Homeowners Association (HOA) Legislation (H.3886)

UPDATED: July 2, 2018

Issues and disputes regarding HOAs are an ongoing issue for REALTOR® membership and the real estate industry as a whole. H.3886, the SC Homeowners Association Act, is an important first step in providing uniformity, transparency, and relief for homeowners across the state. The bill would implement consistent guidelines that encourage good governance among HOAs and protect homeowners’ interests.

The legislation passed the House in the 2017 session and was amended and passed by the Senate in the 2018 session. The House then further amended the Senate language, to which the Senate unanimously concurred.

The legislation addresses the following:

• Requires the recording of governing documents of the HOA. This provision clarifies that governing documents must be recorded with the Register of Deeds or Clerk of Court in order to be enforceable.
• Ability to resolve financial disputes between homeowners and HOAs in Magistrate Court
• Notice on the property disclosure statement by adding a check box to the current form that would notify a potential buyer if the property is subject to an HOA
• Requires HOAs to provide notice to homeowners at least 48 hours in advance of any increase in the annual budget in any single year. (However, this section would not apply to HOAs that are incorporated under the South Carolina Nonprofit Corporation Act)
• Provides that the Department of Consumer Affairs shall receive and record data from any calls or written complaints and provide an annual report to the General Assembly from the data collected

The bill was signed into law on May 17, 2018.  Thank you Rep. Heather Crawford for your tireless efforts in support of homeowners!

To view the bill in its entirety , please visit the General Assembly website: http://www.scstatehouse.gov/