Georgia Passes Landmark HOA Reform To Protect Homeowners

A landmark homeowners association reform bill is on the way to Gov. Brian Kemp's desk for his signature after Georgia lawmakers passed the landmark legislation.

The Georgia House and Senate passed SB 406. The legislation creates an administrative process to help settle disputes between homeowners and HOAs.

Known as the “Georgia Property Owners’ Bill of Rights Act,” this bill lays down guidelines and new protections for property owners while increasing accountability for property owners associations across the state.

Among the key requirements:

• SB 406 requires homeowners and property owners associations to register annually with the secretary of state and submit key governing and financial information.

• Associations that fail to register will be prohibited from collecting fines, issuing liens or initiating foreclosure proceedings.

• The legislation also implements new safeguards for homeowners, including limits on certain fees and fines, stronger notice requirements, and a clear process for resolving disputes between homeowners and associations.

“For years, I have been a strong advocate for homeowners, and I have heard countless cases of people being taken advantage of by predatory associations," said Sen. Donzella James, a co-sponsor of the bill.

"This legislation represents a meaningful step forward in protecting homeowners by promoting transparency and fairness. It helps ensure that no Georgian is subjected to unjust fees, fines, or the threat of foreclosure without proper oversight and due process.”

Up until this legislation, Georgia had no laws governing associations and no office that oversees actions or takes complaints.

Many times homeowners would take their associations to court, paying both their attorney fees and the HOA’s.

Now, complaints between owners and associations would be heard by a hearing officer with the secretary of state’s office. Supporters say this is better than hiring lawyers and going to court.

“If a homeowners association wants to collect fines or any fees, it must register with the secretary of state,” Rep. Rey Martinez said. “If you don’t want to do that, if you don’t want to collect fines and fees, it is not mandatory to register with the secretary of state’s office.”

Once Gov. Kemp signs it into law, it will take effect Jan. 1, 2027. 

HOAs across the country

Roughly one-third (33.4%) of single-family homes have HOAs, and more than 4 in 5 (84.8%) of condos and townhomes do, according to a Realtor.com® Homeowners Associations report.

It found that HOAs are more highly concentrated among new builds (67.9%) than existing homes (38.9%), but the share of existing homes with HOAs is growing faster in recent years. 

And at least 2.6 million pay over $500 a month, adding up to $6,000 or more annually, according to a LendingTree analysis.

HOA fees are usually used toward community maintenance, such as trash and snow removal, lawn care, and building and common area repairs. In some developments, common charges can cover amenities such as gyms, pools, or pickleball courts.

These fees are one of the most burdensome costs of being a homeowner. According to the site's survey, 82% of respondents said their fees went up in the past three years, including almost half who said they went up "significantly."