A new HOA reform bill has been introduced in North Carolina. Lawmakers aim to increase transparency and limit HOA authority. The proposal responds to years of homeowner complaints and industry resistance.
HOA Reform Bill Targets Transparency and Oversight
House Bill 444 outlines major changes for how HOAs operate in North Carolina. It follows failed past reform efforts. The HOA reform bill includes pre-litigation mediation between HOAs and residents, which is required before any legal action can begin.
The bill also includes foreclosure limits. HOAs may only foreclose if unpaid dues reach $2,500 or cover six months of payments. The Department of Justice would be responsible for collecting and publishing homeowner complaints. However, it will not settle or mediate disputes.
Parking enforcement would now need local or state approval. HOAs would be required to obtain permission before issuing parking violations. Homeowners must also receive requested records within 30 days. This change aims to improve transparency and reduce board overreach.
Supporters say the bill is based on recommendations gathered by a legislative committee last year. These suggestions came from residents and advocacy groups across the state.
Previous efforts at HOA reform failed after opposition from industry lobbyists. Critics claim the lobbyists represent companies that profit from HOAs — not the homeowners. One citizen suggested that HOAs should not use dues to support lobbying organizations like the Community Association Institute.
Similar Bills in the Past
Lawmakers tried to pass similar bills in 2023. That proposal also called for DOJ oversight and stricter foreclosure rules. Supporters argue this year’s version builds on that effort while aiming for more bipartisan cooperation.
Some HOA attorneys have voiced concerns. They warn the changes could strain association budgets or limit enforcement of agreed rules.
Despite the resistance, legislators remain committed to reform. They believe basic protections, such as financial transparency and reasonable foreclosure limits, are long overdue.
Rep. Frank Iler and Rep. Ya Liu lead the bipartisan effort behind H.B. 444. The bill passed its first reading and was sent to the House Committee on Housing and Development.
