House passes bill to register HOAs and create Secretary of State hearing process

The Georgia House passed Senate Bill 406 after floor debate and extended member questions about how the registration and complaint process will work for small or inactive homeowner associations.

Representative Ray Martinez, presenting the bill, described it as the "Georgia Property Owners Bill of Rights," saying "this bill basically creates accountability and transparency." The measure requires any association that seeks to collect fines or fees, record liens, or initiate foreclosure proceedings to register annually with the Secretary of State and to file governing documents and financial statements; registration would expire each December 31 and cost $100 per year.

Members asked practical questions about associations that lack a board or quorum and about whether registration would bar foreclosure. Martinez said registration is not mandatory unless the association seeks to collect fines or fees, and that, under the bill, foreclosure would be limited to certain assessed amounts (the presenter noted a $4,000 threshold in discussion). He told members the Secretary of State would have authority to deny, suspend, or reverse registrations and to hear complaints through a neutral hearing officer.

Supporters on the floor said the bill would reduce litigation and provide an administrative path for neighbors who otherwise would have to sue to resolve disputes. Representative Reeves described the change as a transparency and due-process measure that would allow citizens to resolve issues without litigation. Representative Draper and Chairman Gunther also spoke in favor, highlighting the bill's bipartisan revisions and examples of constituents harmed by unclear HOA practices.

The rules committee substitute was adopted on the floor. The clerk recorded the passage with yeas 155 and nays 10.

Next steps: the bill assigns administrative duties to the Secretary of State to create registration forms, hearing processes, and enforcement procedures; those agencies will need to issue guidance and implement rules before the statute's effective date (the presenter stated an effective date of 01/01/2027).