South Dakota HOA Law Changes 2021–2025: What Every Board Needs to Know

<h2>Overview of South Dakota HOA Law Changes 2021–2025</h2>

<p>South Dakota community associations are governed by the South Dakota Condominium Act (SDCL § 43-15A) and the South Dakota Common Interest Community Act. Between 2021 and 2024, South Dakota enacted several updates affecting electronic meeting and notice authority, solar energy rights, assessment lien collections procedures, annual financial disclosure requirements, and EV charging protections. Here is a session-by-session breakdown.</p>

<h2>2021 Legislative Session</h2>

<h3>HB 1040 — Electronic Meeting and Notice Rights</h3>

<p>HB 1040 amended the South Dakota Condominium Act to authorize electronic delivery of required notices and to permit board meetings and unit owner meetings to be conducted by video conference or telephone conference. Remote participation counts toward quorum. Boards must provide electronic meeting access instructions at least 48 hours before any meeting conducted by electronic means. This amendment gave South Dakota associations permanent statutory authority for electronic governance, eliminating the COVID-19 emergency as the sole basis for electronic meetings. Boards should adopt written electronic meeting policies and collect electronic consent forms from members to ensure compliant use of electronic notice delivery.</p>

<h2>2022 Legislative Session</h2>

<h3>SB 143 — Solar Energy Rights</h3>

<p>SB 143 added SDCL § 43-32-28, prohibiting South Dakota homeowners associations from adopting or enforcing any covenant, condition, or restriction that prohibits the installation of solar energy systems. Associations may impose reasonable aesthetic placement standards — requiring rear-facing panel installation where achieving at least 90% of maximum output, prohibiting front-yard ground-mounted systems — provided those standards do not increase the cost of installation by more than 5% or reduce the system's energy output by more than 10%. Any existing CC&amp;R provision that amounts to an outright solar prohibition is now void under South Dakota law. Boards should audit governing documents and adopt compliant solar installation guidelines.</p>

<h3>HB 1179 — Assessment Collections — Pre-Lien Notice</h3>

<p>HB 1179 established a 30-day pre-lien notice requirement for South Dakota community associations. The cure notice must be delivered by certified mail to the property address and any alternative address provided by the owner, and must itemize all amounts due — principal assessments, late fees, and interest. The association may not add attorney fees or additional collection costs to the delinquency until after the cure period expires without payment. South Dakota boards should update their management agreements and collections policies to include the certified mail pre-lien notice as a mandatory prerequisite to lien filing.</p>

<h2>2024 Legislative Session</h2>

<h3>HB 1244 — HOA Financial Transparency</h3>

<p>HB 1244 required South Dakota common interest community associations with 20 or more units to provide members with an annual financial disclosure within 120 days of fiscal year end. The disclosure must include a balance sheet showing the association's assets and liabilities at year end, an income statement comparing actual revenues and expenses to the adopted budget, and a reserve fund summary identifying major capital components, current funding status, and the estimated replacement cost of each major component over the next 10 years. Boards must make financial records available for member inspection within 10 business days of a written request. South Dakota boards that have been providing only adopted budgets — without actual year-end financial statements — must expand their annual financial disclosures significantly.</p>

<h3>SB 417 — EV Charging Rights</h3>

<p>SB 417 prohibited South Dakota homeowners associations from restricting the installation of EV charging equipment in an owner's assigned parking space or garage. Approval must be granted or denied in writing within 60 days of a complete installation application. Associations may require licensed electrician installation, prior written board approval within the 60-day period, and that the owner carry additional liability insurance for the equipment. Associations may not deny a properly submitted installation request without documented structural, electrical capacity, or safety cause. Boards should adopt written EV charging installation policies before the first request is received.</p>

<h2>Board Action Checklist</h2>

<ul>

<li>Adopt written electronic meeting policies and collect member electronic consent forms</li>

<li>Audit CC&amp;Rs for solar installation restrictions and repeal any outright bans under SDCL § 43-32-28</li>

<li>Update collections policy to require 30-day certified mail pre-lien notice before any lien recording</li>

<li>Prepare and distribute annual financial disclosure within 120 days of fiscal year end (20+ unit associations)</li>

<li>Establish a 10-business-day financial record inspection response procedure</li>

<li>Adopt a written EV charging installation policy with a 60-day written approval timeline</li>

</ul>

<h2>How APM Helps South Dakota HOA Boards Stay Compliant</h2>

<p>APM's remote HOA management service monitors South Dakota HOA and condominium law updates and provides client boards with compliance guidance on financial disclosures, solar policies, collections procedures, and EV charging rights. <a href="/remote-hoa-management/south-dakota">Learn about our South Dakota remote management services</a>.</p>

<p><em>Legal disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed South Dakota attorney for guidance specific to your community.</em></p>