North Carolina G.S. 47F-1-102: Which HOAs the Planned Community Act Covers

Quick Answer

G.S. 47F-1-102 decides which North Carolina planned communities are covered by the Planned Community Act. The Act applies in full to communities created on or after January 1, 1999, with two exceptions (20 lots or fewer, and all-nonresidential communities). Older communities get only a list of named sections, and they can opt into the whole Act by amending their declaration. Condominiums have a parallel rule in G.S. 47C-1-102, keyed to October 1, 1986.

The one thing a board most needs to know: before relying on any 47F or 47C section, confirm the date your community was created, because that date decides whether the section applies.

At a Glance

What the Law Says

Planned communities: G.S. 47F-1-102

Subsection (a): "This Chapter applies to all planned communities created within this State on or after January 1, 1999, except as otherwise provided in this section."

Subsection (b) carves out two kinds of post-1998 community. The Chapter does not apply if:

• the community "contains no more than 20 lots (including all lots that may be added or created by the exercise of development rights)," or
• "all the planned community's lots are restricted exclusively to nonresidential purposes."

In both cases the Chapter does apply if "the declaration provides or is amended to provide" that it does.

Subsection (c) covers communities created before January 1, 1999. The following sections apply to them "unless the articles of incorporation or the declaration expressly provides to the contrary":

• 47F-1-104 (variation), 47F-2-103 (construction and validity of the declaration and bylaws) and 47F-2-117 (amendment of declaration).
• 47F-3-102(1) through (6) and (11) through (17) (powers of the association). Subsections (7) through (10) are not on the list.
• 47F-3-103(f) (publishing names of officers and board members), 47F-3-104, and 47F-3-107(a), (b) and (c).
• 47F-3-107.1 (fines and suspension procedures), 47F-3-108 (meetings), 47F-3-115 (assessments), 47F-3-116 (liens), 47F-3-118 (records) and 47F-3-121 (flags and political signs).
• 47F-3-120 (declaration limits on attorneys' fees), which applies to all pre-1999 communities without the "unless" qualifier.

These sections "apply only with respect to events and circumstances occurring on or after January 1, 1999, and do not invalidate existing provisions of the declaration, bylaws, or plats and plans." Section 47F-1-103 (definitions) applies to the extent needed to read the listed sections.

Subsection (d) lets a pre-1999 community opt in to the whole Chapter "by amending its declaration to provide that this Chapter applies." The amendment may be made "by affirmative vote or written agreement signed by lot owners of lots to which at least sixty-seven percent (67%) of the votes in the association are allocated or any smaller majority the declaration specifies," and this subsection controls over conflicting amendment procedures in the declaration.

Subsection (e): the Chapter "does not apply to planned communities or lots located outside this State."

Condominiums: G.S. 47C-1-102

Subsection (a) applies the Condominium Act "to all condominiums created within this State after October 1, 1986." For condominiums created "on or before October 1, 1986," a list of sections applies "notwithstanding any conflicting provisions in the articles of incorporation, the declaration, or the bylaws and notwithstanding any references in those documents to Chapter 47A." The list includes 47C-1-105 through 1-107, 2-103, 2-104, 2-121, 3-102(a)(1) through (6) and (11) through (16), 3-103, 3-107.1, 3-108, 3-111, 3-112, 3-116, 3-118, 3-121 and 4-117. As in 47F, these apply only to events and circumstances occurring after October 1, 1986.

Subsection (b) says the Unit Ownership Act (Chapter 47A) does not apply to condominiums created after that date. Subsection (c) says the Chapter does not apply to condominiums or units outside North Carolina, but the public offering statement provisions (47C-4-102 through 4-108) apply to contracts signed in North Carolina unless exempt under 47C-4-101(b).

What This Means in Practice

Find your creation date first

Our reading: "created" refers to when the declaration was recorded, not when the first home sold or when the HOA was incorporated. The statute text we read does not define the term in these subsections, so confirm with counsel for a borderline case such as phased communities.

The two big exclusions

A post-1998 community of 20 or fewer lots is outside the Chapter unless its declaration opts in. Our reading: the count includes lots that could still be added through development rights, so a small first phase of a larger plan is likely not exempt. This is an open question for counsel.

Older communities: a menu, not the whole Act

An older HOA gets the listed sections, and for most of them only for events after January 1, 1999. Provisions not on the list, for example 47F-3-102(7) through (10) and the sections on declarant control and insurance, do not apply by force of the statute. Our reading: the declaration and general North Carolina law govern those topics unless the community opts in.

Our reading of the (c) override language: a pre-1999 declaration or articles that "expressly provides to the contrary" can displace the listed 47F sections, while for pre-1987 condominiums the 47C list applies despite conflicting documents. The two statutes use different wording, so check the right one.

Opting in

Opting in takes a recorded amendment, normally at the 67% threshold unless the declaration sets a smaller majority. The 47F-2-117 rules on recording and challenge periods are separate; see the declaration amendments page below. Whether opting in is wise depends on the declaration and is a question for counsel.

What the section does not say

It does not say that a pre-1999 association may not do something just because the Chapter does not apply. It simply leaves those matters to the documents and other law.

Timeline

Related North Carolina Law

• Chapter 47F: Planned Community Act overview
• Chapter 47C: Condominium Act overview
• S.L. 2022-12: condominium declarations and Marketable Title Act
• G.S. 47F-2-117: declaration amendments
• Wise v. Harrington Grove: fining authority in a pre-1999 community
• North Carolina HOA laws complete guide

Board Checklist

• Locate the recorded declaration and confirm the creation date.
• Count lots, including lots that could still be added, to see whether the 20-lot exclusion is in play.
• If the community pre-dates 1999 (or 1986 for condos), compare each Chapter section you rely on against the list above.
• Check the articles and declaration for language that "expressly provides to the contrary."
• Ask counsel whether opting in under subsection (d) makes sense, and what vote the declaration requires.
• Record the answer in the board minutes so later boards do not repeat the research.

Frequently Asked Questions

Does the North Carolina Planned Community Act apply to my older HOA?

Only the sections listed in G.S. 47F-1-102(c), and only for events on or after January 1, 1999, unless the community has amended its declaration to opt in to the whole Chapter.

Are small HOAs exempt?

A community created on or after January 1, 1999 with no more than 20 lots is outside the Chapter unless its declaration provides or is amended to provide that the Chapter applies.

How many owners must approve opting in?

The statute says lot owners holding at least 67% of the votes, or any smaller majority the declaration specifies, by vote or signed written agreement.

Does the Act cover commercial-only communities?

Not if all lots are restricted exclusively to nonresidential purposes, unless the declaration opts in.

Does the fine procedure in 47F-3-107.1 reach pre-1999 communities?

It is on the subsection (c) list, so it applies to events after January 1, 1999 unless the articles or declaration expressly provide otherwise.

Which condominiums are covered?

All created after October 1, 1986, and the sections named in 47C-1-102(a) for those created on or before that date.

Where This Comes From

This page is based on the text of G.S. 47F-1-102 and G.S. 47C-1-102 as published on ncleg.gov. We did not read the underlying session laws for each amendment, so the timeline lists only the history citations shown in the statute.

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.