South Carolina HOA By Laws

Started by KerryB4 • 14 replies • 2569 views

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KerryB4 (South Carolina)
Posts: 2

Posted:

Where can I find the requirements for the bylaws of a South Carolina HOA? There have been rumors of embezzlement, etc of HOA funds, there are extremely constrictive color palette rules, and our pool maintenance leaves a lot to be desired.

I have lived here for nearly a year and love the neighborhood, but feel the HOA fees are too steep for what we get in return, and I have very uncooperative neighbors as well, who refuse to change the absolutely disgusting colors of this unit - it would be nearly impossible for me to resell like this.

Are we entitled to regular meetings, and are we required to be given the opportunity to request a meeting, etc?

Just general questions.

PitA
Posts: 311

Posted:

if a condo: Horizontal Property Regime Law

also the 'not for profit corporate law

yes and yes

as per the covenants and corporate bylaws

KerryB4 (South Carolina)
Posts: 2

Posted:

What constitutes a condo? Just curious. These are attached townhouses (dual units) with each 'half' owned by a person or company.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Kerry of SC

To be under the SC Horizontal Property Act it must be a multi floor, multi units per floor building. This typically is referred to as a Condo Building. Originally enacted to cover high rise condos along the coast, especially conversion to condos.

Townhouses, side by side duplexes, triplex, quadplexes, single family, etc. type units do not fall under the SC Horizontal Property Act. The basic controls for these type structures are their Covenants, Bylaws, Rules & Regulations, etc. Also these type units fall under The SC Articles of Incorporation for a Non-profit Corporation. That said the SC Articles of Inc often say so and so but then say, unless your corporations Bylaws say otherwise thus tossing control right back to the corporation (association). SC laws favor corporations and associations versus the average person.

In SC Covenants must be registered with the property and are often called Deed Restrictions. A copy is available from your local County Registrar of Deeds. As far as your association's individual Bylaws, a copy should be readily available from your association and in some cases they are attached to the Covenants. In most cases, you received a copy of these documents at closing. Typically an association can vote to modify any and all documents. It will generally take a majority of owners voting to do so, but it can be done.

Some Covenants limit things right down to like the color of a front door. Others may even have a color pallette referenced but if the majority of owners agree, the Covenants could say all houses must be painted in garish colors.

Hope this helps.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By KerryB4 on 05/28/2015 1:19 PM
Where can I find the requirements for the bylaws of a South Carolina HOA? There have been rumors of embezzlement, etc of HOA funds, there are extremely constrictive color palette rules, and our pool maintenance leaves a lot to be desired.

I have lived here for nearly a year and love the neighborhood, but feel the HOA fees are too steep for what we get in return, and I have very uncooperative neighbors as well, who refuse to change the absolutely disgusting colors of this unit - it would be nearly impossible for me to resell like this.

Are we entitled to regular meetings, and are we required to be given the opportunity to request a meeting, etc?

There are probably laws in your state regarding embezzling, but I doubt any that are HOA specific. There are likely no laws that concern how restrictive your color palettes are. Pool maintenance might be regulated by state or local health codes, but if your concern for maintenance is beyond that, there are probably no laws to help you there either.

Requirements for frequency of board meetings, and member ability to call special meetings should be outlined in either your bylaws or other governing documents such as CCRs or Deed restrictions. Your post isn't clear on this, but if you have not thoroughly read and understand these documents, that's your first step. If you feel the board is in breach of these documents, you can follow through all the way to suing if you feel it's needed.

The best solution might be a longer term one. If many owners feel the same way you do, then maybe it's time for a board shake up. Run for the board, find other like minded owners to do the same, and campaign for votes. If most people are happy with the way things are, then "majority rules" and not much is likely to change.

Escaped former treasurer and director of a self managed association.

KerryL1 (California)
Posts: 14,550

Posted:

Hi KerryB, it sounds like you have three different things that are bothering you.

1. Meetings and if owners may attend them. My understanding is that in SC, the Board can keep you out of its meetings. But you probably have the right to attend members (Homeowners) meetings. Those may be held infrequently though. Requirements for all kinds of meetings should by in your bylaws.

2. Requirements for colors exterior color palettes and the authority to change those requirements may be in your covenants (CC&Rs; declaration) or they may in some sort of architectural guidelines or in your Rules & Regulations.

3. You will not find whether you're "paying too much" or not in any of your governing documents. If SC gives you the right, write to your board president, return receipt requested or your property manager and request to see your annual budget. They will give you an idea of where your money goes. It also will tell you how much your HOA is paying for pool maintenance.

Perhaps JohnC & PiTA can give you better answers since they live in SC.

Meantime, what size is your HOA? I.e., how many units? How many people are on your Board?

JeffT2 (Iowa)
Posts: 880

Posted:

Quote:

Posted By JohnC46 on 05/28/2015 2:14 PM
To be under the SC Horizontal Property Act it must be a multi floor, multi units per floor building. This typically is referred to as a Condo Building. Originally enacted to cover high rise condos along the coast, especially conversion to condos.

Townhouses, side by side duplexes, triplex, quadplexes, single family, etc. type units do not fall under the SC Horizontal Property Act.

This is true for most properties that are condos, but I don't see anything in the law that requires multi floor, multi units per floor building. As I understand it, a townhouse might be a condo.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By KerryL1 on 05/28/2015 4:51 PM
Hi KerryB, it sounds like you have three different things that are bothering you.

1. Meetings and if owners may attend them. My understanding is that in SC, the Board can keep you out of its meetings. But you probably have the right to attend members (Homeowners) meetings. Those may be held infrequently though. Requirements for all kinds of meetings should by in your bylaws.

You cannot be kept out of a BOD Meeting in SC unless an Executive Session. BOD Meetings are open to all owners. As to notification of where and when the meeting is held, is another question. In our case, we conduct 95% of our business via Email. Our BOD probably meets only once or twice a year. As someone recently said, that BOD Meetings are needed to set policy, not follow through on policy...or something like that.

2. Requirements for colors exterior color palettes and the authority to change those requirements may be in your covenants (CC&Rs; declaration) or they may in some sort of architectural guidelines or in your Rules & Regulations.

May be are the operative words here. Many Covenants will say things like "neutral" then leave it up to the BOD or a Committee as to what "neutral" is. To some, garish stripes might be neutral.

3. You will not find whether you're "paying too much" or not in any of your governing documents. If SC gives you the right, write to your board president, return receipt requested or your property manager and request to see your annual budget. They will give you an idea of where your money goes. It also will tell you how much your HOA is paying for pool maintenance.

In SC, At least once a year there must be a Homeowners Meeting and financial information must be presented at that time. Typically the Prior Year Forecasted Budget and Actually Spent will be presented along with the New Year Forecasted Budget. As to how far the figures are "broken" down can be a cause for concern. As an example, pool cost might lump things together such as under Pool Maintenance including chemicals, filters, repaired lounge chairs, paining, etc. versus how much was spent on each individual item.

My HOA presents each owner with a one page Balance Sheet and a one page Profit and Loss Budget versus Actual Statement. They are backed up by about 10 pages of itemized income/expenses which we do not present but are available upon request. In our case, a simple Email to the BOD will generate such a report being sent to you. In some associations (especially if a manual system), they may well charge you for copies.

Hope this helps.

Perhaps JohnC & PiTA can give you better answers since they live in SC.

Meantime, what size is your HOA? I.e., how many units? How many people are on your Board?

BobD4 (up north)
Posts: 1,002

Posted:

Quote:

Posted By JeffT2 on 05/28/2015 6:31 PM
Posted By JohnC46 on 05/28/2015 2:14 PM
To be under the SC Horizontal Property Act it must be a multi floor, multi units per floor building. This typically is referred to as a Condo Building. Originally enacted to cover high rise condos along the coast, especially conversion to condos.

Townhouses, side by side duplexes, triplex, quadplexes, single family, etc. type units do not fall under the SC Horizontal Property Act.

JeffT2 This is true for most properties that are condos, but I don't see anything in the law that requires multi floor, multi units per floor building. As I understand it, a townhouse might be a condo.

With states in control of property law, must be some huge variations. I actually see the word 'condominium' in definitions section of S.C.'s Title 27/CHAPTER 31 "Horizontal Property Act"
http://www.scstatehouse.gov/code/t27c031.php. Many jurisdictions (like mine) may reserve terms like "condominiums" for legislated rel property platforms not derived merely from private CCRs & Building Schemes. ( Townhouses, rowhouses, single storeys etc could readily be registered as "condominiums" there as thousands are in mine but interestingly not in S.C. )

JohnC46 (South Carolina)
Posts: 14,265

Posted:

The SC Legislatures are not the sharpest knives in the draw. They continually jump on an issue and leave many loop holes. SC Horizontal Property Act is a good example. It was cobbled together to control beach front high rise hotels and apartment buildings that were being converted to and sold as condos. That loop hole left out associations that were not high rise.

There has been a bill floating about to deal with other type associations but fortunately it has gone no where. I for one lobby my Legislatures to keep it dead.

BobD4 (up north)
Posts: 1,002

Posted:

Quote:

Posted By JohnC46 on 05/29/2015 3:33 AM
The SC Legislatures are not the sharpest knives in the draw. They continually jump on an issue and leave many loop holes. SC Horizontal Property Act is a good example. It was cobbled together to control beach front high rise hotels and apartment buildings that were being converted to and sold as condos. That loop hole left out associations that were not high rise.

There has been a bill floating about to deal with other type associations but fortunately it has gone no where. I for one lobby my Legislatures to keep it dead.

1- My uncorrectible typo above should have read ". . . Many jurisdictions (like mine) may reserve terms like "condominiums" for legislated REAL property platforms not derived merely from private CCRs & Building Schemes. ( Townhouses, rowhouses, single storeys etc could readily be registered as "condominiums" there as thousands are in mine but interestingly not in S.C. )".

2 S.C. knives may be plenty sharp, if enacting a dedicated HOA law (for the non-stacked housing) would be more vulnerable to pressure for consumer protection from HOA owners like the questioner here.

Another VERY sharp knife : many state-chartered Title Insurance companies have reportedly kept their legislatures from adopting Torrens /modified Torrens Land Titles systems. That system limits the search period - ie lawyers' fees - and also brings built-in remedials that may undercut the incentive for buyers to purchase private title insurance. Sounds pretty sharp to me.

Searching for by-laws etc - including by do-it-yourselfers - tends to be easier in that system because it weeds out junk & obsoletes, and readily embraces remote digital access.

( My own jurisdiction has successfully adopted & converted a claimed 98 % of Deeds Registry properties to the (Torrens type) land Titles system but I am not stupid enough to risk buying without private tit;e insurance )

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By BobD4 on 05/29/2015 8:03 AM
Another VERY sharp knife : many state-chartered Title Insurance companies have reportedly kept their legislatures from adopting Torrens /modified Torrens Land Titles systems. That system limits the search period - ie lawyers' fees - and also brings built-in remedials that may undercut the incentive for buyers to purchase private title insurance. Sounds pretty sharp to me.

Searching for by-laws etc - including by do-it-yourselfers - tends to be easier in that system because it weeds out junk & obsoletes, and readily embraces remote digital access.

( My own jurisdiction has successfully adopted & converted a claimed 98 % of Deeds Registry properties to the (Torrens type) land Titles system but I am not stupid enough to risk buying without private tit;e insurance )

Hi Bob

I think about 1/3 of the US states had Torrens-style systems at one time or another. Today, remnants of such systems exist only in Mass and Hawaii. They fell out of favor in other states because Torrens was a more expensive alternative. Mass and Hawaii's systems survived because there wasn't any alternative. There was only one system for people to choose from.

Also, the benefits of a Torrens-style system have been reduced by the introduction of UPI (Uniform Parcel Identification) systems that have been adopted in many localities over the last few decades.

Sikubali jukumu. Read all posts at your own risk.

BobD4 (up north)
Posts: 1,002

Posted:

Quote:

Posted By NpS on 05/29/2015 6:11 PM
Posted By BobD4 on 05/29/2015 8:03 AM
Another VERY sharp knife : many state-chartered Title Insurance companies have reportedly kept their legislatures from adopting Torrens /modified Torrens Land Titles systems. That system limits the search period - ie lawyers' fees - and also brings built-in remedials that may undercut the incentive for buyers to purchase private title insurance. Sounds pretty sharp to me.

Searching for by-laws etc - including by do-it-yourselfers - tends to be easier in that system because it weeds out junk & obsoletes, and readily embraces remote digital access.

( My own jurisdiction has successfully adopted & converted a claimed 98 % of Deeds Registry properties to the (Torrens type) land Titles system but I am not stupid enough to risk buying without private tit;e insurance )

Good comments. Without wanting to off-topic the original poster's direct issue, I myself have found that a Torrens based system is a far easier search, including for DIYers.

But the cost ( and complexity ) of the initial upfront conversion has to be considered alongside consumer ease, simplicity & longer term cost controls.

It washes out lots of debris but hopefully not the baby with the bathwater. Many of its fans have claimed that US private titles companies fought critical battles to keep it out state by state. An indirect consumer issue. Thanks for the comment.

e conversion

PitA
Posts: 311

Posted:

South Carolina Code of Laws
Unannotated
Current through the end of the 2014 Session

Title 33 - Corporations, Partnerships and Associations

CHAPTER 31

South Carolina Nonprofit Corporation Act

ARTICLE 1

General Provisions

SECTION 33-31-206. Bylaws.

(a) The incorporators or board of directors of a corporation shall adopt bylaws for the corporation.

(b) The bylaws may contain any provision for regulating and managing the affairs of the corporation that is not inconsistent with law or the articles of incorporation.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

As an example of what PITA said. SC Articles of Incorporation for a Non-Profit say that only 10% are needed for a Quorum...unless...unless the Corporation's Bylaws say "other"...

Some say "other" means never less then 10%. We all probably agree on 10% or more, but a scumbag attorney will take on the it could be less if the Bylaws say such.

The SC Articles are full of..."unless the Corporation's bylaws say other".

We had an issue where our Bylaws said 50% for a Quorum. We wanted to change it to 20%. Our lawyer said in order to do so we had to establish a Quorum and 50% of the Quorum had to agree. Some of us did not agree with the lawyer. The lawyer said do it my way and I can easily defend you. Do it another way and it could get tricky and expensive for me to defend you. We did it his way. Our Quorum needed 57. We got such and it passed 29 to 28. Talk about a close vote.

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