New Georgia HOA Legislation Could Cost Homeowners Thousands

Republished with permission from NowackHoward, LLC. The original article can be found here. A PDF version of the article can be downloaded at this link.

Thousands of Georgia homeowners could soon see higher dues, reduced services, and lower property values if legislation like SB 107, SB 108, and HB 512 becomes law. While aimed at addressing complaints from noncompliant residents, these bills would shift costs and administrative burdens onto responsible, dues-paying homeowners, potentially costing them thousands each year.

Over 2.5 million Georgians, more than one-third of the state’s population, live in roughly 881,000 homes across 11,300 community associations, including homeowner and condominium associations. Research from the Foundation for Community Association Research shows that homes in these communities are generally worth at least 4% more than comparable homes outside HOAs. The proposed legislation, however, could undermine the financial stability of associations and the homeowners they serve. 

Financial Impact on Homeowners 

Current Georgia law requires all homeowners in an association to pay dues to fund shared expenses such as landscaping, amenities, mechanical systems, insurance, stormwater management, and reserves for future repairs. Associations cannot withhold services from non-paying members, and boards are legally obligated to maintain the community regardless of individual delinquencies. 

The proposed bills would impose costly new requirements: 

• Waiving assessments for some homeowners, shifting costs onto others

• Refunding certain assessments

• Subordinating association liens to unpaid medical bills 

• Mandating association-funded alternative dispute resolution for any dispute 

• Limiting the ability to enforce fines, late fees, or liens 

• Creating a new Community Association Ombudsman’s Office with broad oversight 

• Adding annual $25 per unit fees to fund the Ombudsman and increased filing obligations with the Secretary of State.

These provisions could add thousands of dollars in costs per association and significantly burden volunteer boards who already manage their communities without compensation. 

Protecting Property Values and Community Stability 

Homeowner and condominium associations are nonprofit corporations run by volunteer boards elected by homeowners. These boards operate like small businesses: adopting budgets, setting assessments, managing finances, and ensuring compliance with state and local laws. If a board fails in its duties, its members can even face personal liability. 

Yet legislative hearings reveal a lack of understanding about how these community associations function. Overly prescriptive rules, new bureaucratic offices, and expanded state oversight could weaken governance, reduce property values, and disrupt long-term planning. 

Research confirms the importance of community associations in maintaining home values. A recent survey shows that 74% of association residents oppose additional regulation that would penalize responsible homeowners. Without careful policymaking, these bills risk undermining the very benefits they aim to protect. 

The Reality of Foreclosures 

Foreclosure on unpaid assessments is exceedingly rare. An 11Alive News investigation in DeKalb County found that over the past two years, no HOA lawsuit ended in foreclosure—even though average debts in these cases exceeded $7,000. These funds are critical to maintaining community infrastructure and services, and shifting costs to responsible homeowners could jeopardize maintenance and safety. 

A Call for Balanced Legislation 

Georgia’s community associations protect property values, fund essential services, and provide strong governance for millions of residents. Overreaching government intervention and additional fees would place an unfair burden on responsible homeowners while doing little to address noncompliance. 

Legislators should prioritize policies that protect all homeowners, preserve property values, and support the long-term financial stability of our communities. Fair, effective HOA legislation can strengthen Georgia neighborhoods and condominiums without penalizing the very residents who uphold their rules and invest in their communities. 

About the author:
Julie M. Howard is co-founder of the law firm NowackHoward, LLC, based in Atlanta, and is a past president of both the international and Georgia Chapter of CAI | Community Associations Institute and the College of Community Association Lawyers.