NC H805

Requires parties to engage in mediation or binding arbitration before initiating legal proceedings or filing a lien claim for disputes with homeowner associations, with a 10-day request window after receiving notice of an executive board decision.

The party requesting mediation or arbitration is responsible for paying the mediator or arbitrator costs; if neither party requests within 10 days, the alternative dispute resolution requirement is satisfied.

Associations must mail a written statement of assessment amounts due at least 15 days before filing a lien, notifying owners of their right to request mediation or arbitration.

Settlements must be documented in written agreements signed by both parties; if a party violates the settlement agreement, the other party may proceed with legal action.

A prevailing party in legal proceedings may recover court costs, attorneys' fees, and all reasonable costs incurred in enforcing settlement agreements.

Applies to both condominiums (Unit Owner Associations) and planned communities (Lot Owner Associations) in North Carolina; effective upon enactment.