Georgia bill would bar foreclosures over HOA or utility fees on owner‑occupied homes

Representative Sandra Scott introduced House Bill 1035 on the House floor and to the Ways and Means subcommittee, saying the measure would protect owner‑occupied homes from being lost over unpaid non‑tax service charges such as homeowners association assessments, condo fees and water or stormwater bills. "If it is not a tax, and it is not a mortgage, it should not cost a family their home," Scott said, arguing foreclosure is an extreme remedy that should be reserved for taxes and secured debt.

Scott told the committee HB 1035 would not wipe away obligations or prevent associations and utilities from collecting unpaid debts. Instead, the bill would require those non‑tax service charges to be pursued through civil judgment rather than sale or foreclosure of a primary residence. The measure expressly excludes investment properties and preserves mortgage and tax collection powers, she said.

Dozens of witnesses told the committee they support the bill. Linda Pritchett, a South Fulton councilwoman, said abusive collection tactics by some HOAs had caused blight and displacement in her city. Patricia Wise, a 17‑year homeowner and U.S. Army veteran, described ongoing litigation and said she could lose her home if aggressive homeowner‑association practices continue: "If it goes awry, I will lose my home and I will be homeless," she said.

Housing advocates pressed for clarifications and narrow carve‑outs for condominium governance structures. Carolyn Simmons, a condo resident, asked lawmakers to add a condominium exception or a specific definition of "assessments," arguing that shared ownership can make collecting unpaid assessments different from single‑family situations.

Committee members queried whether liens short of foreclosure would remain available and noted the bill contains guardrails — including caps on attorney fees and interest — intended to prevent excessive assessments. The chair and members thanked witnesses and noted the item was at a first hearing; the committee did not vote on HB 1035 and will revisit the measure in a subsequent meeting.

Supporters framed the bill as a protection for seniors, veterans and families who risk losing generational wealth over relatively small fines, while opponents (in general testimony on similar topics in the session) argued courts and existing lien structures must be preserved for fairness. The committee asked the author to work with stakeholders on condominium language and implementation details ahead of further hearings.

The subcommittee adjourned without a vote on HB 1035; the author will be notified of the next hearing date.