Voluntary mediation
House Bill 278 became effective July 1. This bill provides for voluntary mediation of disputes between an owner and the HOA in order to avoid litigation. The mediation is not mandatory, but if the parties choose to mediate, the legislation provides a framework for the process.
New clarity
Senate Bill 228 overturns North Carolina case law that limited the extent to which HOAs can amend their declarations of conditions, covenants, and restrictions. As of Oct. 1, amendments to declarations adopted using the statutory procedure set forth in either the NC Condominium Act or Planned Community Act are presumed to be valid.
Changes in foreclosure
Finally, House Bill 331 provides for some of the most significant changes with regard to HOA foreclosures. Beginning with foreclosures filed after Oct. 1, a trustee will now be appointed by the HOA to conduct the foreclosure. The HOA foreclosure process will be essentially the same as mortgage foreclosures.