As the number of HOA complaints in South Carolina has risen, there has been an increasing push for regulation. The S.C. Department of Consumer Affairs reported that complaints have quadrupled since 2018. Particularly, reform efforts are focused on prohibiting HOAs from foreclosing homes for unpaid fees and fines.
Surge in HOA Complaints
According to a South Carolina Department of Consumer Affairs report, HOA complaints have quadrupled since the record-keeping started in 2018. South Carolina residents filed 365 verified complaints during 2023. These complaints raised 742 specific concerns in total. Most of the complaints came from Horry, Richland, and Charleston counties.
Among the top issues reported consisted of the HOA’s failure to enforce the bylaws and covenants. Moreover, many complaints involved disagreements with HOA fees, special assessments, and concerns regarding maintenance and repairs.
S.C. Sen. Darrell Jackson has been advocating for comprehensive reforms since 2009. He is a Democrat from Richland County. He says he was not surprised by the findings in the report because the Homeowners Association Act of 2018 only imposed light regulations. The act required HOAs to file their governing documents with their county’s Register of Deeds. They also needed to notify residents of proposed fee increase and inform potential homeowners that the property is part of an association.
According to Jackson, he knew the bill would not stop the complaints even if it was passed. He says it’s time to revisit the push for regulation based on the report and the anecdotal evidence he’s witnessed.
The Looming Presence of HOAs
Homeowners associations are often found in condominium buildings and subdivisions. They are self-governing organizations comprising all homeowner members in a given community. HOAs are responsible for maintaining common areas, drafting and enforcing rules, and preserving property values. The rules can encompass almost anything from the color of the homes to specific pet restrictions.
HOAs enforce the rules using fines and the suspension of rights and privileges. The average monthly HOA fee homeowners pay is $191, according to the United States Census. South Carolina has over 7,000 HOAs with over 1.3 million members. This number will grow more as developers create 80% of their new developments in HOA communities.
The Community Associations Institute (CAI) is an industry trade group that lobbies for homeowners associations. It conducted a poll in 2020 stating that around 90% of the homeowners are satisfied with their homeowners association. According to CAI’s chief executive office, Thomas M. Skiba, the new research strengthened their belief that community associations brought people together. They create a place where neighbors connect, grow, and support each other. CAI is proud of these findings, mainly as millions of homeowners serve on their boards and HOA managers support neighborhoods tirelessly.
Push for Regulation
Despite CAI’s report, many critics push for regulation. Drew Radeker is a Columbia attorney who often represents residents in disputes involving HOAs. According to him, many associations wield quasi-governmental power that goes largely unchecked. They have power over the lives of their residents and need more robust oversight. He says S.C. HOAs are full of abuses of power, and it’s time to push for regulation to rein them in.
South Carolina HOA reforms are particularly focused on H. 3180, a House bill that may prevent HOAs from foreclosing homes for unpaid fines and fees. The bill has bipartisan sponsors and will help many homeowners avoid having their homes taken. Foreclosures became part of public controversy when the S.C. Supreme Court ruled in favor of Devery and Tina Hale in 2019. The HOA foreclosed their home over a $250 dispute. At the time, the house was worth more than $100,000 but was sold at an auction for $3,000. The high court called the outcome “unconscionable.”
According to Jackson, many families in the church are facing foreclosures from HOAs. He strongly supports the push for regulation and the proposed legislation. However, he’d also like to see more General Assembly support for the extensive reform bill he proposed in 2009. Nonetheless, he knows it would require real public pressure to push the bill forward. Jackson says he doesn’t understand why there’s not more of an outcry when there are many whose lives were torn apart. He urges the people to call legislators and ask for relief.
