HOA Organization and Reporting Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 993

Short Title: HOA Organization and Reporting Act. (Public)
Sponsors: Representatives Budd, Iler, and Liu (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
April 14, 2025
*H993-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REQUIRE LO T OWNERS' ASSOCIATIO NS AND UNIT OWNERS' 2
ASSOCIATIONS TO INCO RPORATE OR ORGANIZE AS CORPORATIONS OR 3
LIMITED LIABILITY CO MPANIES AND SUBMIT A NNUAL REPORTS TO THE 4
NORTH CAROLINA SECRETARY OF STATE. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. G.S. 47C-1-102 reads as rewritten: 7
"§ 47C-1-102. Applicability. 8
(a) This Chapter applies to all condominiums created within this State after October 1, 9
1986. In addition, the following sections apply to all condominiums created in this State on or 10
before October 1, 1986, notwithstanding any conflicting provisions in the ar ticles of 11
incorporation, incorporation or articles of organization, the declaration, or the bylaws and 12
notwithstanding any references in those documents to Chapter 47A of the General Statutes: 13
G.S. 47C-1-105 (Separate Titles and Taxation), 47C -1-106 (Applicability of Local Ordinances, 14
Regulations, and Building Codes), 47C-1-107 (Eminent Domain), 47C-2-103 (Construction and 15
Validity of Declaration and Bylaws), 47C -2-104 (Description of Units), 47C -2-121 (Merger or 16
Consolidation of Condominiums), 47C-3-102(a)(1) through (6) and (11) through (16)(Powers of 17
Unit Owners' Association), 47C -3-103 (Executive board members and officers), 47C -3-107.1 18
(Procedures for fines and suspension of condominium privileges or services), 47C -3-108 19
(Meetings), 47C-3-111 (Tort and Contract Liability), 47C-3-112 (Conveyance or Encumbrance 20
of Common Elements), 47C -3-116 (Lien for Assessments), 47C -3-118 (Association Records), 21
47C-3-121 (American and State flags and political sign displays), and 47C -4-117 (Effect of 22
Violation on Rights of Action; Attorney's Fees). These sections apply only with respect to events 23
and circumstances occurring after October 1, 1986. G.S. 47C-1-103 (Definitions) also applies to 24
all condominiums created in this State on or before October 1, 1986, to the exten t necessary in 25
construing any of the sections referenced in this subsection. 26
… ." 27
SECTION 2. G.S. 47C-2-120 reads as rewritten: 28
"§ 47C-2-120. Master associations. 29
(a) If the declaration for a condominium provides that any of the powers described in 30
G.S. 47C-3-102 are to be exercised by or may be delegated to a profit or business corporation, 31
nonprofit corporation (or unincorporated association) which corporation, or limited liability 32
company that exercises those or other powers on behalf of one or more condominiums or for the 33
benefit of the unit owners of one or more condominiums, all provisions of this chapter applicable 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 993-First Edition
to unit owners' associations apply to any such corporation, (or unincorporate d association) 1
corporation or limited liability company, except as modified by this section. 2
… ." 3
SECTION 3. G.S. 47C-3-101 reads as rewritten: 4
"§ 47C-3-101. Organization of unit owners' association. 5
A unit owners' association shall be organized no later than the date the first unit in the 6
condominium is conveyed. The membership of the association at all times shall consist 7
exclusively of all the unit owners, or following termination of the condominium, of all persons 8
entitled to distributions of proceeds under G.S. 47C-2-118. The association shall be organized as 9
a profit or business corporation, nonprofit corporation or as an unincorporated nonprofit 10
association a limited liability company." 11
SECTION 4. Article 3 of Chapter 47C of the General Statutes is amended by adding 12
three new sections to read: 13
"§ 47C-3-101.1. Annual reporting requirement; nonprofit corporations. 14
(a) Requirement. – A unit owners' association organized as a nonprofit corporation shall 15
deliver to the Secretary of State for filing annual reports as provided in this section, if the unit 16
owners' association exercises at least one of the following powers: 17
(1) Collects annual assessments from its members. 18
(2) Imposes fines, charges, or other fees in accordance with the powers granted 19
by G.S. 47C-3-102. 20
(3) Enforces architectural guidelines. 21
(b) Form; Required Information. – The Secretary of State shall prescribe for the filing of 22
an annual report in an electronic form and electronic means of filing. The annual report shall set 23
forth all of the following: 24
(1) The name of the nonprofit corporation. 25
(2) The street address, and the mailing address if different from the street address, 26
of the nonprofit corporation's registered office in the State, the county in which 27
the registered office is located, the name of its registered agent at that office, 28
and a statement of any change of the registered office or registered agent. 29
(3) The address of its principal office. 30
(4) The names, titles, business addresses, and email addresses of at least one 31
executive board member or officer. 32
(5) Contact information for any community management agent hired by the unit 33
owners' association. The contact information shall include, at a minimum, the 34
name of the management agent and a phone number, email address, and 35
mailing address at which the management agent can be contacted. 36
(6) An electronic link to the official website of the register of deeds office in 37
which the unit owners' association's covenants and declaration are filed. 38
(d) Currency of Information. – Information in the annual report shall be current as of the 39
date the annual report is executed on behalf of the unit owners' association. 40
(e) Due Date. – The first annual report form for a unit owners ' association is due to be 41
delivered to the Secretary of State by April 15 beginning the year following the incorporation or 42
organization of the unit owners' association. Unit owners' associations that are required to submit 43
an annual report under this section shall continue to deliver an annual report by April 15 of each 44
subsequent year until the condominium it serves is terminated as provided by G.S. 47C-2-118. 45
(f) Incomplete Information. – If an annual report does not contain the information 46
required by this section, the Secretary of State shall promptly notify the reporting unit owners' 47
association in writing and return the report to the association for c orrection. If the report is 48
corrected to contain the information required by this section and submitted to the Secretary of 49
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
House Bill 993-First Edition Page 3
(g) Amendments. – Amendments to any previously filed annual report may be filed with 1
the Secretary of State at any time for the purpose of correcting, updating, or augmenting the 2
information contained in the annual report. 3
(h) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 4
receive an annual report within 60 days of the date the report is due, the Secretary of State may 5
presume that the annual report is delinquent. The Secretary of State's presumption that a report 6
is delinquent may be rebutted by evidence of delivery presented by the filing unit owners ' 7
association. Notwithstanding G.S. 47C-3-102, if a unit owners ' association fails to deliver an 8
annual report to the Secretary of State in compliance with this section, and the annual report is 9
presumed delinquent, the following powers granted to the association are suspended until the 10
association corrects the delinquency to the satisfaction of the Secretary of State: 11
(1) Collection of assessments for the common expenses from unit owners. 12
(2) Imposition and collection of any fees or charges a s authorized by 13
G.S. 47C-3-102. 14
(i) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 15
annual report is delinquent as provided by subsection (h) of this section, the Secretary of State 16
shall promptly notify the offending unit owners ' association in writing. If the offending unit 17
owners' association completes an annual report containing all the information required by this 18
section and delivers it to the Secretary of State within 30 days after the effect ive date of the 19
notice, the unit owners ' association shall immediately regain any powers suspended under 20
subsection (h) of this section and shall be allowed to collect and impose any assess ments, fees, 21
or charges that it was unable to collect or impose during any period of suspension. 22
(j) Filing Fee. – Upon submission of the annual report required by th is section, the unit 23
owner's association shall remit to the Secretary of State a fee in the amount provided by 24
G.S. 57D-1-22(a)(28). 25
(k) Authority of Attorney General. – The Attorney General may maintain an action to 26
restrain a unit owner's association from conducting affairs in violation of this section. " 27
"§ 47C-3-101.2. Annual reporting requirement; business corporations. 28
(a) Requirement. – A unit owners' association organized as a business corporation shall 29
deliver to the Secretary of State for filing annual reports as required by Chapter 55 of the General 30
Statutes. The additional provisions of this section apply to the filing of annual reports if the unit 31
owners' association exercises at least one of the following powers: 32
(1) Collects annual assessments from its members. 33
(2) Imposes fines, charges, or other fees in accordance with the powers granted 34
by G.S. 47C-3-102. 35
(3) Enforces architectural guidelines. 36
(b) Additional Required Information. – In addition to the information required under 37
G.S. 55-16-22, the annual report shall set forth the following: 38
(1) The names, titles, business addresses, and email addresses of at least one 39
executive board member or officer. 40
(2) Contact information for any community management agent hired by the unit 41
owners' association. The contact information shall include, at a minimum, the 42
name of the management agent and a phone number, email address, and 43
mailing address at which the management agent can be contacted. 44
(3) An electronic link to the official website of the register of deeds office in 45
which the unit owners' association's covenants and declaration are filed. 46
(c) Delinquency; Suspension of Certain Powers. – If the Secr etary of State does not 47
receive an annual report within 60 days of the date the report is due, the Secretary of State may 48
presume that the annual report is delinquent. The Secretary of State 's presumption that a report 49
is delinquent may be rebutted by evid ence of delivery presented by the filing unit owners ' 50
association. Notwithstanding G.S. 47C-3-102, if a unit owners' association to which this section 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 993-First Edition
applies fails to deliver an annual report to the Secretary of State in compliance with this section, 1
and the annual report is presumed delinquent, the following powers granted to the association are 2
suspended until the association corrects the delinquency to the satisfaction of the Secretary of 3
State: 4
(1) Collection of assessments for the common expenses from unit owners. 5
(2) Imposition and collection of any fees or charges as authorized by 6
G.S. 47C-3-102. 7
(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 8
annual report is delinquent as provided by subsection (c) of this se ction, the Secretary of State 9
shall promptly notify the offending unit owners ' association in writing. If the offending unit 10
owners' association completes an annual report containing all the information required by this 11
section and delivers it to the Secre tary of State within 30 days after the effective date of the 12
notice, the unit owners ' association shall immediately regain any powers suspended under 13
subsection (c) of this section and shall be allowed to collect and impose any assessments, fees, 14
or charges that it was unable to collect or impose during any period of suspension." 15
(e) Filing Fee. – Upon submission of the annual report required by th is section, 16
notwithstanding G.S. 55-1-22, the unit owner 's association shall not remit the fee required by 17
G.S. 55-1-22 but shall instead remit to the Secretary of State a fee in the amount provided by 18
G.S. 57D-1-22(a)(28). 19
(f) Authority of Attorney General. – The Attorney General may maintain an action to 20
restrain a unit owner's association from conducting affairs in violation of this section." 21
"§ 47C-3-101.3. Annual reporting requirement; limited liability companies. 22
(a) Requirement. – A unit owners' association organized as a limited liability company 23
shall deliver to the Secretary of State for filing annual reports as required by Chapter 57D of the 24
General Statutes. The additional provisions of this section apply to the filing of annual reports if 25
the unit owners' association exercises at least one of the following powers: 26
(1) Collects annual assessments from its members. 27
(2) Imposes fines, charges, or other fees in accordance with the powers granted 28
by G.S. 47C-3-102. 29
(3) Enforces architectural guidelines. 30
(b) Additional Required Information. – In addition to the information required under 31
G.S. 57D-2-24, the annual report shall set forth the following: 32
(1) The names, titles, business addresses, and email addresses of at least one of 33
executive board member or officer. 34
(2) Contact information for any community management agent hired by the unit 35
owners' association. The contact information shall include, at a minimum, the 36
name of the management agent and a phone number, email address, and 37
mailing address at which the management agent can be contacted. 38
(3) An electronic link to the official website of the register of deeds office in 39
which the unit owners' association's covenants and declaration are filed. 40
(c) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 41
receive an annual report within 60 days of the date the report is due, the Secretary of State may 42
presume that the annual report is delinquent. The Secretary of State 's presumption that a report 43
is delinquent may be rebutted by evidence of d elivery presented by the filing unit owners ' 44
association. Notwithstanding G.S. 47C-3-102, if a unit owners' association to which this section 45
applies fails to deliver an annual report to the Secretary of State in compliance with this section, 46
and the annual report is presumed delinquent, the following powers granted to the association are 47
suspended until the association corrects the delinquency to the satisfaction of the Secretary of 48
State: 49
(1) Collection of assessments for the common expenses from unit owners. 50
General Assembly Of North Carolina Session 2025
House Bill 993-First Edition Page 5
(2) Imposition and collection of any fees or charges a s authorized by 1
G.S. 47C-3-102. 2
(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 3
annual report is delinquent as provided by subsection ( c) of this section, the Secretary of State 4
shall promptly notify the offending unit owners ' association in writing. If the offending unit 5
owners' association completes an annual report containing all the information required by this 6
section and delivers it to the Secretary of State within 30 days after the effect ive date of the 7
notice, the unit owners ' association shall immediately regain any powers suspended under 8
subsection (c) of this section and shall be allowed to collect and impose any assessments, fees, 9
or charges that it was unable to collect or impose during any period of suspension. 10
(e) Authority of Attorney General. – The Attorney General may maintain an action to 11
restrain a unit owner's association from conducting affairs in violation of this section." 12
SECTION 5. G.S. 47C-3-102 reads as rewritten: 13
"§ 47C-3-102. Powers of unit owners' association. 14
(a) Unless the articles of incorporation or articles of organization or the declaration 15
expressly provides to the contrary, the association, even if unincorporated, association may do 16
all of the following: 17
…." 18
SECTION 6. G.S. 47F-1-102 reads as rewritten: 19
"§ 47F-1-102. Applicability. 20
… 21
(c) Notwithstanding subsection (a) of this s ection, G.S. 47F-1-104 (Variation), 22
G.S. 47F-2-103 (Construction and validity of declaration and bylaws), G.S. 47F-2-117 23
(Amendment of declaration), G.S. 47F-3-102(1) through (6) and (11) through (17) (Powers of 24
owners' association), G.S. 47F-3-103(f) (Exe cutive board members and officers), 25
G.S. 47F-3-104 (Transfer of special declarant rights), G.S. 47F-3-107(a), (b), and (c) (Upkeep of 26
planned community; responsibility and assessments for damages), G.S. 47F-3-107.1 (Procedures 27
for fines and suspension of p lanned community privileges or services), G.S. 47F-3-108 28
(Meetings), G.S. 47F-3-115 (Assessments for common expenses), G.S. 47F-3-116 (Lien for 29
sums due the association; enforcement), G.S. 47F-3-118 (Association records), and 30
G.S. 47F-3-121 (American and S tate flags and political sign displays) apply to all planned 31
communities created in this State before January 1, 1999, unless the articles of incorporation 32
incorporation or articles of organization or the declaration expressly provides to the contrary, and 33
G.S. 47F-3-120 (Declaration limits on attorneys' fees) applies to all planned communities created 34
in this State before January 1, 1999. These sections apply only with respect to events and 35
circumstances occurring on or after January 1, 1999, and do not invalidate existing provisions of 36
the declaration, bylaws, or plats and plans of those planned communities. G.S. 47F-1-103 37
(Definitions) also applies to all planned communities created in this State before January 1, 1999, 38
to the extent necessary in construing any of the preceding sections. 39
… ." 40
SECTION 7. G.S. 47F-1-104 reads as rewritten: 41
"§ 47F-1-104. Variation. 42
(a) Except as specifically provided in specific sections of this Chapter, the provisions of 43
this Chapter may not be varied by the declaration or bylaws. To the extent not inconsistent with 44
the provisions of this Chapter, the declaration, bylaws, and articles of incorporation or articles of 45
organization form the basis for the legal authority for the planned community to act as provided 46
in the declaration, bylaws, and articles of incorporation, incorporation or articles of organization, 47
and the declaration, bylaws, and articles of incorporation or articles of organization are 48
enforceable by their terms. 49
… ." 50
SECTION 8. G.S. 47F-2-103 reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Page 6 House Bill 993-First Edition
"§ 47F-2-103. Construction and validity of declaration and bylaws. 1
(a) To the extent not inconsistent with the provisions of this Chapter, the declaration, 2
bylaws, and articles of incorporation or articles of organization form the basis for the legal 3
authority for the planned community to act as provided in the declaration, bylaws, and articles of 4
incorporation, incorporation or articles of organization, and the declaration, bylaws, and articles 5
of incorporation or articles of organization are enforceable by their terms. All provisions of the 6
declaration and bylaws are severable. 7
… ." 8
SECTION 9. G.S. 47F-3-101 reads as rewritten: 9
"§ 47F-3-101. Organization of owners' association. 10
A lot owners' association shall be incorporated organized no later than the date the first lot in 11
the planned community is conveyed. The membership of the association at all times shall consist 12
exclusively of all the lot owners or, following termination of the planned community, of all 13
persons entitled to distributions of proceeds under G.S. 47F-2-118. Every association created 14
after the ef fective date of this Chapter shall be organized as a nonprofit corporation. business 15
corporation, nonprofit corporation, or as a limited liability company." 16
SECTION 10. Article 3 of Chapter 47F of the General Statutes is amended by adding 17
three new sections to read: 18
"§ 47F-3-101.1. Annual reporting requirement; nonprofit corporations. 19
(a) Requirement. – A lot owners' association organized as a nonprofit corporation shall 20
deliver to the Secretary of State for filing annual reports as provided in this section, if the lot 21
owners' association exercises at least one of the following powers: 22
(1) Collects annual assessments from its members. 23
(2) Imposes fines, charges, or other fees in accordance with the powers granted 24
by G.S. 47F-3-102. 25
(3) Enforces architectural guidelines. 26
(b) Form; Required Information. – The Secretary of State shall prescribe for the filing of 27
an annual report in an electronic form and electronic means of filing. The annual report shall set 28
forth at least all of the following: 29
(1) The name of the nonprofit corporation. 30
(2) The street address, and the mailing address if different from the street address, 31
of the nonprofit corporation's registered office in the State, the county in which 32
the registered office is located, the name of its registered agent at that office, 33
and a statement of any change of the registered office or registered agent. 34
(3) The address of its principal office. 35
(4) The names, titles, business addresses, and email addresses of at l east one 36
executive board member or officer. 37
(5) Contact information for an y community management agent hired by the lot 38
owners' association. The contact information shall include, at a minimum, the 39
name of the management agent and a phone number, email address, and 40
mailing address at which the management agent can be contacted. 41
(6) An electronic link to the official website of the register of deeds office in 42
which the lot owners' association's covenants and declaration is filed. 43
(d) Currency of Information. – Information in the annual report shall be current as of the 44
date the annual report is executed on behalf of the lot owners' association. 45
(e) Due Date. – The first annual report form for a lot owners' association is due to be 46
delivered to the Secretary of State by April 15 beginning the year following the incorporation or 47
organization of the lot owners' association. Lot owners' associations that are required to submit 48
an annual report under this section shall continue to deliver an annual report by April 15 of each 49
subsequent year until th e planned communi ty it serves is terminated as provided by 50
G.S. 47F-2-118. 51
General Assembly Of North Carolina Session 2025
House Bill 993-First Edition Page 7
(f) Incomplete Information. – If an annual report does not contain the information 1
required by this section, the Secretary of State shall promptly notify the reporting lot owners' 2
association in writing and return the report to the association for correction. If the report is 3
corrected to contain the information required by this section and submitted to the Secretary of 4
State within 30 days after the effective date of notice, it is deemed to be timely filed. 5
(g) Amendments. – Amendments to any previously filed annual report may be filed with 6
the Secretary of State at any time for the purpose of correcting, updating, or augmenting the 7
information contained in the annual report. 8
(h) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 9
receive an annual report within 60 days of the date the report is due, the Secretary of State may 10
presume that the annual report is delinquent. The Secretary of State's presumption that a report 11
is delinquent may be rebutted by evidence of delivery presented by the filing lot owners' 12
association. Notwithstanding G.S. 47F-3-102, if a lot owners' association fails to deliver an 13
annual report to the Secretary of State in compliance with this section, and the annual report is 14
presumed delinquent, the following powers granted to the association are suspended until the 15
association corrects the delinquency to the satisfaction of the Secretary of State: 16
(1) Collection of assessments for the common expenses from unit owners. 17
(2) Imposition and collection of any fees or charges a s authorized by 18
G.S. 47F-3-102. 19
(i) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 20
annual report is delinquent as provided by subsection (h) of this section, the Secretary of State 21
shall promptly notify the offending lot owners' association in writing. If the offending lot owners' 22
association completes an annual report containing all the information required by this section and 23
delivers it to the Secretary of State within 30 days after the effect ive date of the notice, the lot 24
owners' association shall immediately regain any powers suspended under subsection (h) of this 25
section and shall be allowed to collect and impose any assess ments, fees, or charges that it was 26
unable to collect or impose during any period of suspension. 27
(j) Filing Fee. – Upon submission of the annual report required by this section, the lot 28
owner's association shall remit to the Secretary of State a fee in the amount provided by 29
G.S. 57D-1-22(a)(28). 30
(k) Authority of Attorney General. – The Attorney General may maintain an action to 31
restrain a lot owner's association from conducting affairs in violation of this section." 32
"§ 47F-3-101.2. Annual reporting requirement; business corporations. 33
(a) Requirement. – A lot owners ' association organized as a business corporation shall 34
deliver to the Secretary of State for filing annual reports as required by Chapter 55 of the General 35
Statutes. The additional provisions of this section apply to the filing of annual re ports if the lot 36
owners' association exercises at least one of the following powers: 37
(1) Collects annual assessments from its members. 38
(2) Imposes fines, charges, or other fees in accordance with the powers granted 39
by G.S. 47F-3-102. 40
(3) Enforces architectural guidelines. 41
(b) Additional Required Information. – In addition to the information required under 42
G.S. 55-16-22, the annual report shall set forth the following: 43
(1) The names, titles, business addresses, and email addresses of at least one of 44
executive board member or officer. 45
(2) Contact information for any community management agent hired by the lot 46
owners' association. The contact information shall include, at a minimum, the 47
name of the management agent and a phone number, email address, and 48
mailing address at which the management agent can be contacted. 49
(3) An electronic link to the official website of the register of deeds office in 50
which the lot owners' association's covenants and declaration are filed. 51
General Assembly Of North Carolina Session 2025
Page 8 House Bill 993-First Edition
(c) Delinquency; Suspension of Certa in Powers. – If the Secretary of State does not 1
receive an annual report within 60 days of the date the report is due, the Secretary of State may 2
presume that the annual report is delinquent. The Secretary of State 's presumption that a report 3
is delinquent may be rebutted by evidence of delivery presented by the filing lot owners ' 4
association. Notwithstanding G.S. 47F-3-102, if a lot owners ' association fails to deliver an 5
annual report to the Secretary of State in compliance with this section, and the annu al report is 6
presumed delinquent, the following powers granted to the association are suspended until the 7
association corrects the delinquency to the satisfaction of the Secretary of State: 8
(1) Collection of assessments for the common expenses from lot owners. 9
(2) Imposition and collection of any fees or charges as authorized by 10
G.S. 47F-3-102. 11
(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 12
annual report is delinquent as provided by subsection (c) of this section, th e Secretary of State 13
shall promptly notify the offending lot owners' association in writing. If the offending lot owners' 14
association completes an annual report containing all the information required by this section and 15
delivers it to the Secretary of Sta te within 30 days after the effective date of the notice, the lot 16
owners' association shall immediately regain any powers suspended under subsection (c) of this 17
section and shall be allowed to collect and impose any assessments, fees, or charges that it was 18
unable to collect or impose during any period of suspension." 19
(e) Filing Fee. – Upon submission of the annual report required by this section, 20
notwithstanding G.S. 55-1-22, the lot owner's association shall not remit the fee required by 21
G.S. 55-1-22 but shall instead remit to the Secretary of State a fee in the amount provide d by 22
G.S. 57D-1-22(a)(28). 23
(f) Authority of Attorney General. – The Attorney General may maintain an action to 24
restrain a lot owner's association from conducting affairs in violation of this section." 25
"§ 47F-3-101.3. Annual reporting requirement; limited liability companies. 26
(a) Requirement. – A lot owners' association organized as a limited liability company 27
shall deliver to the Secretary of State for filing annual reports as required by Chapter 57D of the 28
General Statutes. The additional provisions of this section apply to the filing of annual reports if 29
the lot owners' association exercises at least one of the following powers: 30
(1) Collects annual assessments from its members. 31
(2) Imposes fines, charges, or other fees in ac cordance with the powers granted 32
by G.S. 47F-3-102. 33
(3) Enforces architectural guidelines. 34
(b) Additional Required Information. – In addition to the information required under 35
G.S. 57D-2-24, the annual report shall set forth the following: 36
(1) The names, titles, business addresses, and email addresses of at least one 37
executive board member or officer. 38
(2) Contact information for an y community management agent hired by the lot 39
owners' association. The contact information shall include, at a minimum, the 40
name of the management agent and a phone number, email address, and 41
mailing address at which the management agent can be contacted. 42
(3) An electronic link to the official website of the register of deeds office in 43
which the lot owners' association's covenants and declaration are filed. 44
(c) Delinquency; Suspension of Certain Powers. – If the Secretary of State does not 45
receive an annual report within 60 days of the date the report is due, the Secretary of State may 46
presume that the annual report is delinquent. The Secretary of State 's presumption that a report 47
is delinquent may be rebutted by evidence of delivery presented by the filing lot owners ' 48
association. Notwithstanding G.S. 47F-3-102, if a lot owners' association fails to deliver an 49
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
House Bill 993-First Edition Page 9
presumed delinquent, the following powers granted to the association are suspended until the 1
association corrects the delinquency to the satisfaction of the Secretary of State: 2
(1) Collection of assessments for the common expenses from lot owners. 3
(2) Imposition and collection of any fees or charges a s authorized by 4
G.S. 47F-3-102. 5
(d) Notice of Delinquency; Effect of Cure. – If the Secretary of State presumes that an 6
annual report is delinquent as provided by subsection ( c) of this section, the Secretary of State 7
shall promptly notify the offending lot owners' association in writing. If the offending lot owners' 8
association completes an annual report containing all the information required by this section and 9
delivers it to the Secretary of State within 30 days after the effect ive date of the notice, the lot 10
owners' association shall immediately regain any powers suspended under subsection (c) of this 11
section and shall be allowed to collect and impose any assess ments, fees, or charges that it was 12
unable to collect or impose during any period of suspension. 13
(e) Authority of Attorney General. – The Attorney General may maintain an action to 14
restrain a lot owner's association from conducting affairs in violation of this section." 15
SECTION 11. G.S. 47F-3-102 reads as rewritten: 16
"§ 47F-3-102. Powers of owners' association. 17
Unless the articles of incorporation incorporation or articles of organization or the declaration 18
expressly provides to the contrary, the association may do all of the following: 19
… ." 20
SECTION 12. G.S. 47F-3-120 reads as rewritten: 21
"§ 47F-3-120. Declaration limits on attorneys' fees. 22
Except as provided in G.S. 47F-3-116, in an action to enforce provisions of the articles of 23
incorporation, incorporation or articles of organization, the declaration, bylaws, or duly adopted 24
rules or regulations, the court may award reasonable attorneys' fees to the prevailing party if 25
recovery of attorneys' fees is allowed in the declaration." 26
SECTION 13. This act becomes effective October 1, 2026 a nd applies to annual 27
reports due beginning in 2027. 28