If you live in a community association (or serve on a board) in Georgia, you may be hearing about Georgia Senate Bill 406, also called the “Georgia Property Owners’ Bill of Rights Act.”

As of writing, the bill has been passed by Congress, and it’s on its way to the Governor to sign it into law. If signed, the bill sets most changes to take effect January 1, 2027, with one section (attorney-fee notice rules) taking effect July 1, 2026.

If you’re curious, confused, or even worried about what this bill covers and the changes it would bring to homeowners and board members within Georgia owners associations, this is the article for you. We’ll also cover what we as a management team will be doing to support you through these changes, if it's signed into law.

But before we begin, I need to make it clear that this article is educational and not legal advice. If you need guidance on your specific documents and how everything will impact your association, please consult legal counsel, as they’re the experts on this.

A Quick TL;DR

If you want a quick rundown on everything, here’s the gist.

If signed in law, GA SB 406 would:

  • Require associations to register annually with the Georgia Secretary of State if they want to collect fines/fees or file/record liens or initiate foreclosure.
  • Create a formal complaint process handled by a hearing officer, including an automatic stay on collecting disputed fines/fees while a complaint is pending.
  • Add collection guardrails: payments must be applied in a required order, associations can’t refuse payments, and they cannot charge accelerated assessments.
  • Adjust foreclosure timelines and thresholds (including a 60‑day notice and a threshold tied to regular assessments).

What Is GA SB 406?

Senate Bill 406 (or SB 406) applies to owners’ associations in the state of Georgia, defined within the bill as “a nongovernmental association of participating owners of residential property in a delineated geographic area in which recorded covenants apply to such delineated geographic area, comprising a neighborhood, condominium development, common interest community... or group of homeowners or property owners.” That means this will affect HOAs, POAs, and COAs, whether you live in a single-family home, townhome, quad, low-rise condo, or high-rise condo community.

It adds a new chapter (Chapter 17A) to Georgia law regarding associations, defining some key terms (regular assessments/dues, special assessments, specific assessments, and accelerated assessments), and sets up statewide rules around registration, recordkeeping, complaints, and collections.

As a part of the bill, entities that would otherwise be an owners’ association can elect not to register and become a “nonregistered owners’ association.” But that choice comes with restrictions which drastically limit how the association functions (more on that below).

How This Could Impact You as a Homeowner

1. Association Registration Tied to Fines/Fees & Foreclosure

If an association wants to collect fines or fees, or file/record liens or initiate foreclosure, SB 406 ties those powers to being registered with the Secretary of State. If your association chooses to not register, they would be limited in these functions.

2. Clear Right to Certain Records

Owners would have the right to inspect and obtain copies of association records upon written demand. SB 406 specifically defines “accounting records” (for this purpose) as the finalized balance sheet, budget, profit and loss statements, and bank statements for the past three years.

Owners can also request a copy of the association’s certificate of insurance for coverage that may apply to a potential or submitted claim.

3. Formal Complaint Path through the State

If a resident claims they were damaged by an association’s action or inaction, they may file a complaint with the Secretary of State within 180 days of the alleged action/inaction. A hearing officer can investigate and may order a hearing, then issue conclusions.

Filing a complaint creates an automatic stay that prohibits the association from collecting or attempting to collect from the complainant any fines or fees that are the subject of (or related to) the complaint while the matter is pending (with a short extension option).

4. Payments Must be Applied in a Specific Order

SB 406 requires owner payments to be applied in priority order:

  1. Regular assessments/dues
  2. Special assessments
  3. Specific assessments
  4. Other fees and fines

It also states an association cannot refuse to accept payment from an owner in any amount for any assessment.

5. No Accelerated Assessments

SB 406 prohibits owners’ associations from assessing or collecting accelerated assessments (assessments pulled forward and made due earlier than they otherwise would be).

How This Could Impact You as a Board Member

1. Registration Becomes a Yearly Task

Registration requires filing:

  • A copy of the association’s governing documents
  • A registration statement signed by an authorized officer/representative with the association’s name/address/officers and a financial statement dated within the past year.

Registration expires December 31 each year and must be renewed annually, with a $100 fee for initial filing and each renewal. Material updates (name/address/officers/other changes affecting business/control) must be filed within 30 days.

2. “Nonregistered Owners’ Association” Option

An association may submit written notice to opt out of registering and be deemed a nonregistered owners’ association, but then it may not assess or collect fines or fees. And because lien/foreclosure authority is tied to registration, opting out also limits those enforcement tools.

3. Rules on Records Retention and Possible Examination

Associations must retain records relating to governing documents, finances, assessments, fines/fees, liens, and foreclosures for at least ten years, including electronic records. Those records are subject to reasonable examination by the Secretary of State when deemed in the public interest or for protection of the public.

4. Complaint Hearings Can Pause Fine/Fee Collection

Because complaints create an automatic stay on disputed fines/fees, boards should expect increased emphasis on consistency, documentation, and clear communication around enforcement decisions.

5. Foreclosure Rules Change

SB 406 updates the foreclosure notice period from 30 days to 60 days and requires the notice to state that paying the amount prior to the 60th day eliminates the right of foreclosure.

It also changes the foreclosure threshold to the lesser of $4,000 or 12 months of regular assessments in arrears, but not less than $2,000, and it specifies that specific assessments/fines/fees cannot be included in calculating that threshold.

The lien lapse period is extended from four years to six years.

6. Attorney’s Fees Requirement (effective July 1, 2026)

Section 7 of the bill adds requirements before an association may collect or be awarded attorney’s fees (with an emergency exception), including an initial written notice identifying outstanding fines or delinquent fees, 30 days to pay, and an itemized list of attorney’s fees claimed; judges must also review attorney-fee claims for reasonableness and enter an order before fees can be awarded.

This section is set to take effect July 1, 2026 (and applies to actions filed on or after that date), even though most of the Act is set for January 1, 2027.

7. Some Additional Items

SB 406 also includes changes in Title 44 related to how associations can submit to Article 6 (owners’ association provisions) after creation and how certain amendment thresholds may be treated. It also includes a provision allowing courts, under certain conditions, to make dispossessory records unavailable to the public (landlord/tenant context).

How We’ll Support You as Your Management Team

If SB 406 becomes law, our goal will be to stay ahead of deadlines, maintain proper documentation, and support you through all the changes.

Here’s how we’ll help:

  1. Registration & renewal support: We’ll help boards track annual deadlines, renewal requirements, and amendment-trigger events (like officer updates), so nothing gets missed.
  2. Records organization & retention: We’ll reinforce best practices for maintaining accessible records and retaining them for the required timeframe.
  3. Clear collections workflows: We’ll align owner account processes with the bill’s payment application order and the restrictions on refusing payments and accelerated assessments.
  4. Complaint-ready documentation: If a complaint is filed, we’ll help ensure communications, notices, and records are organized and consistent with the process described in the bill (including the automatic stay rules on disputed fines/fees).
  5. Keep your associstion on track: We’ll provide board-friendly explanations and reminders about what changes when (including the July 1, 2026 attorney-fee timeline and the January 1, 2027 overall effective date).

When Would This Go Into Effect?

As of writing, SB 406 has passed the General Assembly and is headed to the Governor’s desk. If signed, the enrolled bill states:

  • Most sections would go into effect January 1, 2027.
  • Section 7 (attorney-fee notice + reasonableness review) becomes effective July 1, 2026, applying to actions filed on or after that date.

FAQ: GA SB 406

Does this mean my HOA has to register no matter what?

‍SB 406 creates an annual registration system and also defines a “nonregistered owners’ association” option. However, registration is tied to whether an association (or its agent) can collect fines/fees and use lien/foreclosure tools. If you’re not sure how to proceed with your specific association, we recommend consulting legal counsel.

As a property owner, what records does the bill give me the right to request?

‍SB 406 specifically describes the right to request accounting records such as the finalized balance sheet, budget, profit/loss statements, and bank statements for the past three years.

What changes first?

‍If signed, most changes are set for January 1, 2027, but the attorney-fee notice/reasonableness section is set for July 1, 2026.

Final Thoughts

HOA law updates can be a lot, but the goal for this bill is clearer rules around registration, collections, record access, and dispute resolution. If SB 406 becomes law, we’ll help your community stay organized, informed, and prepared.

If your association is seeking a new management team to navigate these transitions, please let us know. We’d love the opportunity to discuss your association's needs and explore how our services can address them.