05/13/2026
Passed!
HOA reform has been a GAR priority for many years, and we are excited that it is now a reality. Thank you to Senator Matt Brass for championing this effort on behalf of all Georgians!
May 12 concluded the Governor’s signing period for all legislation passed during the 2026 legislative session of the Georgia General Assembly, and we’re excited to report that SB 406 has passed into law! There are several changes to owner’s associations headed our way, and we want to make sure you’re informed, so this will be a long one!
This law will hold rogue HOAs accountable to the property owners that live inside them, but this is a balanced measure that will ensure fairness for HOAs, POAs, and COAs that are following Georgia law. SB 406 creates a much needed property owner’s bill of rights.
HOAs cannot refuse to take an owner’s dues payment, and it creates a prescribed payment application order - when a property owner makes a payment, it must be applied first to dues, then special assessments, then fees and fines. In addition, SB 406 raises the foreclosure threshold from the current $2,000 to $4,000. This means that a property owner must now be in arrears of at least $4,000 before most owners’ associations may begin foreclosure proceedings against that owner. On top of that, fines and fees can no longer be used in the calculation to the foreclosure threshold, so an owner must be in arrears of dues and assessment payments only.
Another win for owners - an association must notify a property owner of their intent to begin assessing attorney’s fees on top of the owner’s past due dues and assessments. The association must also provide the property owner with the right to cure any outstanding amount owed to the association, and if the owner does so, the impending foreclosure and associated lien do not move forward.
This law will require all owner’s associations to file with the GA Secretary of State and provide their current budgets and list of officers for property owners to review at any time. It will also allow the Secretary of State’s office to provide a referee of sorts for disputes between HOAs, POAS, COAs and the property owners that live inside those associations. This hearing process will resolve disputes by holding associations accountable and providing recourse for property owners whose property rights have been violated.
