North Carolina 2025-2026 Regular Session

North Carolina House Bill H993 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 993
	3	+	H D
	4	+	HOUSE BILL DRH40517-NOf-52A
	5	+
5	6
6	7
7	8		Short Title: HOA Organization and Reporting Act. (Public)
8		-	Sponsors: Representatives Budd, Iler, and Liu (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Rules, Calendar, and Operations of the House
11		-	April 14, 2025
12		-	H993 -v-1
	9	+	Sponsors: Representative Budd.
	10	+	Referred to:
	11	+
	12	+	DRH40517 -NOf-52A
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO REQUIRE LOT OWNERS ' ASSOCIATIONS AND UNIT OWNERS ' 2
15	15		ASSOCIATIONS TO INCORPORATE OR ORGANIZE AS CORPORATIONS OR 3
16	16		LIMITED LIABILITY COMPANIES AND SUBMIT ANNUAL REPORTS TO THE 4
17	17		NORTH CAROLINA SECRETARY OF STATE. 5
18	18		The General Assembly of North Carolina enacts: 6
19	19		SECTION 1. G.S. 47C-1-102 reads as rewritten: 7
20	20		"§ 47C-1-102. Applicability. 8
21	21		(a) This Chapter applies to all condominiums created within this State after October 1, 9
22	22		1986. In addition, the following sections apply to all condominiums created in this State on or 10
23	23		before October 1, 1986, notwithstanding any conflicting provisions in the articles of 11
24	24		incorporation, incorporation or articles of organization, the declaration, or the bylaws and 12
25	25		notwithstanding any references in those documents to Chapter 47A of the General Statutes: 13
26	26		G.S. 47C-1-105 (Separate Titles and Taxation), 47C-1-106 (Applicability of Local Ordinances, 14
27	27		Regulations, and Building Codes), 47C-1-107 (Eminent Domain), 47C-2-103 (Construction and 15
28	28		Validity of Declaration and Bylaws), 47C-2-104 (Description of Units), 47C-2-121 (Merger or 16
29	29		Consolidation of Condominiums), 47C-3-102(a)(1) through (6) and (11) through (16)(Powers of 17
30	30		Unit Owners' Association), 47C-3-103 (Executive board members and officers), 47C-3-107.1 18
31	31		(Procedures for fines and suspension of condominium privileges or services), 47C-3-108 19
32	32		(Meetings), 47C-3-111 (Tort and Contract Liability), 47C-3-112 (Conveyance or Encumbrance 20
33	33		of Common Elements), 47C-3-116 (Lien for Assessments), 47C-3-118 (Association Records), 21
34	34		47C-3-121 (American and State flags and political sign displays), and 47C-4-117 (Effect of 22
35	35		Violation on Rights of Action; Attorney's Fees). These sections apply only with respect to events 23
36	36		and circumstances occurring after October 1, 1986. G.S. 47C-1-103 (Definitions) also applies to 24
37	37		all condominiums created in this State on or before October 1, 1986, to the extent necessary in 25
38	38		construing any of the sections referenced in this subsection. 26
39	39		… ." 27
40	40		SECTION 2. G.S. 47C-2-120 reads as rewritten: 28
41	41		"§ 47C-2-120. Master associations. 29
42	42		(a) If the declaration for a condominium provides that any of the powers described in 30
43	43		G.S. 47C-3-102 are to be exercised by or may be delegated to a profit or business corporation, 31
44	44		nonprofit corporation (or unincorporated association) which corporation, or limited liability 32
45	45		company that exercises those or other powers on behalf of one or more condominiums or for the 33
46		-	benefit of the unit owners of one or more condominiums, all provisions of this chapter applicable 34 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 993-First Edition
48		-	to unit owners' associations apply to any such corporation, (or unincorporated association) 1
49		-	corporation or limited liability company, except as modified by this section. 2
50		-	… ." 3
51		-	SECTION 3. G.S. 47C-3-101 reads as rewritten: 4
52		-	"§ 47C-3-101. Organization of unit owners' association. 5
53		-	A unit owners' association shall be organized no later than the date the first unit in the 6
54		-	condominium is conveyed. The membership of the association at all times shall consist 7
55		-	exclusively of all the unit owners, or following termination of the condominium, of all persons 8
56		-	entitled to distributions of proceeds under G.S. 47C-2-118. The association shall be organized as 9
57		-	a profit or business corporation, nonprofit corporation or as an unincorporated nonprofit 10
58		-	association a limited liability company." 11
59		-	SECTION 4. Article 3 of Chapter 47C of the General Statutes is amended by adding 12
60		-	three new sections to read: 13
61		-	"§ 47C-3-101.1. Annual reporting requirement; nonprofit corporations. 14
62		-	(a) Requirement. – A unit owners' association organized as a nonprofit corporation shall 15
63		-	deliver to the Secretary of State for filing annual reports as provided in this section, if the unit 16
64		-	owners' association exercises at least one of the following powers: 17
65		-	(1) Collects annual assessments from its members. 18
66		-	(2) Imposes fines, charges, or other fees in accordance with the powers granted 19
67		-	by G.S. 47C-3-102. 20
68		-	(3) Enforces architectural guidelines. 21
69		-	(b) Form; Required Information. – The Secretary of State shall prescribe for the filing of 22
70		-	an annual report in an electronic form and electronic means of filing. The annual report shall set 23
71		-	forth all of the following: 24
72		-	(1) The name of the nonprofit corporation. 25
73		-	(2) The street address, and the mailing address if different from the street address, 26
74		-	of the nonprofit corporation's registered office in the State, the county in which 27
75		-	the registered office is located, the name of its registered agent at that office, 28
76		-	and a statement of any change of the registered office or registered agent. 29
77		-	(3) The address of its principal office. 30
78		-	(4) The names, titles, business addresses, and email addresses of at least one 31
	46	+	benefit of the unit owners of one or more condominiums, all provisions of this chapter applicable 34
	47	+	to unit owners' associations apply to any such corporation, (or unincorporated association) 35
	48	+	corporation or limited liability company, except as modified by this section. 36
	49	+	H.B. 993
	50	+	Apr 10, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH40517-NOf-52A
	53	+	… ." 1
	54	+	SECTION 3. G.S. 47C-3-101 reads as rewritten: 2
	55	+	"§ 47C-3-101. Organization of unit owners' association. 3
	56	+	A unit owners' association shall be organized no later than the date the first unit in the 4
	57	+	condominium is conveyed. The membership of the association at all times shall consist 5
	58	+	exclusively of all the unit owners, or following termination of the condominium, of all persons 6
	59	+	entitled to distributions of proceeds under G.S. 47C-2-118. The association shall be organized as 7
	60	+	a profit or business corporation, nonprofit corporation or as an unincorporated nonprofit 8
	61	+	association a limited liability company." 9
	62	+	SECTION 4. Article 3 of Chapter 47C of the General Statutes is amended by adding 10
	63	+	three new sections to read: 11
	64	+	"§ 47C-3-101.1. Annual reporting requirement; nonprofit corporations. 12
	65	+	(a) Requirement. – A unit owners' association organized as a nonprofit corporation shall 13
	66	+	deliver to the Secretary of State for filing annual reports as provided in this section, if the unit 14
	67	+	owners' association exercises at least one of the following powers: 15
	68	+	(1) Collects annual assessments from its members. 16
	69	+	(2) Imposes fines, charges, or other fees in accordance with the powers granted 17
	70	+	by G.S. 47C-3-102. 18
	71	+	(3) Enforces architectural guidelines. 19
	72	+	(b) Form; Required Information. – The Secretary of State shall prescribe for the filing of 20
	73	+	an annual report in an electronic form and electronic means of filing. The annual report shall set 21
	74	+	forth all of the following: 22
	75	+	(1) The name of the nonprofit corporation. 23
	76	+	(2) The street address, and the mailing address if different from the street address, 24
	77	+	of the nonprofit corporation's registered office in the State, the county in which 25
	78	+	the registered office is located, the name of its registered agent at that office, 26
	79	+	and a statement of any change of the registered office or registered agent. 27
	80	+	(3) The address of its principal office. 28
	81	+	(4) The names, titles, business addresses, and email addresses of at least one 29
	82	+	executive board member or officer. 30
	83	+	(5) Contact information for any community management agent hired by the unit 31
	84	+	owners' association. The contact information shall include, at a minimum, the 32
	85	+	name of the management agent and a phone number, email address, and 33
	86	+	mailing address at which the management agent can be contacted. 34
	87	+	(6) An electronic link to the official website of the register of deeds office in 35
	88	+	which the unit owners' association's covenants and declaration are filed. 36
	89	+	(d) Currency of Information. – Information in the annual report shall be current as of the 37
	90	+	date the annual report is executed on behalf of the unit owners' association. 38
	91	+	(e) Due Date. – The first annual report form for a unit owners' association is due to be 39
	92	+	delivered to the Secretary of State by April 15 beginning the year following the incorporation or 40
	93	+	organization of the unit owners' association. Unit owners' associations that are required to submit 41
	94	+	an annual report under this section shall continue to deliver an annual report by April 15 of each 42
	95	+	subsequent year until the condominium it serves is terminated as provided by G.S. 47C-2-118. 43
	96	+	(f) Incomplete Information. – If an annual report does not contain the information 44
	97	+	required by this section, the Secretary of State shall promptly notify the reporting unit owners' 45
	98	+	association in writing and return the report to the association for correction. If the report is 46
	99	+	corrected to contain the information required by this section and submitted to the Secretary of 47
	100	+	State within 30 days after the effective date of notice, it is deemed to be timely filed. 48
	101	+	(g) Amendments. – Amendments to any previously filed annual report may be filed with 49
	102	+	the Secretary of State at any time for the purpose of correcting, updating, or augmenting the 50
	103	+	information contained in the annual report. 51 General Assembly Of North Carolina Session 2025
	104	+	DRH40517-NOf-52A Page 3
	105	+	(h) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 1
	106	+	receive an annual report within 60 days of the date the report is due, the Secretary of State may 2
	107	+	presume that the annual report is delinquent. The Secretary of State's presumption that a report 3
	108	+	is delinquent may be rebutted by evidence of delivery presented by the filing unit owners' 4
	109	+	association. Notwithstanding G.S. 47C-3-102, if a unit owners' association fails to deliver an 5
	110	+	annual report to the Secretary of State in compliance with this section, and the annual report is 6
	111	+	presumed delinquent, the following powers granted to the association are suspended until the 7
	112	+	association corrects the delinquency to the satisfaction of the Secretary of State: 8
	113	+	(1) Collection of assessments for the common expenses from unit owners. 9
	114	+	(2) Imposition and collection of any fees or charges as authorized by 10
	115	+	G.S. 47C-3-102. 11
	116	+	(i) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 12
	117	+	annual report is delinquent as provided by subsection (h) of this section, the Secretary of State 13
	118	+	shall promptly notify the offending unit owners' association in writing. If the offending unit 14
	119	+	owners' association completes an annual report containing all the information required by this 15
	120	+	section and delivers it to the Secretary of State within 30 days after the effective date of the 16
	121	+	notice, the unit owners' association shall immediately regain any powers suspended under 17
	122	+	subsection (h) of this section and shall be allowed to collect and impose any assessments, fees, 18
	123	+	or charges that it was unable to collect or impose during any period of suspension. 19
	124	+	(j) Filing Fee. – Upon submission of the annual report required by this section, the unit 20
	125	+	owner's association shall remit to the Secretary of State a fee in the amount provided by 21
	126	+	G.S. 57D-1-22(a)(28). 22
	127	+	(k) Authority of Attorney General. – The Attorney General may maintain an action to 23
	128	+	restrain a unit owner's association from conducting affairs in violation of this section. " 24
	129	+	"§ 47C-3-101.2. Annual reporting requirement; business corporations. 25
	130	+	(a) Requirement. – A unit owners' association organized as a business corporation shall 26
	131	+	deliver to the Secretary of State for filing annual reports as required by Chapter 55 of the General 27
	132	+	Statutes. The additional provisions of this section apply to the filing of annual reports if the unit 28
	133	+	owners' association exercises at least one of the following powers: 29
	134	+	(1) Collects annual assessments from its members. 30
	135	+	(2) Imposes fines, charges, or other fees in accordance with the powers granted 31
	136	+	by G.S. 47C-3-102. 32
	137	+	(3) Enforces architectural guidelines. 33
	138	+	(b) Additional Required Information. – In addition to the information required under 34
	139	+	G.S. 55-16-22, the annual report shall set forth the following: 35
	140	+	(1) The names, titles, business addresses, and email addresses of at least one 36
	141	+	executive board member or officer. 37
	142	+	(2) Contact information for any community management agent hired by the unit 38
	143	+	owners' association. The contact information shall include, at a minimum, the 39
	144	+	name of the management agent and a phone number, email address, and 40
	145	+	mailing address at which the management agent can be contacted. 41
	146	+	(3) An electronic link to the official website of the register of deeds office in 42
	147	+	which the unit owners' association's covenants and declaration are filed. 43
	148	+	(c) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 44
	149	+	receive an annual report within 60 days of the date the report is due, the Secretary of State may 45
	150	+	presume that the annual report is delinquent. The Secretary of State's presumption that a report 46
	151	+	is delinquent may be rebutted by evidence of delivery presented by the filing unit owners' 47
	152	+	association. Notwithstanding G.S. 47C-3-102, if a unit owners' association to which this section 48
	153	+	applies fails to deliver an annual report to the Secretary of State in compliance with this section, 49
	154	+	and the annual report is presumed delinquent, the following powers granted to the association are 50 General Assembly Of North Carolina Session 2025
	155	+	Page 4 DRH40517-NOf-52A
	156	+	suspended until the association corrects the delinquency to the satisfaction of the Secretary of 1
	157	+	State: 2
	158	+	(1) Collection of assessments for the common expenses from unit owners. 3
	159	+	(2) Imposition and collection of any fees or charges as authorized by 4
	160	+	G.S. 47C-3-102. 5
	161	+	(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 6
	162	+	annual report is delinquent as provided by subsection (c) of this section, the Secretary of State 7
	163	+	shall promptly notify the offending unit owners' association in writing. If the offending unit 8
	164	+	owners' association completes an annual report containing all the information required by this 9
	165	+	section and delivers it to the Secretary of State within 30 days after the effective date of the 10
	166	+	notice, the unit owners' association shall immediately regain any powers suspended under 11
	167	+	subsection (c) of this section and shall be allowed to collect and impose any assessments, fees, 12
	168	+	or charges that it was unable to collect or impose during any period of suspension." 13
	169	+	(e) Filing Fee. – Upon submission of the annual report required by this section, 14
	170	+	notwithstanding G.S. 55-1-22, the unit owner's association shall not remit the fee required by 15
	171	+	G.S. 55-1-22 but shall instead remit to the Secretary of State a fee in the amount provided by 16
	172	+	G.S. 57D-1-22(a)(28). 17
	173	+	(f) Authority of Attorney General. – The Attorney General may maintain an action to 18
	174	+	restrain a unit owner's association from conducting affairs in violation of this section." 19
	175	+	"§ 47C-3-101.3. Annual reporting requirement; limited liability companies. 20
	176	+	(a) Requirement. – A unit owners' association organized as a limited liability company 21
	177	+	shall deliver to the Secretary of State for filing annual reports as required by Chapter 57D of the 22
	178	+	General Statutes. The additional provisions of this section apply to the filing of annual reports if 23
	179	+	the unit owners' association exercises at least one of the following powers: 24
	180	+	(1) Collects annual assessments from its members. 25
	181	+	(2) Imposes fines, charges, or other fees in accordance with the powers granted 26
	182	+	by G.S. 47C-3-102. 27
	183	+	(3) Enforces architectural guidelines. 28
	184	+	(b) Additional Required Information. – In addition to the information required under 29
	185	+	G.S. 57D-2-24, the annual report shall set forth the following: 30
	186	+	(1) The names, titles, business addresses, and email addresses of at least one of 31
79	187		executive board member or officer. 32
80		-	(5) Contact information for any community management agent hired by the unit 33
	188	+	(2) Contact information for any community management agent hired by the unit 33
81	189		owners' association. The contact information shall include, at a minimum, the 34
82	190		name of the management agent and a phone number, email address, and 35
83	191		mailing address at which the management agent can be contacted. 36
84		-	(6) An electronic link to the official website of the register of deeds office in 37
	192	+	(3) An electronic link to the official website of the register of deeds office in 37
85	193		which the unit owners' association's covenants and declaration are filed. 38
86		-	(d) Currency of Information. – Information in the annual report shall be current as of the 39
87		-	date the annual report is executed on behalf of the unit owners' association. 40
88		-	(e) Due Date. – The first annual report form for a unit owners' association is due to be 41
89		-	delivered to the Secretary of State by April 15 beginning the year following the incorporation or 42
90		-	organization of the unit owners' association. Unit owners' associations that are required to submit 43
91		-	an annual report under this section shall continue to deliver an annual report by April 15 of each 44
92		-	subsequent year until the condominium it serves is terminated as provided by G.S. 47C-2-118. 45
93		-	(f) Incomplete Information. – If an annual report does not contain the information 46
94		-	required by this section, the Secretary of State shall promptly notify the reporting unit owners' 47
95		-	association in writing and return the report to the association for correction. If the report is 48
96		-	corrected to contain the information required by this section and submitted to the Secretary of 49
97		-	State within 30 days after the effective date of notice, it is deemed to be timely filed. 50 General Assembly Of North Carolina Session 2025
98		-	House Bill 993-First Edition Page 3
99		-	(g) Amendments. – Amendments to any previously filed annual report may be filed with 1
100		-	the Secretary of State at any time for the purpose of correcting, updating, or augmenting the 2
101		-	information contained in the annual report. 3
102		-	(h) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 4
103		-	receive an annual report within 60 days of the date the report is due, the Secretary of State may 5
104		-	presume that the annual report is delinquent. The Secretary of State's presumption that a report 6
105		-	is delinquent may be rebutted by evidence of delivery presented by the filing unit owners' 7
106		-	association. Notwithstanding G.S. 47C-3-102, if a unit owners' association fails to deliver an 8
107		-	annual report to the Secretary of State in compliance with this section, and the annual report is 9
108		-	presumed delinquent, the following powers granted to the association are suspended until the 10
109		-	association corrects the delinquency to the satisfaction of the Secretary of State: 11
110		-	(1) Collection of assessments for the common expenses from unit owners. 12
111		-	(2) Imposition and collection of any fees or charges as authorized by 13
112		-	G.S. 47C-3-102. 14
113		-	(i) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 15
114		-	annual report is delinquent as provided by subsection (h) of this section, the Secretary of State 16
115		-	shall promptly notify the offending unit owners' association in writing. If the offending unit 17
116		-	owners' association completes an annual report containing all the information required by this 18
117		-	section and delivers it to the Secretary of State within 30 days after the effective date of the 19
118		-	notice, the unit owners' association shall immediately regain any powers suspended under 20
119		-	subsection (h) of this section and shall be allowed to collect and impose any assessments, fees, 21
120		-	or charges that it was unable to collect or impose during any period of suspension. 22
121		-	(j) Filing Fee. – Upon submission of the annual report required by this section, the unit 23
122		-	owner's association shall remit to the Secretary of State a fee in the amount provided by 24
123		-	G.S. 57D-1-22(a)(28). 25
124		-	(k) Authority of Attorney General. – The Attorney General may maintain an action to 26
125		-	restrain a unit owner's association from conducting affairs in violation of this section. " 27
126		-	"§ 47C-3-101.2. Annual reporting requirement; business corporations. 28
127		-	(a) Requirement. – A unit owners' association organized as a business corporation shall 29
128		-	deliver to the Secretary of State for filing annual reports as required by Chapter 55 of the General 30
129		-	Statutes. The additional provisions of this section apply to the filing of annual reports if the unit 31
130		-	owners' association exercises at least one of the following powers: 32
131		-	(1) Collects annual assessments from its members. 33
132		-	(2) Imposes fines, charges, or other fees in accordance with the powers granted 34
133		-	by G.S. 47C-3-102. 35
134		-	(3) Enforces architectural guidelines. 36
135		-	(b) Additional Required Information. – In addition to the information required under 37
136		-	G.S. 55-16-22, the annual report shall set forth the following: 38
137		-	(1) The names, titles, business addresses, and email addresses of at least one 39
138		-	executive board member or officer. 40
139		-	(2) Contact information for any community management agent hired by the unit 41
140		-	owners' association. The contact information shall include, at a minimum, the 42
141		-	name of the management agent and a phone number, email address, and 43
142		-	mailing address at which the management agent can be contacted. 44
143		-	(3) An electronic link to the official website of the register of deeds office in 45
144		-	which the unit owners' association's covenants and declaration are filed. 46
145		-	(c) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 47
146		-	receive an annual report within 60 days of the date the report is due, the Secretary of State may 48
147		-	presume that the annual report is delinquent. The Secretary of State's presumption that a report 49
148		-	is delinquent may be rebutted by evidence of delivery presented by the filing unit owners' 50
149		-	association. Notwithstanding G.S. 47C-3-102, if a unit owners' association to which this section 51 General Assembly Of North Carolina Session 2025
150		-	Page 4 House Bill 993-First Edition
151		-	applies fails to deliver an annual report to the Secretary of State in compliance with this section, 1
152		-	and the annual report is presumed delinquent, the following powers granted to the association are 2
153		-	suspended until the association corrects the delinquency to the satisfaction of the Secretary of 3
154		-	State: 4
155		-	(1) Collection of assessments for the common expenses from unit owners. 5
156		-	(2) Imposition and collection of any fees or charges as authorized by 6
157		-	G.S. 47C-3-102. 7
158		-	(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 8
159		-	annual report is delinquent as provided by subsection (c) of this section, the Secretary of State 9
160		-	shall promptly notify the offending unit owners' association in writing. If the offending unit 10
161		-	owners' association completes an annual report containing all the information required by this 11
162		-	section and delivers it to the Secretary of State within 30 days after the effective date of the 12
163		-	notice, the unit owners' association shall immediately regain any powers suspended under 13
164		-	subsection (c) of this section and shall be allowed to collect and impose any assessments, fees, 14
165		-	or charges that it was unable to collect or impose during any period of suspension." 15
166		-	(e) Filing Fee. – Upon submission of the annual report required by this section, 16
167		-	notwithstanding G.S. 55-1-22, the unit owner's association shall not remit the fee required by 17
168		-	G.S. 55-1-22 but shall instead remit to the Secretary of State a fee in the amount provided by 18
169		-	G.S. 57D-1-22(a)(28). 19
170		-	(f) Authority of Attorney General. – The Attorney General may maintain an action to 20
171		-	restrain a unit owner's association from conducting affairs in violation of this section." 21
172		-	"§ 47C-3-101.3. Annual reporting requirement; limited liability companies. 22
173		-	(a) Requirement. – A unit owners' association organized as a limited liability company 23
174		-	shall deliver to the Secretary of State for filing annual reports as required by Chapter 57D of the 24
175		-	General Statutes. The additional provisions of this section apply to the filing of annual reports if 25
176		-	the unit owners' association exercises at least one of the following powers: 26
177		-	(1) Collects annual assessments from its members. 27
178		-	(2) Imposes fines, charges, or other fees in accordance with the powers granted 28
179		-	by G.S. 47C-3-102. 29
180		-	(3) Enforces architectural guidelines. 30
181		-	(b) Additional Required Information. – In addition to the information required under 31
182		-	G.S. 57D-2-24, the annual report shall set forth the following: 32
183		-	(1) The names, titles, business addresses, and email addresses of at least one of 33
184		-	executive board member or officer. 34
185		-	(2) Contact information for any community management agent hired by the unit 35
186		-	owners' association. The contact information shall include, at a minimum, the 36
187		-	name of the management agent and a phone number, email address, and 37
188		-	mailing address at which the management agent can be contacted. 38
189		-	(3) An electronic link to the official website of the register of deeds office in 39
190		-	which the unit owners' association's covenants and declaration are filed. 40
191		-	(c) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 41
192		-	receive an annual report within 60 days of the date the report is due, the Secretary of State may 42
193		-	presume that the annual report is delinquent. The Secretary of State's presumption that a report 43
194		-	is delinquent may be rebutted by evidence of delivery presented by the filing unit owners' 44
195		-	association. Notwithstanding G.S. 47C-3-102, if a unit owners' association to which this section 45
196		-	applies fails to deliver an annual report to the Secretary of State in compliance with this section, 46
197		-	and the annual report is presumed delinquent, the following powers granted to the association are 47
198		-	suspended until the association corrects the delinquency to the satisfaction of the Secretary of 48
199		-	State: 49
200		-	(1) Collection of assessments for the common expenses from unit owners. 50 General Assembly Of North Carolina Session 2025
201		-	House Bill 993-First Edition Page 5
202		-	(2) Imposition and collection of any fees or charges as authorized by 1
203		-	G.S. 47C-3-102. 2
204		-	(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 3
205		-	annual report is delinquent as provided by subsection (c) of this section, the Secretary of State 4
206		-	shall promptly notify the offending unit owners' association in writing. If the offending unit 5
207		-	owners' association completes an annual report containing all the information required by this 6
208		-	section and delivers it to the Secretary of State within 30 days after the effective date of the 7
209		-	notice, the unit owners' association shall immediately regain any powers suspended under 8
210		-	subsection (c) of this section and shall be allowed to collect and impose any assessments, fees, 9
211		-	or charges that it was unable to collect or impose during any period of suspension. 10
212		-	(e) Authority of Attorney General. – The Attorney General may maintain an action to 11
213		-	restrain a unit owner's association from conducting affairs in violation of this section." 12
214		-	SECTION 5. G.S. 47C-3-102 reads as rewritten: 13
215		-	"§ 47C-3-102. Powers of unit owners' association. 14
216		-	(a) Unless the articles of incorporation or articles of organization or the declaration 15
217		-	expressly provides to the contrary, the association, even if unincorporated, association may do 16
218		-	all of the following: 17
219		-	…." 18
220		-	SECTION 6. G.S. 47F-1-102 reads as rewritten: 19
221		-	"§ 47F-1-102. Applicability. 20
222		-	… 21
223		-	(c) Notwithstanding subsection (a) of this section, G.S. 47F-1-104 (Variation), 22
224		-	G.S. 47F-2-103 (Construction and validity of declaration and bylaws), G.S. 47F-2-117 23
225		-	(Amendment of declaration), G.S. 47F-3-102(1) through (6) and (11) through (17) (Powers of 24
226		-	owners' association), G.S. 47F-3-103(f) (Executive board members and officers), 25
227		-	G.S. 47F-3-104 (Transfer of special declarant rights), G.S. 47F-3-107(a), (b), and (c) (Upkeep of 26
228		-	planned community; responsibility and assessments for damages), G.S. 47F-3-107.1 (Procedures 27
229		-	for fines and suspension of planned community privileges or services), G.S. 47F-3-108 28
230		-	(Meetings), G.S. 47F-3-115 (Assessments for common expenses), G.S. 47F-3-116 (Lien for 29
231		-	sums due the association; enforcement), G.S. 47F-3-118 (Association records), and 30
232		-	G.S. 47F-3-121 (American and State flags and political sign displays) apply to all planned 31
233		-	communities created in this State before January 1, 1999, unless the articles of incorporation 32
234		-	incorporation or articles of organization or the declaration expressly provides to the contrary, and 33
235		-	G.S. 47F-3-120 (Declaration limits on attorneys' fees) applies to all planned communities created 34
236		-	in this State before January 1, 1999. These sections apply only with respect to events and 35
237		-	circumstances occurring on or after January 1, 1999, and do not invalidate existing provisions of 36
238		-	the declaration, bylaws, or plats and plans of those planned communities. G.S. 47F-1-103 37
239		-	(Definitions) also applies to all planned communities created in this State before January 1, 1999, 38
240		-	to the extent necessary in construing any of the preceding sections. 39
241		-	… ." 40
242		-	SECTION 7. G.S. 47F-1-104 reads as rewritten: 41
243		-	"§ 47F-1-104. Variation. 42
244		-	(a) Except as specifically provided in specific sections of this Chapter, the provisions of 43
245		-	this Chapter may not be varied by the declaration or bylaws. To the extent not inconsistent with 44
246		-	the provisions of this Chapter, the declaration, bylaws, and articles of incorporation or articles of 45
247		-	organization form the basis for the legal authority for the planned community to act as provided 46
248		-	in the declaration, bylaws, and articles of incorporation, incorporation or articles of organization, 47
249		-	and the declaration, bylaws, and articles of incorporation or articles of organization are 48
250		-	enforceable by their terms. 49
251		-	… ." 50
252		-	SECTION 8. G.S. 47F-2-103 reads as rewritten: 51 General Assembly Of North Carolina Session 2025
253		-	Page 6 House Bill 993-First Edition
254		-	"§ 47F-2-103. Construction and validity of declaration and bylaws. 1
255		-	(a) To the extent not inconsistent with the provisions of this Chapter, the declaration, 2
256		-	bylaws, and articles of incorporation or articles of organization form the basis for the legal 3
257		-	authority for the planned community to act as provided in the declaration, bylaws, and articles of 4
258		-	incorporation, incorporation or articles of organization, and the declaration, bylaws, and articles 5
259		-	of incorporation or articles of organization are enforceable by their terms. All provisions of the 6
260		-	declaration and bylaws are severable. 7
261		-	… ." 8
262		-	SECTION 9. G.S. 47F-3-101 reads as rewritten: 9
263		-	"§ 47F-3-101. Organization of owners' association. 10
264		-	A lot owners' association shall be incorporated organized no later than the date the first lot in 11
265		-	the planned community is conveyed. The membership of the association at all times shall consist 12
266		-	exclusively of all the lot owners or, following termination of the planned community, of all 13
267		-	persons entitled to distributions of proceeds under G.S. 47F-2-118. Every association created 14
268		-	after the effective date of this Chapter shall be organized as a nonprofit corporation. business 15
269		-	corporation, nonprofit corporation, or as a limited liability company." 16
270		-	SECTION 10. Article 3 of Chapter 47F of the General Statutes is amended by adding 17
271		-	three new sections to read: 18
272		-	"§ 47F-3-101.1. Annual reporting requirement; nonprofit corporations. 19
273		-	(a) Requirement. – A lot owners' association organized as a nonprofit corporation shall 20
274		-	deliver to the Secretary of State for filing annual reports as provided in this section, if the lot 21
275		-	owners' association exercises at least one of the following powers: 22
276		-	(1) Collects annual assessments from its members. 23
277		-	(2) Imposes fines, charges, or other fees in accordance with the powers granted 24
278		-	by G.S. 47F-3-102. 25
279		-	(3) Enforces architectural guidelines. 26
280		-	(b) Form; Required Information. – The Secretary of State shall prescribe for the filing of 27
281		-	an annual report in an electronic form and electronic means of filing. The annual report shall set 28
282		-	forth at least all of the following: 29
283		-	(1) The name of the nonprofit corporation. 30
284		-	(2) The street address, and the mailing address if different from the street address, 31
285		-	of the nonprofit corporation's registered office in the State, the county in which 32
286		-	the registered office is located, the name of its registered agent at that office, 33
287		-	and a statement of any change of the registered office or registered agent. 34
288		-	(3) The address of its principal office. 35
289		-	(4) The names, titles, business addresses, and email addresses of at least one 36
290		-	executive board member or officer. 37
291		-	(5) Contact information for any community management agent hired by the lot 38
292		-	owners' association. The contact information shall include, at a minimum, the 39
293		-	name of the management agent and a phone number, email address, and 40
294		-	mailing address at which the management agent can be contacted. 41
295		-	(6) An electronic link to the official website of the register of deeds office in 42
296		-	which the lot owners' association's covenants and declaration is filed. 43
297		-	(d) Currency of Information. – Information in the annual report shall be current as of the 44
298		-	date the annual report is executed on behalf of the lot owners' association. 45
299		-	(e) Due Date. – The first annual report form for a lot owners' association is due to be 46
300		-	delivered to the Secretary of State by April 15 beginning the year following the incorporation or 47
301		-	organization of the lot owners' association. Lot owners' associations that are required to submit 48
302		-	an annual report under this section shall continue to deliver an annual report by April 15 of each 49
303		-	subsequent year until the planned community it serves is terminated as provided by 50
304		-	G.S. 47F-2-118. 51 General Assembly Of North Carolina Session 2025
305		-	House Bill 993-First Edition Page 7
	194	+	(c) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 39
	195	+	receive an annual report within 60 days of the date the report is due, the Secretary of State may 40
	196	+	presume that the annual report is delinquent. The Secretary of State's presumption that a report 41
	197	+	is delinquent may be rebutted by evidence of delivery presented by the filing unit owners' 42
	198	+	association. Notwithstanding G.S. 47C-3-102, if a unit owners' association to which this section 43
	199	+	applies fails to deliver an annual report to the Secretary of State in compliance with this section, 44
	200	+	and the annual report is presumed delinquent, the following powers granted to the association are 45
	201	+	suspended until the association corrects the delinquency to the satisfaction of the Secretary of 46
	202	+	State: 47
	203	+	(1) Collection of assessments for the common expenses from unit owners. 48
	204	+	(2) Imposition and collection of any fees or charges as authorized by 49
	205	+	G.S. 47C-3-102. 50 General Assembly Of North Carolina Session 2025
	206	+	DRH40517-NOf-52A Page 5
	207	+	(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 1
	208	+	annual report is delinquent as provided by subsection (c) of this section, the Secretary of State 2
	209	+	shall promptly notify the offending unit owners' association in writing. If the offending unit 3
	210	+	owners' association completes an annual report containing all the information required by this 4
	211	+	section and delivers it to the Secretary of State within 30 days after the effective date of the 5
	212	+	notice, the unit owners' association shall immediately regain any powers suspended under 6
	213	+	subsection (c) of this section and shall be allowed to collect and impose any assessments, fees, 7
	214	+	or charges that it was unable to collect or impose during any period of suspension. 8
	215	+	(e) Authority of Attorney General. – The Attorney General may maintain an action to 9
	216	+	restrain a unit owner's association from conducting affairs in violation of this section." 10
	217	+	SECTION 5. G.S. 47C-3-102 reads as rewritten: 11
	218	+	"§ 47C-3-102. Powers of unit owners' association. 12
	219	+	(a) Unless the articles of incorporation or articles of organization or the declaration 13
	220	+	expressly provides to the contrary, the association, even if unincorporated, association may do 14
	221	+	all of the following: 15
	222	+	…." 16
	223	+	SECTION 6. G.S. 47F-1-102 reads as rewritten: 17
	224	+	"§ 47F-1-102. Applicability. 18
	225	+	… 19
	226	+	(c) Notwithstanding subsection (a) of this section, G.S. 47F-1-104 (Variation), 20
	227	+	G.S. 47F-2-103 (Construction and validity of declaration and bylaws), G.S. 47F-2-117 21
	228	+	(Amendment of declaration), G.S. 47F-3-102(1) through (6) and (11) through (17) (Powers of 22
	229	+	owners' association), G.S. 47F-3-103(f) (Executive board members and officers), 23
	230	+	G.S. 47F-3-104 (Transfer of special declarant rights), G.S. 47F-3-107(a), (b), and (c) (Upkeep of 24
	231	+	planned community; responsibility and assessments for damages), G.S. 47F-3-107.1 (Procedures 25
	232	+	for fines and suspension of planned community privileges or services), G.S. 47F-3-108 26
	233	+	(Meetings), G.S. 47F-3-115 (Assessments for common expenses), G.S. 47F-3-116 (Lien for 27
	234	+	sums due the association; enforcement), G.S. 47F-3-118 (Association records), and 28
	235	+	G.S. 47F-3-121 (American and State flags and political sign displays) apply to all planned 29
	236	+	communities created in this State before January 1, 1999, unless the articles of incorporation 30
	237	+	incorporation or articles of organization or the declaration expressly provides to the contrary, and 31
	238	+	G.S. 47F-3-120 (Declaration limits on attorneys' fees) applies to all planned communities created 32
	239	+	in this State before January 1, 1999. These sections apply only with respect to events and 33
	240	+	circumstances occurring on or after January 1, 1999, and do not invalidate existing provisions of 34
	241	+	the declaration, bylaws, or plats and plans of those planned communities. G.S. 47F-1-103 35
	242	+	(Definitions) also applies to all planned communities created in this State before January 1, 1999, 36
	243	+	to the extent necessary in construing any of the preceding sections. 37
	244	+	… ." 38
	245	+	SECTION 7. G.S. 47F-1-104 reads as rewritten: 39
	246	+	"§ 47F-1-104. Variation. 40
	247	+	(a) Except as specifically provided in specific sections of this Chapter, the provisions of 41
	248	+	this Chapter may not be varied by the declaration or bylaws. To the extent not inconsistent with 42
	249	+	the provisions of this Chapter, the declaration, bylaws, and articles of incorporation or articles of 43
	250	+	organization form the basis for the legal authority for the planned community to act as provided 44
	251	+	in the declaration, bylaws, and articles of incorporation, incorporation or articles of organization, 45
	252	+	and the declaration, bylaws, and articles of incorporation or articles of organization are 46
	253	+	enforceable by their terms. 47
	254	+	… ." 48
	255	+	SECTION 8. G.S. 47F-2-103 reads as rewritten: 49
	256	+	"§ 47F-2-103. Construction and validity of declaration and bylaws. 50 General Assembly Of North Carolina Session 2025
	257	+	Page 6 DRH40517-NOf-52A
	258	+	(a) To the extent not inconsistent with the provisions of this Chapter, the declaration, 1
	259	+	bylaws, and articles of incorporation or articles of organization form the basis for the legal 2
	260	+	authority for the planned community to act as provided in the declaration, bylaws, and articles of 3
	261	+	incorporation, incorporation or articles of organization, and the declaration, bylaws, and articles 4
	262	+	of incorporation or articles of organization are enforceable by their terms. All provisions of the 5
	263	+	declaration and bylaws are severable. 6
	264	+	… ." 7
	265	+	SECTION 9. G.S. 47F-3-101 reads as rewritten: 8
	266	+	"§ 47F-3-101. Organization of owners' association. 9
	267	+	A lot owners' association shall be incorporated organized no later than the date the first lot in 10
	268	+	the planned community is conveyed. The membership of the association at all times shall consist 11
	269	+	exclusively of all the lot owners or, following termination of the planned community, of all 12
	270	+	persons entitled to distributions of proceeds under G.S. 47F-2-118. Every association created 13
	271	+	after the effective date of this Chapter shall be organized as a nonprofit corporation. business 14
	272	+	corporation, nonprofit corporation, or as a limited liability company." 15
	273	+	SECTION 10. Article 3 of Chapter 47F of the General Statutes is amended by adding 16
	274	+	three new sections to read: 17
	275	+	"§ 47F-3-101.1. Annual reporting requirement; nonprofit corporations. 18
	276	+	(a) Requirement. – A lot owners' association organized as a nonprofit corporation shall 19
	277	+	deliver to the Secretary of State for filing annual reports as provided in this section, if the lot 20
	278	+	owners' association exercises at least one of the following powers: 21
	279	+	(1) Collects annual assessments from its members. 22
	280	+	(2) Imposes fines, charges, or other fees in accordance with the powers granted 23
	281	+	by G.S. 47F-3-102. 24
	282	+	(3) Enforces architectural guidelines. 25
	283	+	(b) Form; Required Information. – The Secretary of State shall prescribe for the filing of 26
	284	+	an annual report in an electronic form and electronic means of filing. The annual report shall set 27
	285	+	forth at least all of the following: 28
	286	+	(1) The name of the nonprofit corporation. 29
	287	+	(2) The street address, and the mailing address if different from the street address, 30
	288	+	of the nonprofit corporation's registered office in the State, the county in which 31
	289	+	the registered office is located, the name of its registered agent at that office, 32
	290	+	and a statement of any change of the registered office or registered agent. 33
	291	+	(3) The address of its principal office. 34
	292	+	(4) The names, titles, business addresses, and email addresses of at least one 35
	293	+	executive board member or officer. 36
	294	+	(5) Contact information for any community management agent hired by the lot 37
	295	+	owners' association. The contact information shall include, at a minimum, the 38
	296	+	name of the management agent and a phone number, email address, and 39
	297	+	mailing address at which the management agent can be contacted. 40
	298	+	(6) An electronic link to the official website of the register of deeds office in 41
	299	+	which the lot owners' association's covenants and declaration is filed. 42
	300	+	(d) Currency of Information. – Information in the annual report shall be current as of the 43
	301	+	date the annual report is executed on behalf of the lot owners' association. 44
	302	+	(e) Due Date. – The first annual report form for a lot owners' association is due to be 45
	303	+	delivered to the Secretary of State by April 15 beginning the year following the incorporation or 46
	304	+	organization of the lot owners' association. Lot owners' associations that are required to submit 47
	305	+	an annual report under this section shall continue to deliver an annual report by April 15 of each 48
	306	+	subsequent year until the planned community it serves is terminated as provided by 49
	307	+	G.S. 47F-2-118. 50 General Assembly Of North Carolina Session 2025
	308	+	DRH40517-NOf-52A Page 7
306	309		(f) Incomplete Information. – If an annual report does not contain the information 1
307	310		required by this section, the Secretary of State shall promptly notify the reporting lot owners' 2
308	311		association in writing and return the report to the association for correction. If the report is 3
309	312		corrected to contain the information required by this section and submitted to the Secretary of 4
310	313		State within 30 days after the effective date of notice, it is deemed to be timely filed. 5
311	314		(g) Amendments. – Amendments to any previously filed annual report may be filed with 6
312	315		the Secretary of State at any time for the purpose of correcting, updating, or augmenting the 7
313	316		information contained in the annual report. 8
314	317		(h) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 9
315	318		receive an annual report within 60 days of the date the report is due, the Secretary of State may 10
316	319		presume that the annual report is delinquent. The Secretary of State's presumption that a report 11
317	320		is delinquent may be rebutted by evidence of delivery presented by the filing lot owners' 12
318	321		association. Notwithstanding G.S. 47F-3-102, if a lot owners' association fails to deliver an 13
319	322		annual report to the Secretary of State in compliance with this section, and the annual report is 14
320	323		presumed delinquent, the following powers granted to the association are suspended until the 15
321	324		association corrects the delinquency to the satisfaction of the Secretary of State: 16
322	325		(1) Collection of assessments for the common expenses from unit owners. 17
323	326		(2) Imposition and collection of any fees or charges as authorized by 18
324	327		G.S. 47F-3-102. 19
325	328		(i) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 20
326	329		annual report is delinquent as provided by subsection (h) of this section, the Secretary of State 21
327	330		shall promptly notify the offending lot owners' association in writing. If the offending lot owners' 22
328	331		association completes an annual report containing all the information required by this section and 23
329	332		delivers it to the Secretary of State within 30 days after the effective date of the notice, the lot 24
330	333		owners' association shall immediately regain any powers suspended under subsection (h) of this 25
331	334		section and shall be allowed to collect and impose any assessments, fees, or charges that it was 26
332	335		unable to collect or impose during any period of suspension. 27
333	336		(j) Filing Fee. – Upon submission of the annual report required by this section, the lot 28
334	337		owner's association shall remit to the Secretary of State a fee in the amount provided by 29
335	338		G.S. 57D-1-22(a)(28). 30
336	339		(k) Authority of Attorney General. – The Attorney General may maintain an action to 31
337	340		restrain a lot owner's association from conducting affairs in violation of this section." 32
338	341		"§ 47F-3-101.2. Annual reporting requirement; business corporations. 33
339	342		(a) Requirement. – A lot owners' association organized as a business corporation shall 34
340	343		deliver to the Secretary of State for filing annual reports as required by Chapter 55 of the General 35
341	344		Statutes. The additional provisions of this section apply to the filing of annual reports if the lot 36
342	345		owners' association exercises at least one of the following powers: 37
343	346		(1) Collects annual assessments from its members. 38
344	347		(2) Imposes fines, charges, or other fees in accordance with the powers granted 39
345	348		by G.S. 47F-3-102. 40
346	349		(3) Enforces architectural guidelines. 41
347	350		(b) Additional Required Information. – In addition to the information required under 42
348	351		G.S. 55-16-22, the annual report shall set forth the following: 43
349	352		(1) The names, titles, business addresses, and email addresses of at least one of 44
350	353		executive board member or officer. 45
351	354		(2) Contact information for any community management agent hired by the lot 46
352	355		owners' association. The contact information shall include, at a minimum, the 47
353	356		name of the management agent and a phone number, email address, and 48
354	357		mailing address at which the management agent can be contacted. 49
355	358		(3) An electronic link to the official website of the register of deeds office in 50
356	359		which the lot owners' association's covenants and declaration are filed. 51 General Assembly Of North Carolina Session 2025
357		-	Page 8 ~~House Bill 993-First Edition~~
	360	+	Page 8 DRH40517-NOf-52A
358	361		(c) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 1
359	362		receive an annual report within 60 days of the date the report is due, the Secretary of State may 2
360	363		presume that the annual report is delinquent. The Secretary of State's presumption that a report 3
361	364		is delinquent may be rebutted by evidence of delivery presented by the filing lot owners' 4
362	365		association. Notwithstanding G.S. 47F-3-102, if a lot owners' association fails to deliver an 5
363	366		annual report to the Secretary of State in compliance with this section, and the annual report is 6
364	367		presumed delinquent, the following powers granted to the association are suspended until the 7
365	368		association corrects the delinquency to the satisfaction of the Secretary of State: 8
366	369		(1) Collection of assessments for the common expenses from lot owners. 9
367	370		(2) Imposition and collection of any fees or charges as authorized by 10
368	371		G.S. 47F-3-102. 11
369	372		(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 12
370	373		annual report is delinquent as provided by subsection (c) of this section, the Secretary of State 13
371	374		shall promptly notify the offending lot owners' association in writing. If the offending lot owners' 14
372	375		association completes an annual report containing all the information required by this section and 15
373	376		delivers it to the Secretary of State within 30 days after the effective date of the notice, the lot 16
374	377		owners' association shall immediately regain any powers suspended under subsection (c) of this 17
375	378		section and shall be allowed to collect and impose any assessments, fees, or charges that it was 18
376	379		unable to collect or impose during any period of suspension." 19
377	380		(e) Filing Fee. – Upon submission of the annual report required by this section, 20
378	381		notwithstanding G.S. 55-1-22, the lot owner's association shall not remit the fee required by 21
379	382		G.S. 55-1-22 but shall instead remit to the Secretary of State a fee in the amount provided by 22
380	383		G.S. 57D-1-22(a)(28). 23
381	384		(f) Authority of Attorney General. – The Attorney General may maintain an action to 24
382	385		restrain a lot owner's association from conducting affairs in violation of this section." 25
383	386		"§ 47F-3-101.3. Annual reporting requirement; limited liability companies. 26
384	387		(a) Requirement. – A lot owners' association organized as a limited liability company 27
385	388		shall deliver to the Secretary of State for filing annual reports as required by Chapter 57D of the 28
386	389		General Statutes. The additional provisions of this section apply to the filing of annual reports if 29
387	390		the lot owners' association exercises at least one of the following powers: 30
388	391		(1) Collects annual assessments from its members. 31
389	392		(2) Imposes fines, charges, or other fees in accordance with the powers granted 32
390	393		by G.S. 47F-3-102. 33
391	394		(3) Enforces architectural guidelines. 34
392	395		(b) Additional Required Information. – In addition to the information required under 35
393	396		G.S. 57D-2-24, the annual report shall set forth the following: 36
394	397		(1) The names, titles, business addresses, and email addresses of at least one 37
395	398		executive board member or officer. 38
396	399		(2) Contact information for any community management agent hired by the lot 39
397	400		owners' association. The contact information shall include, at a minimum, the 40
398	401		name of the management agent and a phone number, email address, and 41
399	402		mailing address at which the management agent can be contacted. 42
400	403		(3) An electronic link to the official website of the register of deeds office in 43
401	404		which the lot owners' association's covenants and declaration are filed. 44
402	405		(c) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 45
403	406		receive an annual report within 60 days of the date the report is due, the Secretary of State may 46
404	407		presume that the annual report is delinquent. The Secretary of State's presumption that a report 47
405	408		is delinquent may be rebutted by evidence of delivery presented by the filing lot owners' 48
406	409		association. Notwithstanding G.S. 47F-3-102, if a lot owners' association fails to deliver an 49
407	410		annual report to the Secretary of State in compliance with this section, and the annual report is 50 General Assembly Of North Carolina Session 2025
408		-	~~House Bill 993-First Edition~~ Page 9
	411	+	DRH40517-NOf-52A Page 9
409	412		presumed delinquent, the following powers granted to the association are suspended until the 1
410	413		association corrects the delinquency to the satisfaction of the Secretary of State: 2
411	414		(1) Collection of assessments for the common expenses from lot owners. 3
412	415		(2) Imposition and collection of any fees or charges as authorized by 4
413	416		G.S. 47F-3-102. 5
414	417		(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 6
415	418		annual report is delinquent as provided by subsection (c) of this section, the Secretary of State 7
416	419		shall promptly notify the offending lot owners' association in writing. If the offending lot owners' 8
417	420		association completes an annual report containing all the information required by this section and 9
418	421		delivers it to the Secretary of State within 30 days after the effective date of the notice, the lot 10
419	422		owners' association shall immediately regain any powers suspended under subsection (c) of this 11
420	423		section and shall be allowed to collect and impose any assessments, fees, or charges that it was 12
421	424		unable to collect or impose during any period of suspension. 13
422	425		(e) Authority of Attorney General. – The Attorney General may maintain an action to 14
423	426		restrain a lot owner's association from conducting affairs in violation of this section." 15
424	427		SECTION 11. G.S. 47F-3-102 reads as rewritten: 16
425	428		"§ 47F-3-102. Powers of owners' association. 17
426	429		Unless the articles of incorporation incorporation or articles of organization or the declaration 18
427	430		expressly provides to the contrary, the association may do all of the following: 19
428	431		… ." 20
429	432		SECTION 12. G.S. 47F-3-120 reads as rewritten: 21
430	433		"§ 47F-3-120. Declaration limits on attorneys' fees. 22
431	434		Except as provided in G.S. 47F-3-116, in an action to enforce provisions of the articles of 23
432	435		incorporation, incorporation or articles of organization, the declaration, bylaws, or duly adopted 24
433	436		rules or regulations, the court may award reasonable attorneys' fees to the prevailing party if 25
434	437		recovery of attorneys' fees is allowed in the declaration." 26
435	438		SECTION 13. This act becomes effective October 1, 2026 and applies to annual 27
436	439		reports due beginning in 2027. 28