South Carolina HOA Budget Approval
South Carolina HOA Budget Approval
Section 1: Overview — How HOA budgets are approved in South Carolina
In South Carolina, budget approval starts and ends with one document: the recorded master deed or declaration and bylaws. The statutes don't provide a budget mechanism — the governing documents do.
The state runs two separate statutory tracks. Condominiums fall under the Horizontal Property Act (S.C. Code Ann. § 27-31-10 et seq.), a traditional framework enacted in 1967 with no connection to any uniform act. Planned communities fall under the South Carolina Homeowners Association Act (S.C. Code Ann. § 27-30-110 et seq.), a narrower statute that took effect May 17, 2018, under Act No. 245 (H.3886).1,2 In both cases, the board adopts the budget under the authority set out in the recorded governing documents. Neither statute includes a negative-option ratification step — the kind where a budget is deemed approved unless a supermajority of owners votes it down.
The 2018 Act is deliberately limited in scope: it covers the recording of governing documents as a condition of enforceability, limited financial disclosure, magistrate-court jurisdiction over certain small-dollar disputes, and the collection of association complaint data by the Department of Consumer Affairs.2,3 Neither statute requires a reserve study, a minimum reserve contribution, or a cap on assessment increases. The table below shows what each statute specifies — and what it leaves to the governing documents.
Section 2: The budget approval mechanism
South Carolina's condominium statute, the Horizontal Property Act, is a traditional framework, and the 2018 South Carolina Homeowners Association Act is limited in scope; absent statutory budget mechanics, the recorded governing documents control.
2A. Quick-Reference Budget Mechanics Table
| Parameter | Value |
|---|---|
| Governing statute section(s) | Horizontal Property Act, S.C. Code Ann. § 27-31-10 et seq. (condominiums); S.C. Homeowners Association Act, § 27-30-110 et seq. (planned communities and horizontal property regimes with a declaration); S.C. Nonprofit Corporation Act, § 33-31-101 et seq. (corporate formalities)1,2,4 |
| Community types covered | Condominiums (horizontal property regimes) under the Horizontal Property Act; planned communities and horizontal property regimes that have a recorded declaration under the 2018 Act2 |
| Body that adopts the proposed budget | Not specified by statute; governed by recorded declaration (typically the board under the master deed or bylaws) |
| Approval model | Board adoption under the governing documents; no statutory ratification mechanism |
| Budget summary distribution deadline | Not specified by statute; governed by recorded declaration |
| Ratification meeting notice window | No statutory ratification meeting; for a planned-community association not incorporated under the Nonprofit Corporation Act, § 27-30-140 requires at least 48 hours' notice before a meeting at which a decision to increase the annual budget is made5 |
| Owner rejection threshold | Not specified by statute; no ratification or owner-rejection mechanism |
| Quorum required to ratify | Not specified by statute; governed by recorded declaration |
| Effect of owner rejection | Not specified by statute; no statutory owner-rejection mechanism |
| Statutory cap on assessment increase absent owner vote | None under either statute |
| Special assessment approval threshold | Not specified by statute; governed by recorded declaration |
| Reserve study mandate (and frequency) | None under either statute |
| Reserve funding mandate | None under either statute |
| Audit or financial review tied to budget cycle | Not specified by statute; the Horizontal Property Act requires a chronological record of receipts and expenditures open to co-owners (§ 27-31-180); the Nonprofit Corporation Act provides for annual financial statements for members (§ 33-31-1620); the 2018 Act extends inspection of the annual budget to members of associations not incorporated as nonprofits (§ 27-30-150)6,7,8 |
| Provisions variable by declaration | Substantially all budget-adoption mechanics, including the proposing body, approval threshold, quorum, notice, special assessments, and reserves |
Keep reading with the South Carolina State Pass
The rest of this analysis — what an association can actually do, the recent bills and rulings, and how South Carolina compares nationally — is for subscribers. $49/month for every South Carolina topic on HOA Weekly.
$49/month, $449/year, or a $19.99 day pass.
What you unlock
- Section 3: Budget-adjacent obligations
- Section 4: Recent legislative and judicial activity
- Section 5: National positioning and related coverage
and 15 more sections and subsections in detail
Already a subscriber? Sign in
Recurring monthly subscription · Cancel anytime · Need help?
Related South Carolina HOA Topics
- S.C. Code Ann. § 27-31-10 et seq., Horizontal Property Act (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 27-30-110 et seq., South Carolina Homeowners Association Act, enacted 2018 Act No. 245 (H.3886), eff. May 17, 2018 (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 27-30-340, Calls or written complaints; Department of Consumer Affairs duties and prohibitions (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 33-31-101 et seq., South Carolina Nonprofit Corporation Act (official index, scstatehouse.gov) ↩
- S.C. Code Ann. § 27-30-140, Annual budget increases; notice requirements (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 27-31-180, Records of receipts and expenditures (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 33-31-1620, Financial statements for members (S.C. Code of Laws) ↩
- S.C. Code Ann. § 27-30-150, Application of access to documents provisions (official text, scstatehouse.gov) ↩
- S.C. Code Ann. §§ 27-31-150 and 27-31-160, Administration of property; bylaws; provisions required in bylaws (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 27-31-190, Expenses shall be shared (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 27-30-130, Enforceability of governing documents; recording requirements (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 27-30-160, Jurisdiction of magistrates court (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 22-3-10, Concurrent civil jurisdiction of magistrates ($7,500 ceiling) (official text, scstatehouse.gov) ↩
- S.C. Code Ann. § 33-31-1602, Inspection of records by members (S.C. Code of Laws) ↩
- Chandelle Property Owners Ass'n v. Armstrong, Op. No. 6078 (S.C. Ct. App. Aug. 7, 2024), discussing S.C. Code Ann. § 33-31-304 (ultra vires) ↩
- Chandelle Property Owners Ass'n v. Armstrong, Op. No. 6078 (S.C. Ct. App. Aug. 7, 2024) ("Restrictive covenants are construed like contracts and may give rise to actions for breach of contract.") ↩
- S.C. Code Ann. §§ 27-31-240 and 27-31-250, Insurance; repair or reconstruction (official text, scstatehouse.gov) ↩
- 2023-2024 Bill 4049, virtual meetings and electronic voting for HOAs and condominiums (scstatehouse.gov) ↩
- Chandelle Property Owners Ass'n v. Armstrong, Op. No. 6078, Appellate Case No. 2022-001557 (S.C. Ct. App., heard June 4, 2024, filed Aug. 7, 2024) (full slip opinion) ↩
- Leonard v. WildeWood Sections I-IV HOA, Unpublished Op. No. 2026-UP-339 (S.C. Ct. App. July 1, 2026), South Carolina Judicial Branch (three-year limitations period runs from adoption; no precedential value) ↩
- S.C. Code Ann. § 27-30-130(B)(1)(a), South Carolina Legislature (rules effective upon passage or adoption) ↩
- Dykes v. Wild Wing Co., Unpublished Op. No. 2025-UP-299 (S.C. Ct. App. Aug. 20, 2025), South Carolina Judicial Branch (declarant fiduciary duties; business judgment rule; limitations; no precedential value) ↩
- S.C. Code Ann. § 33-31-830, South Carolina Legislature (director standards; business judgment rule; limitations period) ↩
- 2025-2026 Bill 3425 ("HOA"), adding § 27-30-135 financial-disclosure requirements and amending § 27-30-140 (scstatehouse.gov) ↩
- 2025-2026 Bill 366 ("HOA Fees"), Senate Committee on Judiciary (scstatehouse.gov) ↩
- 2025-2026 Bill 4006 (Homeowners Associations), open-meeting and access provisions (scstatehouse.gov) ↩
- Rev. Rul. 70-604 (excess assessments applied to following year or refunded requires a documented membership vote; IRS position on single-year carryover discussed in Internal Revenue Bulletin materials) (IRS) ↩
- Rev. Rul. 75-370 and Rev. Rul. 75-371, 1975-2 C.B. (capital improvement assessments as contributions to capital under IRC § 118, if earmarked and segregated), as discussed in IRS guidance (IRS) ↩
Stay on top of South Carolina HOA law
Every week: new South Carolina legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.
No spam. Unsubscribe anytime.