ATLANTA — A bill limiting the power of Georgia homeowner associations took a step closer to become a law.
The Georgia House passed Senate Bill 406, also known as the Georgia Property Owners’ Bill of Rights Act, with a 155-10 vote on Tuesday.
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SB 406 limits how HOAs can seize property or foreclosure homes if an owner fails to pay an assessment. It also adds certain requirements that HOAs must follow.
The bill requires any HOA to register every year with the Secretary of State’s Office in order to collect fines or fees. HOAs will also have to submit their financial statements.
If a complaint is filed between an HOA and homeowner, the bill would require a Secretary of State officer to hear the case instead of it getting tied up in court.
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Channel 2 Action News first reported on a flurry of HOA bills introduced back in February. Lawmakers from both sides said they have heard some horror stories about HOAs.
“It was just one of those rabbit holes the further you go down, the worse it got. There are laws on the books, but those laws clearly aren’t protecting our citizens right now,” state Sen. Matt Brass (R-Newnan) said.
“We have to remember that this is a massive, massive problem,” said state Rep. Viola Davis, D-Stone Mountain.
The Senate agreed on the House substitutes, so it now goes to the governor’s desk. If Gov. Brian Kemp signs it, it would go into effect in 2027.
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