific questions on any of the above bills, feel free to contact me or another attorney at our firm. If there are developments on these or other relevant legislative proposals, additional information will be posted.
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The NC Legislative Action Committee (NC-LAC) is a committee of the Community Associations Institute and is composed of a diverse group of dedicated homeowner leaders, community managers, attorneys, and industry professionals who volunteer significant time to monitor HOA/condo legislation, share how proposed laws might affect community associations, and ensure your voice is heard. They keep you informed and engaged—especially when action is needed to oppose harmful bills or support beneficial ones.
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