SC Posters take note

Senate bill calls for $10 fee on all properties in community associations

A bill in the state Senate has local community associations concerned because it would revamp the way thousands of homeowner associations in South Carolina do business and charge a $10 annual fee for every lot or home in a community.

http://www.islandpacket.com/news/local/story/737111.html

and a lot of other things to consider

Joe

Thanks Joe,
Mary,
Don't hold your breath. I also have reservations about this whole business. I certainly can see the need for state oversight and have no spat using the Consumer Affair, but for the state to jump from no business and a hands off to a HUGH 1 day generation of millions of $ seems like a big jump. As far as I can find out there is no expertise in any of this except lawyers, builders and real estate people, and none of them are going to fork over anything. The last I heard this bill was tabled last sessions and no one seemed to want to say when it was going to be brought up again. SC has high concentrations of HOA and condo along the coast, lots of pressure from these areas.

My guess, The Packet may be out on a limb. I sure think it needs some prior notice and just not done and then let everyone pick up the pieces. I am not accussing anyone of this and don't really know, but this looks like found money to me in bad economic times. I will run this down, first chance.

A number of years ago there was talk of AZ forming an HOA 90/10 commission. A "per door" fee would have been charged to all HOAs with 90% of the money going to the commission and 10% into the state's general fund, thus the term 90/10 commission. The idea never got off the ground, but now HOA advocates are saying this is the best route to take. We shall see!

Maryland has a pending bill for an Ombudsman which would cost $1 per year per unit with all the money in a special fund to pay for just this office. See http://mlis.state.md.us/2009rs/billfile/SB0147.htm Looks good to me. I'd rather pay $1 a year than the $10,000 it takes for attorney fees for a court to handle a complaint.

JeanneK3

How does this bill fit with the MD legislation establishing AG oversight of POAs in the AG's office of consumer affairs?

Does MD have a department of consumer protection? Wouldn't the ombudsman fit better in that department?

But better, why not just expand the oversight role of the AG? An advantage is that the AG has the attorneys to property apply the statutory and common law. And the opinions of the AG typically become binding.

In Nevada, "The ombudsman's office has been told by the attorney general's office that it has no power to intervene in disputes between homeowners and their association boards concerning governing document disputes." See newspaper column "NEVADA VIEWS: Seeking to protect homeowners".

Out of all the different methods being tried, I hope one surfaces that is effective, quick and low cost for owners/members. The legislative activity in this important area is encouraging.

Thanks JeanneK. We did get a response from the AG to our report of the HOA and closed meetings. The response was that we already have a judgement against the HOA, and we have to go back to the court, even though it is clearly within their scope. The woman advised me that they were a mediation service, and they needed to be involved prior to the courts. We were trying to avoid the court systems, as that gets very tiring. But looks like we will not have a choice. Unless an organization has the ability to enforce the state laws, I am not sure how much they will help. I was just hoping that the AG would send an educational letter to the HOA that stated basically spelled out the requirement by law, as my personal letters to the HOA have obviously not helped.

Joe,
Your above leaves me with the feeling I am not sure I'm following what you mean. Want to elaborate a little. My confusion seems to be I don't know who "them" is in last sentence. I read that because the builders and mortgages bankers are weaker, and the states financial conditions are poor, then, I get lost.
Thanks.

Robert,

"Them" are the state legislators. Normally when you write a law dealing with real estate, you have to deal with the builders, mortgage bankers, real estate attorney's and the Realtors. These are the big 4 who contribute heavily to state politicians, and usually have full-time heavyweight lobbying firms working for them at the state capitol. Have you ever wondered why you see so much legislative activity regarding what happens after the association becomes owner-controlled, but very little regulating the developer. This may be the year to fix the problems with the assocaition under developer control. They're never going to be any weaker.

Joe