Three North Carolina Bills Could Reshape HOA Authority in 2026

The 2026 short session of the North Carolina General Assembly has produced a notable flurry of HOA-related legislation. Three new bills — House Bill 1212, House Bill 1174, and Senate Bill 1051 — each take a different angle at reshaping HOA authority across the state. Whether any are enacted individually or together, they signal a clear legislative appetite for reining in association power. Here’s what each one does and what it would mean for homeowners and boards.

House Bill 1212: The HOA Accessory Limitation Ban

Sponsored by Reps. Liu and Johnson-Hostler, HB 1212 would prohibit HOAs from regulating three categories of property use: solar panels used as a power source, edible or pollinator gardens located inside a lot owner’s boundaries, and accessory dwelling units (ADUs) that meet local building, environmental, and zoning rules. For condominium associations organized under Chapter 47C, the bill takes a narrower approach — restricting only the regulation of solar panels.

If enacted, the bill would invalidate covenants in many established North Carolina communities that currently restrict vegetable gardens to back yards, limit solar panel placement, or cap the number of residential dwelling units per lot. The bill appropriates $100,000 from the General Fund to the Department of Justice for public education on the new rules and becomes effective immediately upon enactment.

House Bill 1174: The HOA Oversight Act

HB 1174, sponsored by Reps. Ward, Pike, Liu, and Iler, takes a procedural approach instead of a substantive one. It would direct the North Carolina Department of Justice (DOJ) to create a state-level complaint and reporting framework for HOA disputes. The DOJ would publish an online complaint form, record each filing, forward it to the association in a manner that verifies receipt, and host a publicly accessible (but anonymized) searchable database of complaints. Annual reports broken down by category — records access, board transparency, assessments, fines, foreclosures, lien enforcement, etc. — would go to the relevant House and Senate committees.

Importantly, HB 1174 explicitly bars the DOJ from arbitrating disputes or promulgating HOA regulations — the DOJ’s role is purely to collect, record, and publish. Even so, the reputational pressure of a searchable complaint database could meaningfully change how associations and management companies behave. The bill appropriates $100,000 in recurring funds starting in the 2026–2027 fiscal year and would become effective upon enactment.

Senate Bill 1051: Don’t Zone Out Child Care

Sponsored by Sens. Chaudhuri and Burgin, SB 1051 protects homeowners and tenants who operate licensed family child care homes. The bill would render void and unenforceable any HOA covenant that prohibits, restricts, conditions, or penalizes the operation of a licensed family child care home. HOAs could not impose fees, assessments, fines, or penalties based on the operation of such a home, or require HOA approval as a condition of operating one. The bill preserves an HOA’s ability to enforce rules of general applicability — parking, noise, exterior modifications, common-area use — as long as those rules aren’t more burdensome on child care homes than on other residential uses.

SB 1051 creates a private right of action: licensed operators can sue for declaratory and injunctive relief, actual damages, and attorney’s fees. The Attorney General can also bring enforcement actions. Most significantly, the bill applies retroactively — any HOA covenants, lease agreements, or local zoning ordinances that conflict with the act would be void as of the effective date. Boards could not rely on the argument that their covenants predate the legislation.

What These Bills Mean for HOA Boards and Managers

If any of these bills pass, North Carolina HOAs will need to: review existing declarations, covenants, and rules for conflicts; update enforcement policies and architectural standards; train staff and managers on the new restrictions; and — in the case of SB 1051 — audit existing lease language and zoning interplay for retroactive conflicts. Sending a violation letter for a permitted use (a vegetable garden, solar panels, or a licensed child care home) could expose the association to litigation with attorney’s fees shifted to the prevailing homeowner.

Where the Bills Stand

All three remain in the early stages of the legislative process and the final enacted versions, if any, may differ from these summaries. Boards, managers, and community counsel should monitor each bill’s movement. Regardless of which (if any) become law, the broader signal is consistent: lawmakers in multiple states — Georgia, Minnesota, and now North Carolina — are responding to homeowner pressure with concrete statutory limits on HOA authority.

Source: Ward and Smith, P.A. legislative update on HB 1212, HB 1174, and SB 1051, May 2026.