NC H731

Establishes the North Carolina Community Association Commission, a five-member regulatory body appointed by the General Assembly and Governor to oversee community associations and managers, effective January 1, 2016.

Requires community association managers to obtain state licenses and maintain fidelity bonds covering their client associations' annual budgets (up to $2 million maximum).

Mandates fidelity bond coverage for executive boards of associations with annual assessments of $100,000 or more, with coverage equal to the annual operating budget (up to $1 million maximum).

Requires independent financial audits by certified public accountants for associations with annual revenues/expenditures of $250,000 or more, and financial reviews for those with $150,000 or more in annual revenues/expenditures.

Requires all community associations to register annually with the Commission beginning January 1, 2016, providing board member information, management company details, and property location; appropriates $250,000 in startup funding for the Commission.