Bill > H372

This bill addresses several key areas related to home-based businesses and homeowners' associations (HOAs) in North Carolina. The bill first establishes protections for no-impact home-based businesses by preventing cities from prohibiting or requiring permits for such businesses, as long as they meet certain criteria like being compatible with residential use, not generating excessive traffic, and operating primarily inside the home. For HOAs, the bill introduces several significant changes, including limiting managing agent contract terms to two years, prohibiting managing agents from being compensated based on fine collections, and establishing more transparent and fair procedures for imposing fines and handling disputes. The bill mandates mandatory prelitigation mediation for HOA disputes before filing a civil action, requiring parties to attempt mediation and providing specific guidelines for the process. Additionally, the bill requires the Department of Justice to collect and report annually on HOA-related complaints, creating a centralized system to track and analyze disputes between HOAs and their members. The legislation also regulates HOAs' use of automatic license plate reader systems, requiring notification, policy development, and strict data usage guidelines. These provisions aim to provide more protections and transparency for homeowners and create more balanced relationships between homeowners and their associations.

Business and Industry, Government Affairs, Justice

https://www.ncleg.gov/BillLookUp/2025/H372