NC H931

Amends North Carolina Constitution to prohibit homeowners' associations from foreclosing on real property for unpaid association dues or fees.

Allows homeowners' associations to file civil court actions to obtain judgments for past-due assessments after sending a 30-day notice and demand for payment to lot owners.

Permits planned community owners' associations to pursue setoff against state income tax refunds for unpaid assessments, but only after obtaining a judgment and providing notice to the debtor.

Requires associations to provide debtors with opportunity to contest proposed setoffs through administrative hearing and contested case procedures under state law.

Establishes that state agencies have priority over local agencies, which have priority over planned community owners' associations in competing claims for tax refund setoff.