SC H5204

Amends Section 27-30-120 to add new definitions including "capital upgrade," "covenants/CC&Rs," "HOA Seller Certification," "HOA Seller Packet," "member," "organizational documents," and "rule" for homeowners association regulation.

Grants the Department of Consumer Affairs authority to enforce HOA regulations, fine individual board members and property managers for violations, and collect annual fees of $3 per HOA unit.

Establishes a formal complaint process requiring boards to hold member appeals within 30 days, with the Department investigating disputes and issuing cease-and-desist letters or removing offending board members who knowingly violate laws.

Restricts foreclosure practices by requiring a minimum debt threshold of $10,000 (or $1,000 per unit, whichever is less), 90 days' notice before foreclosure, mandatory mediation, and limiting attorneys' fees to 10% of the original amount owed.

Mandates independent election companies conduct all HOA voting, prohibits felons from serving as board members, requires election committees independent of the board, and gives members at least 30 days to mail ballots.