Bill would govern HOA boards

Transparency, oversight would aid condo owners

By Zane Wilson and Jessica Foster - zwilson@thesunnews.com jfoster@thesunnews.com

Condominium owners would have clear rights to see homeowner association records and be notified of proposed rule changes under a bill that could come up for hearings in the Senate later this month.

The existing homeowners association - or HOA - law is vague, and some boards have declined to make meeting minutes and account books available to members.

But what has galled residents more are rules that seem to appear without warning, such as what colors of Christmas lights can be displayed.

"I think it's something that will address a lot of people's issues down here," said Sen. Ray Cleary, R-Murrells Inlet, one of the bill's sponsors.

There's no hope this late in the legislative session to get the bill passed, but the intent is to get it rolling, hold some hearings and build a consensus on the wording, Cleary said.

"It's to throw things out there and get it started," he said.

Cleary said he gets at least one complaint a month about HOAs, and that several senators had been talking about revising the law for condominiums because of the unrest.

Some HOAs are "being allowed to just run roughshod" over owners, Cleary said.

Sen. Glenn McConnell, R-Charleston, also a sponsor, said the complaints are not limited to Horry and Georgetown counties, and the complaints are why the bill was drafted.

The existing law isn't clear to some people, McConnell said. Even though HOA records should be available for any member to look at during reasonable office hours, many people say they have been refused.

"They're members; they got a right to see the records," he said.

Chad Caros, who lives in New York and owns a home in Carolina Forest's BelleGrove subdivision, supports a change in the law but wonders whether it goes far enough.

He said he can't make it to many of the homeowners association meetings, and he's had trouble getting minutes and financial records.

He wants to know what a recent 20 percent increase in his monthly dues is going.

The only recourse a homeowner now has against an association is filing a lawsuit, which is expensive and time-consuming, he said.

"Any new bill would be fine and great; but at the end of the day, is it going to hold the associations responsible for their actions?"

"It's an accountability bill," McConnell said.

The bill places HOA operations under the state Department of Consumer Affairs.

Owners could complain to the agency if they were denied access to meeting minutes or other records, and a violator could be fined $500.

Further appeals of rulings from the agency would be to the Administrative Law Court.

Ted Prehodka, a homeowner in Blackmoor in Murrells Inlet, said getting budgets and minutes isn't a problem in his neighborhood.

A former homeowners association president himself, he's miffed at the amount of control the groups have over residents. He said they can dictate what goes in his front yard or how long an RV can be parked at his house.

"What is terrible is people want to tell you how to live your life within the community," he said. "I don't think we should have mini-governments making up their own rules."

He thinks the state should come up with universal bylaws for all homeowners associations.

The bill would require the HOA to send out proposed rule changes at least 10 days before a board meeting, and posted in a common area at least 48 hours before the meeting.

Changes to the governing documents must have approval of two-thirds of the membership, either in person or by proxy.

The Senate is debating the state budget this week, but it's possible the bill could be scheduled for a preliminary subcommittee hearing in the following week or two, Cleary said.Contact ZANE WILSON at 357-9188.

Contact JESSICA FOSTER at 626-0351.