As recently mentioned here on March 28, 2024, the South Carolina Legislature is currently considering a bill that impacts the ability of community associations to collect assessments from non-paying members of their communities.  As originally drafted, House Bill 3180 would have eliminated any HOA’s ability to foreclose its lien when someone didn’t pay their assessments.  The Community Associations Institute (CAI) and its South Carolina Legislative Action Committee (SC-LAC) have worked closely with other members of the House, including Representative Weston Newton, to propose alterative solutions to the proposed bill. Through that collaboration, an amended version of the bill was proposed … Continue reading →

Freddie Mac announced yesterday, December 6, 2023, that it would be implementing steps to increase transparency in condominium project certification and eligibility for loans. See the link to Freddie Mac’s announcement. Up to now, industry leaders have voiced concerns about the secretive nature of Freddie Mac’s determination of a condominium’s eligibility status—contending that its unavailable list of condominiums amounted to a secret blacklist. For prospective home buyers wanting to buy in a condominium, this has meant that there was less access to mortgages, sometimes causing serious problems because existing condominium owners, boards of directors, and community managers didn’t know that … Continue reading →

I am sometimes asked about the South Carolina chapter of the Community Associations Institute (CAI) and the Legislative Action Committee.  First, to make it easier, we usually refer to it as the “SC-LAC.”  The SC-LAC is a diverse group of homeowner leaders, community managers, and business partners who work hard to protect and advance association communities and their interests at the state legislative level in Columbia. Each legislative session there are bills proposed that impact the functioning, operation, and well-being of community associations and their business partners.  In the most recent legislative session, the SC-LAC provided testimony at hearings related … Continue reading →

In a follow up to a recent article, House Bill 4049 has now passed both the SC House and the Senate and was signed into law on Friday, May 19, 2023, by the governor. In short, the new law will open the door for most homeowners associations and condominiums in South Carolina to allow remote member participation and to conduct virtual membership meetings. This bill will also allow those with health concerns to more easily participate in their association’s meetings.  The decision whether to do so, and what conditions may apply for doing so, would be within the discretion of … Continue reading →

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 … Continue reading →

In a recent case out of Pennsylvania, a condominium association was found to have violated Fair Housing laws for its delay in approving requests for reasonable accommodation for an emotional support animal belonging to a resident and for imposing conditions on the animals’ use of the common area.  The Dorchester Owners’ Association in Philadelphia is a condominium with a rule against keeping pets.  Two different owners requested an exemption from the rule based on their disabilities. One, Louise  Hamburg, obtained a letter from a clinical psychotherapist that said she was treating Ms. Hamburg. It was later discovered that the statements in the … Continue reading →

House Bill 4049, which was initially introduced in February, was approved by the SC House yesterday (April 18, 2023) and has now crossed over to the SC Senate for consideration. The bill would allow for remote participation at homeowners association membership meetings. Up until now, unless the governing documents for a homeowners association or condominium specifically allowed remote participation at a membership meeting, there was no specific statute in South Carolina authorizing membership meetings to be held virtually.  One of the positives of the COVID pandemic was that many more people became comfortable with video conferencing and other similar means … Continue reading →

In a recent decision by the North Carolina Court of Appeals, the Court held that a condominium association was not responsible for out of pocket expenses incurred by an owner when she was forced out of her unit while repairs were made. In Gehrke v. Gates at Quail Hollow Homeowners’ Ass’n, an owner sued her condominium association for all the costs she incurred while she was forced out of her unit for repairs. To read the full case, click here.    Marguerite Gehrke was a unit owner in The Gates at Quail Hollow Homeowners’ Association, Ltd. (the “Association”), in Charlotte, North … Continue reading →

All community association boards want to be good stewards of the funds collected from their homeowners.  Sometimes, when finances are tight, a board has to face hard choices about how to reduce costs.  That might mean reducing services or even deferring needed maintenance for a period of time where that maintenance is not essential to safety or structural integrity.  As with all contracts, boards want to find the insurance that best suits their community and offers the best protection—at the best price.  For those townhome and condo communities located in a flood zone, the question often arises whether they must … Continue reading →

As community association attorneys, we hear all sorts of reasons from homeowners to explain why they haven’t paid their assessments.  These usually include legitimate explanations such as illnesses like COVID, job loss, or other hardships.  Some homeowners are more creative.  One owner recently told our office that the presence of “entities” in the home was a reason for non-payment.  In a recent case out of Kentucky, William and Theresa Thompson told their homeowners association they shouldn’t have to pay assessments on two lots they owned because the lots weren’t there anymore.  Although existing as two separate lots, they were treated … Continue reading →

In a recent South Carolina Supreme Court decision, the Court struck a mandatory arbitration clause from purchaser contracts with a home builder because the terms were considered to be unconscionable.  In Damico v. Lennar Carolinas, a group of home buyers in the Spring Grove Plantation community sued Lennar Carolinas for construction defect claims.  As one of its primary defenses, Lennar Carolinas pointed to the arbitration clause included in the contracts that each homeowner had signed.  These clauses required cases to be arbitrated and waived other protections normally available to a home buyer, such as trial by jury.  The Court determined … Continue reading →

On April 18, 2022, Representatives Charlie Crist and Debbie Wasserman Schultz (both U.S. Representatives from Florida) introduced the Securing Access to Finance Exterior Repairs (“SAFER) in Condos Act of 2022.  The bill is designed to address one of the main problems identified following the partial collapse of Champlain Towers South in Surfside, Florida, last year.  Although many condominiums may need significant structural repairs, a recurring problem has always been the ability to obtain financing to pay for the costs of those repairs.  Following the collapse, many condominium associations have begun to evaluate their own buildings in earnest and investigate their … Continue reading →

As my colleague, Jim Slaughter, reported last month, the new federal Homeowner Assistance Fund established a program with nearly $10 billion for states to provide relief to those suffering from the effects of the COVID-19 pandemic. For South Carolina homeowners who have become delinquent in their HOA or condo assessments during the pandemic, this program may offer assistance. In general terms, the SC Homeowner Rescue Program (SC HRP) accepts applications from South Carolina homeowners who were impacted by the pandemic and need assistance with housing-related expenses. Funds may be available on a first-come, first-served basis. There are income requirements, as well as … Continue reading →

With the collapse of the Champlain Tower South (a part of a condominium located in Surfside, Florida) in June of last year, there has been a search for answers.  Condominium owners want to know whether their building is safe, and boards of directors want to make sure they are taking appropriate steps to prevent another disaster similar to the one in Florida. Although the ultimate reasons for the collapse may not be known for years, it is likely that some problems that may have contributed to the collapse are not unique. The Community Associations Institute (CAI) has published recommendations relevant to … Continue reading →