NC Legislative Update

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Created on Thursday, 02 June 2011 10:45

Parent Category: News

Category: Legislative Updates

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 2^nd and 3^rd 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.

Legislative Update - NC HB 165

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Created on Tuesday, 29 March 2011 12:29

Parent Category: News

Category: Legislative Updates

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.

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