North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S378

Introduced
3/20/25  
Refer
3/24/25  
Refer
4/14/25  
Report Pass
5/6/25  
Refer
5/6/25  
Report Pass
5/6/25  
Engrossed
5/7/25  

Caption

HOA Revisions

Impact

The bill's impact on state laws is significant, as it formalizes a process for conflict resolution that could shift how disputes are handled in homeowners associations. By requiring mediation prior to litigation, the bill provides a structured environment for resolving issues, which could lead to fewer cases clogging the court systems. Furthermore, the reporting requirements might lead to better governance practices within associations as they strive to avoid conflicts and complaints.

Summary

Senate Bill 378 aims to amend existing laws pertaining to owners' associations in condominiums and planned communities. The bill introduces a mandate for pre-litigation mediation between owners' associations and their members, with the goal of reducing the number of disputes reaching the courts. It also requires the North Carolina Department of Justice to collect and report on complaints involving these disputes, which is intended to enhance transparency and accountability within these associations.

Sentiment

The sentiment surrounding SB 378 appears to be generally positive among advocates for homeowners' rights and community transparency. Supporters believe that the mediation requirement will empower residents and improve relations between associations and their members. However, there are potential concerns voiced by those wary of bureaucratic oversight and the implications for how associations manage disputes, suggesting that some might view the additional requirements as cumbersome.

Contention

Notable points of contention regarding the bill include discussions around the potential efficacy of mandated mediation and how it might play out in practice. Critics express concerns that not all disputes can be effectively mediated due to their complexity, and worry that this could delay necessary legal actions instead of facilitating quicker resolutions. There is also debate about the balance of power between homeowners and associations, particularly in how the bill seeks to manage oversight through the Department of Justice.

Companion Bills

No companion bills found.

Previously Filed As

NC H542

HOA Revisions/Foreclosure Trustee Auctions

NC S376

Expanding Members' Access to HOA Records

NC S312

Changes to Liens and Foreclosures by HOAs

NC H959

Various Changes to Homeowners' Assoc. Laws

NC H805

Prevent Abusive HOA Foreclosure Practices

NC S553

Landlord-Tenant and HOA Changes

NC H551

Landlord-Tenant and HOA Changes

NC H190

Dept. of Health and Human Services Revisions.-AB

NC H600

Regulatory Reform Act of 2023

NC S684

Stormwater Program Revisions

Similar Bills

NC H372

Home-Based Business Fairness/HOA Revisions

NC H444

Homeowners Association Reform Bill

NC H542

HOA Revisions/Foreclosure Trustee Auctions

NC H959

Various Changes to Homeowners' Assoc. Laws

NC S312

Changes to Liens and Foreclosures by HOAs

MN HF4485

Homeowner associations; property management company practices prohibited, and association conduct prohibited.

NC H1034

Nonjudicial Foreclosure of Timeshare Liens

NC H805

Prevent Abusive HOA Foreclosure Practices