Georgia Property Owners’ Bill of Rights Act

In recent years, the Georgia General Assembly has enacted major legislative updates aimed at strengthening property rights, increasing financial transparency, and providing essential safeguards for residential property owners. Two landmark pieces of legislation—House Bill 220 (enacted in 2024) and Senate Bill 406 (the Georgia Property Owners’ Bill of Rights Act, signed into law in May 2026)—fundamentally reshape how Homeowners Associations (HOAs) operate and protect homeowner interests.

You can learn more about House Bill 220 that was enacted in 2024 by clicking the link here:

Signed by Governor Brian Kemp on May 12, 2026, SB 406 represents the most comprehensive reform of Georgia HOA laws in decades. The legislation addresses long-standing complaints regarding arbitrary fines, aggressive lien practices, and sudden foreclosure threats by introducing critical operational guardrails and due process protections.

Mandatory HOA Registration & Financial Transparency

• Annual Secretary of State Filings: Operating an association under the Georgia Property Owners’ Association (POA) Act now requires mandatory annual registration with the Georgia Secretary of State. Associations must pay a small filing fee and submit their governing documents and financial statements.
• Loss of Enforcement Power for Non-Compliance: If an HOA fails to maintain active annual registration, it is legally prohibited from enforcing covenants, collecting fines, levying liens, or filing foreclosure proceedings.
• 10-Year Record Retention: Registered associations are legally mandated to retain all financial, assessment, fine, fee, lien, and foreclosure records for at least 10 years in both paper and electronic formats.

Foreclosure Reform & Fair Payment Allocation

• Doubled Foreclosure Threshold: The minimum unpaid delinquency required for an HOA to initiate foreclosure proceedings has doubled from $2,000 to $4,000. Crucially, this $4,000 threshold can consist only of unpaid regular assessments, excluding fines, late fees, or interest charges.
• Extended Notice Requirement: Before foreclosure can begin, the association must provide a minimum 60-day written notice (up from 30 days) itemizing exact dues owed and confirming that payment prior to the 60th day extinguishes the right to foreclose.
• Strict Priority for Payments: HOAs must apply payments in a statutory order designed to keep homeowners out of default:
  1. Regular annual/monthly dues
  2. Special assessments
  3. Specific assessments (repair costs incurred directly by the HOA)
  4. Fines, late fees, and administrative charges

Oversight, Dispute Resolution, and Legal Fees

• Administrative Dispute Officer: Homeowners are no longer forced straight into expensive court battles over board disputes. SB 406 creates a formal complaint system through the Georgia Secretary of State’s Office with appointed hearing officers, binding arbitration options, and automatic stays on fine collection during active disputes.
• Judicial Review of Attorney’s Fees: Attorney’s fees can no longer be automatically passed on to a homeowner. The law requires an itemized accounting and judicial review to ensure fee reasonableness before charges can be legally assessed.

Note: Key provisions regarding attorney’s fee judicial reviews took effect on July 1, 2026, while full registration and administrative oversight measures take effect on January 1, 2027.

Updating our HOA’s bylaws and governing documents to reflect Georgia’s HB 220 and SB 406 (Georgia Property Owners’ Bill of Rights Act) is vital for maintaining our administrative compliance, legal enforceability, and operational transparency. These laws help give stronger homeowner protections.

I have six articles that will go over these proposed changes over the next few weeks. Please review the documents and feel free to reach out to us if you see any errors or have questions.