July 6, 2011
HB 165 (Planned Community & Condo Act Amends) – Law
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.
The new law applies to foreclosures filed on or after October 1, 2011
HB 183 (HOA Limit Foreclosures) –In Committee
HB 183 proposes creation of a legislative committee to study the issue of foreclosures by homeowners associations (not condos) for unpaid homeowners association dues or related fees and charges. In addition, the committee will examine alternatives to homeowners association assessment lien foreclosure. The committee could also study issues related to foreclosure of property based on liens for homeowners association assessments, fees, and charges. The bill passed the House and was referred to the Committee on Rules and Operations of the Senate.
HB 282 (Homeowner Associations May Not Prohibit the Installation of Certain Water and Energy Efficiency Improvements by Homeowners) – In Committee
HB 282 proposed to prohibit homeowners associations from controlling the installation of solar and water saving devices. The bill passed its First Reading in the House and was referred to the Committee on Rules, Calendar and Operations of the House.
HB 355 (Simplify Taxation of Certain HOA Property) – In Committee
HB 355 would make real property owned by a homeowners association taxable if the property was located in a different taxing jurisdiction. While the legislation appeared aimed at associations with recreational facilities several counties away, it would impact any association straddling county lines. The bill passed its First Reading in the House and was referred to the House Committee on Finance.
HB 588 (HOA/Uniform Procedure for Lien Enforcement) – In Committee
SB 588, which was originally proposed by the Community Associations Committee of the NC Bar Association and supported by the NC CAI LAC, would bring uniformity to the process for filing and enforcing claims of lien as well as resolve title issues and concerns related to the process. The bill was supported by the Administrative Office of the Courts as well as the Clerks of Court. The Bill was referred to the Senate Judiciary Committee.
SB 373 (Community Associations Managers Licensing Act) –In Committee
Supported by the NC CAI LACSB 373, this bill passed its First Reading in the Senate and was referred to the Senate Committee on Commerce.
