Several Georgia Senate bills are under consideration that seek to rein in what homeowners say are abusive or overly aggressive homeowner associations hungry to forfeit their properties.
Georgia’s newly introduced SB 406, known as
the Georgia Property Owners’ Bill of Rights Act, follows years of homeowner complaints statewide, including reports of rising fines, increasing legal costs, and poor communication from HOA boards and property management companies, 11 Alive reports. Sen. Matt Brass, a co-sponsor of the legislation, says the measure aims to ease tensions and introduce impartial oversight into disputes that frequently become heated and personal.“I mean, it’s just literal hate,” Brass said. “And if we can kind of help mediate that and help solve some of these issues with a level head of someone that’s not financially invested in their property or in their community … take it out of there, have somebody non-biased to look at it, and hopefully we can solve it. And neighbors get back to being neighbors.”
Senate Bill 406 would strengthen HOA enforcement rules, create a new oversight avenue through the Secretary of State, and modify foreclosure procedures. The bill would raise the minimum amount of debt required before an HOA can foreclose from $2,000 to $4,000, a change aimed at preventing situations in which homeowners face spiraling fines, mounting legal fees, and poor communication from their association or property management company.
Senior Investigator Rebecca Lindstrom highlighted a case in which an HOA foreclosed on a woman’s home and later bought it at auction for just $3.24, even though the homeowner had already paid thousands toward her balance. Under SB 406, that type of foreclosure would be prohibited. The bill would also ban HOAs, their management companies, or anyone connected to them from purchasing homes at foreclosure sales, a practice that has sparked widespread backlash.
Under SB 406, all Georgia HOAs would, for the first time, be required to register annually with the Secretary of State, pay a $100 fee, and submit basic financial information. Associations that fail to register would lose the ability to collect dues, levy fines, place liens, or pursue foreclosures.
The fee would fund a new state oversight board with authority to investigate complaints, refer potential crimes to law enforcement, and mediate disputes between homeowners and HOAs. The legislation also outlines explicit homeowner rights, including access to records, meeting notifications, voting protections, and clearer standards for HOA board conduct.
“This bill doesn’t take anything away from associations, doesn’t take any power away from them,” Brass said. “It’s just saying, you know, you have to follow your bylaws, and if you don’t, there’s going to be, there’s a process to where someone can come in–– that’s not necessarily a court — and can look at it and tell you if you’re following your bylaws or not.”
SB 406 builds on a version of the legislation Brass introduced during a Senate study committee over the break. He anticipates revisions as the bill advances through the committee process, but says an accountability measure was necessary because none currently exists.
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