HOA Members Vs. Builder Questions

We live in a HOA Community in SC.

1. The builder is still building new homes and does not give a count of how many homes he will continue to build. This effects the transitioning date. Does the builder have to give us a total number of homes he plans to build or date?

2. We have a small Home Owners Committee but we do not have a homeowner on the Declarent''s Board. When should a builder appoint a homeowner to the board?

3. As homeowners paying HOA fees we do get a yearly budget are we in-titled to a yearly Financial Report?

4. If there is bad debt (arrears in HOA DUES) at the end of a fiscal year, does the builder (declarent) pick up this bad debt?

5. In transitioning from Builder to Homeowners HOA does the builder before transitioning pay any and all bad debt?

Regarding the number of units built and planned, you should be able to get that information from your county government office. The builder has to apply for building permits and have his plans approved by the county.

Hi Carol:

South Carolina does not appear to have very good statutes regarding HOA’s. Below I noted some of the statutes. Most of the items you are asking about will need to come from your documents. The documents should state the number of lots/parcels. If not another option is to check with your local planning department and see what information they have regarding the development and what they approved.

SECTION 6-35-95. Disclosure to prospective purchasers that property subject to assessment. [SC ST SEC 6-35-95]

The owner or developer of the real property in a residential improvement district must disclose to prospective purchasers of residential real property in the improvement district that the property is subject to an assessment under the provisions of this chapter and the maximum annual amount and duration of the assessments.

South Carolina Horizontal Property Act:
http://www.scstatehouse.gov/code/t27c031.htm

In here it makes the statement:

SECTION 27-31-100. Master deed or lease; contents.
The master deed or lease creating and establishing the horizontal property regime shall be executed by the owner or owners of the real property making up the regime and shall be recorded with the register of mesne conveyance or clerk of court of the county where such property is located. The master deed or lease shall express the following particulars:

(g) In the event the owner of property submitting it for establishment of a horizontal property regime proposes to develop the property as a single regime but in two or more stages or proposes to annex additional property to the property described in the master deed, the master deed shall also contain a general description of the plan of development, including:

(1) The maximum number of units in each proposed stage of development;

The above keeps stating the Master Deed should give you this information you are looking to obtain. This should be filed with the county clerk if you do not have a copy.