House passes 'Property Owners Bill of Rights,' creates state registration and complaint process for HOAs

The Georgia House on the morning calendar adopted Senate Bill 406, creating what supporters called a "Georgia Property Owners Bill of Rights" that requires homeowners associations (HOAs) that collect fines, fees or pursue liens to register with the Secretary of State and file governing documents and financial information.

Representative Ray Martinez, who presented the bill, told members the measure "basically creates accountability and transparency" by "creat[ing] an administrative process for homeowners to file their complaints to be heard by a neutral hearing officer by the Secretary of State's office." Martinez said the registration would be optional for associations that do not seek to collect fines or fees but mandatory if an association seeks to record liens or foreclose.

The bill requires associations that register to submit governing documents, names and addresses of officers, and financial statements; registration renews annually and the bill sets a $100 annual filing fee. Martinez said associations must maintain records "for not less than 10 years relating to any assessments, fine, fees, liens, and foreclosures." He also said provisions limit foreclosure authority to assessments above a stated threshold: "Those $4,000 have to be only assessments, not fees or any, liens or any attorney fees are included in the $4,000," he told members.

Several members pressed the sponsor for operational details. Representative Park Cannon asked how the registration "mimics other types of regulated entities" and whether the law would strip associations of authority to collect fees if they do not register; Martinez replied that associations that do not wish to collect fines or fees would not be required to register, and that registration is a prerequisite only for collection actions. Representative Carter and others questioned how small associations without functioning boards could "opt in" to the process; Martinez said an HOA would submit required paperwork and the Secretary of State would have authority to grant, deny or suspend registration.

Supporters said the measure provides a lower-cost, administrative path for neighbors with disputes, reducing litigation. Representative Reeves described the bill as a transparency and due-process measure that "avoids a citizen having to sue their HOA" by giving a hearing-officer process at the Secretary of State's office.

The rules committee substitute was adopted by the House and the bill passed by recorded vote; the transcript records the final tally as yeas 155 and nays 10, and the bill was reported passed.

The bill sets an effective date of Jan. 1, 2027, and establishes the Secretary of State's role in registration oversight, including authority to deny or suspend registrations. The House made clear the measure's intent is to increase transparency and provide an administrative remedy short of litigation for homeowners' complaints.

The House recessed for lunch after completing further business; the bill now goes to the next procedural step as determined by the legislative process.