NC H278

Establishes voluntary prelitigation mediation process for disputes between homeowners associations and members arising under the North Carolina Condominium Act, Planned Community Act, or association documents, effective July 1, 2013.

Either party may initiate mediation by contacting the North Carolina Dispute Resolution Commission or Mediation Network of North Carolina; mediator must schedule mediation within 25 days of receiving written request from both parties.

Excludes disputes related solely to unpaid assessments, fines, or fees from mediation requirements; either party may decline mediation before initial meeting without incurring costs.

Mediation costs, including mediator fees, shall be split equally unless parties agree otherwise; statements and conduct during mediation are inadmissible in civil proceedings except for enforcement of settlement agreements or disciplinary hearings.

Time periods for filing civil actions, including statutes of limitations and repose, are tolled from initiation of mediation until 30 days after mediation concludes; associations must notify members annually in writing of their right to initiate mediation.