by Michael Lowrey
In Raleigh. A state House committee has approved a requirement that HOA’s be subject to an independent financial “review” every year and that a copy be provided to members on request. Community association management companies would be licensed by the state.
The proposal is expected to go before the full House during the upcoming short session. The question of under what conditions HOAs can foreclose for nonpayment of dues etc. has been put off though with a special committee expected to be formed to look at the issue.
Good to see this important property rights issue getting some attention. HOAs now are the default for new subdivisions in many areas. Many HOAs are well run. Some aren’t, often because their officers are well meaning but just don’t have a clue what they are doing. And there certainly are cases of HOAs run by vindictive, self-aggrandizing bullies. So additional safeguards for homeowners are appropriate.
Full disclosure: Rep. Jonathan Jordan, R-Ashe, who is a co-chair of the House committee is a JLF alum. Jonathan and I coauthored a number of policy reports back in the day.