New NC HOA laws approved by lawmakers aim to curb associations’ excessive power and protect homeowner rights. Both chambers introduced separate bipartisan bills with similar goals. The proposals target foreclosure practices, parking rules, fines, and architectural review timelines.
New NC HOA Laws Approved by House and Senate
The House and Senate passed separate bills targeting how homeowners associations operate in North Carolina. Both versions aim to protect property rights and reduce HOA control. Lawmakers say the changes would prevent unfair treatment and restore balance between homeowners and their associations.
One key provision limits HOA foreclosures. Under the House bill, associations cannot foreclose based on fines alone. They cannot foreclose on unpaid assessments unless they equal six months of dues or at least $2,500. Lawmakers say many HOAs are too quick to penalize residents, sometimes over minor violations.
The Senate bill adds more reforms. It gives HOAs 90 days to act on architectural requests like home additions or renovations and bans HOAs from restricting on-street parking on publicly maintained roads.
Additionally, HOA management companies would no longer be allowed to base their pay on the number of fines they collect. Another provision blocks HOAs from issuing fines for small group tutoring or music lessons offered at home.
Under the new law, the Department of Justice would receive complaints, but the Attorney General’s office says it lacks enforcement power. The office cannot act on those complaints unless lawmakers give it authority and resources to do so. Officials warn that the law, as written, may create expectations without offering real help.
A similar effort passed both chambers last year but failed to reach the governor. It stalled in the conference committee as lawmakers ended the session. Sponsors say they hope this year’s bill avoids the same fate. Even if most associations operate well, hundreds still create problems for homeowners.
The new NC HOA laws approved this session, which aims to hold those bad actors accountable and make associations more fair and transparent.
