Dealing with an annoying HOA? Here’s what to consider before suing your association in SC
If your HOA is creating problems for you, such as being sticklers for the rules or charging high fees, it may seem like a good idea to sue.
But filing a lawsuit against an HOA can bring more problems than it’s often worth, lawyer Tom Winslow said. Often people sue HOAs to get an injunction or change the organization’s actions — not to get monetary damages.
This kind of lawsuit can easily turn into a money pit. Litigation can take years, so lawyer fees may rack up to $50,000 or more. Litigation will also likely increase HOA dues for everyone in the neighborhood.
“When you’re suing an HOA as a homeowner, you’re kind of suing yourself,” Winslow said. “You would contribute to the HOA budget and you pay for the board of directors’ insurance.”
Even if the property owner wins, it’s unlikely they’ll get attorney’s fees paid. South Carolina doesn’t have a statute saying an HOA has to pay the legal fees of the prevailing party unlike in other kinds of lawsuits, Winslow said. If the homeowner gets money rewarded to them, that sum will come out of the HOA budget, which the homeowner pays.
Depending on HOA bylaws, the homeowner could be responsible for the organization’s attorney fees if the owner loses.
Suing an HOA could also bring about social problems.
“You’re literally suing your neighbor so it’s very emotional before, during and after, because you’re still living near them,” Winslow said.
These issues with HOAs will likely only increase as Horry County’s population continues to grow, Winslow said.
Horry County is the top county for HOA complaints in South Carolina, with nearly a quarter of complaints coming from the coastal area, according to the South Carolina Department Consumer Affairs.
In general, 57% of people dislike having an HOA and 10% said they’ve considered selling their homes for HOA-related reasons, according to Rocket Mortgage.
Winslow suggested HOA boards need more training and management as most people are not prepared to manage the large budget.
“There’s no training, there’s no management, there’s no direction or regulation to facilitate a cohesiveness within the community,” Winslow said. “It creates an ongoing frustration for community members.”