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ScottK1 (South Carolina)
Posts: 32
Posted:
I have a question about enforcement of CC&Rs in a single family HOA in SC. Below is the only mention of enforcement in any of the CC&Rs or Bylaws:

"GENERAL PROVISIONS

SECTION 1. ENFORCEMENT. Developer and any Owner or Occupant shall have the right to enforce, by a proceeding at law or in equity, all restrictions, conditions, covenants, and reservations now or hereafter imposed by the provisions of this Declaration. Failure by Developer or any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. ln the event of a minor, unintentional violation of this Declaration which does not impair the general plan of development, Developer reserves the right to amend or release this Declaration for such violation as it may apply to an individual lot."

How can we enforce mainly repeat violations? Can we use a Board Resolution to set up a fine schedule? We brought up to the members on the notice of our meeting that we were going to discuss a fine schedule and we had a good turn out. They are not liking the idea of a fine schedule, so getting the members to approve it is not good.
If I understand it right the Board Resolution can define or clarify the meaning of a section on the CC&Rs. Being our CC&Rs state enforcement but not how they will be enforced can the board use a Board Resolution as a way to clarify a means of enforcement, by setting a fine schedule?
Thanks
Scott
BradP (Kansas)
Posts: 2,640
Posted:
Scott

Does your CC&R's give the board the right to establish a fine schedule and/or the the right to develop rules and regulations?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I am with Brad. Many CC&R's give the BOB the right to set up a fining schedule. The problems usually arise when no schedule has been set and peole say you are being capricious.

Also what you posted said to me: Just becasue we have not enforced something, it does not stop us from doing so. This stops the arguement of well they never fined anyone for this before.

Hope this helps.
ScottK1 (South Carolina)
Posts: 32
Posted:
He is all that I can find.

TERM AND AMENDMENT. The covenants and restrictions of this Declaration shall run with and bind the land for a term of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods often (l0) years. This Declaration, except as provided in Section l of this Article, may be amended or terminated by an instrument signed by at least Seventy-Five (75%) percent of the Owners. Any amendment must be properly recorded. So long as the Developer is the Owner of any Lot covered by this Declaration, its prior, written consent must be obtained as to any amendment or termination.
SECTION 6. NO WAIVER. Failure to enforce any provision or provisions of this instrument for any period of time by the Developer or any Owner shall not be deemed a waiver or estoppel of the right to enforce same at any time thereafter.

SECTION 9. SAVINGS CLAUSE. If any provision or provisions of this instrument are found to be ineffective or unenforceable for any reason in the final judgment of any court having jurisdiction of the subject matter hereof, the remaining provisions hereof shall remain fully enforceable and binding upon the Owners, their respective heirs, successors and assigns.

Our current board has run our HOA into the ground,there is no reserve or any funds to start the next year. The current presidents idea of a budget is to switch cost and budget figure around till the budget is balanced, not taking into account what the expenses are. I am the Secretary on the board and this year is my first time on any thing like this so your help is appreciated. I have been handling almost all of the doings of the board since mid year. I have finally been able to show the board how bad of shape the HOA is in and we dismissed the management company for next year.
Thanks Scott

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Scott

Specifically what are you looking for?

The right to fine as an enforcement tool?

If so look for the word fine, remedy, enforce, etc. I have seen docs when the word remedy, enforce, etc. was interperted as being able to set a fining structure.

Hope this helps.

GlenL (Ohio)
Posts: 5,491
Posted:
State law gives you the power to fine. (emphasis added)

Section 27-52-180. (A) An association may not suspend privileges or services provided by the association during a period that assessments or other amounts due and owing in relation to the assessment remain unpaid for a period of thirty days after the member received notice of the unpaid amount and received an opportunity to be heard. The notice must be sent certified mail, return receipt requested, to the member's lot or unit's mailing address or address otherwise specified in writing by the member and contain:

(1) a statement of any amount the association claims is due;

(2) a description of how the homeowner may remedy the situation;

(3) a date and time for the member's hearing before the adjudicatory panel;

(4) information on the availability of nonbinding mediation through the department pursuant to Section 27-52-190; and

(5) provide the department's current address, telephone numbers, and website address.

(B) Before a homeowners' association may file suit or take other action against a member homeowner for a violation of governing documents other than failure to pay an assessment, the association must, in addition to compliance with other law and the governing documents, provide notice and opportunity for a hearing. The notice must be sent certified mail, return receipt requested, to the member's lot or unit's mailing address or address otherwise specified in writing by the member and contain:

(1) the specific alleged violation;

(2) a date, time, and place for the member's hearing before the homeowners' association's adjudicatory panel;

(3) the availability of nonbinding mediation through the department pursuant to Section 27-52-190; and

(4) the department's current address, telephone numbers, and website address.

(C) The adjudicatory panel must hold the hearing within thirty days after the association sends the required notice to the member. The association shall provide the member notice of the date, time, and place of the hearing at least fourteen days prior to the hearing date. The member may request postponement which must be granted for good cause shown.

(D) If the adjudicatory panel of the homeowners' association finds a violation of governing documents, other than the failure to pay an assessment, it may impose a fine not to exceed one hundred dollars for a violation. A fine may be levied on the basis of each day of a continuing violation with a single notice and opportunity for a hearing, except that no such fine shall exceed one thousand dollars in the aggregate unless otherwise provided in the governing documents.


Section 27-52-190. (A) A member may seek nonbinding mediation through the department for disputes involving the association's governing documents or disputes involving a monetary amount of at least two hundred fifty dollars. The request for mediation must be submitted on a form prescribed by the department and be accompanied by a nonrefundable fee of fifty dollars. Once a request for mediation is received, the department shall send a notice of date, time, and place for the mediation to the member and the board of directors of the homeowners' association.

(B) For an action instituted by a member, notice of the dispute must be given to the board of directors of the association at least fourteen days prior to the member submitting a request for mediation to the department.

(C) If the member submits a request for mediation as a result of receiving a notice required by Sections 27-52-180(A) or 27-52-180(B), the member, within thirty days of the adjudicatory panel hearing, must submit a request for mediation to the department and copy the association on the request. If the member chooses not to be heard by the association's adjudicatory panel, the member must, within thirty days of receiving the notice, submit a request for mediation to the department and copy the association on the request.

(D) Upon receiving the notice of the request for mediation, the homeowners' association may not take any adverse action against the member until after the mediation occurs.

Studies show that 5 out of 4 people have problems with fractions
ScottK1 (South Carolina)
Posts: 32
Posted:
Right now and in the past they send out violation notices and that is it, no follow up to see if they complied or sending any further notices. We are looking to use a fine as a deterrent and an enforcement to violations. The people filing the complaint are tired of the CC&Rs and bylaws not being enforced.
It states
"Developer and any Owner or Occupant shall have the right to enforce, by a proceeding at law or in equity, all restrictions, conditions, covenants, and reservations now or hereafter imposed by the provisions of this Declaration."

Does this " proceeding at law or in equity" give the board the right to use a fine as enforcement?

Thank You
Scott
JeanneK3 (Maryland)
Posts: 562
Posted:
Scott:
Seems like state law gives you the right to fine violators up to a $1000 but only after a hearing is held giving the violator the right to defend themselves. If you don't hold the hearing you can't fine.
Jeanne
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Glenn

From the State of SC site:

South Carolina Title 27 - Property and Conveyances

CHAPTER 52.

This chapter does not exist in the Code of Laws (current throught the end of the 2011 session).

Legislation has been proposed in the 119th session (2011-2012) to add a chapter with this number.


SC does not have HOA Rules and Regulations. The above bill/chapter has been stalled in committee for several years. As of now it is considered a dead issue. I have personally talk to several State Senators about keeping it dead as I do not want SC becoming like CA and FL where politicians and bureaucrats are telling owners how to run their associations.

SC does have a Horizontal Property Act, Title 27, Chapter 31, but it applies to multi story condos only. It does not apply to townhouse nor single family home associations.

Under the General Provision Section, our CC&R's say:

"The Board of Directors may impose fines or other sanctions, which shall be collected as provided herein for the collection of assessments."

The assessment section does not layout specific fine amounts (and it something we will need to do) but it does layout a process including notices, hearings, appeals, etc. so I think we have it covered in a fair manner.

Hope this helps.

GlenL (Ohio)
Posts: 5,491
Posted:
John thanks for the catch, the site my search took me to said it went into effect in 2010. Imagine that something false on the interweb!!!!!!!!!!!!

Studies show that 5 out of 4 people have problems with fractions
ScottK1 (South Carolina)
Posts: 32
Posted:
So if the Horizontal Property Act does not apply to single family home associations there is no State Law to go by. Does that leave the only option is to amend the CC&Rs, get 75% of the homeowners to approve it and have it filed with the county?
Thats for all the info and I will have many other question later. I think this is harder than starting a new HOA, having to go by someone else incomplete CC&Rs paperwork and missing paperwork. The previous boards keep very little records, I am scanning everything I have to a database so future boards will have everything. I am making procedures from the documents and ideas from this site and its been a big help.

Thanks Scott
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By ScottK1 on 11/06/2012 7:39 AM
I have a question about enforcement of CC&Rs in a single family HOA in SC. Below is the only mention of enforcement in any of the CC&Rs or Bylaws:

"GENERAL PROVISIONS

SECTION 1. ENFORCEMENT. Developer and any Owner or Occupant shall have the right to enforce, by a proceeding at law or in equity, all restrictions, conditions, covenants, and reservations now or hereafter imposed by the provisions of this Declaration. Failure by Developer or any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. ln the event of a minor, unintentional violation of this Declaration which does not impair the general plan of development, Developer reserves the right to amend or release this Declaration for such violation as it may apply to an individual lot."

How can we enforce mainly repeat violations? Can we use a Board Resolution to set up a fine schedule? We brought up to the members on the notice of our meeting that we were going to discuss a fine schedule and we had a good turn out. They are not liking the idea of a fine schedule, so getting the members to approve it is not good.
If I understand it right the Board Resolution can define or clarify the meaning of a section on the CC&Rs. Being our CC&Rs state enforcement but not how they will be enforced can the board use a Board Resolution as a way to clarify a means of enforcement, by setting a fine schedule?
Thanks
Scott

Interesting that there are "repeat violations" of the CC&R's yet no one wants to remedy the problem in the manner set forth in the CC&R's. It appears that if individual owners have to foot the bill to get the enforcement they want they are not willing to do so. But if they can use everyone else's assessment money then, by golly, they're going to have enforcment.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Scott

The hierarchy in SC (and most states) is:

1. Laws. No doc of any kind can override a law. No association can legalize murder.

2. SC Articles of Incorporation for Non-profits (which an HOA is). They often say so and so (like proxy ballots allowed) unless your Bylaws say other (as proxy ballots are not allowed), so in reality SC generally defers to the associations Bylaws.

3. Covenants, Covenants, Controls, and Regulations, etc. Ours is called Declaration of Protective Covenants. It is attached/recorded with the deed thus often called Deed Restrictions. Changes to such often take more then 50% all owners agreeing to do so (66% or 75% more common) and for some changes it might well take 100% of all owners agreeing to do so.

Typical covenants are:

No unit can be rented within 6 months of purchase.

All mailboxes and mailbox posts shall be of a similiar style and color as initially installed by the declarant.

4. Bylaws. Ours are recorded with the deed, not all are. These are often clarifications and explanations of the Covenants. As an example the Covenants might say the association shall be governed by an Elected BOD but the Bylaws will clarify how elected, recalled, terms of, etc. Changes to Bylaws often take a certain % of owners to change. Usually fewer owners agreeing to do so then it takes to change the Covenants.

I recently learned that there are some (I believe few) Bylaws that are written such that they allow the BOD itself to change them. A practice I personally do not like, but can be done if originally written so. Ours do not allow for such.

5. Rules and Regulations. These are made by the BOD. They usually clarify things such as the Covenants might say no overnight parking of commercial vehicles but neither the Covenants nor Bylaws specify what a commercial vehicle is thus the BOD passes an R&R trying to clarify what a commercial vehicle is.

One source of reoccuring problems has been BOD's that write R&R's that try to violate/circumvent the Covenants and/or Bylaws and in some cases, violate the law. Just because the BOD wants so and so does not mean they can make it such with R&R's, though many try to do such.

An association R&R's can tighten up on local regulations. Like a local regulation might say that no fence can be over 8 feet tall but an association could make a R&R that says no fence in the association can be more then 6 feet tall.

Generally Covenants and Bylaws were put in place before the declarant sold house one. Quite often they are boiler plate and need tweaking as time goes on.

Overall in SC there is no control of HOA's by the government. Some believe this means the BOD can run wild. Some believe it allows a BOD to have the freedom to properly run their particular association as they best see fit to do so.

Now all that aside, when an HOA is under declarant control the declarant can pretty well make any change they so desire (Covenants, Bylaws, etc.) so all bets could be off under declarant control.

Hope this helps.

ScottK1 (South Carolina)
Posts: 32
Posted:
I think its the same problem with all HOA, getting people off their butts, getting involved and help solving problem.
Scott
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By ScottK1 on 11/06/2012 8:51 AM
Does this "proceeding at law or in equity" give the board the right to use a fine as enforcement?

No. "Proceeding at law or in equity" means you have to take the party to court.

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