Understanding South Carolina Homeowners Associations and the Law

Homeowners associations (HOAs) play a significant role in managing and maintaining residential communities in South Carolina. This blog post aims to provide a comprehensive overview of the laws governing HOAs in the state, including the South Carolina Homeowners Association Act, the Nonprofit Corporation Act, and the Horizontal Property Act. We will explore the rights and responsibilities of both HOAs and homeowners, the importance of governing documents, and the processes for addressing disputes and complaints.

Legal Framework for HOAs in South Carolina

In South Carolina, HOAs are governed by several key laws:

1. South Carolina Homeowners Association Act
2. South Carolina Nonprofit Corporation Act
3. South Carolina Horizontal Property Act

South Carolina Homeowners Association Act

The South Carolina Homeowners Association Act, passed in 2018, provides a framework for the operation of HOAs. It defines an HOA as an entity that manages a planned community or horizontal property regime, requiring owners to pay assessments for shared expenses. Key provisions include:

• Filing Requirements: Governing documents, including declarations and bylaws, must be recorded in the county where the association is located. Existing documents must have been recorded by January 10, 2019, to be enforceable.
• Access to Documents: Homeowners have the right to access certain documents, including rules, regulations, budgets, and membership lists.
• Meeting Notice Requirements: HOAs must provide a 48-hour notice for meetings where decisions about raising the annual budget are made.
• Enforcement: Disputes can be taken to circuit court, and homeowners can file complaints with the Department of Consumer Affairs for mediation.

South Carolina Nonprofit Corporation Act

Many HOAs choose to operate as nonprofit corporations, which subjects them to additional regulations under the South Carolina Nonprofit Corporation Act. Key aspects include:

• Board of Directors: Nonprofit HOAs must have a board of directors, consisting of at least three members, and must hold annual meetings.
• Access to Records: Members have the right to inspect and copy records, including meeting minutes and financial statements.
• Voting Rights: The act outlines voting procedures and requirements for member participation in decision-making.

South Carolina Horizontal Property Act

The Horizontal Property Act specifically governs horizontal property regimes, such as condominiums. This act includes detailed requirements for:

• Master Deeds and Bylaws: These documents must outline the rights and responsibilities of owners, including descriptions of common elements and voting procedures.
• Recordkeeping: Administrators must maintain detailed records of expenses and income, and owners have the right to inspect these records.

Importance of Governing Documents

Governing documents, such as declarations, bylaws, and rules, are crucial for the operation of HOAs. They outline the rights and responsibilities of homeowners and the procedures for governance. Homeowners should familiarize themselves with these documents to understand their rights and obligations within the community.

Addressing Disputes and Complaints

When disputes arise between homeowners and their HOA, several steps can be taken:

1. Communication: Homeowners should first attempt to resolve issues by discussing them with the HOA board of directors.
2. Documentation: Review governing documents to understand the rules and procedures that apply to the situation.
3. Legal Action: If disputes cannot be resolved, homeowners may seek legal advice or file a complaint with the Department of Consumer Affairs.

Recent Legislative Developments

There are several pending bills in the South Carolina legislature that could impact HOAs, including:

• H390: A bill to enact the revised uniform unincorporated nonprofit association act.
• H3180: A proposal to prohibit HOAs from foreclosing on properties for unpaid dues.
• H3259: A requirement for HOAs to send annual budgets to homeowners.

These bills are currently under consideration and have not yet become law.

Conclusion

Understanding the laws governing homeowners associations in South Carolina is essential for both homeowners and HOA boards. By familiarizing themselves with the South Carolina Homeowners Association Act, the Nonprofit Corporation Act, and the Horizontal Property Act, individuals can better navigate the complexities of HOA governance and address any disputes that may arise. Homeowners are encouraged to actively participate in their associations and seek legal counsel when necessary to protect their rights and interests.