Justice department would track owners’ association complaints

The Department of Justice would collect complaints from association members about disputes with their associations and give each complaint to the party complained about so it can respond. Members could complain about disputes with their association. The Department would collect information about the people and organizations involved, the dispute, and any desired remedy. The bill defines covered associations as groups of unit or lot owners organized under Chapters 47C or 47F of state law. The bill says the act would take effect when it becomes law.

The Department would post complaint information and educational materials online, and submit a yearly report to legislative committee chairs and the Fiscal Research Division. The website would explain how to complain and provide educational materials about association roles, rights, and responsibilities. Reports would include complaint numbers, counties, management companies, and dispute types. The searchable public complaint summary would remove members’ names, addresses, and phone numbers. That removal rule would not cover information about an association or its management company. The Department would submit and publish its report by July 1 each year.

The Department could not issue rules or guidance about how associations are run, or decide disputes between associations and members. This applies to the North Carolina Department of Justice and disputes involving associations of unit or lot owners and their members. The restriction covers rules or guidance about association administration, governance, or governing documents. The bill says the act would take effect when it becomes law.

The bill would set aside $100,000 in recurring funds for the Department’s work under the act. The funding is for the Department’s work under this act. The money would come from the General Fund and go to the Department of Justice for implementation and management. Recurring funding would begin in the 2026–2027 fiscal year.