(The Center Square) – Attempts to reform rules and oversight on homeowner associations, which have been accused of putting liens on homes and attempting to take them, takes its next step in a North Carolina House of Representatives committee meeting Thursday.
There’s movement to pitch legislation to the General Assembly by March 1.
Rep. Frank Iler, R-Brunswick, filed legislation last year to “establish a community association oversight division in the office of the attorney general.” Similar to the Local Government Commission having oversight of local governments, the division would “assist homeowners in communities governed by community associations by ensuring the community associations are complying with the laws and by remedying any violations of the laws.”
The majority of homeowner associations have power that can be described as similar to local governments. What they don’t have is anyone to answer to, and Iler was hearing about it on the coast.
Thursday’s hearing aims to address ongoing concerns with the power of homeowners associations. Published reports say there have been more than 5,500 foreclosures for missed payments since 2018.
His co-sponsors are Rep. John Autry, D-Mecklenburg; Rep. Carla Cunningham, D-Mecklenburg; Rep. Wesley Harris, D-Mecklenburg; Rep. Pricey Harrison, D-Guilford; and Rep. Frances Jackson, D-Cumberland.
Rep. Ya Liu, D-Cary, filed legislation last year aimed to curb the ability of associations to place liens on property for minor bills, limit the length contracts between homeowners and associations, and impose restrictions on management companies that work on behalf of the associations.
Iler is co-chairman of the committee with Rep. Steve Tyson, R-Craven. Liu is vice chairwoman. The panel includes Democratic Reps. Allen Busani of Orange County, Laura Budd and Cunningham of Mecklenburg County; and Republican Reps. Jason Saine of Lincoln County, Gray Mills of Iredell County and Donna White of Johnston County.
Iler has said he plans to hear from both associations and homeowners over three to four meetings in the coming months. Charles Williams, founder of North Carolina Citizens for HOA Reform, is also collecting “HOA horror stories” through a submission page on the group’s website that he plans to present to the committee.
The Center Square, at time of publication, was unsuccessful reaching Williams. It also was unsuccessful reaching out to the North Carolina Chapter of the Community Associations Institute, which lobbies on behalf of associations.
Citizens for HOA Reform is advocating for a slew of changes. Among them are financial disclosure requirements, an ombudsman program, financial audits, and procedures that would allow homeowners to recall and remove board members in cases of misconduct.
