The bill H. 5204 seeks to amend the South Carolina Code of Laws concerning homeowners associations (HOAs) by introducing new definitions and regulations aimed at enhancing homeowner protection and governance. Key provisions include the introduction of terms such as "HOA Seller Certification" and "HOA Seller Packet," which require associations to provide detailed disclosure documents to prospective buyers. The bill mandates that associations be incorporated, carry insurance for board members, and establishes a fee structure for the Department of Consumer Affairs to ensure compliance with HOA laws. It also outlines a process for appealing board decisions, requiring timely responses to complaints and allowing for investigations by the Department of Consumer Affairs.

Additionally, the bill implements significant reforms in the governance of HOAs, including the requirement for independent election oversight and strict eligibility criteria for board members, disallowing convicted felons from serving. It mandates that all voting at association meetings be conducted by an independent election company, which must rotate every three years, and prohibits the use of association resources for campaigning. The bill emphasizes transparency by requiring open meetings, accessible records, and detailed financial management, including fully funded reserve accounts. It also outlines the process for budget approval, special assessments, and the role of the association attorney, ultimately aiming to foster accountability and member participation in HOA governance.

Statutes affected:
02/18/2026: 27-30-120
Latest Version: 27-30-120