Officials with the Georgia Secretary of State’s Office held two rounds of public hearings this week as it irons out the wrinkles of a new law that could give homeowners more power to take on their HOAs over excessive fines or fees.
On Wednesday and Thursday, a six-person panel of state officials and lawmakers listened to hours of public comment from homeowners who asked for more transparency in how their HOAs are run.
The Secretary of State’s office is considering how to oversee and enforce the new rules, most of which will start next year.
Nicky Buggs, a homeowner at the Landmark condo tower in downtown Atlanta, said that for years residents at the building have fought excessive fees and charges. Some longtime residents risk losing their homes to foreclosure, she said.
“I lose my home. I will be homeless. That is the truth of it. And it’s sad because the laws are painfully slow,” Buggs told the panel at the Coverdell Legislative Office Building on Thursday.
After the 2026 legislative session, Gov. Brian Kemp signed into law Senate Bill 406, or the Georgia Property Owners’ Bill of Rights.
The bill passed after complaints that some associations were abusing their power with unfair fees and fines, and retaliating against homeowners.
New rules
Officials heard about tensions at community associations, including alleged conflicts of interest, shady accounting practices, and exorbitant charges.
The new regulations would give homeowners greater protection. HOAs that register with the Secretary of State must keep it active if they want to collect fines or fees or initiate foreclosures.
SB 406 creates an administrative complaint and hearing process for disputes. That could allow parties to avoid going to court first.
The bill includes provisions to give owners the right to demand transparency and accountability from their associations.
If a homeowner disputes charges, the law provides for a temporary pause until the state issues a decision.
‘Bogus liens’
That doesn’t mean there aren’t issues with the law, according to community association attorney Jamie Platt Lyons, a partner at the law firm of Lazega & Johanson.
On Thursday, she suggested some regulations are duplicated in existing state laws.
She said confusion could arise if boards face “two separate standards” on care, loyalty and conflict-of-interest disclosures.
Democratic Sen. Donzella James challenged Lyons. She said lawmakers needed to address “bogus liens” and concerns about “predatory” HOAs that could pursue foreclosure when someone owed $2,000.
Lyons did not disagree. She supported the creation of a forum with the Secretary of State’s Office that allows owners and associations to work out disputes to avoid costly court battles.
“There are absolutely associations that are definitely predatory,” Lyons added. “Having this new law is not a bad idea … My comment was that the requirements that the association board members and officers are being required to comply with already exist.”
This story is available through a news partnership with WABE, Atlanta’s National Public Radio affiliate.
