A BILL TO BE ENTITLED
AN ACT to clarify the laws on the powers of condominium unit owners' associations and planned COMMUNITY owners' ASSOCIATIONS as RECOMMENDED by the general statutes commission.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 47C‑1‑102(a) reads as rewritten:
"(a)	This Chapter applies to all condominiums created within this State after October 1, 1986. G.S. 47C‑1‑105 (Separate Titles and Taxation), 47C‑1‑106 (Applicability of Local Ordinances, Regulations, and Building Codes), 47C‑1‑107 (Eminent Domain), 47C‑2‑103 (Construction and Validity of Declaration and Bylaws), 47C‑2‑104 (Description of Units), 47C‑2‑121 (Merger or Consolidation of Condominiums), 47C‑3‑102(a)(1) through (6) and (11) through (16) (Powers of Unit Owners' Association), 47C‑3‑107.1 (Charges for Late Payment, Fines), 47C‑3‑111 (Tort and Contract Liability), 47C‑3‑112 (Conveyance or Encumbrance of Common Elements), 47C‑3‑116 (Lien for Assessments), 47C‑3‑118 (Association Records), and 47C‑4‑117 (Effect of Violation on Rights of Action; Attorney's Fees), and G.S. 47C‑1‑103 (Definitions), to the extent necessary in construing any of those sections, apply to all condominiums created in this State on or before October 1, 1986, unless the declaration expressly provides to the contrary. Those sections apply only with respect to events and circumstances occurring after October 1, 1986, and do not invalidate existing provisions of the declarations, bylaws, or plats or plans of those condominiums."
SECTION 2.  G.S. 47C‑3‑102(a) reads as rewritten:
"(a)	Unless the declaration expressly provides to the contrary, the association, even if unincorporated, may:
(1)	Adopt and amend bylaws and rules and regulations;
(2)	Adopt and amend budgets for revenues, expenditures, and reserves and collect assessments for common expenses from unit owners;
(3)	Hire and terminate managing agents and other employees, agents, and independent contractors;
(4)	Institute, defend, or intervene in its own name in litigation or administrative proceedings on matters affecting the condominium;
(5)	Make contracts and incur liabilities;
(6)	Regulate the use, maintenance, repair, replacement, and modification of common elements;
(7)	Cause additional improvements to be made as a part of the common elements;
(8)	Acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property, provided that common elements may be conveyed or subjected to a security interest only pursuant to G.S. 47C‑3‑112;
(9)	Grant easements, leases, licenses, and concessions through or over the common elements;
(10)	Impose and receive any payments, fees, or charges for the use, rental, or operation of the common elements other than limited common elements described in subsections 47C‑2‑102(2) and (4) and for services provided to unit owners;
(11)	Impose charges for late payment of assessments and, after notice and an opportunity to be heard, levy reasonable fines not to exceed one hundred fifty dollars ($150.00) (G.S. 47C‑3‑107.1) for violations of the declaration, bylaws, and rules and regulations of the association;
(12)	Impose reasonable charges for the preparation and recordation of amendments to the declaration, resale certificates required by G.S. 47C‑4‑109, or statements of unpaid assessments;
(13)	Provide for the indemnification of and maintain liability insurance for its officers, executive board, directors, employees and agents;
(14)	Assign its right to future income, including the right to receive common expense assessments, but only to the extent the declaration expressly so provides;
(15)	Exercise all other powers that may be exercised in this State by legal entities of the same types as the association; and
(16)	Exercise any other powers necessary and proper for the governance and operation of the association."
SECTION 3.  G.S. 47F‑1‑102(c) reads as rewritten:
"(c)	Notwithstanding the provisions of subsection (a) of this section, G.S. 47F‑3‑102(1) through (6) and (11) through (17) (Powers of owners' association), G.S. 47F‑3‑107(a), (b), and (c) (Upkeep of planned community; responsibility and assessments for damages), G.S. 47F‑3‑115 (Assessments for common expenses), and G.S. 47F‑3‑116 (Lien for assessments), apply to all planned communities created in this State before January 1, 1999, unless the articles of incorporation or the declaration expressly provides to the contrary. These sections apply only with respect to events and circumstances occurring on or after January 1, 1999, and do not invalidate existing provisions of the declaration, bylaws, or plats and plans of those planned communities. G.S. 47F‑1‑103 (Definitions) also applies to all planned communities created in this State before January 1, 1999, to the extent necessary in construing any of the preceding sections."
SECTION 4.  G.S. 47F‑3‑102 reads as rewritten:
"§ 47F‑3‑102.  Powers of owners' association.
Unless the articles of incorporation or the declaration expressly provides to the contrary, the association may:
(1)	Adopt and amend bylaws and rules and regulations;
(2)	Adopt and amend budgets for revenues, expenditures, and reserves and collect assessments for common expenses from lot owners;
(3)	Hire and discharge managing agents and other employees, agents, and independent contractors;
(4)	Institute, defend, or intervene in litigation or administrative proceedings on matters affecting the planned community;
(5)	Make contracts and incur liabilities;
(6)	Regulate the use, maintenance, repair, replacement, and modification of common elements;
(7)	Cause additional improvements to be made as a part of the common elements;
(8)	Acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property, provided that common elements may be conveyed or subjected to a security interest only pursuant to G.S. 47F‑3‑112;
(9)	Grant easements, leases, licenses, and concessions through or over the common elements;
(10)	Impose and receive any payments, fees, or charges for the use, rental, or operation of the common elements other than the limited common elements and for services provided to lot owners;
(11)	Impose reasonable charges for late payment of assessments and, after notice and an opportunity to be heard, suspend privileges or services provided by the association (except rights of access to lots) during any period that assessments or other amounts due and owing to the association remain unpaid for a period of 30 days or longer;
(12)	After notice and an opportunity to be heard, impose reasonable fines or suspend privileges or services provided by the association (except rights of access to lots) for reasonable periods for violations of the declaration, bylaws, and rules and regulations of the association;
(13)	Impose reasonable charges in connection with the preparation and recordation of documents, including, without limitation, amendments to the declaration or statements of unpaid assessments;
(14)	Provide for the indemnification of and maintain liability insurance for its officers, executive board, directors, employees, and agents;
(15)	Assign its right to future income, including the right to receive common expense assessments;
(16)	Exercise all other powers that may be exercised in this State by legal entities of the same type as the association; and
(17)	Exercise any other powers necessary and proper for the governance and operation of the association."
SECTION 5.  This act is effective when it becomes law.