The Georgia Property Owners’ Bill of Rights Act (SB 406) introduces significant new requirements for homeowners associations (HOAs), condominium associations, and property owners’ associations throughout Georgia. Beginning in 2027 (save for one provision discussed further below), community associations will face new registration obligations, expanded record retention requirements, additional owner rights, changes to collections procedures, and new restrictions affecting liens and foreclosure actions.
For many boards and community managers, these changes will require updates to existing policies, procedures, accounting practices, and governance operations. Associations that fail to comply with certain provisions may face limitations on their ability to collect fines and fees, file liens, or pursue foreclosure remedies.
Winter Capriola Zenner regularly advises community associations, boards of directors, and management companies on governance, collections, covenant enforcement, compliance, and litigation matters. This post provides an overview of the Georgia Property Owners’ Bill of Rights Act and its anticipated impact on community associations throughout Georgia.
What Is the Georgia Property Owners’ Bill of Rights Act?
The Georgia Property Owners’ Bill of Rights Act, commonly known as SB 406, imposes new requirements and establishes additional procedures for Georgia’s community associations. The Act also imposes new procedural requirements on community associations subject to the Georgia Property Owners’ Association Act (POAA) in connection with the collections process.
Most provisions of the Georgia Property Owners’ Bill of Rights Act become effective on January 1, 2027. However, one limited provision relating to attorney fee recovery becomes effective earlier on July 1, 2026.
Who Does the Act Apply To?
The Georgia Property Owners’ Bill of Rights Act applies to “Owners’ Associations,” which includes:
- Condominium associations
- Property owners’ associations (POAs)
- Homeowners associations (HOAs)
In practical terms, nearly all Georgia community associations will be affected by the new law.
What Does the Georgia Property Owners’ Bill of Rights Act Change?
The Act introduces four primary changes:
- New registration requirements for community associations.
- A new dispute resolution process administered through the Georgia Secretary of State.
- Expanded transparency and recordkeeping obligations.
- Changes to collections, attorney fee recovery, and foreclosure procedures under the POAA.
New Registration Requirements for Community Associations
Beginning January 1, 2027, associations must complete an annual community association registration with the Georgia Secretary of State.
To register, associations must submit:
- The association’s name and address
- Officer information
- Governing documents
- A recent financial statement
- Other information as may be required by the Secretary of State
Associations must also file an amended registration statement within 30 days of any material change affecting the association’s business or control, including changes to directors, officers, registered agents, or addresses.
The annual registration fee is $100.
The Secretary of State is authorized to review registrations, request additional information, and take action if registrations are not timely filed, are inaccurate or incomplete, or if fees are not paid.
Potential consequences include:
- Suspension of registration
- Revocation of registration
- Restrictions on collecting fines or fees
- Restrictions on association operations
Important Compliance Note
Associations that are not properly registered may not:
- Collect fines
- Collect fees
- File liens
- Pursue foreclosure proceedings
Key Takeaways
- Complete annual registrations on time.
- Update registrations promptly after leadership or address changes.
- Ensure registration information remains accurate and current.
- Understand that this registration requirement is separate from annual corporate filings with the Secretary of State.
New Owner Complaint and Dispute Resolution Process
The Georgia Property Owners’ Bill of Rights Act establishes a formal complaint process through which owners and residents, including tenants, may challenge an association’s alleged action or inaction.
The process generally works as follows:
- A written complaint must be filed within 180 days of the alleged action or inaction.
- An automatic stay is imposed on the collection of fines or fees that are the subject of the complaint.
- A hearing officer reviews the matter and may require a hearing.
- A decision is issued by the hearing officer.
- The parties have 15 days to comply with the decision.
- The non-prevailing party pays a $100 administrative fee.
- Appeals may be pursued through the courts.
Key Takeaways
Associations must suspend collection efforts relating to disputed fines or fees while a complaint is pending.
Boards and managers should document disputes as they occur.
Records, emails, affidavits, and meeting notes may become important evidence if a complaint is filed.
Associations should notify legal counsel immediately upon receiving notice of a complaint.
Important Note: Certain aspects of this process contain ambiguities that may not become clear until the law is implemented and interpreted in practice.
Expanded Transparency and Recordkeeping Requirements
One of the primary objectives of the Georgia Property Owners’ Bill of Rights Act is increased transparency between associations and their members.
Record Retention Requirements
Community associations must retain records for a minimum of ten years.
Electronic records satisfy this requirement.
Associations should ensure that records remain accessible and are properly transferred if they change law firms, management companies, accountants, etc.
Application of Owner Payments
The Act establishes the following payment application order:
- Regular assessments
- Special assessments
- Specific assessments
- Other fees and fines
The statute does not expressly address how this requirement interacts with existing governing document provisions.
Additional Rules Regarding Payments
Associations:
- May not refuse assessment payments from owners.
- May not accelerate assessments.
Expanded Member Rights
The Act codifies several rights available to association members, including the right to:
- Inspect association records
- Review budgets and financial statements
- Access three years of bank statements
- Obtain certificates of insurance
- Receive notice of meetings
- Attend annual meetings
- Access common areas
- Access their property
- Receive foreclosure notices required by law
- Participate in governing document amendment processes
- Expect directors to fulfill fiduciary duties
- Receive disclosure of conflicts of interest
- Challenge discriminatory practices
Key Takeaways
- Retain records for at least ten years.
- Ensure records are transferred during management company transitions.
- Confirm accounting systems comply with statutory payment application requirements.
- Prepare for expanded owner access to financial records and bank statements.
Changes to Collections, Attorney Fees, and Foreclosure Procedures
The Georgia Property Owners’ Bill of Rights Act also amends portions of the Georgia Property Owners’ Association Act.
Foreclosure Requirements
Associations must now provide at least 60 days’ notice before pursuing foreclosure, increased from the previous 30-day requirement.
In addition, owners must meet certain delinquency thresholds before foreclosure may be pursued.
Generally, the owner must owe:
- More than $4,000 in assessments, or
- At least 12 months of assessments totaling more than $2,000
- Fines, late fees, interest, collection costs, and attorney fees may not be included when calculating these thresholds.
- The lien period for assessments has also been extended to six years.
Recovery of Attorney Fees
Effective July 1, 2026, associations seeking recovery of attorney fees must:
- Provide written notice of outstanding fines or fees by certified mail.
- Allow 30 days from receipt for payment.
- Provide an itemized list of attorney fees.
Key Takeaways
- Additional notice requirements now apply before foreclosure actions.
- Additional procedures must be followed to recover attorney fees.
- Boards should work closely with management companies and legal counsel to ensure compliance.
- Associations should evaluate how the new foreclosure thresholds affect collection timelines and strategies.
Preparing for Compliance
Although most provisions of the Georgia Property Owners’ Bill of Rights Act do not become effective until January 1, 2027, community associations should begin reviewing their procedures now. Registration obligations, record retention policies, collections practices, accounting systems, and owner communication procedures may all require updates before the law takes effect.
Winter Capriola Zenner will continue monitoring developments related to the Georgia Property Owners’ Bill of Rights Act and advising community association clients on compliance and implementation. Associations with questions regarding registration requirements, collections procedures, governance obligations, or operational changes should consult experienced community association counsel to evaluate how these new requirements may affect their communities.