Georgia Just Passed Its First Statewide HOA Law: Here’s What SB 406 Does

After years of failed attempts, Georgia Gov. Brian Kemp signed Senate Bill 406 — the "Georgia Property Owners’ Bill of Rights Act" — into law on May 12, 2026. The legislation is the most comprehensive HOA oversight measure in Georgia history. Sponsored by Sen. Matt Brass (R-Newnan) and credited in part to Atlanta News First Investigates’ multi-year "HOA Nightmares" investigative series, the new law overhauls how Georgia HOAs collect dues, levy fines, and — most importantly — foreclose on homeowners.

When the Law Takes Effect

SB 406 phases in over two stages. Starting July 1, 2026, HOAs cannot charge homeowners attorneys’ fees without prior written notice that itemizes the alleged violations and lists the reasonable fees claimed. The full registration framework activates January 1, 2027, giving the Secretary of State’s office time to set up the staff and systems required to administer it. Note: the law is not retroactive — homeowners already in an active lawsuit with their HOA are not covered by the new protections.

Foreclosure Threshold Doubles to $4,000

Previously, a Georgia HOA could begin foreclosure proceedings over relatively small balances. Under SB 406, the foreclosure threshold is now the lesser of $4,000 or 12 months of regular assessments — and never less than $2,000. Critically, fines and fees are excluded from the threshold calculation. That means an HOA cannot foreclose over an accumulated stack of architectural violation fines alone; the underlying unpaid dues must reach the dollar threshold.

A 90-Day Pre-Foreclosure Notice Period

Before initiating foreclosure, an HOA must now give the homeowner at least 90 days’ written notice. The notice must state clearly that paying the balance within that window eliminates the right to foreclose. SB 406 also provides a limited stay of foreclosure while certain appeals are pending, giving homeowners a meaningful chance to cure or negotiate.

Mandatory Registration with the Secretary of State

Starting in 2027, every Georgia HOA that intends to issue fines or fees must register with the Secretary of State. Associations that fail to register cannot collect fines or fees, record liens, or initiate foreclosures. They must also keep records for 10 years and provide three years’ worth to the state along with their governing documents. The Secretary of State gains the power to deny, suspend, or revoke registrations, and to investigate or hold hearings on association misconduct.

A New Statewide Complaint Process

Homeowners can now file formal complaints with the Secretary of State. Disputes are handled through a hearing officer process, with the possibility of court review. This is a major shift — previously, Georgia homeowners had no state-level body to escalate HOA disputes to, leaving litigation as the only option. The new complaint process is designed to be faster, cheaper, and more accessible.

Standardized Owner Rights and Payment Application Rules

SB 406 codifies a list of owner rights: access to records and insurance information, the ability to attend meetings, formal notice requirements, and due-process expectations. It also sets a strict payment-application order: a homeowner’s payment must be applied first to regular dues, then special assessments, then specific assessments, then other fees and fines. HOAs are now expressly barred from refusing partial payments — a long-running complaint where associations would reject a homeowner’s catch-up payment and let the balance grow.

New Limits on Attorney’s Fees in Collections Cases

One of the most aggressive HOA tactics has been racking up attorney’s fees on small violations until the legal costs dwarf the underlying dispute. SB 406 now requires HOAs to give specific written notice, allow a 30-day chance to pay, and provide an itemized fee list. A judge must make an affirmative reasonableness finding before any fees can be awarded.

What Georgia Homeowners Should Do Now

Even though the registration framework doesn’t fully activate until 2027, homeowners should: request a written copy of their HOA’s current collections and fines policy; ask their board whether it intends to register early; document any current dispute in writing; and — if facing collections — demand the itemized notice that becomes legally required July 1, 2026.

Bottom line: Georgia has gone from one of the most lightly regulated HOA states to one with meaningful structural protections. The combination of higher foreclosure thresholds, a 90-day cure window, mandatory state registration, and a real complaint process represents a fundamental rebalancing between HOA boards and the homeowners they serve.

Source: Atlanta News First reporting on SB 406 and Gov. Brian Kemp’s signing, May 12, 2026.