NC H826

Requires condominium and planned community associations with annual assessments of at least $25,000 or $25,000 or more in total funds invested to obtain crime and fidelity insurance policies covering theft or dishonesty by officers, board members, committees, and employees.

Sets executive board coverage limits at 125% of total funds on deposit plus 125% of annual budget, with a maximum of $1,000,000; requires management agents or companies to maintain coverage up to total annual budgets of all clients, capped at $2,000,000.

Mandates associations unable to obtain insurance to provide written notice to all members each year explaining unavailability.

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.

Becomes effective January 1, 2022, with audit requirements applying to fiscal years beginning on or after the effective date.