House committee substitute to the 1st edition makes the following changes. Makes technical changes to act’s long title.  Makes organizational changes.

Sections 3 and 8.

Amends certain powers of the unit owners’ association (Association) under the NC Condominium Act (GS 47C-3-102) or a homeowners’ association (HOA) under the NC Planned Community Act (GS 47F-3-102), as follows. Removes music lessons as one of the violations of a provision restricting or prohibiting certain lessons that an Association or HOA can longer levy a fine for. Removes changes to Association’s/HOA’s power to impose reasonable charges in connection with the preparation of statements of unpaid assessments.

Section 4

Amends GS 47C-3-103 and GS 47F-3-103 by removing the requirement that ratification of a proposed budget that would increase the previous year’s common expense liability by more than 10% be approved by a majority of all of the unit/lot owners or any larger vote specified in the declaration, unless the amount of the increase is expressly allowed in the declaration.  Makes conforming changes.

Section 5.

Removes provisions directing that the fines collected under GS 47C-3-107.1 be remitted to the Civil Penalty and Forfeiture Fund.

Section 6 and 10.

Makes technical changes to GS 47C-3-116/GS 47F-3-116 (enforcement of liens for sums due the Association/HOA).

Section 9.

Replaces references to “unit owner” with “lot owner” under GS 47F-3-107.1 (procedure for fines and suspension of planned community privileges or services-HOA’s). Removes provisions directing that the fines collected under GS 47F-3-107.1 be remitted to the Civil Penalty and Forfeiture Fund.

Removes the content previously constituting Section 12, consisting of amendments to GS 115C-457.1 (creation and administration of the Civil Penalty and Forfeiture Fund) and GS 115C-457.2 (remittance of monies into the Fund).

Section 13 (was, Section 14).

Defines association for purposes of GS 114-8.8 (collection and report of owners’ association complaint data) to mean an association of unit or lot owners organized under either the NC Condominium Act or the NC Planned Community Act.