Among the more popular bills to pass out of the Georgia General Assembly last week was a measure that would make it more difficult for homeowners' associations to foreclose on members' homes over disputes about money.
Sen. Matt Brass, R-Newnan, told fellow lawmakers during hearings on the bill that he had heard numerous anecdotes about associations that had abused their authority to levy fines, piling up bills that had led to liens on homes and then to foreclosure.
"You might have a rogue board member or a bad management company that wants a neighbor out, or they want to try to get possession of that property," he said at a hearing last month. "And they start fining and beating people."
Senate Bill 406 passed the Senate unanimously and the state House by an overwhelming bipartisan margin. If Gov. Brian Kemp allows it to become law, it will put guardrails around the associations' authority to fine residents and place liens against their properties.
It would require associations to register annually with the Georgia Secretary of State if they plan to collect fines and fees. It would limit the types of debt that associations could use to place a lien on a property. It would double the current $2,000 debt threshold for filing a lien, provided owners are not in arrears for at least a year. It would require associations to upload certain records to the state and open their financial books to members. And it would establish a hearing process for disputes to be overseen by the Secretary of State.
At a prior hearing in February, a representative for the associations argued that there was no need for SB 406. Julie Howard, a lawyer who said she was a volunteer for the Community Associations Institute, said there are more than 11,300 associations for condominiums and homes in Georgia, representing more than 2.5 million people — about a quarter of the state.
She said residents voluntarily chose to live under those associations and that Brass was hearing from only a relatively small number of residents with complaints.