Georgia lawmakers advance HOA reform bills to limit foreclosures, boost transparency, and expand homeowner protections

Legislative proposals target liens, foreclosure thresholds, governance rules, and homeowner remedies

Georgia lawmakers are weighing a new round of proposals aimed at curbing what sponsors describe as predatory practices by homeowners associations (HOAs) and related community associations. The measures, filed in the 2025–2026 legislative session, would reshape how associations enforce debts, conduct elections, and interact with residents—especially in disputes involving fines, liens, and the risk of losing a home.

At the center of the latest push are two House bills introduced on Jan. 27, 2026: House Bill 1036, titled the Property Rights Through the Ballot Act, and House Bill 1035, titled the Georgia Homeownership Protection Act of 2026. Both proposals are designed to reduce the possibility that an owner-occupied home can be forced into sale over association-related charges.

House measures would restrict forced sales and create a dissolution pathway

HB 1036 would establish a binding referendum process allowing homeowners in communities governed by HOAs or property owners’ associations to vote on whether the association continues or dissolves. The bill also proposes prohibiting foreclosure, power of sale, and involuntary transfer of owner-occupied residential property by such associations. In addition, it includes provisions addressing transparency, nonretaliation protections tied to participation in the referendum process, and enforcement mechanisms.

HB 1035 would prohibit foreclosure sales based on liens from condominium and property owners’ associations for unpaid assessments on owner-occupied dwellings and would treat certain association assessments as unsecured debts. The bill also addresses other pathways that can lead to forced sales tied to non-tax charges, including certain government service charges and utilities, while establishing civil remedies and penalties.

Senate proposals focus on thresholds, oversight, dispute resolution, and training

Several Senate bills already in committee address HOA oversight and enforcement practices through narrower changes:

• Senate Bill 361 proposes increasing the current foreclosure threshold from $2,000 to $4,000 and would exclude fines from counting toward that threshold. It also includes a registration requirement for property owners’ associations with the Secretary of State’s office and outlines procedures tied to administrative processes and handling of funds.

• Senate Bill 108 would require associations to offer participation in alternative dispute resolution before effecting a lien for unpaid assessments. It also proposes changing lien priority by making an association lien inferior to liens for unpaid medical bills.

• Senate Bill 393 would amend the Georgia Property Owners Association Act to require training before an association issues fines or threatens foreclosure, with the Secretary of State’s office administering the program.

Why the debate is intensifying

Supporters of the bills argue that current enforcement tools can escalate relatively small disputes into high-stakes outcomes, while opponents of major restrictions have historically warned that weakening collection mechanisms could shift costs to compliant homeowners and complicate maintenance of shared infrastructure.

The proposals reflect a growing legislative focus on balancing association governance with protections for owner-occupied homes when debts and penalties accumulate.

The bills remain subject to committee review, amendments, and floor votes. If enacted, the measures would represent one of the most significant updates in recent years to how community associations in Georgia may collect debts, impose penalties, and administer governance decisions.