- Created on Monday, 20 June 2011 19:25
The General Assembly adjourned this weekend. While members will likely come back into session this summer for several large issues, most bills will not be readdressed until next year (at the earliest). Here's a wrap-up of some of the proposals of interest to community associations listed in numerical order (first by House, then Senate):
- Created on Thursday, 02 June 2011 10:45
There has been action since last week on HB 165 and HB 183, so I wanted to give an update. The current language of the bills is now available and attached (one minor wording change to HB 165 was made today which is not included).
HB 165 (“Planned Community & Condo Act Amends”) from the House Select Committee now has four primary purposes:
1. No lien can be foreclosed on unless the assessment remains unpaid for 90 days or more;
2. An association cannot foreclose a claim of lien unless “the executive board votes to commence the proceeding against the specific lot;”
3. There will be created a new HOA/condo disclosure form (“owners’ association and mandatory covenants disclosure statement”) for the sale of property similar to the NC Residential Property Disclosure Statement;
4. The NC Real Estate Commission must create a brochure for the public on HOA/condos and how the failure to pay assessments can lead to foreclosure.
If adopted, HB 165 will apply to foreclosures filed on or after October 1. The bill passed both 2nd and 3rd Readings in the House today and will now be forwarded to the NC Senate for review.
HB 183 (“HOA Limit Foreclosures”) currently reads as follows: “The General Assembly may establish a committee to study the issue of foreclosure of property by homeowners associations for unpaid assessments liens based on unpaid homeowners association dues or related fees and charges. The committee may examine alternatives to homeowners association assessment lien foreclosure as a part of its study. The committee may also study issues related to foreclosure of property based on liens for homeowners association assessments, fees, and charges.” The bill has been referred to the Committee on Rules, Calendar, and Operations of the House.
- Created on Tuesday, 29 March 2011 12:29
As many of you are aware, a Committee in the North Carolina House of Representatives is requesting passage of HB 165 which would impose far reaching restrictions and regulations on North Carolina homeowners associations and the Executive Boards that govern them. The bill has been referred to the Judiciary Subcommittee A for consideration by its members and a recommendation to the floor of the House of Representatives. We expect the Committee may be taking action on the bill within the next 7 days. It is urgent that all those who are concerned and opposed to the further regulation and restriction of Homeowners Associations let their voices be heard now. While it is important for them to hear the concerns of managers and attorneys, it is also very important that they hear from the men and women who serve as directors of associations.
We are writing to let you know that HB 165 is under consideration and to urge you to contact members of the House of Representatives to express your concerns and opposition to the further regulations and restrictions on North Carolina Community Associations. Opposition has already been expressed by North Carolina realtors, home builders, and by the North Carolina Bar Association, who believe the bill goes too far by seeking to impose comprehensive regulations and restrictions on Associations in an attempt to deal with random incidents of inappropriate action by associations and boards which can be adequately addressed under existing law.
- Created on Monday, 04 April 2011 15:21
On February 8, 2011, the Federal Housing Finance Agency (FHFA) published a Notice of Proposed Rulemaking directing Fannie Mae, Freddie Mac and the Federal Home Loan Bank System to regulate transfer fees paid to community associations. FHFA requests comment and opinions on its proposed rule. This revised draft includes many of the changes CAI and its members requested. While the revised FHFA draft will allow community associations to continue to use deed-based transfer fees to fund association operations, FHFA is seeking to limit how associations use the funding raised by such fees. You can view our updated FAQ at this link.
We need your help to submit comments from your company, association or firm. CAI members’ strong reaction on the first set of comments was critical in convincing FHFA to revise their draft language to allow community association transfer fees. Your efforts in submitting another comment letter will help us ensure that we can protect association finances as FHFA finalizes its rule.
- Created on Tuesday, 22 March 2011 10:01
The North Carolina legislature is back in session and there are numerous bills that have been introduced that impact homeowners associations. The following is summary of the legislation that has been introduced as of 21 March and the Legislative Action Committee's (LAC) positions on each (SB=Senate Bill, HB=House Bill).
SB 373 "Community Associations Managers Licensing Act". This is the same bill that the LAC has been trying to get passed for several sessions. It will be introduced today by Senator Apodaca, and the LAC urges your support.
HB 183 would make it illegal for homeowners associations to use foreclosure as a collection tool under any circumstances. While this bill has a slim chance of passage, the LAC will continue to monitor it, as it would have a devastating effect on homeowners associations and condos in NC. The LAC urges you to write your senator and house member against this bill.
HB 165 is the legislation that has been introduced as a result of the hearings of the House Select Committee on Home Owners Associations. While well intended, the additional regulations and reporting requirements of this legislation will create undue hardships for homeowners associations and condo communities and the LAC urges its defeat in its current form.
HB 282 would prohibit homeowners associations from controlling the installation of solar and water saving devices in homeowners associations. While this bill is unlikely to pass, the LAC will continue to monitor this bill and opposes it, should it move forward.
To find and contact your house member, go to http://www.ncga.state.nc.us/house/house.html.
To find and contact your senator, go to http://www.ncga.state.nc.us/Senate/Senate.html.
If you wish to review any of the bills discussed above, go to: http://www.ncga.state.nc.us/Legislation/Legislation.html.
We encourage each of you to take time to get involved in the legislative process.