Lawmakers in Georgia have taken a major step toward tightening oversight of homeowners associations, with the Georgia House of Representatives approving a sweeping reform bill in a decisive 155–10 vote.
The legislation, known as Senate Bill 406, now returns to the Georgia State Senate for final approval after being amended in the House.
Supporters say the measure could become the most comprehensive HOA reform package in the state’s history.
What the Bill Aims to Change
Backed by Sen. Matt Brass and co-sponsored by Sen. Donzella James, the proposal—also called the Georgia Property Owners’ Bill of Rights Act—focuses on increasing transparency and accountability for homeowners associations.
If enacted, the bill would require HOAs to:
- Register annually with the Secretary of State
- Submit up-to-date financial statements
- Pay a $100 registration fee
- Maintain records for at least 10 years
State regulators would also gain authority to suspend or revoke HOA registrations and restrict their ability to issue fines, place liens, or initiate foreclosures.
Stricter Rules on Foreclosures
One of the most significant changes involves limiting when an HOA can move forward with foreclosure.
Under the revised version:
- Foreclosure would typically apply only if unpaid dues reach at least $2,000
- The cap is set at the lesser of $4,000 or 12 months of dues
- Fines would not count toward foreclosure thresholds
Lawmakers say these changes are designed to ensure foreclosure is used only as a last resort rather than a routine enforcement tool.
Homeowners Drive Reform Effort
The bill gained momentum after large groups of residents gathered at the Georgia State Capitol to demand action during an “HOA Advocacy Day.”
Reports indicate widespread frustration among homeowners, with many citing high fees, aggressive collections, and limited options for resolving disputes.
Surveys referenced in coverage found that a significant number of residents were dealing with large fines and ongoing legal battles with their associations.
What Happens Next
Because the House approved a modified version of the bill, it must now return to the Senate for agreement before heading to Gov. Brian Kemp for final approval.
If signed into law, the reforms would roll out in phases:
- Some provisions, such as limits on attorney fees, could take effect in 2026
- Most major changes would begin on January 1, 2027
Why It Matters
Supporters argue the bill will give homeowners stronger protections and clearer rights, while still allowing HOAs to collect legitimate dues.
If finalized, the legislation could significantly reshape how HOA disputes are handled across Georgia—offering relief to thousands of residents while introducing stricter oversight for associations.
