Homeowners associations (HOAs) manage many planned communities in South Dakota. Various local, state, and federal regulations as well as governing documents oversee HOAs in South Dakota.
Who Regulates HOAs in South Dakota?
In South Dakota, HOAs are regulated by the South Dakota Planned Community Associations found in South Dakota Revised Statutes § 421J-1 through 421J-16. This act applies to residential developments with common areas run by members. This act does not apply to condominiums, cooperative housing corporations, or any development that is not for residential purposes. Condominiums are governed by the South Dakota Condominium Property Act.
HOAs also have documents that regulate themselves. Every HOA is different, however, the governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restriction, and other rules.
HOAs in South Dakota may be subject to applicable federal laws such as:
HOAs may be subject to certain state laws such as:
- South Dakota Condominium Law
- South Dakota Nonprofit Corporation Act
- South Dakota Human Relations Act
How to Find HOA Regulations in South Dakota
In South Dakota, HOA governing documents are public records. Homeowners can visit the county recorder’s office to find documents such as amendments and bylaws. Other information that could be found includes contact information, a list of active board members, and the articles of incorporation. The homeowner will be able to find the specific HOA by searching under the subdivision or community name.
A website also exists that allows residents to access these records and reports produced by the South Dakota Secretary of State.
HOA Powers in South Dakota
In South Dakota, an HOA has the power to:
- Adopt and amend bylaws, rules and regulations
- Upkeep common elements in the community
- Make additional improvements on the common elements
- Place liens on properties to collect overdue bills
Moreover, HOA governing documents can grant additional powers such as granting or placing restrictions on memberships, changing different elements of the common areas, and parking requirements.
Can an HOA Impose Fines on a Homeowner in South Dakota?
In South Dakota, an HOA can impose fines on a homeowner for violating its rules if stated in the governing documents. Furthermore, South Dakota law gives HOAs the right to impose fines on homeowners.
The governing documents will note the amount and type of fees in the HOA as well as the notice requirements for such fees.
Can an HOA Take Your Home in South Dakota?
In South Dakota, an HOA can foreclose on a homeowner’s house within its community. HOAs have the power to place a lien on a property when the owner neglects to pay their dues. If a lien goes unresolved, the HOA can foreclose on the house.
There are no state laws allowing an HOA to evict a homeowner. However, HOA provisions for evicting tenants may exist for evicting tenants, and should be referenced in the governing documents. In addition, the HOA may have other powers or restrictions regarding rental properties in its governing documents.
Can an HOA Enter Your Property in South Dakota?
There is no state provision in South Dakota that governs HOAs entering a homeowner’s property. Clauses of if, when, and how an HOA can enter a homeowner’s house will be listed in its governing documents.
Typically, an HOA may be able to enter a homeowner’s property in cases of emergency, maintenance, or violation of any rules or regulations.
Except in cases of emergency, an HOA should provide reasonable notice to the homeowner prior to the HOA entering the property. A reasonable timeline can range depending on the reason for entry. Reasonable notice can be between three days and a couple of weeks.
Where Do I File a Complaint Against my HOA in South Dakota?
There are different agencies to file a complaint against an HOA, which is dependent on the type of complaint.
If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the South Dakota State Bar Association, South Dakota State Commission on Human Rights, the U.S. Department of Housing and Urban Development, or file a private lawsuit in South Dakota state or federal court.
For complaints concerning HOA fees, a homeowner can file a complaint with the local county or city housing department, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state or federal court within one year of the violation date.
A homeowner can bring all other complaints to state court in the appropriate jurisdiction by filing a claim.
Joining & Leaving an HOA in South Dakota
There are two types of HOAs that govern joining and leaving clauses. Documents explaining the HOA and its membership rules should be presented at the closing for a new owner’s home purchase.
- Mandatory HOAs. When a person buys a home, they automatically become a member required to abide by any HOA rules listed in the governing documents. This usually includes that a homeowner is not able to leave the HOA freely.
- Voluntary HOAs. When a person buys a home, membership is a choice for each homeowner. If they choose to become a member, they may leave at any time by stopping their payments with the HOA.
To leave a mandatory HOA, a homeowner can sell their house or try to petition the court to have their home removed. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA in South Dakota
The process for dissolution of an HOA in South Dakota may be set forth in the HOA’s governing documents. If it is not, members of the HOA must vote at least ⅔ in favor of dissolution at an HOA meeting
If dissolution is approved, the HOA has to handle and dissolve all of its assets and debts. A plan of dissolution must then be adopted by at least ⅔ of HOA members on how to dissolve all of its assets.
If approved, the agreeing members will sign a termination agreement and carry out any other business needs, such as settling debts, disposing of assets, and filing the necessary documentation with the South Dakota Business Registration Division.
Sources
- 1 SD Codified L §43-15A-9(2022)
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The register of deeds of the county recording any master deed or lease shall receive the sum of seventy-five dollars for the first fifty pages plus two dollars per page for each page or fraction thereof exceeding fifty pages. A master deed or lease shall be recorded in the same manner and subject to the same provisions of law as are deeds. However, no state or local recordation tax upon the value of the property transferred shall apply to the deed or portion thereof recorded solely for the purpose of complying with the provisions of §43-15A-3.
Source Link - 2 SD Codified L §43-15A-7 (2022)
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Any condominium owner shall have an exclusive right to his condominium and shall have a common right to a share, with other co-owners, in the common areas of the property.
Source Link - 3 SD Codified L §43-15A-29 (2022)
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A lien holder who contributes to the erection, alteration, repair, or other general improvement of a single development of condominiums shall apportion his demand among the condominiums affected and shall assert a lien for a proportionate part upon each and upon the ground appurtenant to each respectively.
Source Link - 4 When You Must Allow an HOA Representative to Enter Your Unit
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State statutes commonly require that HOAs provide an owner with “reasonable” notice. What’s considered “reasonable” depends on the situation… if immediate entrance is necessary for health or safety reasons (such as if there is a fire in the unit), minimal or no notice is probably acceptable.
Source Link - 5 Can you refuse to join an HOA?
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…Membership in voluntary HOAs is optional… stop receiving the benefits of the HOA… When [a tenant] buys a house in a community governed by a mandatory HOA, they automatically become a dues-owing HOA member.
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