North Carolina HOA and condominium associations are governed by the North Carolina Planned Community Act and the North Carolina Condominium Act. As of 2025, the North Carolina Legislature is considering the most significant HOA reform package in state history — legislation that would fundamentally change how associations govern, enforce, and collect. North Carolina boards should understand what is pending and begin preparing now.
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2025: Landmark HOA Reform Package (Pending Passage)
HOA Reform Package (HB 444 / SB 378 / HB 372) — Landmark HOA Reform
This multi-bill package represents the most comprehensive proposed HOA reform North Carolina has seen. If enacted, the legislation would:
Declaration Amendments — Prospective Only
Declaration amendments would become prospective — current homeowners would not be bound by new amendments until they sell their home. This would fundamentally limit a board's ability to retroactively impose new restrictions on existing owners.
Management Contract Caps
Management contracts would be capped at 1 year with no auto-renewal clause that requires more than 30 days' notice to terminate. Boards with long-term management contracts should review renewal terms immediately.
Parking on Public Streets
HOAs could only regulate parking on public streets when local government or NCDOT expressly delegates that authority to the association. Existing parking restrictions on public roads without that delegation would be unenforceable.
Architectural Review Timeline
Architectural review decisions would be required within 90 days, in writing, with stated reasons for any denial.
Mediation Before Litigation
Associations would be required to complete mediation before filing HOA enforcement lawsuits (except for assessment collection actions).
Foreclosure Restriction
Associations could not initiate foreclosure until the delinquency has persisted for at least 180 days.
Fine Caps
Fines would be capped at $100 per day and $2,500 total per violation.
As of mid-2026, this legislation is pending. North Carolina boards should monitor its progress and prepare to update policies upon enactment.
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What North Carolina HOA Boards Should Do Now
1. Review your management contract — particularly auto-renewal terms and notice periods — in anticipation of the proposed 1-year cap.
2. Audit your architectural review process to ensure you can meet a 90-day written decision requirement.
3. Review fine schedules and prepare to cap at $100/day and $2,500/violation if the legislation passes.
4. Evaluate public road parking enforcement — identify which streets are public and whether your governing documents claim authority over them.
5. Consult counsel about mediation procedures so you are ready to comply if the pre-litigation mediation requirement is enacted.
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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. Our team monitors North Carolina HOA legislation and updates client compliance procedures as laws change. Contact us at billing@apmhoa.com or visit [apmhoa.com/remote-hoa-management/north-carolina](https://www.apmhoa.com/remote-hoa-management/north-carolina) for a free remote management proposal.
*This article is for general informational purposes only and does not constitute legal advice. For questions specific to your association, consult a licensed North Carolina attorney.*
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