Lawmakers are prioritizing HOA reforms in North Carolina this year, with stricter regulations on the docket. The pursuit, though, is receiving both support and backlash from either side.
Planned HOA Reforms in North Carolina
A bipartisan coalition of North Carolina legislators is determined to pursue stricter regulations for homeowners associations despite defeating a similar bill in the 2023 legislative session due to successful pro-HOA lobbying.
Homeowners from various parts of North Carolina gathered at the legislature on Thursday to express their support for reforms during a meeting of the House Select Committee on Homeowners Associations.
Chaired by Republican Reps. Frank Iler and Steve Tyson, along with Democratic Rep. Ya Liu, the committee is noteworthy for its bipartisan collaboration on the HOA reform issue within the GOP-led General Assembly. Liu, a real estate lawyer and former Cary councilwoman, prioritizes HOA reforms in North Carolina.
Last year, Liu introduced a bill to prevent HOAs from seizing homes over minor issues like uncut grass fines. The bill passed the House unanimously. Despite unanimous Senate approval after several revisions, neither version passed into law. This is due to a lack of compromise between House and Senate leadership.
The committee must produce a report by March outlining proposals for HOA reform. It is set to reconvene on January 24, just before the next legislative session beginning in April.
Full Steam Ahead for the Committee
Liu emphasized the committee’s commitment to thoroughly studying the issue to find the best solutions for homeowners. However, the Community Association Institute of North Carolina, a lobbying group for HOA board members and management companies, cautioned against stricter rules. Instead, the Institute advocates for education as a remedy for disputes.
Weldon Jones, representing the Institute, suggested that better education for board members and homeowners could resolve many issues. He expressed the Institute’s willingness to collaborate with the committee on educational initiatives.
Anti-HOA speakers shared grievances, including allegations of insurance fraud, bait-and-switch tactics, and home foreclosures. Some had served on HOA boards and felt compelled to speak out against what they witnessed behind the scenes.
Attorney General Josh Stein, a Democrat running for governor in 2024, expressed support for HOA reforms through his lobbyist, Sunila Chirukuri, attending the meeting. Chirukuri acknowledged widespread frustration among North Carolinians with their HOAs and affirmed the Department of Justice’s support for reforms.