What changed in North Carolina HOA law in 2025 and 2026, and what must boards do?

By OurHOA · General information · Revised September 23, 2026

North Carolina HOA law changes for boards: the 2026 flag rule, a new nonprofit annual report due November 15, and why the 2025 HOA reform bills are not law.

Part of the HOA board handbook: new state laws for boards.

The short answer

Less changed than you may have read. The 2025 HOA reform bills that got the most coverage, including Senate Bill 378 on fines, foreclosure, and mediation, did not become law. Two enacted bills do require action from planned community boards. Session Law 2026-59 (Senate Bill 445) rewrote the flag rule in G.S. 47F-3-121, and it has been in force since August 11, 2026. Session Law 2026-52 (House Bill 517) changed the Nonprofit Corporation Act to require an annual report to the Secretary of State, with the first practical filing deadline on November 15, 2027. The official statute histories for Chapter 47F show no substantive changes from the 2023 or 2024 sessions. A 2025 technical corrections law, S.L. 2025-25, changed only wording in G.S. 47F-3-108, such as "e-mail" to "email," and needs no action.

The flag rule in S.L. 2026-59

Senate Bill 445, the Regulatory Reform Act of 2026, was ratified August 6, 2026 and signed August 11, 2026. Section 4 took effect when it became law. It amended G.S. 47F-3-121 for planned communities and G.S. 47C-3-121 for condominiums. Before this change, a declaration could still ban or regulate display of the United States or North Carolina flag if it used specific recorded wording. Older declarations recorded before October 1, 2005 needed to name the flag, and newer ones needed a bold, all-capitals statement on the first page saying the document regulates or prohibits flag display. That exception is gone. Now no restriction on land use, whatever the declaration says, can be read to regulate or prohibit a United States or North Carolina flag no larger than four feet by six feet that is displayed consistent with the federal flag code at 4 U.S.C. 5 through 10. The rule covers property the owner owns exclusively. It does not reach common areas, easements, rights-of-way, or property owned by others, so the association can still regulate flags there. The political sign provisions in the same section did not change. As of this writing, the statute page on the General Assembly site still shows the old text, so read the session law itself.

The nonprofit annual report in S.L. 2026-52

House Bill 517 was ratified July 1, 2026 and signed July 7, 2026. It amends Chapter 55A, the Nonprofit Corporation Act, not the Planned Community Act, but it reaches most associations. Under G.S. 47F-3-101, a planned community created on or after January 1, 1999 with more than 20 lots must be incorporated, and most are nonprofit corporations. New G.S. 55A-16-22.1 requires each nonprofit corporation to file an annual report with the Secretary of State by November 15 each year, starting the year after it was formed. The report lists the corporation's name, registered office and agent including the agent's email, principal office address and phone, the names, titles, and business addresses of principal officers, a contact person, a brief description of activities, and an email address. The fee is $18 filed electronically or $25 on paper. The annual report provisions take effect January 1, 2027 and apply to reports due on or after that date, which makes November 15, 2027 the first deadline most associations will face. A report not received within 60 days after the due date is presumed delinquent, and a delinquent report is a new ground for administrative dissolution under G.S. 55A-14-20. Until January 1, 2029, the Secretary may waive the reinstatement fee when a late report caused the dissolution. The same law requires at least three directors, but only for corporations organized on or after October 1, 2026, so existing associations are not affected.

The board's to-do list

Stop enforcing any rule that bans or limits a United States or North Carolina flag of four by six feet or less on an owner's own lot, even if your declaration has the old recorded wording. Update the rules, architectural guidelines, and any violation letter templates that say otherwise, and close open violation files on those flags. Keep or adopt rules for flags on common areas, which the statute still allows. For the annual report, look up your association on the Secretary of State's business registry now and confirm the registered agent, registered office, and principal office are current. If the registered agent is a former director, appoint a current one and file the change. Reinstating an administratively dissolved corporation takes paperwork the board can avoid with a calendar entry. Put November 15, 2027 on the board calendar, name one officer responsible for filing, and plan to renew that assignment each year when officers change. File electronically to pay the lower fee.

What did not become law

Senate Bill 378, titled HOA Revisions, would have changed fines, limited foreclosure, and added mediation. It passed the Senate 47 to 0 on May 7, 2025 and passed the House as a committee substitute on October 22, 2025, but the Senate refused to concur in the House version on October 23, 2025, and the bill has not been enacted. House Bill 444, Homeowners Association Reform, which would have limited management contracts to one year and barred managers from collecting fees for collecting fines, has been in committee since May 6, 2025. Several 2026 bills were still pending when this guide was checked, including House Bill 1174 on complaint tracking by the Department of Justice, House Bill 1212 on gardens, accessory dwellings, and solar, and Senate Bill 1051 on family child care homes. Some commercial websites describe S 378 or H 444 as if they were law. Neither is. There is also no new HOA registry. The Secretary of State annual report applies to nonprofit corporations generally. We found no enacted change from 2023 through 2026 on fine caps, foreclosure limits, attorney fee caps, electronic meetings, reserve disclosure, or records access in Chapter 47F.

Where to read the law

Each bill page on the North Carolina General Assembly site shows the session law number and the date it was ratified and signed, with links to the text. Read the enacted version of Senate Bill 445 for the new flag language, since the codified statute page may lag behind, and Session Law 2026-52 for the annual report. The Planned Community Act is Chapter 47F of the General Statutes. Because the statute pages update slowly after a session, check the session law list for any 2026 change that touches Chapter 47F before you rely on an older printout. Check with an attorney licensed in North Carolina before relying on this for an enforcement decision or a corporate filing question.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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