TO: (1) REQUIRE ASSOCIATIONS TO RELEASE LIENS UPON PAYMENT IN FULL; (2) REQUIRE ALL ASSOCIATIONS TO CONDUCT FINANCIAL REVIEWS OR FINANCIAL AUDITS; (3) ALLOW USE OF ALTERNATIVE DISPUTE RESOLUTION FOR CONFLICTS ARISING UNDER THE PLANNED COMMUNITY ACT OR CONDOMINIUM ACT; AND (4) SIMPLIFY THE COLLECTION OF PROPERTY TAXES THAT ARE DUE ON PROPERTY OWNED BY CERTAIN NONPROFIT HOMEOWNERS’ ASSOCIATIONS, AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON HOMEOWNERS ASSOCIATIONS.
Planned Community Act and Condominium Act. Makes the following changes to GS Chapter 47F (Planned Community Act) and makes corresponding changes to GS Chapter 47C (Condominium Act). Enacts new GS 47F-3-116.1 to require an association that has filed a claim of lien for unpaid assessments to acknowledge satisfaction of the claim of lien within 30 days after the association receives full payment or performance of the debt. Makes an association liable for actual damages caused by the failure to acknowledge satisfaction of the claim of lien. Also makes the association liable for $1,000 and reasonable attorneys’ fees and court costs, provided (1) the lot owner notifies the association of full payment and demands the association acknowledge satisfaction with the clerk of superior court and (2) the association does not acknowledge satisfaction with the clerk within 30 days after receipt of notification from the lot owner. Amends GS 47F-3-118(a) to delete language allowing a more extensive review of association records upon a majority vote. Enacts new GS 47F-3-118A, requiring the board of directors to provide for an annual independent financial review of the association, or, in the alternative, for an annual independent financial audit if any specified condition is met. Amends GS 47F-3-108 to require meeting notices to also include notice of any material matter for which a vote will be taken. Repeals GS 47F-3-110 (concerning voting). Enacts new GS 47F-3-110A to set out the procedures for voting at a meeting, by absentee ballot, by proxy, or without a meeting. Enacts new GS 47F-3-120.1 to authorize parties to resolve disputes through any form of alternative dispute resolution, as detailed. Makes corresponding changes to GS Chapter 47C, the Condominium Act. Effective July 1, 2012.
Taxation. Enacts new subsection (a1) to GS 105-277.8 (taxation of nonprofit homeowners’ association property) to provide that the value of real property owned by a nonprofit homeowners’ association, which meets specified conditions, is subject to taxation in the jurisdiction in which the property is entirely contained, and only in the amount of the local tax of that jurisdiction. Makes conforming changes. Effective for taxes imposed for taxable years beginning on or after July 1, 2012.
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