North Carolina HB 993: Homeowners' Associations Organization and Reporting Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 993

Short Title: HOA Organization and Reporting Act. (Public)
Sponsors: Representatives Budd, Iler, and Liu (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
April 14, 2025
*H993-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REQUIRE LOT OWNERS' ASSOCIATIONS AND UNIT OWNERS' 2
ASSOCIATIONS TO INCORPORATE OR ORGANIZE AS CORPORATIONS OR 3
LIMITED LIABILITY COMPANIES AND SUBMIT ANNUAL REPORTS TO THE 4
NORTH CAROLINA SECRETARY OF STATE. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. G.S. 47C-1-102 reads as rewritten: 7
"§ 47C-1-102. Applicability. 8
(a) This Chapter applies to all condominiums created within this State after October 1, 9
1986. In addition, the following sections apply to all condominiums created in this State on or 10
before October 1, 1986, notwithstanding any conflicting provisions in the articles of 11
incorporation, incorporation or articles of organization, the declaration, or the bylaws and 12
notwithstanding any references in those documents to Chapter 47A of the General Statutes: 13
G.S. 47C-1-105 (Separate Titles and Taxation), 47C-1-106 (Applicability of Local Ordinances, 14
Regulations, and Building Codes), 47C-1-107 (Eminent Domain), 47C-2-103 (Construction and 15
Validity of Declaration and Bylaws), 47C-2-104 (Description of Units), 47C-2-121 (Merger or 16
Consolidation of Condominiums), 47C-3-102(a)(1) through (6) and (11) through (16)(Powers of 17
Unit Owners' Association), 47C-3-103 (Executive board members and officers), 47C-3-107.1 18
(Procedures for fines and suspension of condominium privileges or services), 47C-3-108 19
(Meetings), 47C-3-111 (Tort and Contract Liability), 47C-3-112 (Conveyance or Encumbrance 20
of Common Elements), 47C-3-116 (Lien for Assessments), 47C-3-118 (Association Records), 21
47C-3-121 (American and State flags and political sign displays), and 47C-4-117 (Effect of 22
Violation on Rights of Action; Attorney's Fees). These sections apply only with respect to events 23
and circumstances occurring after October 1, 1986. G.S. 47C-1-103 (Definitions) also applies to 24
all condominiums created in this State on or before October 1, 1986, to the extent necessary in 25
construing any of the sections referenced in this subsection. 26
... ." 27
SECTION 2. G.S. 47C-2-120 reads as rewritten: 28
"§ 47C-2-120. Master associations. 29
(a) If the declaration for a condominium provides that any of the powers described in 30
G.S. 47C-3-102 are to be exercised by or may be delegated to a profit or business corporation, 31
nonprofit corporation (or unincorporated association) which corporation, or limited liability 32
company that exercises those or other powers on behalf of one or more condominiums or for the 33
benefit of the unit owners of one or more condominiums, all provisions of this chapter applicable 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 993-First Edition
to unit owners' associations apply to any such corporation, (or unincorporated association) 1
corporation or limited liability company, except as modified by this section. 2
... ." 3
SECTION 3. G.S. 47C-3-101 reads as rewritten: 4
"§ 47C-3-101. Organization of unit owners' association. 5
A unit owners' association shall be organized no later than the date the first unit in the 6
condominium is conveyed. The membership of the association at all times shall consist 7
exclusively of all the unit owners, or following termination of the condominium, of all persons 8
entitled to distributions of proceeds under G.S. 47C-2-118. The association shall be organized as 9
a profit or business corporation, nonprofit corporation or as an unincorporated nonprofit 10
association a limited liability company." 11
SECTION 4. Article 3 of Chapter 47C of the General Statutes is amended by adding 12
three new sections to read: 13
"§ 47C-3-101.1. Annual reporting requirement; nonprofit corporations. 14
(a) Requirement. – A unit owners' association organized as a nonprofit corporation shall 15
deliver to the Secretary of State for filing annual reports as provided in this section, if the unit 16
owners' association exercises at least one of the following powers: 17
(1) Collects annual assessments from its members. 18
(2) Imposes fines, charges, or other fees in accordance with the powers granted 19
by G.S. 47C-3-102. 20
(3) Enforces architectural guidelines. 21
(b) Form; Required Information. – The Secretary of State shall prescribe for the filing of 22
an annual report in an electronic form and electronic means of filing. The annual report shall set 23
forth all of the following: 24
(1) The name of the nonprofit corporation. 25
(2) The street address, and the mailing address if different from the street address, 26
of the nonprofit corporation's registered office in the State, the county in which 27
the registered off