NC House committee proposes stricter regulations on HOAs

RALEIGH — Lawmakers are a step closer to further regulating Homeowners’ Associations in North Carolina.

An N.C. House Committee came up with recommendations to cut down on conflicts between HOAs and homeowners.

>>> Read the full draft bill here.

Action 9′s Jason Stoogenke broke down the suggestions into four main points.

1. REQUESTING RECORDS

If a homeowner requests records from the HOA, the board must provide them within 30 days. This excludes financial records more than three years old.

2. RAISING ASSESSMENTS

If an HOA is working on a budget and wants to raise assessments by more than 10 percent, they must gain approval from a majority of homeowners -- not just a majority of the board.

If the budget passes and the HOA wants to raise assessments by more than 5 percent, the same applies.

3. WHEN TO SUE

Homeowners and HOAs must try mediation before taking legal action.

4. WHEN TO FORECLOSE

If a homeowner owes the HOA money, the board can get a lien on a property and start foreclosure proceedings ONLY if all of the following are true:

1. The amount has to be more than or equal to $2,500 or six months of assessments, whichever dollar figure is less.
2. The HOA offered the owner a reasonable payment plan.
3. The owner said no to the plan or didn’t follow it.

The House Committee will vote on the recommendations on February 28.

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