The North Carolina House Select Committee has filed a new bill, House Bill 959, amidst ongoing discussions regarding stricter HOA laws. The bill tackles prelitigation mediation and the collection of complaints.
What Is House Bill 959?
During the ongoing short session and negotiations over House Bill 542, a new proposal emerged on May 1, 2024, presented by Representatives Frank Iler, Steve Tyson, and Ya Liu.
Titled House Bill 959, it aims to enact several amendments to the North Carolina Condominium Act and the North Carolina Planned Community Act. Additionally, it proposes mandatory prelitigation mediation for disputes between owners’ associations and their members.
Furthermore, it mandates the Department of Justice to compile and report on complaints related to such disputes, following recommendations from the House Select Committee on Homeowners’ Associations, based on their final report from February 28, 2024.
HOA Industry Observing Closely
House Bill 959, like other bills introduced in the past year, is under close scrutiny from the community association industry. The suggested changes offer clarifications to existing laws, introduce innovative dispute resolution methods, and present clauses that could potentially weaken an association’s ability to fairly administer assessments and enforce property covenants and restrictions.
The Legislative Action Committee (LAC) of the North Carolina Chapter of the Community Association Institute is actively engaging with lawmakers to advocate for beneficial legislation. The committee seeks to prevent unintended consequences that may compromise existing contractual rights.
