Georgia SB 406: First-Ever HOA Oversight Law - What Buyers Need to Know

Georgia SB 406 brings condo and HOA associations under state registration from January 1, 2027. Its foreclosure changes reach only HOAs under the Property Owners' Association Act, not condominiums.

Tricia Quigley told WSB-TV in 2024 that her HOA sold her Cherokee County home of 18 years on the courthouse steps for $3.25.

She had missed two biannual dues payments totaling $800, and she spent more than $10,000 trying to fix it as late fees and attorney fees kept growing.

Until SB 406, Georgia had no state agency watching HOAs. Nobody registered them, and there was nowhere to take a complaint except court. The foreclosure rules that did exist set a $2,000 minimum, but late fees and attorney fees counted toward it (O.C.G.A. 44-3-109), so a small dues balance could grow past the line.

On March 31, 2026, the Georgia House passed SB 406 by a vote of 155-10, and the Senate, which had passed the bill 53-0 on March 4, approved the House version 51-0 the same day (Georgia General Assembly). Known as the Georgia Property Owners' Bill of Rights Act, it gives Georgia its first state agency oversight of owners' associations. Governor Kemp signed it on May 12, 2026, and it is now 2026 Georgia Laws Act 715 (Freeman Mathis & Gary; bill page).

What SB 406 Requires

Condos and HOAs register with the state from 2027. Only Property Owners' Association Act HOAs get the new foreclosure limits.

Here are the provisions that matter most for buyers, and which associations each one reaches. Most take effect January 1, 2027.

State registration (condos and HOAs). Under the enacted Act, owners' associations, including condominiums and cooperatives (the Act covers any "common interest community", defined in O.C.G.A. 44-16-2 to include both), register with the Georgia Secretary of State each year and pay $100. Registration requires submitting governing documents plus a financial statement no more than a year old. An association that isn't registered cannot collect fines or fees, record liens, or start foreclosures. An association can instead file a notice that it won't register, and then it cannot charge fines, fees or accelerated dues (future dues billed early), and the owner rights and payment rules below no longer apply to it. The text doesn't clearly say whether it can still file a lien or foreclose for unpaid regular dues. The Secretary of State can deny, suspend, or revoke registrations.

Foreclosure protections (Property Owners' Association Act HOAs only). For these HOAs, the minimum unpaid balance before foreclosure becomes the lesser of $4,000 or 12 months of regular assessments, and never below $2,000, so $4,000 is the most the threshold can be. Fines, late fees and other charges aimed at one owner no longer count toward it. The association must give 60 days' notice before filing to foreclose, up from 30 days, the notice has to say that paying before the 60th day ends the right to foreclose, and the lien now lapses after six years instead of four (HunterMaclean; enacted Act). These changes do not reach condominiums. The Property Owners' Association Act excludes condos (O.C.G.A. 44-3-235(b)), and the Act does not amend the Condominium Act's lien section (O.C.G.A. 44-3-109), so a condo association still needs $2,000 in unpaid dues, with fees counting, and 30 days' notice. If Tricia Quigley's HOA was under the Property Owners' Association Act, the new rule would stop late fees and other fees from counting toward the $2,000 minimum.

Records and payments (condos and HOAs). Associations must keep records of assessments, fines, fees, liens and foreclosures for 10 years. Payments from homeowners must go toward regular dues first, then special assessments, then specific assessments (charges aimed at one owner, such as damage they caused or a violation fine), and only then other fees and fines. An association also cannot refuse a partial payment or accelerate future dues (enacted Act).

Complaint process (condos and HOAs). Residents can file a complaint with the Secretary of State within 180 days. A state hearing officer handles it first, and either side can still go to court. Collection of fines and fees tied to the complaint is paused while it is heard (Freeman Mathis & Gary; enacted Act).

Attorney fee restrictions (Property Owners' Association Act HOAs only). For collection cases filed on or after July 1, 2026, ahead of the rest of the bill, the association must send certified written notice of what is owed and give the owner 30 days to pay before it can collect or be awarded attorney fees, except in emergencies involving public safety or preserving property. Itemized fee lists are required, and when a judge decides the case without a jury, the judge must rule on whether the fees are reasonable before awarding them (Nowack Howard; enacted Act).

Why It Matters for Buyers

From 2027, registration, records and payment rules reach condos and HOAs. The foreclosure limits reach only Property Owners' Association Act HOAs.

Until this law, no state agency registered Georgia's owners' associations or took complaints about them.

Starting January 1, 2027, an association that hasn't registered with the Secretary of State cannot collect fines or fees, record liens, or start foreclosures. As of September 29, 2026, the state's registration lookup is still under construction and registration opens on or after January 1, so ask the association directly whether it has registered or filed a notice that it won't. A registered association has filed a financial statement less than a year old, which gives you a baseline to ask for.

The homeowner cases that pushed lawmakers show why the split matters. In WSB-TV's 2024 reporting, Juliet Graham said the final bill on her downtown Atlanta condo reached $250,000. Karyn Gibbons mailed her dues checks monthly, but her association took months to cash them, and she ultimately paid $34,000 in fines, interest, and attorney fees to get out of her Gwinnett County condo. James McAdoo owed $36,000 and counting, mostly over weeds, and had $600 taken from his paycheck every two weeks until he started the bankruptcy process. Graham and Gibbons were condo owners, so SB 406's foreclosure and attorney fee changes would not reach their associations, though the new payment order, partial-payment rule and complaint process would.

For condo buyers, the useful new tools are the records right, the payment rules and the complaint process, as long as the association registers rather than filing notice that it won't. In a Property Owners' Association Act HOA, the foreclosure changes add to those.

What Buyers Should Do Now

Ask which law the association is under, request three years of financials now, and check registration once the state opens it.

Most of the law doesn't take effect until January 1, 2027. If you're closing on a Georgia property before then, most of the old rules still apply, although the attorney fee notice has covered Property Owners' Association Act collection cases filed since July 1, 2026. That makes reviewing HOA documents before closing even more important right now.

Here's what to check:

• Which law the association is under. Ask whether it is organized under the Condominium Act, the Property Owners' Association Act, or neither. That decides whether the new foreclosure rules reach you.
• CC&Rs and bylaws. Look at the fine structure, foreclosure provisions, and payment hierarchies. SB 406 reforms all of these areas. If the current documents have aggressive provisions, check whether the HOA is preparing to update them for compliance. A free CC&R analysis tool can help you pull out the key sections.
• Financial records. Request at least three years of financials. Once the Act takes effect, owners have the right to inspect the last three years of the association's accounting records. If they can't produce them now, that's a red flag.
• Meeting minutes. Board meeting minutes will show whether the HOA has discussed SB 406 compliance. If there's no mention of registration planning or document preparation, that tells you something.
• Registration status (after Jan 1, 2027). Once the law takes effect, check whether the HOA is registered with the Secretary of State or filed a notice that it won't. One that isn't registered cannot collect fines or fees, record liens, or start foreclosures, and one that opted out cannot charge fines, fees or accelerated dues.

Will Other States Follow?

Florida already regulates condos closely after Surfside. Georgia's near-unanimous votes show broad support for state HOA oversight.

Georgia isn't the first state to regulate HOAs, but the scope of SB 406 is notable. The votes (53-0 and then 51-0 in the Senate, 155-10 in the House) show bipartisan agreement that HOA oversight was overdue.

Florida passed SB 4-D in 2022, requiring structural inspections and reserve funding for condominiums after the Surfside collapse.

Buyers in any state should be reviewing HOA documents carefully regardless of whether their state has passed oversight legislation yet.