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South Carolina Community Associations and HOAs

Written by Gord Collins | Jul 23, 2024 3:13:49 PM


Set Up Your South Carolina HOA/Community Association

Americans are on the move hoping to increase their quality of life, prosper professionally and financially, enjoy lower taxes, and start new families and businesses in wonderful communities.  

The trend is drawing them to states such as Tennessee, North Carolina, Florida, Texas and South Carolina. South Carolina is viewed positively, and it population grew by 1.7%, faster than even Florida at 1.6% in 2023.

Top 10 States for Population Growth - 2022 to 2023

Above chart courtesy of Census.gov.

Top US state for population growth by %

Above chart courtesy of Census.gov.

Outlook for South Carolina HOAs

That influx is giving rise to growing numbers of Homeowner's associations in South Carolina where new housing developments from builders require professional-level management. Builders/developers may continue owning and operating the HOA in their housing developments, however, they may look to outsource management, or hand it over to the resident community itself.

If you're a South Carolina HOA the demand for steamlined management is an opportunity to grow and access new communities as the growth continues.

For homeowners and community members, it's about preparing to live in a wonderful HOA and participate in its creation and operation.  From amenities to be maintained, to financial and decision transparency, effective budget management, and keeping residents happy, the HOA management team will have much to do.

Enjoy this guide on getting an HOA started right and the links to authoritative and helpful info for South Carolina HOA boards.

South Carolina State Facts

The Palmetto State is known for warm temperatures, white sand beaches, luscious parks, friendly people, laid-back culture, and the sport of golf. Golf is no small matter as it's a key tourist attraction drawing hundreds of thousands of Americans and Canadians escaping the cold up north.

Today, South Carolina is seeing a strong influx of new residents drawn to new job opportunities in IT and health care, as well as to the temperate climate in the region. It is an ideal location for companies leaving California, New York, and Illinois due to the temperate climate and nearby recreational opportunities.

According to one source, SC saw the highest inflow-to-outflow ratio in the US in 2023, surpassing Texas, Florida and North Carolina. Myrtle Beach and Greenville were the top two cities for migrants.

South Carolina is attracting 7500 new residents per month in 2024 (US census), most of which to its major cities including Columbia, Greenville, Mt Pleasant, Charleston, Summerville, Myrtle Beach, Spartanburg, and Florence.

Community Associations in the State

7400 community associations operate in South Carolina, housing 1.4 million residents, making up about 40% of all households in the state. Despite SC's small population, it is still 16th in the nation for the number of active HOAs.  The opportunity for association managers is strong, with perhaps fewer companies to compete with.

Above chart courtesy of Caionline.org.

For new HOAs and community associations, the opportunity to manage efficiently, effectively and affordably can be found through modern SaaS-based hoa management software platforms. For those considering buying a home within an SC HOA, it's wise to review the HOA, its board, service team, and its operations. They should be managing the HOA using dedicated software that integrates all association operations. 

Note: Those homeowners who can't pay or won't pay their HOA fees risk losing their community privileges, can face fines, liens, or even civil suits by their HOA regardless of the increases in dues or major assessments they charge.

And being in a hurricane weather zone, homeowners insurance and HOA insurance may be more costly.

According to Value Penguin, homeowners insurance coverage sells at a state average of $2300 per year, although cheaper policies may be available.

The point to the above is that HOAs must respect efficiency, lowering costs, and maximizing performance.

South Carolina HOA Regulations

HOAs and community associations are governed by the South Carolina Homeowners Association Act. https://consumer.sc.gov/sites/consumer/files/Documents/HOA/HOA_Act.pdf 
 
Any developer or community group wishing to start a South Carolina HOA must file governing documents, provide certain meeting notice requirements and provide access to the association budget and membership lists.

These are general requirements for HOA boards, however you can learn more fully about at the South Carolina State Legislature website.  and the South Carolina Department of Consumer Affairs website


The Board/association management company involved must collect assessments and dues, manage the HOA finances, and handle surplus funds and financial records according to the rules set forth in the South Carolina Homeowners Association Act.

The rights of HOA homeowners and community residents in South Carolina is also set forth in the Homeowners Association Act. 


How to Start an HOA in SC?

Here are the steps you might take:

  1. decide on the purpose of your organization and give it a name
  2. review the state laws
  3. determine your funding and operational needs -- establish your budget
  4. get resident's feedback and gauge their willingness to join/cooperate
  5. communicate your HOA plan to all stakeholders
  6. build your plan for the HOA and community
  7. write your CC&Rs
  8. determine HOA or association fees
  9. form your corporation's legal entity and contact lawyer
  10. create governing documents & elect your board members
  11. purchase HOA software and build a community portal
  12. acquire HOA insurance for property and liability

The requirements of all the laws, guidelines, and practices necessitate hiring a South Carolina lawyer to ensure your organization is built with legal compliance first. Friction from misunderstanding, disputes, and resident resistance, then requires extra enforcement and administration and ultimately adds costs. 

Additional info sources regarding HOAs in South Carolina

FAQs from South Carolina's Consumer Affairs Division -- https://www.youtube.com/watch?v=IRYsGeyA78U
FAQ on SC HOAs -- from SC department of consumer affairs -- https://consumer.sc.gov/sites/consumer/files/Documents/HOA/HOA%20FAQs.pdf 
SC HOMEOWNERS ASSOCIATION ACT pdf -- https://consumer.sc.gov/sites/consumer/files/Documents/HOA/HOA_Act.pdf
Full SECTION 27-30-110 of SC Homeowners Association Act --  https://www.scstatehouse.gov/code/t27c030.php        

Manage your South Carolina HOA Professionally

When building your new South Carolina Association, it is wise to review ManageCasa's association management platform first. 

Speak with our sales pros about a real, hands-on view of ManageCasa's essential services of accounting, online payments, communications, and daily management of HOA operations and maintenance.

Our HOA software is a foundation for your entire HOA/CAM success. It's more than just streamlining automation, HOA efficiency and compliance. It's a suite of services to optimize finances, communications, and support services. 

Switching to ManageCasa™ is easy. Begin with best HOA management platform and never worry about what's coming.