Pending NC Bills

There are 3 bills pending in the N.C. General Assembly that could have a major impact on condominium and homeowners associations. Courtesy of the Legislative Action Committee of the N.C. Chapter of the Community Associations Institute, here is a brief description of the pending House and Senate bills:

Senate Bill 373, known as the "Community Associations Managers Licensing Act," would require professional community association managers be licensed by the state. License applicants would be required to pass an exam, obtain one of several professional manager certificates issued by various HOA industry groups, or provide proof that they have been actively engaged as a community association manager the prior three years.

Managers also will have to obtain fidelity-bond coverage and take continuing-education classes to maintain a license. Similar legislation was introduced in the last few years, but the legislature never acted on it. Licensing will help protect HOAs from unqualified or dishonest managers.

House Bill 183 would prohibit HOAs from using foreclosure as a collection tool under any circumstances. This bill would have a devastating effect on N.C. HOAs and condominiums by making it much more difficult and expensive to collect unpaid assessments. Industry insiders believe that this bill has a slim chance of passage.

House Bill 165, explained in an earlier blog, which would require dues or assessments to remain unpaid for at least 90 days before an association could begin foreclosure proceedings against the property owner.