Bill > H3425

This bill amends South Carolina's homeowners association (HOA) laws to introduce several new financial transparency and accountability measures. The legislation requires HOAs to send detailed annual operating budgets to homeowners within ten days of the fiscal year's start, along with quarterly updates that itemize expenditures and fine collections. These budget documents must also be filed with the Department of Consumer Affairs and retained for at least five years. The bill prohibits HOAs from controlling homeowners' utility services, mandating that utility service control be transferred to individual homeowners by July 1, 2025. Additionally, the bill establishes new notice requirements for budget increases and unbudgeted expenditures, requiring HOAs to provide at least 48 hours' advance notice through various communication methods such as common area postings, websites, or email. For unbudgeted spending, a quorum of homeowners must be present to approve the expenditure. If an HOA fails to comply with these requirements, they may be subject to enforcement actions and could be responsible for homeowners' actual damages and legal fees. The legislation does not apply to HOAs incorporated under the South Carolina Nonprofit Corporation Act, and it will take effect upon the Governor's approval.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=3425&session=126&summary=B