The North Carolina Legislature introduced HB 311 in 2023. The bill, now passed, formed a committee to oversee homeowners associations in the state.
What Is HB 311?
North Carolina recently passed House Bill 311, officially titled “A House Resolution to Establish a House Select Committee on Homeowners’ Associations.” Representative Frank Iler introduced the bill on March 8, 2023. It underwent significant modifications before gaining approval from the Legislature.
The amended HB 311 outlines the creation of a nine-member House Select Committee on HOAs. This committee carries various responsibilities, including evaluating planned communities and condominiums.
As per the bill, the committee’s primary focus is to assess existing North Carolina laws applicable to homeowners associations. It will also review remedies for HOA violations and identify potential additional remedies. Furthermore, the committee will determine the most suitable agencies for addressing complaints against HOAs that violate the North Carolina Planned Community Act and the North Carolina Condominium Act.
Given the way HOAs operate, it is not uncommon for homeowners to have qualms about management. Mostly, HOAs work well to maintain curb appeal and preserve property values. Most HOA boards get along with their constituents and perform exceptionally well. However, there are a few bad apples with HOAs that don’t respond to owner concerns or disregard community maintenance altogether. With the creation of the new Select Committee, homeowners would hopefully have somewhere to turn to for their concerns.
One Year to Prepare
With approximately a year allocated for its analysis, the Select Committee is expected to produce a final report on its findings. This report will include proposed legislation to address identified issues. Its presentation to the General Assembly is set on or before March 1, 2024.
In conjunction with HB 311, Senate Bill 312 was introduced in March 2023. This bill proposed significant changes to the North Carolina statutes governing planned communities and condominiums. Notably, SB 312 aims to prohibit the use of foreclosure as a means to collect delinquent fees for planned communities and condominiums. Despite its initial proposal, the bill has encountered obstacles and made limited progress.
