If you serve on an HOA board in Georgia, July 1, 2026 is a date to put on your calendar.

That is when the first provisions of the "Georgia Property Owners' Bill of Rights Act" (SB 406) take effect, and they deal directly with how associations charge and recover attorney's fees from homeowners.

This article explains what attorney's fees are in an HOA context, how they have historically worked in Georgia, and what specifically changes on July 1st so your board can prepare.

Disclaimer: This article is educational and an interpretation of this law. It should not be considered legal advice. Every association's documents and situation are different. Please consult your association attorney for guidance specific to your community.

What Are Attorney's Fees in an HOA Context?

Attorney's fees in an HOA setting are costs incurred when the association uses legal counsel to address homeowner account issues.

Common situations include:

  • Collection of unpaid assessments
  • Covenant enforcement actions
  • Lien preparation and filing
  • Demand letters
  • Foreclosure proceedings

In many Georgia associations, governing documents have historically allowed the association to pass these legal costs on to the homeowner whose account or violation triggered the action. This means the homeowner could be responsible for the association's attorney costs in addition to any unpaid balance.

How Attorney's Fees Have Historically Worked for Georgia HOAs

Before SB 406, the rules around attorney's fees in Georgia HOAs were largely governed by:

  • The association's own declaration of covenants (CC&Rs)
  • The Georgia Property Owners' Association Act (POAA) for communities that opted in
  • Georgia common law for communities outside the POAA

In practice, this meant:

  • Associations could often charge attorney's fees based on the language in their governing documents
  • Fee amounts and notice practices varied widely between communities
  • Homeowners sometimes received legal charges without detailed explanation or advance notice
  • Disputes over the reasonableness of fees were difficult to resolve without going to court

These are some of the reasons SB 406 specifically addressed attorney's fees as one of its first provisions to take effect.

What Changes on July 1, 2026

SB 406 became law on in May 2026. While most of the law takes effect January 1, 2027, the attorney fee provisions go live on July 1, 2026 for actions filed on or after that date.

The attorney fee provisions, as detailed, are not retroactive. They apply to new legal actions initiated on or after the effective date.

Here’s what changes:

1. Prior Written Notice is Now Required

Associations cannot recover attorney's fees from a homeowner without first providing written notice that identifies the alleged violations and the fees being claimed.

2. Fees Must be Itemized

The notice must include a detailed itemization of the fees, so the homeowner can see exactly what is being charged and why.

3. A 30-day Cure Period Applies

Associations must provide a 30-day cure period, giving the homeowner an opportunity to address the issue before fees are assessed.

4. Subject to Judicial Review for Reasonableness

If a homeowner disputes the fees, a judge must review them to determine whether they are reasonable. This is a change because it creates a required external check on fee amounts.

Why This Matters for Boards (& How to Prepare)

For boards that have been operating transparently and documenting their collection processes, much of this may already feel familiar.

However, there are important things to check on/consider:

1. Review Your Current Collection Process with Your Attorney

If your association currently authorizes attorney's fees in its governing documents, confirm that the process aligns with the new notice, itemization, and cure period requirements.

2. Confirm Your Attorney's Notice Templates are Updated

The written notice and itemization requirements mean that form letters and demand notices may need to be revised before July 1st.

3. Understand the Payment Application Order (Effective January 1, 2027)

While not part of the July 1st changes, boards should be aware that starting January 1, 2027, registered associations must apply homeowner payments in a specific order: regular assessments first, then special assessments, then specific assessments, then fines and fees. Many existing governing documents specify the opposite order and may need to be updated before the end of the year.

4. Document Everything

Clear and consistent documentation of notices, timelines, and fee breakdowns protects both the association and your homeowners. It also supports the association if fees are ever reviewed by a court for reasonableness.

What This Means for Homeowners

If you are a homeowner in a Georgia HOA, the July 1 changes give you:

  • The right to receive a clear, written notice (sent by certified mail) identifying the fees/fines owed to the association
  • A 30-day window to resolve the issue before fees apply
  • The ability to have fees reviewed by a court for reasonableness if you believe they are excessive

These protections apply to actions filed on or after July 1, 2026.

How Management Teams Help

Anytime there’s a major industry change like this, the first place boards should turn to for guidance is their management partner. While management may not have the answers to everything, a strong partner will be able to support their boards through this by:

  • Coordinating with the association's attorney to review and update collection procedures
  • Ensuring proper notice documentation is in place before any new collection actions
  • Tracking timelines and cure periods accurately
  • Helping boards communicate changes to homeowners clearly and calmly

At All-In-One Community Management, we are applying the above actions and actively working through how best to support our managed associations as these provisions take effect.

FAQ: Attorney's Fees

When do the attorney fee changes take effect?

July 1, 2026, for actions filed on or after that date.

Do these changes apply to all Georgia HOAs?

SB 406 applies broadly to owners' associations in Georgia, including HOAs, POAs, and condominium associations.

Are the changes retroactive?

No. According to the law, the attorney fee provisions apply to new actions filed on or after July 1, 2026.

What should boards do right now?

Review your current collection process and notice templates with your association attorney before July 1st.

Where can I read the full bill?

A copy of the legislation is available through LegiScan.

Closing Thought

The July 1, 2026 attorney fee changes under SB 406 are the first step in a larger shift for Georgia community associations. For boards that value transparency, fairness, and clear communication, these changes are an opportunity to strengthen trust with your homeowners, while ensuring your processes are compliant.

The most important step right now is to talk with your association attorney, review your current procedures, and make sure your team is ready before July 1st.

For a broader summary of SB 406 and all of its provisions, check out our full article: Georgia SB 406: What It Means for Homeowners, Boards, and Your Association.