South Carolina HOA Act mandates document access and meeting notice for budget changes

The South Carolina Department of Consumer Affairs held a meeting on March 7, 2024, to discuss the rights of homeowners in relation to homeowners associations (HOAs) under state law. The meeting focused on the South Carolina Non Corporation Act and the Homeowner Association Act, outlining the access to documents and enforcement mechanisms available to homeowners.

The discussion began with an overview of the types of documents that homeowners are entitled to access, specifically the budget and membership lists of their respective HOAs. It was emphasized that these access rights are mandated by the South Carolina Non Corporation Act, which allows homeowners to inspect and copy these essential documents. If an HOA fails to provide the requested documents, homeowners have the option to seek enforcement through the circuit court. Alternatively, they can file a complaint with the Department of Consumer Affairs to utilize voluntary mediation services.

A key point of the meeting was the meeting notice requirement under the Homeowner Association Act. It was noted that associations, excluding nonprofit corporations, must notify homeowners at least 48 hours in advance of any meeting where decisions regarding the annual budget are made. This notice can be communicated through various methods, including postings in common areas, emails, or as specified in the HOA's bylaws.

The meeting also addressed the disclosure requirements for homebuyers. Sellers are obligated to inform potential buyers if a property is part of an HOA through the South Carolina residential property disclosure statement. Homebuyers were advised to obtain a copy of the HOA's governing documents, request meeting minutes from the past year, and seek written confirmation that the property is not in violation of any HOA rules. Attending association meetings was also recommended as a way for prospective buyers to gauge the functionality of the HOA.

In conclusion, the meeting provided valuable insights into the rights and responsibilities of homeowners in South Carolina regarding their associations. The Department of Consumer Affairs highlighted the importance of understanding these regulations to ensure transparency and accountability within HOAs. Further discussions and follow-up actions are anticipated as the department continues to address homeowner concerns.