With the winding up of the SC Legislative session fast approaching, the deadline for bills to be introduced has now passed, and it is time to look at where things are now that the dust has settled. South Carolina saw several proposed bills potentially affecting homeowners associations and condominiums filed. As of this writing, one of those bills is on its way to likely becoming law, while a couple of others have at least garnered the attention of many legislators.
With the crossover deadline behind us, now is a good time to see which bills are still active that could impact South Carolina’s homeowner or condominium associations.
Bills That Passed the House or Senate and Have Moved to the Other Chamber
H.4049 (Virtual Meetings & Electronic Voting). This bill will make it possible for most homeowners associations and condominiums in South Carolina to conduct virtual membership meetings and for the members of each to participate remotely, including voting by electronic methods. The board of directors of any HOA or condo would be able to determine whether, and to what extent, virtual meetings will be used and what procedures may apply. This bill is a welcome addition, as most homeowners in today’s world have come to expect the use of these technologies in day-to-day life.
The bill has passed the House and has been referred to the Senate Committee on Labor, Commerce and Industry. As of May 2, it had been reported favorably with that Committee. Some minor revisions have been made to the bill, and it is anticipated that it will be passed by the Senate. The bill is likely to either pass at the last minute before the Legislature adjourns, or early next year.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023- 2024/bills/4049.htm and, if adopted, would take effect immediately.
Bills That Did Not Pass the House or Senate and Are Most Likely Dead for Now
S.118 (Statements of Unpaid Assessments). This bill would require that a statement of unpaid assessment be provided upon request within ten days. It also sets an arbitrary limit on charges for providing statements of unpaid assessments, with limits of $100 for standard requests, and an additional $75.00 for requests made within 48 hours.
The bill was introduced in the Senate and has been referred to the Committee on Judiciary, where it current remains.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/118.htm
S.282 & H.3930 (Beach Restoration & Improvement Trust Fund). This bill would place responsibility for the trust fund under the authority of the Department of Parks, Recreation and Tourism.
The Senate version of the bill was reported favorably by the Committee on Fish, Game and Forestry and is currently in the Committee on Finance.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/282.htm
S.421 (Canvassing and Use of Common Areas). This bill would require homeowners associations to allow any homeowner to use the common area for just about any purpose and would be prohibited from making owners responsible for paying for use, damage, or insurance for that use. In addition, the bill would prevent a homeowners associations from prohibiting canvassing and apply a civil penalty of $500 for violations by the homeowners association.
The bill is currently residing in the Senate Committee on Judiciary.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/421.htm
S.422 (Solar Installations). This bill would allow homeowners associations to prohibit solar installations on roofs if the installation is visible from common areas or streets surrounding a home. It would also require that any architectural review process is still complied with.
The bill is currently residing in the Senate Committee on Judiciary.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/422.htm
S.508 & H.4064 (Multifamily Dwelling Safety Act). This bill would establish requirements for inspection of wooden railings on balconies of residential multifamily dwellings and for repairing those balconies found to be deficient.
This bill is currently in the House Committee on Judiciary.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/508.htm
H.3090 (Revised Uniform Unincorporated Nonprofit Association Act). This bill would create a statutory structure for unincorporated nonprofits, somewhat similar to the way the SC Nonprofit Corporation Act governs incorporated nonprofits. Although this bill is not specific to homeowners associations or condominiums and would not apply to most, there may be some that were created but not incorporated under the SC Nonprofit Corporation Act and the bill would potentially apply to them.
This bill is currently in the House Committee on Judiciary.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/3090.htm
H.3180 (Foreclosure in Homeowners Association). This bill would prohibit a homeowners association from foreclosing under their governing documents and would require creation of that right by statute, rather than a homeowners association’s governing documents.
This bill is currently in the House Committee on Labor, Commerce and Industry.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/3180.htm
H.3253 (Short Term Rental Restrictions by Local Government). This bill would prohibit local government like cities and counties from enacting and enforcing short-term rental restrictions. There is currently much opposition from local government for this bill since it does not allow for the tailoring of local control unique to the respective cities or counties.
This bill is currently in the House Committee on Medical, Military, Public and Municipal Affairs.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/3253.htm
H.3258 (Political Signs in Homeowners Associations). This bill would prohibit homeowners associations from adopting and enforcing rules that restrict political signs up to 30 days before an election and up to five days after an election.
This bill is currently in the House Committee on Judiciary.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/3258.htm
H.3259 (Operating Budgets Provided to Owners and Department of Consumer Affairs). This bill would require that an association send a copy of its budget to owners no later than 10 days after start of fiscal year and send quarterly statements to homeowners. It also would require the filing of an annual and quarterly budget statement with Department of Consumer Affairs.
This bill is currently in the House Committee on Labor, Commerce and Industry.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/3259.htm
H.3493 (Coastal Structural Stability Study Committee). This bill would create a committee to study inspection of commercial buildings of 6 floors or more on the SC coast and Charleston peninsula. This bill is in response to the 2021 collapse of the Champlain Tower South condominium in Florida that killed 98 people. Although the bill is currently tailored only to include some areas and some types of buildings, the CAI SC Legislative Action Committee (the “SC-LAC”) is working with the bill’s sponsors to specifically include residential condominium structures in the entire state or to propose an alternative bill that would address concerns similar to those raised in Florida (inspections, reserves for repairs, funding, older buildings, etc.).
This bill is currently in the House Committee on Labor, Commerce and Industry.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/3493.htm
H.3568 (Prohibits Expenditures Not in Budget; Prohibits Payment of Owner Utilities by Association). This bill has some similarities with H.3259, but goes further. It would prohibit an association from expending funds on matters not identified in the annual budget without additional notice to owners. Further, the bill would require associations to transfer control and payment of unit utilities from an association to an owner, which could result in additional substantial costs to unit owners caused by the need to change utility installations. It would also require an association to send a copy of the budget to owners no later than 10 days after start of fiscal year (which most HOAs are required by their documents to do anyway) and to send to owners updated copies of the budget each quarter, including details about expenditures, fines, and how fines are allocated. It would also require that the association file its budget and quarterly updates with the Department of Consumer Affairs.
This bill is currently in the House Committee on Labor, Commerce and Industry.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/3568.htm
H.3775 (Right to Fly South Carolina Flag and Flag Poles). This bill creates a right to fly the South Carolina flag similar to the existing rights related to flying the United States flag. The bill would also require an association to allow installation of a flagpole.
This bill is currently in the House Committee on Judiciary.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/3775.htm
H.4119 (Unilateral Removal of Unlawful Restrictive Covenants). This bill would allow property owners to unilaterally record legal documents that purport to remove restrictive covenants that are held to be void by the South Carolina Supreme Court or the United States Supreme Court or that are in violation of S.C. Code, Title 31, Chapter 21.
This bill is currently in the House Committee on Judiciary.
The full bill can be found at https://www.scstatehouse.gov/sess125_2023-2024/bills/4119.htm
If you have specific questions on any of the above bills, feel free to contact me or another attorney at our firm. If there are developments on these or other relevant legislative proposals, additional information will be posted.
FYI, the SC Legislative Action Committee (SC-LAC) is a committee of the Community Associations Institute. The SC-LAC is a diverse group of homeowner leaders, community managers, and representatives from community association business partners that provide perspective to legislators on how proposed legislation could impact people living and working in community associations. They volunteer countless hours to track legislation, give you a voice with legislators, and keep you informed and involved if problematic legislation is introduced or beneficial legislation needs your support. I am currently serving as the Chair of the SC-LAC for 2023. To properly do its job, the SC-LAC needs funds for letters, mailings and other costs related to advocating for laws that benefit communities.
Please consider a contribution to the SC-LAC by visiting the CAI* Legislative Action Committee donor page.