South Carolina HOA Regulations Guide: Homeowner Rights, Fees, Disputes & Enforcement
South Carolina homeowners in planned communities are governed primarily by the SC Horizontal Property Act (for condos) and the SC Homeowners Association Act of 2018 (for POAs and HOAs). These statutes define enforceable authority, procedural safeguards for discipline, and strict limits on financial and governance powers. Unlike some states, SC does not require HOAs to register with a state agency, but statutory notice, hearing, and voting requirements apply uniformly across incorporated associations.
Homeowner Rights & HOA Authority Limits Under SC Law
South Carolina law strictly circumscribes HOA authority. Under S.C. Code § 27-31-110, an HOA may only exercise powers expressly granted in its governing documents and consistent with state statutes. The 2018 Homeowners Association Act (Act No. 165) prohibits HOAs from banning solar panels, clotheslines, or native landscaping—unless safety or historic preservation is demonstrably compromised. Importantly, SC does not recognize implied powers: an HOA cannot impose architectural restrictions beyond those enumerated in its declaration, nor restrict short-term rentals unless explicitly authorized pre-2018 and properly amended per § 27-31-140. Homeowners retain statutory rights to inspect association records—including budgets, meeting minutes, and contracts—within 10 business days of written request (§ 27-31-220). Violations of these limits render enforcement actions voidable in circuit court. Additionally, SC courts consistently hold that HOAs lack police power; they cannot impose criminal penalties or suspend utility access, even for unpaid fees—a practice expressly prohibited under § 27-31-170(A)(4).
Fees, Fines, and Special Assessments: Legal Requirements
In South Carolina, regular assessments must be adopted annually via board resolution with at least 10 days’ written notice to all members (S.C. Code § 27-31-170(B)). Fines require strict procedural compliance: a written notice of violation, opportunity for a hearing before an impartial committee (not just the board), and written decision within 15 days (§ 27-31-170(C)). Fines exceeding $100 per violation or accumulating beyond $1,000 require prior judicial approval. Special assessments—those outside the annual budget—demand a two-thirds vote of members present at a properly noticed meeting (§ 27-31-170(D)), unless the declaration permits lower thresholds (but never less than majority). Notably, SC law caps late fees at 10% of the delinquent amount or $10, whichever is greater (§ 27-31-170(E)), and prohibits compound interest on assessments. Collection lawsuits must comply with the SC Consumer Protection Code, and attorneys’ fees are recoverable only if authorized in the declaration and awarded by the court—not automatically upon default.
Board Elections, Governance, and Meeting Compliance
SC HOA boards must hold annual elections per S.C. Code § 27-31-150, with nominations open at least 30 days before the meeting and ballots distributed no later than 15 days prior. Written notice—including agenda, time, location, and candidate names—must be delivered by first-class mail or email (if consented to in writing) at least 10 days in advance. Proxy voting is permitted only if expressly allowed in the bylaws (§ 27-31-150(F)), and cumulative voting is prohibited unless the declaration authorizes it. Board meetings require quorum (typically majority of directors), and minutes must be approved and made available within 30 days. Closed sessions are limited to litigation, personnel matters, or contract negotiations (§ 27-31-160), and any action taken therein must be ratified in open session. Directors owe fiduciary duties of care and loyalty under common law, and failure to obtain competitive bids for contracts over $5,000 may constitute breach absent documented justification. Annual financial statements must be prepared and distributed within 120 days of fiscal year-end (§ 27-31-220).
Dispute Resolution, Enforcement, and Legal Recourse
South Carolina mandates alternative dispute resolution (ADR) before litigation for most HOA disputes involving fines, covenant enforcement, or architectural approvals (S.C. Code § 27-31-190). Parties must attempt mediation administered by the SC Bar’s Certified Mediator Roster or a mutually agreed neutral. If mediation fails, binding arbitration is optional unless the declaration requires it—but courts will not compel arbitration absent clear contractual language. Enforcement actions—such as liens or foreclosure—require strict adherence to statutory timelines: a lien must be recorded within 90 days of assessment becoming delinquent (§ 27-31-170(G)), and foreclosure requires filing suit in circuit court; nonjudicial foreclosure is prohibited. Homeowners may file declaratory judgment actions to challenge unlawful rules or assess validity of elections. Critically, SC courts apply the ‘reasonableness standard’ under § 27-31-110: covenants must bear a rational relationship to community welfare and not be arbitrary, discriminatory, or contrary to public policy—e.g., blanket bans on renters or pets have been invalidated in recent Richland County rulings.
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Can an SC HOA fine a homeowner without a hearing?
No. Under S.C. Code § 27-31-170(C), an HOA must provide written notice of the alleged violation, a reasonable opportunity for an in-person or virtual hearing before an impartial committee (not the board itself), and a written decision within 15 days. Failure to comply voids the fine.
What is the maximum special assessment an SC HOA can levy without member approval?
None. S.C. Code § 27-31-170(D) requires a two-thirds vote of members present at a duly noticed meeting for any special assessment, unless the declaration specifies a different threshold—but never less than a simple majority of those voting.
Does the SC Horizontal Property Act apply to single-family HOAs?
No. The Horizontal Property Act (S.C. Code § 27-30) applies exclusively to condominiums and cooperatives. Single-family HOAs and POAs are governed solely by the SC Homeowners Association Act (§ 27-31), enacted in 2018 and effective for all associations formed after January 1, 2019.
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