Georgia Enacts First Major Statewide HOA Reform

In addition to tax legislation, Governor Brian Kemp has also signed landmark legislation often referred to as the Georgia Property Owners’ Bill of Rights Act (SB 406), marking the state’s first comprehensive statewide framework regulating homeowners’ associations (HOAs).

The law was designed in response to growing concerns from homeowners about excessive fines, lack of transparency, and inconsistent enforcement practices within HOAs across Georgia.

Key Protections for Homeowners

The new law establishes several major safeguards, including:

• Stronger limits on HOA fines, fees, and penalties 

• Enhanced notice requirements before associations can impose charges 

• New rules restricting when HOAs can pursue liens and foreclosure actions 

• A higher threshold for foreclosure based on unpaid dues (not fines or penalties) 

• Expanded transparency requirements for HOA financial records and governing documents 

These changes are intended to reduce situations where homeowners face escalating legal costs or risk of foreclosure over relatively minor violations.

🏛️ New State Oversight of HOAs

For the first time in Georgia, HOAs will operate under a more structured regulatory framework.

The legislation:

• Requires most HOAs to register with the Georgia Secretary of State 

• Creates statewide oversight mechanisms for compliance 

• Allows homeowners to access association records more easily 

• Establishes clearer dispute and accountability processes 

If an HOA fails to comply with registration requirements, it may lose the ability to enforce fines or initiate collection actions.

⚖️ Impact on Georgia Homeowners

Supporters of the legislation say it restores balance between homeowners and associations by:

• Increasing due process protections 

• Improving financial transparency 

• Reducing the risk of unexpected fees or aggressive enforcement 

• Creating a clearer path for dispute resolution outside of court 

Critics and industry groups have raised concerns about added administrative requirements for associations, but the bill passed with strong bipartisan support.