Updated for 2026
This page is part of AMG’s Guide to North Carolina HOA laws. Two session laws enacted in 2026 affect most North Carolina community associations. The first removes the drafting opt-out that previously allowed certain restrictions to regulate the display of United States and North Carolina flags. The second establishes an annual report requirement for nearly all North Carolina nonprofit corporations.
Association Management Group (AMG) prepared this guide for general informational purposes. AMG is a community association management firm, not a law firm, and this guide does not constitute legal advice. Statutes, and the court decisions interpreting them, change over time. Legal questions, and the final interpretation of any statute or of the governing documents, should be confirmed with qualified legal counsel.
In this guide, the term governing documents refers collectively to the association’s plat, articles of incorporation, bylaws, declaration, rules and regulations, and all policies adopted by the board or the membership.
What this page covers
This page summarizes the 2026 session laws that North Carolina homeowner associations and condominium associations most frequently ask about. It does not catalog every enactment of the General Assembly, and it does not address the circumstances of any particular community. Session laws may be amended, effective dates vary, and the compiled General Statutes can lag behind the enacted session-law text.
This page should be read together with the Planned Community Act, the Condominium Act, the Unit Ownership Act, and the Nonprofit Corporation Act pages. Which of these statutes apply to a given community generally depends on the type of community, whether the association is incorporated, its governing documents, and the date on which the community was created.
2026 changes boards are asking about
The following table lists the principal topics; it does not inventory every section of either session law.
2026 session laws at a glance
| Topic | Session law | Most useful when |
|---|---|---|
| United States and North Carolina flags | Session Law 2026-59 (S.B. 445) | An owner wants to fly a U.S. or N.C. flag, or a rule would limit that display |
| Nonprofit annual report | Session Law 2026-52 (H.B. 517) | The association is a Chapter 55A corporation and the 2027 filing is approaching |
| Minimum number of directors | Session Law 2026-52 (H.B. 517) | The corporation was organized on or after October 1, 2026 |
| Board vacancies | Session Law 2026-52 (H.B. 517) | The corporation was organized on or after October 1, 2026, and a vacancy has left the board below three directors |
| Committees of the board | Session Law 2026-52 (H.B. 517) | The board is creating a committee of directors on or after October 1, 2026 |
Until the compiled General Statutes are updated, the session-law text linked above is the more reliable official source. As of September 29, 2026, the compiled versions of §§ 47C-3-121 and 47F-3-121 on the General Assembly’s website still showed the former flag language.
United States and North Carolina flags
Session Law 2026-59 (Senate Bill 445), effective August 11, 2026, struck the opt-out language from the flag provisions of § 47C-3-121 and § 47F-3-121. Under the removed language, restrictions predating October 1, 2005, could regulate the display of these flags only if they used specified flag terms, and restrictions registered on or after that date could do so only if they included a specific statement, in capital letters, on the first page.
Under the amended text, no restriction may be construed to regulate or prohibit the display of a United States or North Carolina flag that is no larger than four feet by six feet and is displayed in accordance with or in a manner consistent with the patriotic customs in 4 U.S.C. §§ 5–10, on property owned exclusively by the owner. This provision does not apply to common areas, easements, rights-of-way, or other areas owned by others.
The protection extends only to United States and North Carolina flags. Political, sports, college, seasonal, and other flags raise separate questions, and flagpoles and architectural standards may remain relevant. Session Law 2026-59 did not change the political-sign provision of these sections, including its first-page notice route. Provisions of the governing documents that previously permitted regulation of a protected flag may no longer have that effect, so the current session-law text and the governing documents should be reviewed before any enforcement notice is issued. For a planned community created before January 1, 1999, however, § 47F-3-121 applies only through § 47F-1-102(c), which S.L. 2026-59 did not amend. That provision yields to an express contrary provision in the articles of incorporation or declaration and does not invalidate existing provisions of the declaration, bylaws, or plats and plans, so the effect of the 2026 change on such a community depends on those documents. By contrast, § 47C-3-121 applies to condominiums created on or before October 1, 1986, notwithstanding conflicting provisions in their documents, for events after that date.
The nonprofit annual report
Session Law 2026-52 (House Bill 517) enacts new § 55A-16-22.1, which adds an annual report obligation for nearly all Chapter 55A nonprofit corporations. Because most North Carolina associations are organized as nonprofit corporations, they are included even though the session law does not refer to community associations specifically. The Nonprofit Corporation Act page describes the broader corporate framework.
As described in the session law, which takes effect January 1, 2027, reports are due by November 15 of each year beginning in 2027, and no report is due in 2026. The report includes, among other items, the corporation’s name, its registered office and registered agent, its principal office, its principal officers, a contact person, and a brief description of its activities. The filing fee is $25 for a paper report and $18 for an electronic filing. A report that remains delinquent can become a ground for administrative dissolution. Reinstatement is available, but the process takes time and can create uncertainty regarding contracts, insurance, and the corporation’s authority to act.
As of September 29, 2026, the Secretary of State had not published guidance on the new report.
Session Law 2026-52 does not amend the Planned Community Act or the Condominium Act, and it does not change the rules governing assessments, budgets, meetings, voting, proxies, architectural review, fines, collections, or foreclosure.
The same session law also addresses board size, vacancies, and committees of the board. These provisions will have limited effect for most associations but warrant the board’s attention. The three-director minimum applies only to nonprofit corporations organized on or after October 1, 2026, and does not apply to corporations organized before that date. For those newer corporations, new § 55A-8-11(e) permits the board to fall below three directors because of vacancies until the vacancies are filled; this rule likewise applies only to corporations organized on or after October 1, 2026. Many existing associations already have three or more directors.
For committees created on or after October 1, 2026, the articles of incorporation or bylaws may specify the vote required to create a committee. The limits on committee powers are unchanged in substance: a committee of the board still may not take certain actions reserved to the board, and creating a committee does not relieve directors of their duties.
When to involve legal counsel
Matters that commonly warrant the involvement of the association’s attorney include, but are not limited to, a flag or flagpole dispute arising after August 11, 2026; whether the annual report requirement applies to a particular corporation; which individuals to list as principal officers; a board that has fallen below three members; the use of a board committee; and any apparent conflict between a 2026 session law and the governing documents. Whether and when to involve counsel is the board’s decision. At the board’s direction, AMG can help coordinate communications with the association’s attorney and assist in gathering the information counsel requests.
Frequently Asked Questions
Can an association still restrict flags?
Restrictions on flag display may still apply in many circumstances. Since August 11, 2026, however, the drafting opt-out no longer exists, and a restriction may not be construed to regulate or prohibit a United States or North Carolina flag no larger than four feet by six feet, displayed in accordance with or in a manner consistent with 4 U.S.C. §§ 5–10, on property the owner owns exclusively. The protection does not extend to common areas, and other flags may remain subject to the governing documents. For planned communities created before January 1, 1999, the effect of the change also depends on § 47F-1-102(c), which yields to an express contrary provision in the articles of incorporation or declaration and does not invalidate existing provisions of the declaration, bylaws, or plats and plans.
Does an HOA have to file an annual report with the Secretary of State?
Generally yes, if the association is a North Carolina nonprofit corporation. First reports under the new provision are due November 15, 2027, and no report is due in 2026.
Did the 2026 session laws change the Planned Community Act or the Condominium Act other than the flag provisions?
The flag amendment in Session Law 2026-59 is the principal 2026 change to Chapters 47F and 47C that boards have raised. Session Law 2026-52 amends Chapter 55A and does not amend those community association chapters. Other bills were filed but not enacted, and a filed bill does not have the force of law.
Bills, searches, and laws from other states
Community members, and on occasion directors, encounter reports of a “new HOA law” online. In some cases the item in question is a bill that was rewritten, stalled, or never signed. A proposal becomes law only when both chambers have passed it and the Governor has signed it, or when it has otherwise become a session law. Conversely, a change that has become law may not yet appear in the General Assembly’s compiled statute chapters, and until those chapters are updated, the session-law text is the more reliable official source.
Statutes enacted in other states do not govern North Carolina associations. The relevant sources remain the North Carolina General Statutes, any recent session laws, and the community’s governing documents, together with any applicable federal law and local ordinances.
What attorneys are writing
Attorneys who practice in this area have published more detailed discussions of the same session laws. The following publications are provided as further reading.
Ward and Smith on the annual report requirement: New State Law Adds Annual Reporting Requirement for HOA’s.
Jim Slaughter, Law Firm Carolinas, on Session Law 2026-52: New North Carolina Law Creates Filing Requirement for Most Every HOA and Condominium Association.
Jim Slaughter, Law Firm Carolinas, on the flag amendments: New North Carolina Law Changes HOA & Condo Flag Rules.
Related Resources
- Guide to North Carolina HOA laws
- NC Planned Community Act
- NC Condominium Act
- NC Nonprofit Corporation Act and community associations
- Federal and municipal law in North Carolina community associations
Have questions about your own community?
Boards of AMG-managed communities are encouraged to begin with their community manager, who can help the board locate the relevant governing documents and other available information and, at the board’s direction, liaise with the association’s attorney when a legal question arises. Associations that are not currently AMG clients may contact AMG’s client services team for information about AMG’s management services or for referrals to qualified professionals.
AMG provides administrative management services to associations and is not a law firm. AMG acts on behalf of the associations it manages rather than individual owners, and an owner involved in a dispute with an association may wish to consult independent counsel.
About AMG
This guide was prepared by Association Management Group (AMG) community managers, including managers who hold the PCAM®, AMS®, and CMCA® credentials. AMG is an AAMC®-accredited firm serving more than 30,000 property owners across the Carolinas. The information is intended to assist community association members and leaders in understanding the statutory framework in which their associations operate.
Learn more at www.amgworld.com. Additional governance discussion appears in the Lessons from the Neighborhood series at www.LessonsFromTheNeighborhood.com.