State lawmakers want to restrict the powers of homeowners associations, proposing legislation that would address everything from unpaid dues to parking regulations.
Both the House and Senate advanced separate bills Tuesday to regulate HOAs. The legislation has bipartisan support, and bill sponsors say the changes are needed to address property rights.
"This is the most sweeping legislation that we've seen in some time with respect to HOAs in this chamber," said Sen. Benton Sawrey, R-Johnston and sponsor of the Senate's bill. "I think this might be the session that we can get something done major to restore rights back to our residences here in North Carolina."
One provision would create more hurdles for HOAs that try to foreclose on a property over unpaid fines or dues. The House bill would prevent associations from using foreclosure proceedings over fines, and they couldn't foreclose over unpaid assessments unless they're equal to six months of missed payments or at least $2,500.
Rep. John Blust, R-Guilford, says some associations are too quick to penalize homeowners.
"If you don't do what they demand, or the rules or whatever, they'll slap a lien on you as fast as you can blink," he said, adding that he'd like to see a way for homeowners to penalize their HOA for things like unmaintained grass in common areas. "Mine last year, for almost a whole month during the summer, went without mowing ... I was thinking, I ought to be able to go a month without paying since I'm not getting mowing."
The Senate bill would also:
- Require HOAs to act on approvals for additions and renovations requiring architectural review within 90 days.
- Ban them from restricting on-street parking on publicly maintained roads.
- HOA management companies would also be banned from basing their compensation on the amount of fines collected.
- Prevent fines for violating HOA rules against offering small group tutoring or music lessons on a homeowner's property.
The Department of Justice would receive complaints about HOAs, under the terms of the bill. But Attorney General Jeff Jackson is concerned the bill doesn't give him the power to investigate or take action.
Jackson spokesman Ben Conroy told WUNC the bill would "direct the Department of Justice to take in complaints about HOAs but give us no authority to resolve them — meaning we’d be collecting frustration without being able to provide solutions. They also come with no funding or staff, making them unfunded mandates. We want to help homeowners, but we need tools that actually make a difference — not just the appearance of action."
Similar legislation passed both chambers without opposition in 2023, but a final version didn't make it to the governor's desk. The bill got stuck in conference committee negotiations between House and Senate leader as lawmakers adjourned that year.
Rep. Frank Iler, R-Brunswick and co-sponsor of the House bill, said while he's heard from HOA representatives that "95%" of homeowners are happy with their association, "5% of 14,000 (associations) is 700, so I hope we can take action for the bad actors."
