Homeowners’ associations in South Dakota are not governed by any specific government regulations. Condominium associations must adhere to the State Condominium Laws, but these do not explicitly apply to HOAs. Most common interest communities are organized as non-profit corporations and must also follow all State Nonprofit Laws.

Since no official regulations exist regarding HOA management, rules can vary drastically between communities. Community associations have the power to create and enforce as many, or as few, regulations as they choose so long as they do not contradict any state or federal laws. Homeowners will typically sign a contract upon purchase of property within a common interest community. Once signed, they are obligated to abide by all rules set forth by the association.

 

Homeowners Association’s Rights and Responsibilities

Before community association can be incorporated, they must file the Articles of Incorporation with the secretary of state. These articles outline important regulations regarding the management and the powers of the HOA along with the rules that all homeowners must follow. It is important to read a community’s articles of incorporation before purchasing property in a common interest community, as they are unique to that community.

 

Maintenance Of Common Elements

HOAs are responsible for the maintenance of common elements and protecting property values within the community. To raise funds for maintenance costs, the homeowners’ association may collect regular dues from homeowners. They may also issue fines for any violations against community regulations according to the articles of incorporation.

 

Community Bylaws

The board of directors has the power to adopt and amend community bylaws unless the articles of incorporation state otherwise. Bylaws outline procedures for community meetings and voting. Homeowners must be given notice of any changes made to the bylaws.

It is the responsibility of the board of directors to keep detailed community records including financial records, minutes of all meetings, and member lists. These records must be made reasonably available to any association member upon request.

 

Homeowner Rights

The articles of incorporation will provide details on the voting rights for homeowners within a common interest community as voting rights are not guaranteed by law.

Members with voting rights have the power to elect and remove board members and vote on amendments to the articles of incorporation during member meetings. Member meetings must be held at least annually, if not more frequently as described by the articles. Special meetings may also be called by the board president, a majority of the board of directors, or by 1/20 of members allowed to vote.

Any amendments made to the articles of incorporation require a majority vote from all who are eligible to vote. If an amendment passes, it must be documented as an article of the amendment and filed with the secretary of state to take effect.

 

Community Association Law in SD

HOA rules in South Dakota vary widely. It is important to read and understand all community regulations before purchasing property in an HOA-managed community. Most homeowners’ associations require the signing of a contract upon purchase.

To ensure that your community association is being run following all state and local laws, it helps to have a professional on your side. CSM has a team of experienced professionals that have worked with communities in almost every state in the US. Specializing in HOA financial management, we can help your board of directors manage association finances, write and submit documents, and prepare for audits. If you have any questions regarding state HOA laws and regulations, give us a call at (865) 315-7505, contact us online or email us at help@csmhoa.com.