Senate Bill 491 Summary

• Requires homeowners associations and condominium associations with annual assessments of at least $25,000 or $25,000+ in funds on deposit to obtain crime and fidelity insurance policies covering executive board members, committee members, and employees against theft or dishonesty.

• Mandates management companies hired by associations maintain crime and fidelity insurance covering their employees, with coverage amounts based on total client budgets (up to $2 million maximum).

• Requires associations to notify members if crime and fidelity insurance is not reasonably or commercially available.

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

• Applies requirements to both condominiums and planned communities in North Carolina, with an effective date of January 1, 2018.