A Possible South Carolina Homeowner's Association Act
On January 13, 2009, Bill 30 was introduced in the South Carolina Senate. The bill's sponsor is Senator Derrell Jackson. Bill 30 is a proposal to amend the Code of Laws of South Carolina, 1976, by adding a new chapter entitled "South Carolina Homeowners' Association Act."
The reasoning behind the proposal is the increased number of disputes between associations and their members. The bill would increase the transparency of an association's operations by requiring that association officers maintain certain documentation. Additionally, the law designates the Department of Consumer Affairs as the state agency to handle and monitor associations' dealings.
While state regulation of associations may arguably provide efficient and fair resulution of arising disputes, constitutional issues such as the right to privacy unavoidably come to mind. You may form your own opinion by reading the full text of the proposal on the South Carolina Statehouse website.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
Can you tell me if this has been passed?
On January 13, 2009, Bill 30 was introduced in the South Carolina Senate. The bill's sponsor is Senator Derrell Jackson. Bill 30 is a proposal to amend the Code of Laws of South Carolina, 1976, by adding a new chapter entitled "South Carolina Homeowners' Association Act
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Kelli, thank you for posting. Thanks Heavens it has not been passed yet. It will be back up next year. God bless you, Ryan
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In reviewing the 2009 version of SC Senate Bill 30 "South Carolina Homeowners' Association Act", I find it woefully inadequate in that the topics of Reserve Accounts and Reserve Studies are not addressed at all.
An article "How much should be in the reserve accounts"? posted 6/19/2009 by Virginia attorney Mike Inman in the Virginia Law Blog addresses the requirements for Reserves and Reserves in the Virginia Condominium Act and states that "If you find that the Association has no Reserve Study, that's a warning sign that the Board is not keeping track of reserves and maintenance responsibilities like they should be."
Do you as a SC HOA attorney agree with this statement and what is your position on the requirements for Reserves and Reserve Studies addition to the proposed SC SB30?
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Bob, thank you for posting. SB30 is a bad bill. The sponsors are not really interested in addressing issues such as reserves. The proponents appear to be more interested in doing as much as they can to make community associations powerless. SB30 does not address real issues facing community associations. It is designed to restrict powers of the associations. The Director of the Department of Consumer Affairs is lobbying some senators for this new power and for additional funding to grow her agency. The creation of a new agency or expansion of a new agency for the purpose of putting government in our neighborhoods is unprecedented in this country. NO OTHER STATE HAS AN AGENCY THAT DOES WHAT SB30 WOULD DO.
I agree with you that community associations should be required to set reserves where and when appropriate. Keep in mind that some community associations have very little property and the cost of undertaking reserves might not justify the cost of doing so.
God bless you and thanks for posting, Ryan.
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Mr. McCabe knowing what you know from your association with Mr. Inman, HOA attorney in Virginia and the Virginia HOA Act, what are the main issues/topics you feel should be included in a SC HOA Act to best serve the members of an HOA?
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Thank you for posting. I am not sure that I know a Mr. Inman. However, if you are referring to the SC HOA Act that was presented to the legislature this year, then my answer would be nothing. I don't mean this in an arrogant way, but the proposed SC HOA Act was beyond pathetic. It was poorly drafted and the drafters apparently did not understand the basic law of contracts and servitudeds. While I don't oppose good, well reasoned legislation dealing with community associations, I certainly could not support the proposed SC HOA Act. The SC HOA Act was obviously prepared by people who are opposed to community associations. Also, under the SC HOA Act, SC would become the first state to create a state agency with police power to become involved in community association issues. NO ONE IN THEIR RIGHT MIND WOULD SERVE ON AN HOA BOARD UNDER THAT LAW!!!!! God bless you, Ryan.
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