H625 - HOA/Condo Crime & Fidelity Insurance Policies

• Requires homeowners associations and condominium associations with annual assessments of $25,000 or more (or $25,000+ in total funds invested/deposited) to obtain crime and fidelity insurance policies covering executive board members, committee members, and employees against theft or dishonesty.

• Sets crime and fidelity insurance coverage amounts at 125% of total funds on deposit/invested plus 125% of annual budget, with a maximum cap of $1,000,000 for associations and $2,000,000 for management companies.

• Mandates that management agents or companies authorized to disburse association funds maintain crime and fidelity insurance coverage at all times.

• Requires associations with annual revenues, expenditures, or account balances of $150,000 or more to conduct annual independent financial audits by certified public accountants, completed within one year of fiscal year end and provided to owners within 30 days.

• Requires associations to notify all owners if crime and fidelity insurance is not reasonably or commercially available; applies to condominiums and planned communities in North Carolina.