NC H372

Cities prohibited from banning "no-impact home-based businesses" that operate inside residences, don't generate substantial traffic, aren't visible from the street, and don't store materials outside; cities may still impose narrowly tailored health and safety regulations

HOA management contracts limited to two-year terms with no automatic renewal clauses requiring more than 60 days' notice; starting January 1, 2026, managing agents cannot be compensated based on fines collected

Maximum fine for HOA violations capped at $2,500 total; liens for fines must be filed separately and within 90 days of imposition, with enforcement limited to civil lawsuits rather than foreclosure

Mandatory prelitigation mediation required before filing HOA-related civil actions starting October 1, 2026; cases may be dismissed without prejudice if mediation was not attempted

Department of Justice required to collect and report HOA complaints annually starting July 1, 2025, tracking dispute types, counties, and whether management companies were involved