House Select Committee on HOAs Page 29
(a) Except as provided in subsection (b) of this section, the board of 1 directors shall provide for an annual independent financial review of the 2 association. The review shall be completed no later than ninety days after the end 3 of the association's fiscal year and shall be made available upon request to the lot 4 owners within thirty days after its completion. 5
(b) The board of directors shall provide for an annual independent financial 6 audit of the association, in lieu of an annual independent financial review, if any of 7 the following conditions are met: 8
(1) The declaration, bylaws, or other governing documents expressly 9 require conduct of an annual financial audit. 10
(2) The association has annual revenues or expenditures of at least 11 four hundred thousand dollars ($400,000). 12
(3) An audit is requested by a vote of a majority of the board or by a 13 vote of a majority of the lot owners present and voting in person 14 or by proxy at any annual meeting or any special meeting duly 15 called for that purpose." 16
SECTION 3. G.S. 47F-3-108(a) reads as rewritten: 17
"§ 47F-3-108. Meetings. 18
(a) A meeting of the association shall be held at least once each year. 19 Special meetings of the association may be called by the president, a majority of 20 the executive board, or by lot owners having ten percent (10%), or any lower 21 percentage specified in the bylaws, of the votes in the association. Not less than 10 22 nor more than 60 days in advance of any meeting, the secretary or other officer 23 specified in the bylaws shall cause notice to be hand-delivered or sent prepaid by 24 United States mail to the mailing address of each lot or to any other mailing 25 address designated in writing by the lot owner, or sent by electronic means, 26 including by electronic mail over the Internet, to an electronic mailing address 27 designated in writing by the lot owner. The notice of any meeting shall state the 28 time and place of the meeting and the items on the agenda, including the general 29 nature of any proposed amendment to the declaration or bylaws, any budget 30 changes, and any proposal to remove a director or officer.officer, and any material 31 matter for which a vote is to be taken." 32
SECTION 4.(a) G.S. 47F-3-110 is repealed. 33
SECTION 4.(b) Article 3 of Chapter 47F of the General Statutes is 34 amended by adding a new section to read: 35
"§ 47F-3-110A. Voting; proxies; ballots. 36
(a) Unless prohibited or limited by the declaration or bylaws, lot owners 37 may vote at a meeting in person, by absentee ballot pursuant to subsection (b)(4), 38 by a proxy pursuant to subsection (c), or, when a vote is conducted without a 39 meeting, by electronic or paper ballot pursuant to subsection (d). 40
(b) At a meeting of lot owners, the following requirements apply: 41
(1) Lot owners who are present in person may vote by voice vote, 42 show of hands, standing, or any other method for accurately 43