Hundreds show up at Conway meeting, discuss HOA legislation
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Hundreds show up to discuss proposed HOA legislation...
Hundreds of people showed up to discuss a proposed South Carolina Homeowner?s Association Act.
Rusty Ray/WBTW
Hundreds of people showed up to discuss a proposed South Carolina Homeowner’s Association Act. The meeting was held at the Horry–Georgetown Technical College Conference Center near the Market Common in Myrtle Beach.
Published: October 14, 2009
Updated: October 15, 2009
Hundreds of people showed up to discuss a proposed South Carolina Homeowner’s Association Act. The meeting was held at the Horry–Georgetown Technical College Conference Center near the Market Common in Myrtle Beach.
The Myrtle Beach Area Chamber of Commerce hosted the meeting Wednesday morning. People in attendance discussed a legislative overview by a number of attorneys and association/property management companies. There was also a time for people to get their questions answered about the proposed act.
The South Carolina Homeowners’ Association Act (S. 30) was introduced by the state senate in the 2009 legislative session and is expected to be pre-filed for the 2010 legislative session. S. 30 amends the Code of Laws of South Carolina (1976) by adding Chapter 52 to Title 27, according to a press release from the Chamber.
The bill addresses how associations are set up and governed including openness of association finances and meetings. To association management companies, the bill contains many onerous provisions that conflict with existing state laws and association governing documents and are costly to administer and logistically difficult to perform in some cases. The high number of absentee owners in the Myrtle Beach area poses additional challenges for associations to comply with the act, the release said.
Ed Courtney lives in Pawleys Island, and is active in his neighborhood’s homeowners association.
“I think sometimes maybe too much control can be in effect,“ Courtney said before the meeting Wednesday. “I just want to make sure there’s even balance between what the HOA’s required to do and what the homeonwers can do,“ he said.
Chamber officials say workshops and open forums like Wednesday’s are the perfect opportunity to get information out and to try to offer up suggestions before any law is passed in Columbia.
“We just want to get the issues out, so we can dissect them before something is run through without any discussion,“ said Buzz Freeman, part of the chamber’s legislative policy council.
Currently, condominium associations are governed by the South Carolina Horizontal Property Act (Chapter 31, Title 27) and may be governed by the South Carolina Nonprofit Corporation Act (for nonprofit associations; Chapter 31, Title 33). Single-family associations are governed by the South Carolina Nonprofit Corporation Act. Individual associations establish bylaws and declarations of covenants and restrictions in accordance with these state laws.
The full text of the proposed bill can be viewed online at the South Carolina General Assembly’s website: http://www.SCStatehouse.gov.
Reader Reactions
In rely to IKlinden:
Look who paneled the meeting: the biased “hired hands.“ Here’s my take on the bill. Homeowners must support it, else the hired hands will kill it.
Dear Senator Jackson,
Let me compliment you on a fine start in regulating HOAs in order to hold them accountable. Your bill is short and very well presented. I found the following sections very important, that the CAI lobbyists will fight tooth and nail to stop. Please note the clause in red below.
http://www.scstatehouse.gov/sess118_2009-2010/bills/30.htm
SECTION 1. This act may be cited as the “South Carolina Homeowners’ Association Act”.
SECTION 2. Title 27 of the 1976 Code is amended by adding:
“CHAPTER 52
South Carolina Homeowners’ Association Act
Section 27-52-180(B). Before a homeowners’ association may file suit or take other action against a member homeowner for a violation of governing documents . . . provide notice and opportunity for a hearing.
(3) the availability of nonbinding mediation through the department pursuant to Section 27-52-190;
Section 27-52-190. (A) A member may seek nonbinding mediation through the department for disputes involving the association’s governing documents or disputes involving a monetary amount of at least two hundred fifty dollars . . .
Section 27-52-220. (A) The department may enforce the provisions of this chapter and investigate a suspected violation.
(E) If the association fails to appeal the cease and desist order of the department and continues to engage in the action in violation of the department’s order, the association is subject to a penalty of not less than one thousand nor more than two thousand five hundred dollars . . .
Section 27-52-230. (A) A person who has exhausted all administrative remedies available with the department and who is aggrieved by the department’s determination is entitled to a contested case hearing before the Administrative Law Court . . .
Section 27-52-240. The department may promulgate regulations necessary to effectuate the purposes of this chapter.
####
Please understand the serious failings of this phrase and how uneducated, or by intentional act, board members will use this as justification of the standard CC&Rs;kangaroo court proceeding—- “We’ll give you a fair trial before we fine you” mentality. This phrase must include “and an opportunity to be heard before an independent tribunal, present evidence and witnesses, and to question and challenge any and all charges and witnesses against the alleged violator.“ That’s the legal doctrine for proper due process.
I attended the meeting a lot of what was discussed revolved around professional property management and condos. The legislation offers good points, but it does not address the problems that arise when HOA boards do not respond to homeowners. The problem being…the laws are already on the books in many cases but they do not help the homeowner who has an irresponsible board who refuses to handle a situation or refuses to respond to requests for information or just plain refuses to respond to homeowners. That leaves the homeowner with no where to turn unless they want to hire an attorney. Most HOAs know that, so many of the HOA boards do not worry about returning calls or opening their finances when requests are made. Either the state needs to set up an office to handle the complaints, like a HOA Consumer Affairs office or mandatory mediation needs to be put in place. Somewhere for homeowners to turn for help when it is needed.
It looks like these associations are going to be getting a taste of their own medicine. Now it is the associations that are having to jump through the hoops and conform to ridiculously ridged standards. Maybe, but not likely these people on these association boards will be just a little tiny bit less bureaucratic in the future once they feel first hand just how un-pleasant some of these extremely controlling rules can be.
“To association management companies, the bill contains many onerous provisions that conflict with existing state laws and association governing documents and are costly to administer and logistically difficult to perform in some cases.“
So much space devoted to management company conflict of interest opinions. What is good for the “hired hand” may not be good for the members. Who is running the show anyway??
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