Another bill to reign in HOAs and their hired-hand mercenaries was introduced in the NC Assembly, HB 871. An agency is sought to regulate, including rule-making authority, to license property managers with restrictions prohibiting the giving legal or financial advice, and from controlling reserve and operating funds of the HOA. Furthermore, a fidelity bond will be required of all property managers.
Very importantly is the intent of the legislature to protect homeowners. HB 871 reads (emphasis added),
The General Assembly further finds that managing a community association by collecting and handling assessments and other funds and managing property of the community association are deemed to be real estate transactions. If a community association is not properly managed the improper management can adversely affect the real estate through foreclosure of the community association member’s property or bankruptcy of the community association. Improper management may also affect the rights of the community association members as consumers and property owners. It is the purpose and intent of this Article to protect the public from persons unqualified to provide community association management and from unprofessional conduct by persons regulated pursuant to this Article.
As more and more state legislatures awaken from their long slumber and remove their rose-colored glasses, the extent of the wrongful, unethical, and immoral acts of HOA property managers, as well as HOA attorneys involved in collusion, is becoming apparent. I congratulate those state legislatures for joining the Enlightenment Movement, and bringing a just and fair governance of subdivisions currently unaccountable to the state for their actions.
The HOA industry has failed to regulate itself. The hired-hand property manager and attorney associations, who claim to be of professional status, have failed to regulate the conduct of their members. Therefore, it is only rightful for state legisaltures to step in and protect its citizens from the abuse by powerful factions.