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(posted August 14, 2016)
Because the NC Planned Community Act was ill-conceived, in that it gives unreasonable power and control to the developer and eliminates the consumer protections for the homeowners among other things, several attempts have been made to bring the Act up-to-date and make it comparable to the NC Condominium Act and the Uniform Common Interest Ownership Act and bring it into the 21st Century.
These attempts, most notably HB165 proposed by the House HOA Select Committee, which
was mysteriously defeated in a committee, and other attempts to bring the Act up-to-date
(House Bill 882) for the protection and benefit of the members have been scuttled in committee by a certain group.
To get better backing, Hear4nc sent a request to the General Statutes Commission asking them to make recommendations to the General Assembly to adopt the necessary amendments to theNC Planned Community Act and the NC Condominium Act to modernize them and bring them in line with the Uniform Common Interest Ownership Act.
This correspondence and the proposed amendments were personally discussed with the GSC on November 6, 2015 and that presentation is documented and posted on the web site. posted (here).
As a result, the GSC notified the NC Bar Association, REALTORS, NC Real Estate Commission, NC Real Estate Bar Committee. Their initial comments and opposition are recorded on the first audio and attached letter. It should be noted that the CAI Community Association were participants and spoke here at the hearing.
Somehow, the commission agreed that only a disclosure procedure would be considered, but it would not use the same disclosure requirements as the Condominium Act (which follows the Uniform Common Interest Ownership Act) but would amend G.S. 47E. We believe this was to take the backing of the issue from the GSC.
After review of 47E it became apparent that 47E only applies to disclosure of real estate that has a structure on the real estate. In a Planned Community the original sale is a vacant lot by the declarant, and no disclosure is required for sale of vacant lots, and therefore, a new disclosure procedure would be required. Ole advised the Commission and suggested that 47E be dropped and the procedure in the Uniform Act be adopted as in the Condominium Act. Because we were in the short session, the Commission felt that there was no time to consider it.However, the matter can be renewed and submitted to the Commission. The audio of the final meeting is recorded on the last CD.
We are planning to submit more proposed legislation in the new session, hopefully we may be more successful knowing how this works and who is the opponent to successful HOAs.
We need help from volunteers to keep preparing and presenting legislation to improve the
operation of HOAs and combat the control over the legislation exercised.
They can contact me (Ole Madsen) at 336.210.5959.
Here is the response to our request on Uniform Code to be adopted for disclosure for consumers, Obviously they were against our action, and the reference to the House Select Committees of 2009--11, they somehow managed to stop their recommendations of the HB 165, which just seemed to disappear after 2 years of work and testimonies.