North Carolina S.B. 378 (2025): HOA Revisions Bill That Stalled in the House

Quick Answer

North Carolina Senate Bill 378 (2025), "HOA Revisions," is not law. The Senate passed its HOA text 47-0 on May 7, 2025, but in October 2025 the House replaced that text with unrelated Medicaid provisions, and the bill ended with a "Held by House Clerk" entry on October 23, 2025. None of the HOA changes it proposed were enacted.

The one thing a board most needs to know: nothing in S.B. 378 binds your association today. Current G.S. 47F and 47C rules still apply, and the bill is useful mainly as a preview of changes lawmakers have considered.

At a Glance

Bill History

The House committee substitute, as summarized by the Legislative Reporting Service, "removes the content of the previous edition and replaces it with" provisions directing the Department of Health and Human Services on Medicaid providers. The bill page now lists "No affected General Statutes."

What the Law Says Today

Because the bill did not pass, these current rules remain:

• Managers. G.S. 47F-3-102(3) lets the association "hire and discharge managing agents" with no statutory term limit on the contract.
• Unpaid-assessment statements. Within "10 business days," up to $200 plus an expedite fee of up to $100 if requested within 48 hours of closing (G.S. 47F-3-102(13a)).
• Foreclosure. Power of sale after an assessment is unpaid "90 days or more" and a board vote on the specific lot (G.S. 47F-3-116(f)). Liens made up solely of fines or unauthorized fees may be enforced only by judicial foreclosure (47F-3-116(h)).
• Mediation. Voluntary; parties are "encouraged" to mediate (G.S. 7A-38.3F(b)).

What S.B. 378 Would Have Done

This summary follows the Legislative Reporting Service's summary of the Senate-passed first edition and the section headings and effective dates in the bill text. We did not read every word of the bill text, so treat details as a general description.

Part I: Associations (G.S. 47C and 47F)

• Managing agent contracts could not run more than two years or require nonrenewal notice more than 60 days before the anniversary date. Auto-renewed contracts would be terminable on 90 days' notice, and managers could not be paid based on fines collected. The manager provisions would apply to contracts entered on or after January 1, 2026.
• Parking rules on public streets could be enforced only if enforcement authority had been delegated to the association.
• No fines for violating a rule against tutoring or lessons given in a home to a group of no more than five people.
• Charges for lender questionnaires and unpaid-assessment statements, with the statement due within 10 days rather than 10 business days.
• A written, good-faith process for decisions on proposed changes to a unit or limited common element.
• Fine hearings: written notice at least 10 days ahead, witness and exhibit disclosure at least two days ahead, and a $2,500 cap on fines imposed without further hearing for continuing violations.
• Liens: fines and fine-related charges would need a separate claim of lien filed within 90 days of the fine, lapsing unless enforced within one year. Power of sale would apply only to other sums and only after 180 days of delinquency, with a clerk inquiry into whether the home is a principal residence. Liens for fines would be enforced only by a civil action seeking a judgment.
• Records: owners could inspect and copy association contracts on five business days' written notice.

Parts II to IV

• Section 9 would have required a party to initiate mediation before filing most civil actions, with dismissal without prejudice absent an exception, effective October 1, 2026 for actions filed on or after that date. Assessment collection disputes stayed excluded.
• Section 10 would have created G.S. 114-8.8, requiring the Department of Justice to receive and record complaints about association disputes. It would not have let the Department write rules or act as arbiter. Effective date in the bill: July 1, 2025.
• Section 11 would have regulated automatic license plate reader systems operated by associations, effective October 1, 2025.

What This Means in Practice

Our reading: the bill's content signals topics lawmakers keep revisiting (manager contracts, fine hearings, foreclosure thresholds, records, mediation). The House version later in the session removed all of it, and no HOA language remains in the bill. The bill's own dates (December 1, 2025 for lien changes, October 1, 2026 for mediation) never took effect.

The status could change only if the General Assembly acts again; we cannot predict that. A different bill, H.B. 444, covers overlapping subjects; see its page below. Confirm current status on ncleg.gov before relying on this page, since we checked the bill page on October 26, 2026.

Related North Carolina Law

• H.B. 444 (2025): HOA Reform Bill
• H.B. 542 (2023): HOA Revisions that failed
• G.S. 7A-38.3F: prelitigation mediation
• G.S. 47F-3-116: assessment liens and foreclosure
• G.S. 47F-3-102: association powers
• North Carolina HOA law changes, 2021 to 2025

Board Checklist

• Keep following current G.S. 47F and 47C rules; S.B. 378 changed none of them.
• Do not tell owners that two-year manager limits, 180-day foreclosure or mandatory mediation are law.
• Review your management contract term and renewal notice anyway, as good practice.
• Confirm hearing, notice and lien steps with counsel before enforcing fines.
• Post the yearly mediation notice required by G.S. 7A-38.3F(j).
• Check ncleg.gov for any new HOA bills before each legislative session.

Frequently Asked Questions

Did North Carolina Senate Bill 378 become law?

No. The Senate passed it, but the House replaced the HOA text with unrelated provisions and the bill ended "Held by House Clerk" on October 23, 2025.

Is mediation mandatory for HOA disputes in North Carolina?

No. G.S. 7A-38.3F says parties are encouraged to mediate; S.B. 378 would have made it mandatory but did not pass.

Is there a two-year limit on management contracts?

Not under the statutes we read. S.B. 378 proposed one, and it did not become law.

Did the 90-day foreclosure rule change?

No. G.S. 47F-3-116(f) still says 90 days or more. The bill proposed 180 days for non-fine debts.

Why is the bill now titled about Medicaid?

A House committee substitute removed the HOA content and replaced it with Medicaid provisions, and the title on ncleg.gov now reflects that.

Could the HOA changes come back?

Lawmakers could file new bills. We cannot predict whether they will.

Where This Comes From

This page is based on the bill history and vote records for S.B. 378 on ncleg.gov, the section headings and effective dates in the first-edition bill text, bill summaries from the Legislative Reporting Service, and the text of G.S. 47F-3-102, 47F-3-116 and 7A-38.3F.

How APM Helps

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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.