This bill amends the Homeowner's Association Act by adding a new section, 55-3204C, which establishes provisions for the automatic dissolution of homeowner's associations. According to the new law, any homeowner's association that has been in existence for ten years or more as of July 1, 2026, will automatically dissolve on July 1, 2029, unless its members vote against such dissolution. Associations created after July 1, 2026, or those existing for less than ten years will also dissolve automatically after ten years unless a vote is held to oppose the dissolution.

The bill mandates that homeowner's associations must hold a meeting to allow members to vote against the automatic dissolution before the specified dates. Notice of this meeting must be provided to members, including details about the purpose of the meeting and a plan for dissolution. If a majority of eligible voters oppose the dissolution, the association will continue; otherwise, it will dissolve according to the plan outlined. The bill also stipulates that common property will remain dedicated to the members, and the assets of the association will be transferred to a successor entity, lot owners, or local government upon dissolution. The act is set to take effect on July 1, 2026.