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North Carolina H.B. 542 (2023): HOA Revisions and Foreclosure Auction Bill That Failed

7 min read·October 26, 2026·Krishna Yalamanchi

H.B. 542 (2023) started as a $2,500 HOA lien minimum and grew into a package on fines, foreclosure and management contracts. It never became law.

Quick Answer

North Carolina House Bill 542 (2023), "HOA Revisions/Foreclosure Trustee Auctions," did not become law. The House passed it 117-0 in May 2023 and the Senate passed a very different version 46-0 in September 2023, but the House refused to concur, a conference committee was appointed on October 5, 2023, and the bill page records no later action. The bill started as a $2,500 minimum for HOA liens and grew into a package on management contracts, fines, foreclosure and records.

The one thing a board most needs to know: the proposals in H.B. 542 are not in G.S. 47F or 47C. The current statutes still carry the 2013 foreclosure amendments as their latest history entry.

At a Glance

ItemDetail
BillHouse Bill 542, 2023-2024 Session, "HOA Revisions/Foreclosure Trustee Auctions"
SponsorsRepresentatives Liu, Brody, Tyson and Iler (primary)
StatusNot enacted. Last recorded action: conference committee appointed (House, September 21, 2023; Senate, October 5, 2023)
Would have amendedG.S. 45-21.4, 45-21.23, 45-21.25A (new), 47C-3-102, 47C-3-107.1, 47C-3-116, 47C-3-118, 47F-3-102, 47F-3-107.1, 47F-3-116, 47F-3-118, 115C-457.1, 115C-457.2 and 161-14
Remedy or penaltyNot applicable; not law

Bill History

DateEvent
March 30, 2023Filed
April 26, 2023House committee substitute reported
May 3, 2023House passed second and third readings, 117-0; sent to Senate
June 27, 2023Senate committee substitute adopted
September 12, 2023Senate adopted Amendment 1 (46-0) and passed the bill 46-0; sent to House for concurrence
September 21, 2023House voted 107-1 not to concur in the Senate committee substitute; conference committee appointed
October 5, 2023Senate conference committee appointed. This is the last action on the bill page

Our reading: no agreed conference report appears on the bill page, and nothing from H.B. 542 shows up in the current statute histories we read. The 2025 bills on the same topics, such as S.B. 378 and H.B. 444, carry their own bill numbers.

What the Law Says Today

Because H.B. 542 was not enacted, current rules include:

  • A lien arises when an assessment is unpaid for 30 days and a claim of lien is filed (G.S. 47F-3-116(a)), with no minimum dollar amount in the text we read.
  • Power-of-sale foreclosure is available after an assessment is unpaid 90 days or more and a board vote on the specific lot (47F-3-116(f)).
  • Liens consisting solely of fines may be enforced only by judicial foreclosure (47F-3-116(h)).
  • Unpaid-assessment statements are due within 10 business days (47F-3-102(13a)).

What H.B. 542 Would Have Done

The details below come from Legislative Reporting Service summaries of the filed bill and of the later House and Senate versions. We did not read the full text of the last Senate edition, so treat the description as general. The versions differed, and the Senate and House never agreed.

The filed bill

As filed on March 30, 2023, it would have required that an unpaid assessment be at least $2,500 or one year of assessments, whichever was less, before a lien could attach, and would have required proper notice of delinquency before filing a claim of lien.

Senate committee substitute (June 27, 2023)

  • No compensation of a managing agent based on fines collected; managing agent contracts no longer than one year with no automatic renewal.
  • No fines for in-home tutoring or lessons for a group of no more than five people.
  • Fines collected would go to the Civil Penalty and Forfeiture Fund.
  • Power of sale for HOA liens would be replaced with judicial foreclosure, only if unpaid assessments exceeded $2,500 or twelve months, and the board voted on the specific lot.
  • Owners could inspect management contracts on five business days' notice.
  • Foreclosure auction changes in Chapter 45: more places of sale, a three-hour window to start the sale, and remote bidding.

Senate amendment (September 12, 2023)

  • Managing agent contracts limited to one year, with nonrenewal notice no more than 30 days before the anniversary date and termination on 60 days' notice for auto-renewed contracts.
  • Parking on public streets enforceable only with delegated authority, for five-year delegations.
  • Written 10-day notice of a fine hearing and a $2,500 cap on continuing-violation fines imposed without further hearing.
  • Fine liens filed separately within 90 days; power of sale reinstated only for sums other than fines and only after 180 days, with a clerk inquiry into principal residence and a possible continuance of up to 90 days; attorney fees for fine actions capped at the higher of $10,000 or 15% in specified circumstances.
  • Prevailing-party fees if a court compels production of association contracts.

What This Means in Practice

Our reading: because the House voted not to concur and the conference never produced a bill, there is no enacted H.B. 542 text to follow, and the 2023 proposals have no legal effect on your association. Boards that heard about a "$2,500 lien minimum" or "180-day foreclosure" should treat those as proposals only. Several ideas reappeared in 2025 bills, including S.B. 378, so they remain worth watching.

We cannot say why the conference committee did not report; the bill page gives no reason. Confirm the current status on ncleg.gov.

Related North Carolina Law

Board Checklist

  • Use current G.S. 47F-3-116 and 47C-3-116 for liens; no $2,500 minimum applies.
  • Keep the 90-day and board-vote requirements for power of sale.
  • Keep fine liens separate from foreclosure planning, since fine-only liens need judicial foreclosure.
  • Do not describe H.B. 542 provisions to owners as current law.
  • Review management contract terms and fee practices anyway.
  • Check ncleg.gov for new association bills each session.

Frequently Asked Questions

Did House Bill 542 pass in North Carolina?

The House and Senate each passed a version, but they never agreed on one. The House voted not to concur, and a conference committee was appointed without a recorded result.

Is there a $2,500 minimum before an HOA can file a lien?

Not in current G.S. 47F-3-116 as we read it. The minimum was in the filed bill only.

Can an HOA still use power of sale foreclosure?

Yes, after 90 days unpaid and a board vote, under G.S. 47F-3-116(f). A Senate version of H.B. 542 would have replaced it with judicial foreclosure, but did not become law.

Did the bill cap management contracts at one year?

It proposed to, but did not become law.

What was the vote?

House second reading 117-0 on May 3, 2023; Senate second reading 46-0 on September 12, 2023; House motion not to concur passed 107-1 on September 21, 2023.

Where do these ideas stand now?

Similar proposals appeared in 2025 bills such as S.B. 378. See that page for its status.

Where This Comes From

This page is based on the bill history, edition list and vote records for H.B. 542 on ncleg.gov, Legislative Reporting Service summaries of each edition, and the text of G.S. 47F-3-102 and 47F-3-116. We did not read the full text of the last bill edition.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed North Carolina attorney before acting.

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