AN ACT TO ESTABLISH A FIDELITY BOND REQUIREMENT FOR COMMUNITY ASSOCIATIONS AND TO CREATE THE NORTH CAROLINA COMMUNITY ASSOCIATION COMMISSION TO REGULATE COMMUNITY ASSOCIATIONS AND COMMUNITY ASSOCIATION MANAGERS IN THIS STATE.
Enacts new GS 47C-3-113.1 to require some condominium unit owners' associations and all management agents or companies hired by unit owners' associations to be covered by fidelity bonds.
Amends GS 47C-3-118(a) to delete language authorizing requests for detailed financial audits for condominium unit owners' associations and enacts new GS 47C-3-118.1, which requires annual independent financial audits for associations that meet certain criteria. Makes the same changes to GS Chapter 47F, as applied to planned communities (amending GS 47F-3-118(a) and enacting new GS 47F-3-118.1.
Effective when the act becomes law, enacts new GS Chapter 93F, establishing the North Carolina Community Association Commission. The Commission is a five-member board that has powers and duties related to licensure of community association managers, registration of community associations, educational and training programs for associations and managers, and receiving and investigating complaints related to associations and managers.
New GS 93F-5 requires annual licenses for community association managers (beginning January 1, 2016) and GS 93F-6 sets out the requirements for obtaining a license. New GS 93F-10 requires annual registration for community associations (beginning January 1, 2016).
GS 93F-11 authorizes the Commission to take disciplinary action against licensees (managers) and registrants (community associations). The Commission has the authority to suspend, revoke, or reprimand a licensee based on reasons set forth in the statute.
Enacts new GS 47C-3-120, which requires condominium unit owners' associations to register annually with the North Carolina Community Association Commission pursuant to GS Chapter 93F.
Makes technical and conforming changes to GS 47C-1-102(a) and GS 47F-1-102(c).
Appropriates $250,000 in nonrecurring funds for the 2015-16 fiscal year to start up and establish the Commission. Effective when the act becomes law.
Unless otherwise indicated, effective January 1, 2016.
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