South Carolina HOA and condo law

The short answer

No South Carolina statute requires a community association to commission a reserve study, to hold a minimum reserve balance or to disclose a funding level to buyers. CAI's June 2026 summary of state reserve laws lists none for the state, and we found no bill that has become law since the 2021 Surfside collapse in Florida. Bills are filed from time to time, so before relying on this, search the S.C. Legislature for the current session.

Condominiums: the Horizontal Property Act

Condominiums in South Carolina are created as "horizontal property regimes" under the Horizontal Property Act, S.C. Code Title 27, Chapter 31. The regime comes into being when the master deed is recorded, and the master deed and bylaws then govern how common expenses are shared among co-owners.

The Act is about creating the regime and dividing ownership and costs. It does not set a reserve study schedule or a funding target. Whether your regime must keep reserves, and for what, is a question for its master deed and bylaws. Older regimes on Hilton Head and the Grand Strand often have short documents written in the 1970s and 1980s; if yours is silent, check with the association's attorney before assuming the board has no duty.

HOAs: the Homeowners Association Act

Single-family and townhome associations fall under the Homeowners Association Act, S.C. Code Title 27, Chapter 30. Its provisions deal mainly with recording governing documents and with how associations treat members. It does not mention reserve studies.

Members with complaints about an association can contact the South Carolina Department of Consumer Affairs, which handles HOA questions. What the Department can and cannot do about a dispute is limited; check with the association's attorney on how the Act applies to your community.

Where requirements actually come from

Lender rules change often. Fannie Mae publishes its condo project standards in the Selling Guide; a manager handling resale questionnaires should read the current version rather than a summary.

What we suggest a South Carolina board does

1. Read the master deed or covenants for any reserve clause, and note it in the board minutes.
2. Commission a full study with a site visit if you have never had one, following CAI's Reserve Study Standards.
3. Update it with a site visit at least every three years, and after any storm that damaged reserve components.
4. Adopt a funding plan by board vote, and show the reserve contribution as its own line in the annual budget.
5. Keep the study where owners, buyers and lenders can see it when they ask.

None of this is legal advice. For a question about your own documents, a dispute or a special assessment, speak to an attorney who represents community associations in South Carolina.