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, proposes multiple changes to Chapter 47C (the NC Condominium Act), 47F (the NC Planned Community Act), and other statutes. The recommendations arise out of the House Select Committee’s final report dated February 28, 2024.
This firm previously reported on the takeaways from this report, and the blog addressing this this can be found here. House Bill 959, as with all of the other bills introduced in the past year, is being closely monitored by the community association industry. The proposed changes contain some helpful clarifications of existing law, some novel proposals for resolution of association disputes, and some provisions which could seriously undermine an association’s ability to fairly collect assessments and enforce the covenants and restrictions all homeowners agreed to when they purchased their properties. The North Carolina Chapter of the Community Association Institute’s Legislative Action Committee (LAC) is, in particular, working closely with lawmakers to promote positive legislation and avoid unintended consequences which could undermine existing, valid contractual rights. As Chair of the NC LAC, I will continue to provide updates as the session continues.