The bill H. 3425 aims to enhance transparency and accountability within homeowners associations (HOAs) in South Carolina by introducing new financial disclosure requirements and prohibiting certain practices. It adds Section 27-30-135, which mandates that HOAs send their annual operating budget to homeowners within ten days of the fiscal year start, along with quarterly updates detailing expenditures and fines collected. Additionally, it establishes that HOAs must file these budgets with the Department of Consumer Affairs, which will retain the records for at least five years. Homeowners can take enforcement action against HOAs that fail to comply, potentially recovering damages and legal fees.

Furthermore, the bill adds Section 27-30-137, which prohibits HOAs from paying utility bills on behalf of homeowners, transferring control of utility services directly to the homeowners. It also amends Section 27-30-140 to require HOAs to provide at least 48 hours' notice before meetings where budget increases or unbudgeted expenditures are discussed, necessitating a quorum of homeowners for approval. This amendment aims to ensure that homeowners are adequately informed and involved in financial decisions affecting their community. The bill will take effect upon the Governor's approval.

Statutes affected:
12/05/2024: 27-30-135, 27-30-137, 27-30-140
Latest Version: 27-30-135, 27-30-137, 27-30-140