Senate amendment to the 3rd edition makes the following changes.

Sections 1 and 5.

Changes certain powers of the unit owners’ association (Association) under the NC Condominium Act (GS 47C-3-102) or a homeowners’ association (HOA) under the NC Planned Community Act (GS 47F-3-102) as follows.

Now prohibits managing agent or other contractor/employee contracts from exceeding one year in duration or containing an automatic renewal provision that requires the Association/HOA to give notice of nonrenewal more than 30 days prior to the contract’s anniversary date (was, bar on automatic renewal of such agreements). Provides for termination of automatically renewable contracts upon 60 days notice by the Association/HOA.  Prohibits a managing agent from collecting from an Association/HOA or property owner any fee in connection with its collection of a fine imposed by the Association/HOA.  

Prevents an Association/HOA from enforcing any restriction on parking of newly defined term, personal vehicle, on a public street or public road for which the NC Department of Transportation (DOT) or local government has assumed responsibility for maintenance and repairs, unless the Association/HOA has been delegated such enforcement (was, blanket bar on enforcement of parking restrictions on public roads/streets). Authorizes the Association/HOA to enforce such restrictions if the authority regulate parking has been expressly delegated to the Association/HOA by DOT or the local government. Specifies that such delegations are only valid for five years, after which the Association/HOA must reapply to the delegating authority. 

Authorizes the Association/HOA to impose charges in connection with the preparation of a lender’s questionnaire or certification or a statement of unpaid assessments (was, reasonable charges in connection with the preparation of statements of unpaid assessments) which now must be furnished within 10 days (was, 10 business days) after receipt of the request. Makes conforming changes. Changes the time period triggering the expedited fee from when the request is made within 48 hours of closing to if the item is to be furnished less than 10 days after the receipt of the request. Specifies that charges for the preparation of the lender’s questionnaire or certification must be made by the requesting party. Prevents an Association/HOA or either of their managing agents (was just Association/HOA) from imposing a charge for administrative tasks required upon the transfer of title to a unit, except as authorized by GS 47C-3-102(12a) (Associations) or GS 47F-3-102(13a) (HOAs). Extends unfair trade and deceptive practice provisions to managing agents.

Requires the Association/HOA to provide a fair, reasonable and expeditious procedure for making a decision pertaining to a proposed change to a unit or limited common element. Requires that the Association/HOA's decision be in writing, made in good faith, and not be unreasonable, arbitrary, or capricious. Requires that procedure be set forth in the Association/HOA's governing documents. Provides for timeframe on decision and a procedure for reconsideration of the decision if disapproved by the Association/HOA's executive board. 

Sections 2 and 6.

Amends GS 47C-3-107.1 (process for fines collected by an Association) and GS 47F-3-107.1 (same-HOA) to provide for a written notice of hearing to be sent to a unit owner not less than 10 days prior to the hearing date to be heard on any charges by the Association/HOA. Caps any fines imposed without further hearing on the violation at $2,500 for continuing violations. 

Sections 3 and 7.

Amends GS 47C-3-116 (pertaining to liens imposed for sums due to Associations) and GS 47F-3-116 (pertaining to liens imposed due to HOAs in planned communities) as follows.

Removes 30-day lien filing deadline for fines imposed by the Association/HOA that are solely comprised of interest on unpaid fines, or attorneys' fees incurred by the Association/HOA solely associated with fines imposed by the Association/HOA. Now requires that a claim of lien securing a debt consisting of fines or fine-related charges must be filed separately from a claim of lien securing other sums owed to the Association/HOA and must be filed withing 90 days after the date the fine was imposed.  Defines fines or fine-related charges to mean fines imposed by the Association/HOA, interest on unpaid fines, or attorneys’ fees incurred related to fines imposed by the Association/HOA. Makes technical changes.

Deletes requirement that Association/HOA ensure that its records contain a current phone number for a property owner subject to the Association/HOA.   Makes conforming changes. Changes required language on the first page of a claim of lien to remove reference to judicial foreclosure and to specify that the Association/HOA can pursue remedies against the property owner and the property (was, just property).   Narrows the scope of those debts which are extinguished if the Association/HOA fails to initiate proceeds to enforce the lien to just fines or fine-related charges (was, a debt consisting solely of fines imposed by the Association/HOA, interest on unpaid fines, or attorneys' fees incurred by the Association/HOA solely associated with fines imposed by the Association/HOA). Increases the time that the Association/HOA has to initiate enforcement proceedings to one year after the filing of the claim of lien in the office of the clerk of superior court (was, within 180 days after the filing of the claim of lien in the office of the clerk of superior court).

Deletes cap on an award of attorneys’ fees cannot exceed 15% of the amount recovered in any such actions. Instead, allows imposition of reasonable attorneys’ fees not to exceed the higher of $10,000 or 15% of the amount recovered so long as the court finds (1) there was an unwarranted refusal by the property owner to negotiate or pay the fines or fine-related charges and (2) the amount of damages recovered exceeded the highest offer made by the property owner no later than 90 days before the commencement of trial. Requires judge to issue written factual findings detailing the basis for the award. Makes organizational changes.

Reinstates authority to Association/HOAs to foreclose a claim of lien in like manner as a mortgage or deed of trust on real estate under power of sale but only if the debt consists of sums due the Association/HOA other than fines or fine-related charges and if the delinquency has continued for 180 days or more (was, 90 days or more). Provides for content and delivery of notice. Provides for a process by which the clerk must inquire as to whether the subject property is the owner’s principal residence and if so, what efforts the Association/HOA made to communicate with the owner and to resolve the matter voluntarily before foreclosure proceedings. Provides for a process for continuance of the hearing for up to 90 days if the clerk finds there is good cause to believe that additional time or additional measures have a reasonable likelihood of resolving the delinquency without foreclosure.  Reinstates language clarifying that an Association/HOA may pursue judicial foreclosure of an allowed claim of lien and that the attorneys’ fees for these matters are not subject to the limitations set forth above.  Authorizes enforcement of a claim of lien securing a debt consisting of fines or fine related-charges by filing a civil action seeking a judgment. Provides for an effective date for liens that arise as a result of entry of judgment. Makes conforming changes.

Sections 4 and 8.

Amends GS 47C-3-118 (Association records) and GS 47F-3-118 (HOA records) to allow for reasonable attorneys’ fees and costs to the prevailing party if a motion to compel such records is filed. Also allows the court to order the association to pay an owner's costs incurred in obtaining an order when the association doesn't allow the owner to inspect and copy the requested contract and the court later enters an order compelling the association to do so.

Makes conforming changes to the act’s long title.