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News & Press: Legislative/Advocacy

HB 806 requiring financial oversight passes NC House

Wednesday, May 1, 2019  
Posted by: Leslie Blum
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The CAI North Carolina Legislative Action Committee announces that on April 30, 2019 HB 806, which is the same as HB625 from 2017 Session (which CAI authored) amends the Condominium and Planned Community statutes to require that Executive Boards of such Associations provide for an independent financial audit conducted by a Certified Public Accountant if their respective Associations have annual revenues or expenditures for total accountant balances of $150,000 or more.  

The bill requires that each Community Association or Unit Owner Association with annual assessments of at least $25,000, or $25,000 or more of total funds invested, obtain a Crime and Fidelity Insurance Policy. The Crime and Fidelity Policy should provide coverage in the amount of 125% of total funds on deposit where invested, plus 125% of the annual budget but not more than $1 million.  

If the Association is managed by a professional managing agent, the managing agent or company shall be covered by a separate Crime and Fidelity Policy providing coverage in the total amount of all budgets of all clients of the managing agent or company, but not more than $2 million in the aggregate. 

HB 806 passed the House on April 30 and will be likely be referred to the Senate Rules Committee.

If you have any questions about HB 806, please contact NC LAC Chair, Paul Mengert at pmengert@amgworld.com.

 

 


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