What To Know About Georgia’s Recently Passed HOA Law, Which Seeks To Limit Homeowners Association Powers

Signed into law in May 2026, The Georgia Property Owners’ Bill of Rights Act (SB 406) addresses what many consumers view as a serious concern in Georgia: The seemingly excessive power of HOA’s (Homeowners Associations) in the state.

Statewide, Georgia has approximately 11,200 to 11,300 community associations, which cover around 880,000 homes and over 2.3 million residents. These HOAs average about 78 homes per community and are largely concentrated in developing suburban hubs around Atlanta, Savannah, Augusta, and Columbus.

The new law creates state-level oversight, and adds compliance requirements for boards. It rolls out in two phases:

July 1, 2026 (Attorney Fees Limits): HOAs can no longer charge homeowners for attorney’s fees without first providing a formal written notice and an itemized breakdown of reasonable costs.

January 1, 2027 (Mandatory State Registration): All Georgia HOAs must register annually with the Georgia Secretary of State and pay a $100 fee. They must submit their governing documents and three years of financial records. Unregistered HOAs completely lose the right to issue fines, file property liens, or initiate foreclosures.

Foreclosure Threshold Doubled: The minimum delinquency amount required for an HOA to initiate judicial foreclosure has been increased from $2,000 to $4,000 in unpaid regular assessments.

Strict Payment Allocation: HOAs are legally required to apply homeowner payments to base assessments/dues first. Boards can no longer use outstanding fines or fees to trigger a home foreclosure.

State Complaint Portal: A centralized administrative complaint process is being established via the Secretary of State’s office, allowing homeowners to bypass expensive court routes and have disputes mediated by state-appointed hearing officers.

Core Legal Framework in Georgia

Outside of the new 2026 protections, Georgia’s community associations fall into two primary legal tracks:

• Georgia Property Owners’ Association Act (GPOAA): Enacted in 1994, this is an opt-in statute. Communities that explicitly choose to adopt the GPOAA (often called “POAs”) gain automatic statutory lien powers, perpetual covenant duration, and robust collection mechanisms.
• Common-Law HOAs: Associations that have not opted into the GPOAA operate under common law, traditional contract rules, and the Georgia Nonprofit Corporation Code. Their covenants legally expire after 20 years unless actively renewed.

Hierarchy of Rules

Every neighborhood operates under its own specific rules, which must comply with state and federal laws (such as Fair Housing laws):

Covenants (CC&Rs): Publicly recorded deed restrictions regulating property use, appearance, architecture, landscaping, and leasing limits.

Bylaws: The internal operational blueprint governing how the nonprofit corporation runs, including board elections, meeting notices, quorum requirements, and budget deadlines.

The new law came as a result of years of grassroots efforts and public outcry to reign in HOAs, which have used their authority to levee thousands of dollars in fines against homeowners across the state.

In many cases, Georgians have lost their homes to HOA-imposed foreclosures.