AnthonyO1 (South Carolina)
Posts: 1
Posts: 1
Posted:
Our HOA I raising dues on home owners 100% is this legal according to state law 🤔
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Raising HOA dues 100% is this legal in SC
Started by AnthonyO1 • 10 replies • 996 views
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LetA (Nevada)
Posts: 2,679
Posts: 2,679
Posted:
None of us are attorneys, there is one or two people on this site that are familiar with SC.
There are a few states like NV limit by a small percentage what an HOA can raise assessments.
There are a few states like NV limit by a small percentage what an HOA can raise assessments.
LisaB21 (Texas)
Posts: 97
Posts: 97
Posted:
did you read your documents?
LetA (Nevada)
Posts: 2,679
Posts: 2,679
Posted:
One thing I forgot to add, how healthy are your HOA's financials? What percentage is your reserve fund at? and how healthy is your operating fund?
That may be the trigger for raising assessments.
That may be the trigger for raising assessments.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
What counts as 100% exactly? That is just random. Do you mean double? A HOA is ONLY funded by it's members for it's members. Where else do you think the money comes from?
Former HOA President
JohnT38 (South Carolina)
Posts: 1,631
Posts: 1,631
Posted:
Quote:
Posted By AnthonyO1 on 11/11/2022 7:33 PM
Our HOA I raising dues on home owners 100% is this legal according to state law 🤔
Our HOA I raising dues on home owners 100% is this legal according to state law 🤔
Anthony, our governing documents allowed the Board to raise the dues to any amount they wanted to. Our docs also stated how much notice had to be given to homeowners and what the process was for them to reject the new budget including the new assessment amount. Do you know what your covenants say on this subject?
I am not aware of any state law that limits how much a Board can raise dues but others here may have more feedback on this. Are you a condo/townhome or SFH community? Also, do you know what the justification is for such a steep increase?
Please ignore Melissa's reply. When she has no idea what a question means she likes to babble.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Babble... babbling... yeah I do like it who knew? I also like more details as well from an OP. Go figure. 100% means different things to different people. How about you?
Former HOA President
MarkB28 (New York)
Posts: 40
Posts: 40
Posted:
Examine your Association's Balance Sheet and your 2023 Projected Budget. Perhaps the increase in dues is because of a projected deficit. Could also be a past liability that has been on the books that has never been addressed or resolved.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Anthony
I agree with what JohnT said. Our governing documents (here in SC) also allow the Board to raise the dues to any amount they wanted to once a year. Our docs also state how much notice had to be given to homeowners and what the process is for them to reject the new budget including the new assessment amount.
I am also not aware of any SC law that limits how much a Board can raise dues.
I agree with what JohnT said. Our governing documents (here in SC) also allow the Board to raise the dues to any amount they wanted to once a year. Our docs also state how much notice had to be given to homeowners and what the process is for them to reject the new budget including the new assessment amount.
I am also not aware of any SC law that limits how much a Board can raise dues.
AugustinD
Posts: 1,027
Posts: 1,027
Posted:
Quote:
Posted By AnthonyO1 on 11/11/2022 7:33 PM
Our HOA I raising dues on home owners 100% is this legal according to state law 🤔
Our HOA I raising dues on home owners 100% is this legal according to state law 🤔
If a condo subject to the SC Horizontal Property Act, then as the two Johns noted, state statutes appear to place no limit on assessment increases. See https://www.scstatehouse.gov/code/t27c031.php
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
The first thing one must understand is SC rules and regulations (R&R)s will generally lean toward leaving corporations (HOA associations) alone. Also what R&R's there are, they are riddles with the "unless the corporation Bylaws say different" thus tossing the ball back to a BOD. SC does not offer the control over associations that FL and CA do. I have heard SC R&R's called libertarian.
SC Title 27, Chapter 31, Horizontal Property Act (effective 1962) covers associations of high rise (two stories or more) building(s).
It does not cover other type associations consisting of private homes, townhomes, duplexes, etc. These type associations are covered by Title 27, Chapter 30, Homeowners Association Act (effective 05/2018).
Chapter 30 was pushed by home buyers that believed the Declarant was with holding/hiding information, especially when the Declarant was still in control of the association. Any good, honest, upfront Declarant would conduct business as Chapter 30 outlines. The majority of these owners were first time buyers in an association and they did not understand how an association works.
Back to the original question. There is no SC law nor R&R controlling the amount of the yearly assessment (dues, regime fees, etc.) that a BOD can implement. In our case, the BOD has to submit the new budget, which shows the dues increase to our owners (via USPS) on or before 12/01 and it becomes effective 01/01. Owners could call a Special Meeting and reject the new budget but 51% of all owners (yes all owners) would have to vote to reject the budget. In this case, there is an automatic 3% increase in dues allowed.
SC Title 27, Chapter 31, Horizontal Property Act (effective 1962) covers associations of high rise (two stories or more) building(s).
It does not cover other type associations consisting of private homes, townhomes, duplexes, etc. These type associations are covered by Title 27, Chapter 30, Homeowners Association Act (effective 05/2018).
Chapter 30 was pushed by home buyers that believed the Declarant was with holding/hiding information, especially when the Declarant was still in control of the association. Any good, honest, upfront Declarant would conduct business as Chapter 30 outlines. The majority of these owners were first time buyers in an association and they did not understand how an association works.
Back to the original question. There is no SC law nor R&R controlling the amount of the yearly assessment (dues, regime fees, etc.) that a BOD can implement. In our case, the BOD has to submit the new budget, which shows the dues increase to our owners (via USPS) on or before 12/01 and it becomes effective 01/01. Owners could call a Special Meeting and reject the new budget but 51% of all owners (yes all owners) would have to vote to reject the budget. In this case, there is an automatic 3% increase in dues allowed.
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