The North Carolina legislature recently passed several laws impacting community associations.
N.C.G.S. 7A-38.3F became effective July 1, 2013. This statute provides for the voluntary mediation of disputes (except for disputes regarding assessments) between an owner and a community association in order for the parties to avoid litigation. Community associations are now legally required to notify their association members annually of the members’ right to request mediation of disputes with their community associations. Associations can provide this notice on their website, or if the association does not have a website, the information can be published with the names of association officers and board members as required by N.C.G.S. 47C-3-103 and N.C.G.S. 47F-3-103.
Changes in the foreclosure process
The changes to N.C.G.S. 47C-3-116 and N.C.G.S. 47F-3-116 will become effective October 1, 2013. A trustee will be appointed by the community association to conduct foreclosures. The community association foreclosure process will essentially be the same as mortgage foreclosures. The revised statutes explain the procedures that must be followed by associations when giving notice to owners regarding the filing of claims of lien and foreclosures.
Changes regarding Association documents
Senate Bill 228 requires that owners in community associations provide the association and other owners with access through any limited common elements for maintenance and replacement. Additionally, the N.C. Planned Community Act was amended through Senate Bill 228 to clarify that the articles of incorporation, bylaws, and the declaration are all considered to give legal authority to the association. Also, effective October 1, 2013, amendments to the declaration adopted using the statutory procedures explained in the N.C. Planned Community Act or the N.C. Condominium Act are presumed to be valid.
This information is not intended to be legal advice. Please contact an attorney with specific questions.