HOA Litigation
In 2018, SC passed the "South Carolina Homeowners Association Act" as a huge triumph in the tyranny of HOA's. In actuality it did two things:
1. Made HOA's file their governing documents with the resident counties Register of Deeds (ROD), and
2. Created a complaint/investigation team at the Department of Commerce.
Yeah, yeah.
The act was a complete waste of paper in preventing the abuse of residents by other residents who have nothing better to do then to enforce their rules upon other's property rights. On the other hand, it does nothing to better define the rules for HOA's and set a clear path of training, management, financial limitations to help HOA's actually govern fairly. In the end it was a feeble compromise that resulted in a very small net gain as shown by the results below.
The South Carolina Department of Consumer Affairs is releasing the 2023 Homeowners Association Complaint Report. SCDCA received 276 HOA complaints filed against 208 HOA/Management Companies from January 1, 2022 to December 31, 2022. The complaints raised 651 concerns, with multiple included in a single complaint. The top three counties for complaints: Horry (25.4%), Richland (12.3%) and Greenville (10.9%). The three counties had a total of 48.6% of all the complaints levied against 208 HOAs/management companies last year, according to the S.C. Department of Consumer Affairs.
The complaints raised 651 concerns, multiples of which were included in single complaints. The top three types of concerns raised included failure to adhere to and or enforce covenants and bylaws, concerns regarding maintenance and repairs and failure to notify residents of board actions. Of the total complaints 66% were closed, meaning an adequate business response was received. However, consumers were satisfied with the outcome of the complaint resolution process in just 13 out of 651 complaints. Some of the satisfactory resolutions included refunds, credits and adjustments being issued; requested financial information being provided and repairs or maintenance being made. Keep in mind the public was satisfied in the result of the investigation 1.99% - but that is about the government average for satisfaction.
“A majority of these complaints were complex in nature and concerned the transfer of the HOA from the developer to residents, fair elections and misappropriation of funds, among other issues,” the department states. That sure seems to be a complaint regarding just about everything HOA's and management companies do, doesn't it.
If you have an issue with your HOA or Management Company please call Winslow Law at 843-357-9301. If you are an HOA trying to figure out what to do, how to manage, or simply guidance that the State of South Carolina has not given you, please call Winslow Law as well, and let us help you serve your residents better.
May God Bless You, Your Business, and this Country,
Tom Winslow