S*0511(Rat #0257, Act #0250 of 2006)  General Bill, By Richardson

Similar(H 3069)
 AN ACT TO AMEND SECTION 27-31-250, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO USE OF INSURANCE PROCEEDS TO RECONSTRUCT DAMAGED PROPERTY GOVERNED
 BY THE HORIZONTAL PROPERTY ACT, SO AS TO PROVIDE FOR REPAIR OR RECONSTRUCTION
 UPON A VOTE OF EIGHTY PERCENT OF THE CO-OWNERS, OR MORE IF REQUIRED BY THE
 PROPERTY BYLAWS, AND TO PROVIDE, FURTHER, FOR DISTRIBUTION OF INSURANCE
 PROCEEDS. - ratified title

   02/17/05  Senate Introduced and read first time SJ-7
   02/17/05  Senate Referred to Committee on Judiciary SJ-7
   04/13/05  Senate Committee report: Favorable Judiciary SJ-17
   04/14/05  Senate Read second time SJ-13
   04/14/05  Senate Unanimous consent for third reading on next
                     legislative day SJ-13
   04/15/05  Senate Read third time and sent to House SJ-1
   04/19/05  House  Introduced and read first time HJ-19
   04/19/05  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-19
   03/15/06  House  Committee report: Favorable Labor, Commerce and
                     Industry HJ-95
   03/16/06         Scrivener's error corrected
   03/21/06  House  Read second time HJ-18
   03/22/06  House  Read third time and enrolled HJ-11
   03/23/06         Ratified R 257
   03/24/06         Signed By Governor
   03/28/06         Copies available
   03/28/06         Effective date See Act for Effective Date
   04/05/06         Act No. 250

(A250, R257, S511)

AN ACT TO AMEND SECTION 27-31-250, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO USE OF INSURANCE PROCEEDS TO RECONSTRUCT DAMAGED PROPERTY GOVERNED BY THE HORIZONTAL PROPERTY ACT, SO AS TO PROVIDE FOR REPAIR OR RECONSTRUCTION UPON A VOTE OF EIGHTY PERCENT OF THE CO-OWNERS, OR MORE IF REQUIRED BY THE PROPERTY BYLAWS, AND TO PROVIDE, FURTHER, FOR DISTRIBUTION OF INSURANCE PROCEEDS.

Be it enacted by the General Assembly of the State of South Carolina:

Application of insurance after rebuilding

SECTION    1.    Section 27-31-250 of the 1976 Code is amended to read:

"Section 27-31-250.    (A)    A portion of the property for which insurance is required pursuant to Section 27-31-240 and which is damaged or destroyed must be repaired or replaced promptly by the council of co-owners unless:

(1)    repair or replacement is illegal under a state statute or local health ordinance; or

(2)    eighty percent of the co-owners, including the owner of an apartment which is not to be rebuilt, vote not to rebuild; except that the property bylaws may expressly require a percentage greater, but not less than, eighty percent of the co-owners.

(B)    The cost of repair or replacement in excess of insurance proceeds and reserve must be considered a common expense.

(C)    If the entire property is not repaired or replaced, the insurance proceeds:

(1)    attributable to the damaged common elements must be used to restore the damaged area to a condition compatible with the remainder of the property;

(2)    attributable to apartments and limited common elements that are not rebuilt must be distributed to the owners of those apartments and to the owners of those apartments to which limited common elements were allocated, or to the lienholders, as their interests may appear;

(3)    remaining must be distributed to all of the co-owners or lienholders, as their interests may appear, in proportion to the percentage as described in Section 27-31-60.

(D)    If the co-owners vote not to rebuild an apartment, that apartment's allocated interest must be reallocated automatically upon the vote and the council of co-owners promptly shall prepare, execute, and record an amendment to the master deed reflecting the reallocations."

Time effective

SECTION    2.    This act takes effect upon approval by the Governor and applies to all horizontal properties governed by the Horizontal Property Act, notwithstanding a provision in the master deed or bylaws to the contrary.

Ratified the 23rd day of March, 2006.

Approved the 24th day of March, 2006.