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Bill Summary · HB 1174

Summary of HB 1174 (2025 Session) – North Carolina: Homeowners' Associations Oversight Act

Note: This summary reflects the text and provisions as filed on Apr 30, 2026.

1) Main purpose and intent

  • The bill requires the North Carolina Department of Justice (DOJ) to establish and maintain a formal system for receiving, processing, and publicly reporting complaints filed by unit or lot owners against homeowners associations (HOAs) or their management companies.
  • It aims to increase transparency by creating a publicly accessible data portal with complaint details (redacted for privacy) and by providing annual executive summaries of complaint activity.
  • The DOJ is explicitly barred from creating regulations or serving as an arbiter in HOA disputes; the role is informational and data-reporting only.

2) Key provisions and changes

A. Creation of a complaint collection and reporting framework

  • Introduces new § 114-8.8: “Collection and report of owners' association complaint data.”
  • The DOJ will receive and record complaints from members of associations of unit owners (Chapter 47C) or lot owners (Chapter 47F).
  • The DOJ must publish a complaint form with electronic submission on its website. Complaints may be filed via phone, mail, or online.

B. Required information for complaints

When a complaint is recorded, the DOJ must collect:
- Complainant’s name and contact information.
- Association name and its contact details (phone, address, city, county).
- Any other party involved in the dispute (names and contact info).
- Management company details (if any) and its contact information.
- Specific statements about the member’s status and rights, including:
- Knowledge of membership requirement and timing/by whom it was provided.
- Access to governing documents, whether obtained before title transfer.
- Any denial of access to governing documents and remedies pursued.
- Understanding of rights and obligations under governing documents.
- Nature of the complaint.
- Background information on the dispute, including prior communications and whether all remedies under governing documents were exhausted before filing.
- Desired remedy.
- Whether legal representation is involved and whether a court proceeding has been or will be involved.
- Agreement or disagreement with governing documents.
- Supporting documentation and responses from the HOA or homeowner, if any.

C. Process and notification

  • Upon receipt, the DOJ must provide the complaint to the HOA or management party in a way that verifies receipt and allows for a response.

D. Public reporting and materials

  • The DOJ must publish on its website:
    • Information on how to submit complaints and on HOA regulation (as provided in this section and other statutes).
    • Educational materials about HOAs and the roles, rights, and responsibilities of boards, declarants, homeowners, etc.
    • A summary report of complaints that is publicly accessible, categorized, filterable, and searchable. Personal data of members (names, addresses, phone numbers) must be redacted. Data related to associations or management companies may be disclosed.
    • An executive summary of the previous reporting year’s complaints, including:
    • Number of complaints received; split between complaints against HOAs versus management companies.
    • The top three counties for complaints.
    • Outcomes statistics for the complaints.

E. Annual reporting by the DOJ

  • By July 1 each year, the DOJ must submit a report to:
    • Chairs of the House Standing Committee on Commerce and Economic Development.
    • Chairs of the Senate Standing Committee on Commerce and Insurance.
    • The Fiscal Research Division.
  • The annual report must also be published on the DOJ website and include at minimum:
    • Total complaints received under §114-8.8.
    • Number of complaints filed by unit owners or lot owners.
    • Complaints by county.
    • Complaints involving HOA management companies.
    • Nature of disputes (e.g., access to records, access to meetings, assessments, transparency, fines, collections, liens, foreclosures, restrictive covenants).

F. Limitation on regulatory role

  • The DOJ is prohibited from promulgating regulations or issuing guidelines concerning HOA administration, governance, or governing documents under this article.
  • The DOJ cannot serve as an arbiter in disputes between an HOA and its members.

F. Appropriation

  • The bill appropriates $100,000 in recurring General Fund money to the DOJ beginning in the 2026-2027 fiscal year to implement and manage the act.

G. Effective date

  • The act becomes effective when it becomes law.

3) Who or what is affected

  • Units/lot owners: Individuals who are members of HOAs and use the complaint process.
  • HOAs and HOA management companies: Respondent parties in complaints; their information may appear in public reports.
  • Department of Justice: Responsible for receiving, recording, and reporting complaints; maintains the public data portal and annual reports.
  • Legislative and fiscal bodies: Receive annual DOJ reporting; data may inform oversight and policy discussions.

4) Procedural and timeline aspects

  • Complaint intake and data collection occurs after the act becomes law; a DOJ complaint form will be available online, with electronic submission encouraged.
  • Annual reporting deadline: By July 1 each year, with a corresponding public release on the DOJ website.
  • Public portal: Ongoing access to categorized, filterable, and searchable complaint data, with redaction of personal member information.

5) Notable considerations

  • The act emphasizes transparency and data-driven oversight without granting the DOJ regulatory or adjudicatory authority over HOA governance.
  • Privacy protections are specified for complainants (redaction of personal data in public reports).
  • Funding is limited to a one-time annual appropriation of $100,000 recurring, indicating a modest program scale relative to broader state regulatory agencies.

If you’d like, I can provide a section-by-section breakdown or draft a one-page briefing for stakeholders.

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

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