South Carolina Enacts an HOA Law
Learn about what CTB advocates
"The fox is guarding the hen house..."
Indian Land, South Carolina
Without laws, money buys governance
South Carolina boasts an estimated 6,500 homeowner associations, each governing a common-interest community. These governing associations are commonly called HOAs, but may be called a community, condominium, or property owners association.
Local jurisdictions are partial to HOAs, because developers pay for the community’s infrastructure and amenities, passing the costs onto homeowners when they purchase their homes.
As the population of this Sunbelt state rapidly grows, buyers find it more and more difficult to find a home in a community that is not governed by an HOA. Yet, to its shame, this state has enacted no laws to protect residents who live in common-interest-ownership communities. There are no laws to protect homeowners from mismanagement by a developer-controlled HOA!
For a dozen long years, the state legislature has received, then promptly killed, bills that would protect homeowners from corrupt and mismanaged HOAs. Hoping to remedy the lack of protection, Change The Board soon will be beginning its fourth year of trying to get a state law that changes how developers manage HOAs.
HOA problems begin when a developer writes the documents that govern an HOA. Unfortunately, the state has established no guidelines for protecting its hundreds of
thousands of citizens living with HOA governance.
With no oversight, no accountability, no checks and balances, developers can—and all too often do—write the governing documents to award themselves and their companies innumerable personal and financial advantages.
After all, no one provides oversight for HOAs. Anything goes!
TAXATION WITHOUT REPRESENTATION!
“The developer says he will never give up control...We are literally paying nearly $3,000 a year per homeowner in HOA fees with no clarity as to where they are spending our money… He [the developer] ignores every email and voice message without any response.”
Although homeowners in South Carolina pay their fees to operate their HOA, developers rule as they choose, appointing their busy building staff or associates to the Board of Directors. While paying the bills, homeowners are shut out of their own governing process. Many call this "taxation without representation."
As many homeowners will attest, a developer can dictate limitless ways to shroud HOA governance and harm homeowners. After all, no one is watching the developer!
A few examples…
As South Carolina homeowners know, developers find countless ways to waste HOA funds, as well as con homeowners—all to the glory of the “bottom line.”
South Carolina is one of a minority of states that offer virtually no protection to homeowners governed by developer-controlled
Homeowner Associations (HOAs).