House Bill 311: NC Creates Committee On Homeowners Associations

North Carolina has passed House Bill 311, a bill that establishes a committee on homeowners associations in the state. The bill received significant amendments before its passing.

New Bill Creates 9-Person Committee on HOAs

Known as “A House Resolution to Establish a House Select Committee on Homeowners’ Associations,” House Bill 311 has passed the Legislature. Rep. Frank Iler initially filed the bill on March 8, 2023. The bill proposed the formation of a Community Association Oversight Division under the North Carolina Attorney General’s office.

HB 311 went through considerable changes before passing into law. The bill forms a House Select Committee on HOAs. The committee will consist of nine (9) members and take on several roles, including reviewing planned communities and condominiums.

Understanding the Role of the New Committee

As per the bill, the committee will examine the current laws in North Carolina that apply to homeowners associations. It will also examine the existing remedies for HOA violations under the law and any additional remedies. Additionally, the committee will help determine which executive agencies are best suited to deal with complaints against HOAs for violations of the North Carolina Planned Community Act and the North Carolina Condominium Act.

The Select Committee has roughly a year to make its observation and come up with possible solutions. It will provide a final report on the outcome of its study the following year. The final report should include proposed legislation to correct any problems found.

The Select Committee will present its final report to the General Assembly on or before March 1, 2024.

Senate Bill 312 Stuck

In March, along with HB 311, Senate Bill 312 was also introduced. SB 312 proposes drastic amendments to the North Carolina statutes governing planned communities and condominiums.

Under the bill, planned communities and condominiums can no longer use foreclosure as a way to collect delinquent fees. This could spell significant challenges for communities with high delinquency rates.

However, the bill did not make much progress after its initial proposal.