ATLANTA, Ga. (Atlanta News First) – Georgia homeowners in HOA neighborhoods can no longer be charged attorney’s fees without advance notice and court approval, under a new state oversight law now partially in effect.
Senate Bill 406, known as the Georgia Property Owners’ Bill of Rights Act, was credited in part to an Atlanta News First Investigates series HOA Nightmares for exposing the issues plaguing neighborhoods across Georgia.
ANF heard from dozens of homeowners whose HOA boards and lawyers claimed they owed tens of thousands of dollars — often stemming from legal costs tied to fines as minor as $50 for leaving a trash bin out for more than eight hours.
What is in effect now
The attorney’s fees provisions of the law took effect July 1, 2026, and apply to all actions filed on or after that date. Before an HOA can collect or be awarded attorney’s fees, it must:
- Send written notice by certified mail to the lot owner identifying any outstanding fines or delinquent fees.
- Give the homeowner 30 days from receipt of that notice to pay the outstanding fines or fees before attorney’s fees can be pursued.
- Provide an itemized list of any attorney’s fees being claimed.
In bench trials involving sums assessed against a lot owner, a judge must review attorney’s fees claims for reasonableness and enter an order stating whether the fees were reasonable before they can be awarded.
What takes effect in January 2027
The remainder of the law takes effect January 1, 2027. Under that phase:
- HOA boards must register with the Secretary of State’s Office in order to collect fines or fees, issue liens, or initiate foreclosure proceedings.
- Homeowners will be able to file complaints with the Secretary of State’s Office. Filing a complaint automatically stays — or pauses — the HOA’s ability to collect any fines or fees related to the complaint while the matter is under review.
- The foreclosure threshold for unpaid dues increases to the lesser of $4,000 or 12 months of regular assessments in arrears, but no less than $2,000. Fines and fees cannot be counted toward that threshold.
- Homeowners must be given 60 days after receiving foreclosure notice to pay outstanding sums before foreclosure can proceed.
- HOA payments from owners must be applied in a set order of priority: regular dues first, then special assessments, then specific assessments, and finally other fees and fines.
- HOAs cannot refuse to accept a payment from an owner in any amount, and cannot assess accelerated assessments against owners.
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