Property Management Blog

Understanding North Carolina's House Bill 551: Key Changes in Landlord-Tenant and HOA Regulations

House Bill 551 (introduced on April 3, 2023), from the 2023-2024 session in North Carolina, is a comprehensive piece of legislation focused on landlord-tenant and homeowners' association (HOA) matters. Here's a summary of its key provisions:

  1. Prohibition of Local Rent Control: The bill amends GS 42-14.1 to bar local governments from enacting or enforcing any ordinances that prevent landlords from refusing to rent to tenants whose lawful source of income includes federal housing assistance.

  2. Regulation of Service and Support Animals: The bill introduces new regulations under GS 42-47 for service and support animals in residential tenancies. It defines relevant terms like 'service animal', 'support animal', and 'person with a disability'. The bill prohibits landlords from discriminating against tenants with disabilities or those using service or support animals. Landlords can require written verification from a healthcare provider under certain conditions. 

  3. Private Right of Action for Landlords: Landlords are given the right to take legal action against anyone who misrepresents their need for a service or support animal, or any health service professional who provides unreliable verification for such a need. Successful landlords can recoup actual damages, and the court may impose civil penalties between $500 and $1000 for each violation.

  4. Clarifications and Amendments to Landlord-Tenant Law: The bill clarifies and amends various aspects of the landlord-tenant law, including the imposition of late fees and attorney’s fees in eviction cases. It also addresses issues related to the cost of repairs due to service/support animals and the liability of landlords for injuries caused by these animals.

  5. Exemption of Service/Support Animals from Pet Fees: Starting January 1, 2024, service and support animals will be exempt from pet fees charged by landlords.

  6. Amendments to the NC Condominium Act: The bill amends the NC Condominium Act, particularly regarding the applicability of amendments to declarations of condominium and planned communities. It specifies that amendments will only affect unit owners who acquire units after the amendments take effect.

  7. Other Litigation Costs and Lease Terms: The bill allows for the inclusion of attorneys' fees in small claims and summary ejectment matters and clarifies the terms regarding late fees in rental agreements.

These changes reflect a significant update to the state's landlord-tenant and HOA laws, with implications for landlords, tenants, and members of homeowners' associations.

House Bill 551 passed its third reading on April 27, 2023, with 87 representatives voting in favor of its passage. The bill has been sent to the Senate.


You can read the full bill here. ➡️ CLICK HERE

Pamela Greene
Master Property Manager
PG Management Group, LLC

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