By Cary Blumenfeld | BrokerBroDad News
Georgia did not eliminate homeowners associations. It did something more practical: it created a state oversight system and put new conditions around some of the strongest powers associations use against property owners.
Governor Brian Kemp signed Senate Bill 406, the Georgia Property Owners’ Bill of Rights Act, on May 12, 2026. One attorney-fee notice provision applies to covered actions filed on or after July 1, 2026. Most of the new law takes effect January 1, 2027.
Associations must register to keep key enforcement powers
Beginning January 1, an owners’ association that wants to collect fines or fees, file or record liens, or initiate foreclosure proceedings must register with the Georgia Secretary of State. Registration expires each December 31 and must be renewed annually. The initial and renewal filing fee is $100.
The registration statement must include association leadership and address information, governing documents, and a financial statement dated within the prior year. Associations must retain records involving assessments, fines, fees, liens, and foreclosures for at least ten years.
The law permits an entity to elect nonregistered status, but that choice comes with a serious tradeoff. A nonregistered association cannot assess or collect fines, fees, or accelerated assessments. The act also bars unregistered associations from using specified lien and foreclosure powers.
Homeowners get a state complaint process
A resident who claims an association’s action or inaction caused damage may file a written complaint with the Secretary of State within 180 days. The act provides for investigation and a potential hearing. Filing a complaint automatically stays collection of fines or fees that are the subject of the complaint or related to it until the hearing officer issues conclusions, subject to the act’s procedures.
The losing party at the administrative hearing can be assessed a $100 administrative service fee. Appeals may proceed to magistrate or superior court depending on the amount or value involved.
Owners gain clearer access to financial records
The act expressly gives owners the right, after written demand and subject to Georgia law and governing documents, to inspect and obtain association and accounting records. Listed accounting records include the finalized balance sheet, budget, profit and loss statements, and bank statements for the past three years. Owners may also request an applicable association insurance certificate.
Payments must be applied to dues before fines
Starting January 1, owner payments must be applied in this order: regular dues, special assessments, specific assessments, then other fees and fines. An association cannot refuse a payment toward an assessment simply because it is less than the total amount claimed. The act also prohibits accelerated assessments.
For a homeowner disputing a fine, this can matter. Money paid can no longer be routed to lower-priority charges while regular dues remain delinquent under the statutory order.
The foreclosure rule is not a flat 4000 dollar threshold
The signed act says judicial foreclosure is not permitted unless regular assessments in arrears reach the lesser of $4,000 or an amount equal to 12 months of regular assessments, but the qualifying amount cannot be less than $2,000. Specific assessments, other fines, and other fees are excluded from that calculation.
That means the threshold depends on the community’s regular dues. The new law also extends the mailed notice period from 30 to 60 days and changes the lien lapse period from four years to six years.
One attorney-fee rule is already active
For covered actions filed on or after July 1, 2026, an association generally must send an initial written notice identifying outstanding fines or delinquent fees, give the owner 30 days after receipt to pay, and provide an itemized list of reasonable attorney’s fees before those fees may be collected or awarded. A judge in a bench trial must review the reasonableness of claimed attorney’s fees before awarding them.
What happens next
The Secretary of State has created a Georgia Property Owners’ Associations Division webpage. The office says registration will use an online portal, with more details coming closer to January 1, 2027.
It also says rules and regulations are being drafted and are expected to be available for public comment in October 2026.
For North Fulton homeowners, buyers, and volunteer board members, October is the next important checkpoint. The rules should explain how complaints, registration, renewals, disclosures, and enforcement will operate in practice.
What buyers should ask before purchasing in an HOA
A buyer should still review the declaration, bylaws, current dues, special assessments, reserves, insurance, meeting minutes, litigation, rental restrictions, transfer fees, and major planned repairs. Starting in 2027, add one more question: is this association registered with the Georgia Secretary of State and in good standing?
The bottom line
SB 406 does not erase valid HOA obligations or remove every enforcement power. It creates oversight, transparency, and a complaint path that Georgia homeowners did not previously have in this form. The biggest protections begin January 1, 2027, and the implementation rules expected this fall may determine how useful the system is in real life.
This article provides general information and is not legal advice. Anyone facing a lien, foreclosure, lawsuit, or material HOA dispute should consult a qualified Georgia attorney.
Article FAQ
Did Georgia ban HOAs?
No. SB 406 regulates owners’ associations and ties specified enforcement powers to state registration.
When does the Georgia HOA law take effect?
Section 7 applies to covered actions filed on or after July 1, 2026. Most of the act takes effect January 1, 2027.
Does every HOA have to register?
An association may elect not to register, but nonregistration removes important abilities to assess or collect fines and fees and use specified lien and foreclosure powers.
Can an HOA still foreclose?
Yes, judicial foreclosure remains possible when the statutory requirements are satisfied. SB 406 changes the notice period, qualifying regular-assessment threshold, and what charges count.
Can a homeowner file a state complaint now?
The Secretary of State accepts submissions, but its FAQ says no action will be taken under the new complaint authority until January 1, 2027.
Where will HOA registration appear?
The Secretary of State says an online portal will be provided closer to January 1, 2027.