HB366 – Regulatory Reform Act of 2021

Industry News,

This omnibus regulatory bill houses AANC’s debt collection language (in Section 9) which clarifies and reaffirms the recovery of out-of-pocket expenses and litigation costs for housing providers in summary ejectments.  The NC General Statutes authorize the recovery of certain late fees and eviction fees, including complaint-filing fees, court-appearance fees, and second trial fees, by a housing provider in a summary ejectment proceeding. Section 9 clarifies that certain fees associated with summary ejectment proceedings are administrative costs that may be recovered by a housing provider in a summary ejectment. This section also clarifies that a housing provider may only recover the out-of-pocket expenses or litigation costs for filing a summary ejectment that are expressly authorized in the General Statutes, which include filing fees charged by the court, costs for service of process, and reasonable attorneys' fees actually paid or owed, and not to exceed 15% of the amount of monthly rent or owed by the tenant, as appropriate. This section also clarifies that "administrative fees" do not include out-of-pocket expenses, litigation costs, or other fees. This section would be effective when it becomes law and is intended to apply retroactively to all pending controversies as of that date. The amendments contained in this section are intended to be clarifying of the General Assembly's intent under previous amendments to this statute.

This bill has been re-referred to the Committee on Rules, Calendar, and Operations of the House.