HOA reform can’t happen until state politics is reformed
HOA reform isn’t going to happen until there is major political reform. An HOA/POA is a mini-political arena. Just like politics, HOA/POAs have conflicts of interest.
In one community, the POA board president’s wife was the treasurer of the community golf association (membership golfers in the community) for years which is a conflict of interest. There is also a long-standing POA board member who represents the homeowner’s association in the community, another big conflict of interest according to the South Carolina Non Profit Corporation Act of 1995 that this POA swears by, or so I’m told.
But look at some of the members of the S.C. HOA study committee.
A little background:
Under state law (Section 8-13-700 of the S.C. Code of Laws), a public official can’t “knowingly use his official office, membership, or employment to obtain an economic interest for himself, a family member, an individual with whom he is associated, or a business with which he is associated.”
Another section of that law says a public official can’t “make, participate in making, or in any way attempt to use his office, membership, or employment to influence a governmental decision in which he, a family member, an individual with whom he is associated, or a business with which he is associated has an economic interest.”
But there is supposedly a huge loophole (Section 8-13-100) in the law that lawmakers facing potential conflicts of interest routinely use: known as the “large-class exception,” legislators can vote on anything that helps their businesses so long as it also benefits other members of their industry or occupation, effectively eliminating the conflict of interest for politicians to have free reign over the state and its economy.
One legislator (also a lawyer) on the HOA study committee has received around $3 million in legal fees from workers’ compensation cases for the last 10 years, or an average of more than $500,000 per year. Under state law, the seven-member state Workers’ Compensation Commission, which approves attorney fees in workers’ compensation cases, is appointed by the governor with consent of the Senate. He has been a longtime member of the Senate Judiciary Committee, which screens Workers’ Compensation Commission candidates. He is, also, on the ethics committee. Yikes!
This legislator on the SC HOA study committee is a lawyer in an Horry County law firm that litigates HOA disputes (according to their website). Another conflict of interest?
After watching the video of the SC HOA study committee late last year, it was obvious that the committee didn’t represent the residents of POA/HOAs because the panel was composed of lawyers, community management companies, a land developer; then, empty seats were filled in with government employees. Not one person represented the residents of POA/HOAs although some did belong to a POA or HOA; conflict of interest?
How can we expect any HOA reform from this SC HOA study committee until there is political reform way up the food chain of politics? Lawyers aren’t going to eliminate their cash cow – HOA/POA litigation. Community management companies aren’t going to approve licensing their business when they can get a certificate from one of their funded community association institutes where they make up their own rules. These groups want to play the people not represent the people, just like their compadres, the politicians.
This has become the norm in U.S. politics, not just South Carolina politics: play the people, not represent the people, which is one reason why Donald Trump has a very good chance in this upcoming presidential race.
The writer lives in Longs.
This story was originally published January 14, 2016 at 9:25 AM with the headline "HOA reform can’t happen until state politics is reformed."