Second Community Association Bill Signed into Law

Community Association Legislation

House Bill 511 “Credit Unions/Statutory changes” (with a full title of “An Act to Make Various Statutory Changes Related to Credit Unions”) was ratified by the North Carolina General Assembly on June 10, 2015, and signed by Governor McCrory on Friday, June 19, 2015. HB 511 becomes the second piece of community association legislation passed into law this year (see First Community Association Bill Signed into Law and NC Community Association Legislative Roundup – May 14, 2015).

The bill concerns details in the early stages of a condominium. The NC Condominium Act previously required that funds for the purchase or reservation of a condominium unit following a public offering statement had to immediately be deposited in a trust or escrow account “in an insured bank or savings and loan association in North Carolina.”  The new language makes clear that such funds must simply be deposited in “a federally insured depository institution lawfully doing business in this State,” which opens such deposits to other institutions. The bill was effective upon signing and is now law.

The final bill as adopted can be found at http://www.ncleg.net/Sessions/2015/Bills/House/PDF/H511v1.pdf

HOA & Condo Associations