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JohnB83 (South Carolina)
Posts: 2
Posted:
Good Day All, I'm need of advice as to a recently occurred event in our Community. I live in a fairly large developer owned community (one of the largest home builders in nation) and the development has come to a close after 10 years. The developer has maintained ownership of all sub-associations (x5) and the master association, and utilizes a major property management company to oversee the community. While being on the Transition Team to assist in a timely and professional turnover from developer to homeowner control, it has recently been announced the agreed upon transition time to review, collect and vet all community documentation (financials, reserve studies, sales data, vendor contracts, etc...) has been reduced from 1 year to currently just a couple of months. Numerous discrepancies have arose as to possibility of co-mingling of association funds, inadequately funded reserves, non-completed major components (irrigation systems) and other areas. numerous requests have been made for records and needed documents for the transition with little to no action so far. Does South Carolina fall under a binding HOA Law or State endorsed regulations to guide and enforce HOA Association matters? I believe we all here can see the writing on the wall with the unexpected early departure of the developer. Any advice as to slow the transition down until we have a chance to see all the financials and needed documents? Any help or advice on this matter would be greatly appreciated. Thank you.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Welcome to the Forum

South Carolina has a Horizontal Property Act at this time which can be found here: http://www.scstatehouse.gov/code/t27c031.php

The legislators have been looking into implementing HOA statutes, but have not yet passed to my knowledge.

Here is an interesting letter from your State AG office regarding HOA and developer issue when an opinion was requested.

http://2hsvz0l74ah31vgcm16peuy12tz.wpengine.netdna-cdn.com/wp-content/uploads/2017/01/Sottile-M.-OS-10062-FINAL-Opinion-1-3-2017-01219151xD2C78-1.pdf

As for slowing down the process until you receive requested info ... what we did in my last HOA was not to accept from developer by not electing the homeowner BOD for a short time. It also helped when the Developer sending notices for meetings kept having to redo because they did not follow the law and governing documents. That gave us opportunities to stall while waiting for our info.
JohnB83 (South Carolina)
Posts: 2
Posted:
Thank you very much for the info and the useful links.

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