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 establishes 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 allows homeowners to take enforcement action against HOAs that fail to provide these documents, holding them liable for 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 notify homeowners at least 48 hours in advance before making decisions to increase the budget or spend unapproved funds, with a quorum of homeowners needed for such approvals. The bill emphasizes the importance of homeowner involvement and oversight in HOA financial matters, ensuring that associations operate transparently and responsibly.

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