Proposed HOA bill met with skepticism

S.C. Senate committee backs mediation plan

By Zane Wilson - zwilson@thesunnews.com

COLUMBIA --

A bill proposing to make homeowners associations more open and require notice for new rules was met with skepticism Wednesday in a Senate subcommittee, though there was agreement that something needs to be done.

Members agreed to continue to study the proposal for next year while possibly trying this year to pass a requirement for mediation in a dispute.

HOAs are plentiful along the coast and cover developments including high-rise apartments, single-family homes and town houses, anywhere with shared property. The rules are on file when the development is approved, but many residents say HOA boards change rules at will and won't let residents see documents or answer their questions.

Sen. Darrell Jackson, D-Hopkins, the sponsor of the bill, said it has been worked on for about a year, and he hoped to expedite it even though it is late in the session.

Others had too many doubts to push it ahead now.

"Man, there's a lot of details in here," said Sen. Shane Massey, R-Edgefield. "I don't know that I want to go that far with it."

Massey said the proposal requires more government control of private associations. He approves of mediation in disputes, he said, "but I'm very skeptical of the rest of it."

Jackson said the problem is that people who buy property in a development governed by an HOA often have nowhere to turn if there is a dispute, and the bill is aimed at giving them some relief.

Sen. Larry Martin, R-Pickens, chairman of the subcommittee, said it was unclear how the law would affect existing HOA rules and how changes would be made.

"I understand the need for doing something," Martin said, but added he does not want to change rules that some HOAs may be satisfied with.

Mediation is "a very positive thing and it would help alleviate some of the tension," Melissa Dunlap of the secretary of state's office told the subcommittee.

The only recourse people have now is to go to court, and many people say they don't want to go that far with an HOA dispute, she said.

Carri Lybarker, staff attorney for the Consumer Affairs Department, which would have to oversee the HOAs under the bill, said her agency is "very supportive" of the measure because it addresses most of the complaints.

Most states have even stricter HOA laws than the one proposed, she said.

But Wade McGuinn, representing the S.C. Homebuilders Association, said the bill could add costs that would be passed along to homeowners and make it harder to provide affordable housing.

"I don't know that we're going to be able to resolve homeowner disputes," he said. Further, "it just really opens up a whole new channel of liability" and could affect insurance premiums, McGuinn said.

John Ruoff of S.C. Fair Share said he supports the concept but the bill has numerous conflicts with existing law.

The Senate staff and representatives of the agencies said they will meet in the next two weeks to work out some of the glitches in the bill.

Contact ZANE WILSON at 357-9188.