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HB 993

Homeowners' Associations Organization and Reporting Act.

2025-2026 Session Introduced by Mary Belk and 6 co-sponsors

HB 993 requires condo and HOA associations to organize as a corporation or LLC and file annual electronic reports with the NC Secretary of State, or lose key powers.

Passed 1st Reading
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Bill Summary · HB 993

Summary — HB 993: Homeowners' Associations Organization and Reporting Act

Status: First edition (introduced) — House Bill 993 (North Carolina)
Primary sponsors (per version): Reps. Budd, Iler, Liu
Subject area: Condominiums, unit/lot owners’ associations, Secretary of State filings, corporate organization

Main purpose

HB 993 requires unit owners’ associations (condominium associations) and lot owners’ associations to formalize their organizational form (as corporations or limited liability companies) and imposes a new annual reporting requirement for many nonprofit unit owners’ associations with operational powers. The bill is intended to increase transparency about HOA governance and create an administrative record at the Secretary of State.

Key provisions

  • Organization requirement

    • A unit owners’ association must be organized no later than the date the first unit is conveyed.
    • Associations must be organized as a profit/business corporation, nonprofit corporation, or a limited liability company (the text removes “unincorporated nonprofit association” as the required form).
    • Master associations that exercise powers on behalf of multiple condominiums are expressly covered by Chapter 47C provisions.

  • Annual report requirement (new G.S. 47C‑3‑101.1) — applies only to a nonprofit unit owners’ association that exercises at least one of:

    1. Collects annual assessments from members;
    2. Imposes fines, charges, or other fees under G.S. 47C‑3‑102; or
    3. Enforces architectural guidelines.

  • Required contents of the annual report (electronic filing prescribed by Secretary of State)

    • Association name;
    • Street and mailing address of registered office, county, registered agent name, and notice of any changes;
    • Principal office address;
    • Names, titles, business addresses, and email addresses of at least one executive board member or officer;
    • Contact information for any hired community management agent (name, phone, email, mailing address);
    • Electronic link to the register of deeds office where covenants/declaration are filed.
    • Information must be current as of the execution date.

  • Filing schedule and corrections

    • First report due April 15 of the year following incorporation/organization; thereafter due April 15 each year until the condominium is terminated.
    • Incomplete reports are returned for correction; if corrected and resubmitted within 30 days of notice, filing is timely.
    • Amendments to filed reports may be submitted at any time.

  • Delinquency and enforcement

    • If the Secretary of State does not receive a report within 60 days after the due date, the SOS may presume delinquency (which may be rebutted by proof of delivery).
    • If presumed delinquent, key association powers are suspended until cure, specifically:
    • Collection of assessments for common expenses;
    • Imposition and collection of fees/charges authorized by G.S. 47C‑3‑102.
    • SOS must notify the association in writing when presuming delinquency; suspension lifts upon satisfactory correction.

Who is affected

  • Condominium unit owners’ associations (nonprofit corporations) that collect assessments, impose fines/fees, or enforce architectural rules.
  • Master associations and lot owners’ associations exercising similar powers.
  • Community management companies (contact information must be disclosed if hired).
  • North Carolina Secretary of State (administration of electronic filing and enforcement).

Fiscal and operational impacts

  • Associations may incur one-time and ongoing compliance costs: incorporation/organization (if not already incorporated), administrative time to prepare and file annual reports, and potential costs for updating registered agent/office information.
  • Secretary of State will need to provide an electronic filing mechanism and process delinquency notices — modest administrative workload increase.
  • Suspension mechanism creates an enforcement incentive but may raise short‑term operational difficulties for associations that fail to file.

Procedural / timeline notes

  • The bill text modifies and adds provisions to Chapter 47C of the General Statutes (condominium law).
  • Reporting due date is April 15 annually, first due the year after incorporation.
  • Legislative status: introduced and in early House committee stages in the first edition; further consideration and amendments may follow as the bill advances.

Compiled from official sources — confirm details with the bill’s official record.

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