Part I.

Amends GS 47C-3-118 (pertaining to the North Carolina Condominium Act) and GS 47F-3-118 (pertaining to the North Carolina Planned Community Act) requiring each association to make requested records reasonably available for examination within 30 days of receiving the lot/unit owner’s written request, unless the association’s bylaws provide for a shorter time.  Exempts financial records created longer than three years prior to the date of the request from disclosure requirements, unless bylaws provide otherwise. 

Part II.

Amends GS 47C-3-103 (condominium executive board members and officers) and GS 47F-3-103 (homeowners’ associations' executive board members and officers) to require that any ratification of any budget that would increase common expense liability by more than 10% be approved by the majority of all unit/lot owners, unless a larger vote is authorized in the association’s declaration or the declaration expressly authorizes the amount of the increase.  Bans action from being taken by an executive board after ratification of its annual budget that would increase the budgeted common expense liability for that fiscal year by more than 5% without the approval of a majority of all lot/unit owners, unless a larger vote is specified in the declaration.

Part III.

Expands the pre-conditions for foreclosure on liens imposed on a unit/lot under GS 47C-3-116 (liens due to condominium association) and GS 47F-3-116 (liens due to homeowners’ association) by an association to include requirements that the lien be equal to or greater than six months of assessment or equal to or greater than $2,500, whichever is less, and that the association offered the owner a reasonable opportunity to cure the default under an installment payment plan and the owner either did not accept the offer or defaulted on payments required under the payment plan schedule.  

Part IV.

Amends GS 7A-38.3F (pertaining to prelitigation mediation of condominium and homeowners’ association disputes) as follows. Requires mandatory mediation (currently, encourages mediation) prior to any party filing suit under the North Carolina Condominium Act and the North Carolina Planned Community Act or an association’s declaration, bylaws, or rules or regulations. Provides for dismissal without prejudice if suit is filed before mediation has been completed unless certain exceptions apply. Exempts disputes solely related to a member’s failure to timely pay an association assessment, or any fines or fees associated with the levying or collection of an association assessment from requirements of statute. Allows parties to waive required mediation by informing the mediator of the waiver in writing. Permits the mediator to charge a reasonable fee for preparation of a certification when the parties either agree to waive mediation or when one or more parties fail to participate in mediation without good cause. Makes conforming changes to the required mediation certification and expands required information to include a statement on the results of the mediation. Permits the Supreme Court to adopt additional rules and standards to implement the statute including an exemption from the rules of procedure for superior court mediations required under GS 7A-38.1 (pertaining to settlement conferences) and sanctions under that statute. Permits voluntary mediation under either act at any time.

Makes conforming, technical, and organizational changes.  Makes language gender neutral. Applies to actions filed on or after October 1, 2024.

Part V.

Enacts new GS 114-8.8 requiring the Department of Justice (DOJ) to receive and record certain data from all complaints concerning disputes between associations and unit/lot owners. Requires DOJ to publish an electronic complaint form on the department’s website and to forward a copy of any complaint received to the party that is the subject of the complaint and to allow that party to respond.  Sets out items DOJ must collect from the complainants. Prevents DOJ from issuing regulations or guidelines pertaining to associations or serving as an arbiter in disputes between an association and its members.

Requires DOJ, by July 1 of each year, to submit an annual report containing eight required elements, including the number of complaints received, whether the complainant is a unit/lot owner or association, county of origin, those that involve association management companies, and the nature of the dispute to the specified NCGA committees and to publish that report on its website. Requires the report to be categorized, filterable, and searchable. Sets forth redaction requirements.

Effective July 1, 2024.