House Bill 1541, which makes changes to the NC Planned Community and
Condominium Acts was passed January 1, 2006.
The following is a summary of the eight primary changes to the laws in North Carolina:
1. Late fees will be set at a maximum of $20 or 10 percent of the amount due, whichever is greater and can be charged per month. The current law was that associations could charge a "reasonable" late fee, which was always open to debate, so this is a good clarification.
2. Attorney's fees in uncontested foreclosure cases cannot exceed $1,200. Fees are usually less than this amount.
3. A significant change, but not a factor to most associations, is that the maximum amount of fines is lowered from $150 to $100 (per day) and the collections of fines will require court action prior to a foreclosure to enforce fines for rule violations. Foreclosure for delinquent fees other than notice provisions and the $1,200 attorney fee limit is not affected.
4. The names and addresses of board members must be published within 30 days of their election. This has been standard policy for most Jorel managed associations.
5. Owners must have an opportunity to attend a portion of board meetings and to speak, but with reasonable restrictions as to the number of persons who speak and for the length of time they speak. This too has been standard policy for most Jorel managed associations.
6. Meetings will need to be conducted in accordance with Robert's Rules of Order Newly Revised . Roberts Rules of Order for small meetings (less than a dozen or so people) are much less formal, yet allows for fairness to all members.
7. Records of cash receipts, expenditures, assets and liabilities must be kept and made reasonably available to members. Jorel has and will strongly urge clients to have annual audits and to make information available to members.
8. A new section of the law allows the US and NC flags and political signs to be displayed on an owner's own property, unless expressly prohibited by the covenants.
Please feel free call our office if you have particular questions.
Jorel encourages all associations to safeguard the rights of all association members, to ensure due process for all and to act with an abundance of fairness. The changes in the NC law, and frankly many other states across the country, is a response to HOA members not being treated fairly. As directors and managers, we must treat
members fairly. If not, associations may gradually lose their authority to operate their neighborhoods.
Provided by Jorel Association Management: July 2008 | 
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