Homeowners Associations (HOAs) have earned themselves a bad reputation over the years, as many people claim that these types of organizations are rife with fraud and frequently guilty of overstepping. In fact, all you have to do is head over to Reddit’s aptly (yet profanely) named subreddit that is all about HOA nightmares to see what we mean.
That being said, there are those who still love the protections that HOAs can offer, as they are frequently credited with keeping property values high by forcing homeowners to stay on top of landscaping and neighborhood maintenance.
Now, the people of Georgia have a new way to keep overzealous HOAs in the state in check thanks to new legislation called the Georgia Property Owners’ Bill of Rights Act, according to News4Jax.
If it’s successful, this may even pave the way for more states to create similar laws to help protect homeowners living in HOAs.
Georgia’s Governor Has Signed a New Bill Into Law
Gov. Brian Kemp has officially signed the Georgia Property Owners’ Bill of Rights Act into law. While News4Jax reports that the protections from Senate Bill 406 won’t take effect until Jan. 1, 2027, the legislation will signal a major overhaul to the way that HOAs do business.
Some of the changes include requiring HOAs to register with the Secretary of State, limiting when HOAs are allowed to foreclose, establishing an official complaint process, and spelling out detailed rights for homeowners. HOAs that fail to meet these standards will face a variety of punishments. For example, associations that fail to register with the Secretary of State will be barred from taking legal or financial actions against homeowners.
HOAs Exist Across the Country
According to a Realtor.com® Homeowners Associations report, 33.4 percent of single-family homes across the country are part of an HOA. That number increases to 84.8 percent when looking at townhomes and condos. While Senate Bill 406 is only rolling out in Georgia at the moment, its successes (or failures) could cause other states to take similar actions to protect residents.
That could mean the world to homeowners like the one Representative Saira Draper talked about while addressing Georgia’s House of Representatives in March. A clip of her speech appeared on TikTok, where she shared the story of a man who was sued by his HOA after a mix-up with the way the association auto deducted his monthly dues from his bank account, resulting in thousands of dollars in fines (and a hefty bill from the lawyer he had to hire to straighten everything out).
Once Senate Bill 406 takes effect, homeowners will have more protection against issues like this, hopefully giving those who live in HOA communities a little more peace of mind.