North Carolina HOA Law Changes 2021–2025: Board Guide

North Carolina HOA and condominium associations are governed by the North Carolina Planned Community Act (Chapter 47F) and the North Carolina Condominium Act (Chapter 47C). The large HOA reform bills filed in 2025 have not become law. A handful of narrower laws have been enacted since 2021, and one of them (House Bill 372) is sometimes mistaken for part of the reform package. This page separates what is law from what is only proposed.

Enacted North Carolina Laws That Affect Associations

Session Law 2022-12 (Senate Bill 278): Condominium Declarations and the Marketable Title Act

Signed June 29, 2022. Among other changes, it provides that a condominium declaration, or an amendment adding units, "may not be recorded unless all structural components and mechanical systems of all buildings containing or comprising any units thereby created are substantially completed," as shown by a recorded certificate of completion from a licensed architect or engineer (G.S. 47C-2-101(b); applies to declarations executed and recorded on or after June 29, 2022). It also clarifies which Chapter 47C sections apply to condominiums created on or before October 1, 1986, and adds a Marketable Title Act exception (G.S. 47B-3(14), effective July 1, 2022) for covenants applicable to condominiums, cooperatives, and covered planned communities. For a planned community created before January 1, 1999, that exception applies only if it is governed by an owners' association in existence as of July 1, 2022.

Session Law 2026-51 (House Bill 372): No-Impact Home-Based Businesses

Signed July 7, 2026, and effective when it became law. House Bill 372 is not part of the HOA reform package. It adds G.S. 160A-205.8, which limits what a city may do to prohibit or require permits for "no-impact home-based businesses." Subsection (c) says the section "shall not apply if the operation of a no-impact home-based business is prohibited by the terms of" any deed, covenant, or agreement restricting the use of the land, or any master deed, bylaws, or other documents applicable to a homeowners association. In our reading, HOA covenants and rules on home businesses continue to control. The act does not amend Chapter 47C or 47F.

Session Law 2026-52 (House Bill 517): Nonprofit Corporation Act Changes

Signed July 7, 2026. Most North Carolina HOAs are nonprofit corporations, so these changes may apply to them. Key dates in the act: a new requirement that a nonprofit corporation submit an annual report to the Secretary of State by November 15 each year applies to annual reports due on or after January 1, 2027; and several other changes (including rules for new committees and for the minimum number of directors of corporations organized on or after that date) take effect October 1, 2026. Details such as fees and exactly which associations must file should be confirmed with counsel or the Secretary of State.

Session Law 2026-59 (Senate Bill 445): Flag Display

Signed August 11, 2026, and effective when it became law. Section 4 amends G.S. 47C-3-121 and 47F-3-121 to remove the exceptions that let older restrictions regulate display of the United States or North Carolina flag. A restriction on the use of land cannot be construed to regulate or prohibit display of the flag (no greater than four feet by six feet, displayed consistent with 4 U.S.C. 5-10) on property an owner owns exclusively. The protection does not apply to common areas, easements, rights-of-way, or other areas owned by others. The political sign rules in those sections were not part of this change.

2025: HOA Reform Bills (Not Law)

House Bill 444 and Senate Bill 378: Status

House Bill 444 (Homeowners Association Reform Bill) was filed March 18, 2025. Its last recorded action on ncleg.gov is "Re-ref Com On Judiciary 1" on May 6, 2025, and it has not been enacted. Senate Bill 378 passed the Senate 47-0 on May 7, 2025, but the House later replaced its text with an unrelated subject (it now carries the title "Align Medicaid Eligibility with Federal Law"); its last action is "Held by House Clerk" on October 23, 2025. Neither bill changed North Carolina HOA law. House Bill 372 is a separate, unrelated bill (see above).

What the Filed Version of House Bill 444 Proposed

The summaries below describe the version filed in March 2025. Later committee substitutes may differ, and none of this is current law.

• Declaration amendments: amendments would affect only owners whose lots or units are conveyed after the amendment takes effect.
• Management contracts: managing agent and similar contracts would be limited to one year, with no automatic renewal requiring more than 30 days' notice of non-renewal.
• Parking on public streets: an association could not enforce parking restrictions on public streets or roads maintained by the state or a local government unless that authority is expressly delegated to it.
• Architectural review: associations would have to provide a procedure for decisions on proposed changes, with decisions in writing and not arbitrary. We did not find a specific number of days in the summary we read, so we do not state one.
• Mediation: parties would have to initiate prelitigation mediation before filing a civil action, except for disputes solely about unpaid assessments and related fines and fees. Under current law, G.S. 7A-38.3F makes mediation voluntary.
• Foreclosure: power-of-sale foreclosure would require a delinquency of 180 days or more (current law, G.S. 47F-3-116(f), is 90 days or more), with additional conditions.
• Fines: written notice of the hearing at least 10 days ahead, and a $2,500 cap on fines for continuing violations. Current law already limits fines to $100 per day under G.S. 47F-3-107.1.

Earlier Proposals That Did Not Pass

House Bill 542 (2023, HOA Revisions/Foreclosure Trustee Auctions) passed the House 117-0 and the Senate 46-0 in different forms. The House voted not to concur on September 21, 2023, and a conference committee was appointed October 5, 2023; ncleg.gov shows no later action. House Bill 959 (2024) was referred to the House Judiciary 1 committee on May 2, 2024, and shows no later action.

What North Carolina HOA Boards Should Do Now

• Do not change policies in anticipation of House Bill 444 or Senate Bill 378. Neither is law. Keep following the current statutes, including the $100-per-day fine limit and hearing procedure in G.S. 47F-3-107.1 and the 90-day delinquency and board vote required before power-of-sale foreclosure under G.S. 47F-3-116.
• Review your management contract's renewal and termination terms as a matter of good practice, not because of a legal deadline.
• Review any flag restrictions in your governing documents against Session Law 2026-59.
• Ask your attorney whether the annual report requirement in Session Law 2026-52 applies to your association, and when your first report is due, ahead of any annual report due on or after January 1, 2027.
• Post the annual mediation notice that G.S. 7A-38.3F requires, and confirm your documents' home-business rules in light of Session Law 2026-51.

Related North Carolina Law

• North Carolina HOA laws complete guide
• Session Law 2022-12: condominium declarations and the Marketable Title Act
• Session Law 2026-51: home-based businesses
• Session Law 2026-52: annual reports, directors, and committees
• Session Law 2026-59: flag display
• House Bill 444: HOA reform bill
• Senate Bill 378: HOA revisions

How APM Provides Remote HOA Management in North Carolina

APM provides professional remote HOA and condo management to North Carolina boards through our HOA Alchemy platform, serving communities in Charlotte, Raleigh, Durham, and across the state, starting at a flat $99/month per community. Our team monitors North Carolina HOA legislation and updates client compliance procedures as laws change. Contact us at billing@apmhoa.com or call 810-777-7060, or visit remote HOA management in North Carolina for a free remote management proposal.

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. Last verified October 26, 2026.