Homeowners Associations must adhere to new regulations and oversight to protect and benefit homeowners.

This bill outlines new regulations for homeowners associations (HOAs) in South Carolina. HOAs must ensure insurance payments are used for repairs, leaving the damaged building in as good or better condition. Members must be mutual beneficiaries of HOA insurance, and associations cannot profit from members through common property. Associations cannot charge members for use of common areas but may charge nonmembers. HOAs must have reserve studies every three years and maintain a fully funded reserve account.

Homeowners Associations must adhere to new regulations and oversight to protect and benefit homeowners.

This bill outlines new regulations for homeowners associations (HOAs) in South Carolina. HOAs must ensure insurance payments are used for repairs, leaving the damaged building in as good or better condition. Members must be mutual beneficiaries of HOA insurance, and associations cannot profit from members through common property. Associations cannot charge members for use of common areas but may charge nonmembers. HOAs must have reserve studies every three years and maintain a fully funded reserve account.