Rising HOA Complaints Prompt Urgent Calls for Regulatory Action in South Carolina

Surge in HOA Complaints Fuels Calls for Regulation in Charleston

Reported complaints against South Carolina homeowner associations (HOAs) have increased over fourfold since formal record-keeping launched in 2018, according to a fresh report by the S.C. Department of Consumer Affairs. This alarming trend has instigated renewed appeals for enhanced regulation in a state where over one-fourth of the population lives under HOA governance.

As per the released report, 365 validated complaints were filed in 2023 by S.C. residents, summing up to 742 specific issues. Horry, Richland, and Charleston county residents lodged the majority of grievances. The repeated problems cited mainly involved failure to enforce covenants and bylaws, issues regarding maintenance and repairs, as well as disputes about HOA fees and special assessments.

A Call for Reconsideration

S.C. Sen. Darrell Jackson, a strong promoter of comprehensive HOA reforms since 2009, said he was not shocked by these unprepossessing numbers. “Even when that bill passed — it was all we could get at the time — I knew it would not stop the complaints,” Jackson remarked in a recent interview. He pointed out that current regulations in the Homeowners Association Act of 2018 are too lax and need to be reevaluated.

HOAs typically govern subdivisions and condominium complexes and are membership organizations fundamentally created by local homeowners. They are entrusted with the task of establishing and executing community rules, as well as maintaining shared spaces such as parks, parking lots, and pools.

The Larger Picture

Current estimates put the number of HOAs in South Carolina at around 7,000, with more than 1.3 million residents living under their jurisdiction. Given that newly built houses are predominantly being developed in HOA-regulated communities, these numbers are expected to swell.

Despite this, a 2020 poll undertaken by the Community Associations Institute indicates a high level of satisfaction with HOAs, with close to 90% of homeowners expressing contentment with their HOA. However, critics argue that these associations often misuse their quasi-governmental power over residents, leading to calls for harsher state-level supervision.

“HOAs in South Carolina are rife with abuses of power,” said Drew Radeker, a legal practitioner who represents homeowners in HOA disputes. “And it’s high time our legislature did something to rein them in.”

The Foreclosure Controversy

Presently, efforts to reform the HOA system in South Carolina are largely pivoted around House bill H. 3180, a bipartisan bill intending to prohibit HOAs from foreclosing for unpaid fines or fees. The dispute over HOA foreclosures came under public scrutiny in 2019 when the S.C. Supreme Court ruled in favor of a couple whose home was foreclosed over a $250 disagreement. The house, valued well over $100,000 then, was sold at an auction for merely $3,000 — an outcome deemed “unconscionable” by the Supreme Court.

Sen. Jackson, a resolute supporter of the proposed legislation, is hopeful that this will prompt greater backing for comprehensive reform within the General Assembly. Nevertheless, he believes that it will require significant public pressure to bring it to fruition.

“When I see people whose lives have been torn apart, I don’t understand why there isn’t more of an outcry,” stated Jackson. “I would urge people to call their legislators and say we need relief.”