Senate subcommittee recommends SB 406 to create HOA registration, administrative review and raise foreclosure threshold

A Georgia Senate subcommittee voted to recommend Senate Bill 406, a wide-ranging measure to increase oversight of homeowners and property-owner associations, to the full committee after sponsor remarks and extensive testimony.

Senator Brass, sponsor of SB 406, described the bill as a four-part policy: registration/visibility for associations, an administrative hearing board at the Secretary of State to provide a lower-cost alternative to immediate court litigation, a homeowner "bill of rights" clarifying basic display and voting rights, and raising the monetary threshold for foreclosure from $2,000 to $4,000 while specifying that fines and fees cannot count toward that cap. "One of the big issues we had is foreclosures," Brass said, arguing $2,000 can threaten generational wealth and noting the bill would exclude fines and fees from the foreclosable amount.

Supporters included the Georgia Association of Realtors, which said the measure adds "necessary guardrails and ensures accountability" for homeowners who face aggressive association practices. Betsy Bradfield, the organization's advocacy director, said the bill would help homeowners protect their investment and make bylaws and governing documents more accessible through Secretary of State filing.

Industry and stakeholder testimony was mixed on some details. Developers and builders generally supported the accountability goals but urged carve-outs for small associations and flexibility for developer-to-homeowner governance transitions. Several HOA leaders warned that raising the foreclosure threshold could make collection slower and more administratively complex for small associations that rely on dues to maintain services.

Sponsor Brass told the subcommittee he was willing to adjust details—he said he is "not married" to the $4,000 figure—but intends to preserve the provision excluding fines and fees from the foreclosure dollar calculation and to keep the administrative-hearing pathway. The subcommittee voted to recommend the bill to the full committee; amendments will be considered at that level.

Next steps: SB 406 will be carried to the full judiciary committee for further drafting and consideration of carve-outs and technical fixes.