For the first time in Georgia history, homeowners associations and condominium associations are about to operate inside a real regulatory framework. No more flying blind. No more operating entirely under your own documents with no oversight structure and nowhere for disputes to land except a courthouse.
Georgia SB 406 — officially titled the Georgia Property Owners' Bill of Rights Act — passed the State Senate 51 to 0 and the House 155 to 10 on March 31, 2026. It is now on Governor Brian Kemp's desk awaiting signature. If signed as expected, it takes effect January 1, 2027, with attorney fee provisions going live as early as July 1, 2026.
This is the most significant change to Georgia HOA and condo law in decades. And if you serve on a board — whether you're managing a single-family HOA, a condominium association, or a property owners' association — what you do between now and January 1st matters.
This guide breaks down exactly what SB 406 requires, why it passed, and what your board needs to do to stay on the right side of it.
Key Takeaways
- Georgia SB 406, the Georgia Property Owners' Bill of Rights Act, passed 51-0 in the Senate and 155-10 in the House. It is awaiting the Governor's signature and is expected to take effect January 1, 2027.
- Every HOA, condo association, and property owners' association in Georgia must register annually with the Secretary of State or lose the ability to collect fines, place liens, and initiate foreclosure.
- The foreclosure threshold rises from $2,000 to $4,000 in unpaid assessments. Fines and fees are explicitly excluded from the threshold calculation.
- Assessment payments must be applied to regular dues first — not fines or attorney fees. Many existing governing documents specify the opposite and will need to be amended.
- All financial records must be retained for ten years. Three years of records must be submitted at annual registration.
- A new state complaint board gives homeowners an administrative dispute process. Fines are automatically stayed during an active complaint.
- Attorney fee transparency requirements take effect July 1, 2026 for new legal actions — the first SB 406 deadline boards will face.
- Boards that are organized, documented, and operating transparently have nothing to fear from this law. It codifies what responsible governance already looks like.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Every association's situation is different. Consult a qualified Georgia attorney before making changes to your governing documents or enforcement processes.
Why Georgia Passed This Law
To understand SB 406, you need to understand what existed before it — which was essentially nothing.
Georgia HOAs incorporated as legal entities with the Secretary of State when they were formed. But beyond that one-time filing, there was no ongoing state oversight. No annual registration requirement, no state agency taking complaints, no universal standards governing how associations could fine, lien, or foreclose on homeowners. Each association operated under its own governing documents, and if a homeowner had a problem, their only real option was to hire an attorney and go to court.
An investigative news series called HOA Nightmares, produced by Atlanta News First, spent months documenting what that vacuum actually looked like across the state. The findings were stark.
- 63% — of surveyed Georgia homeowners with HOA disputes owed fines and fees
- $8,000+ — average amount owed by homeowners with active HOA disputes
- ~40% — were in active lawsuits with their HOA, most with liens on their homes
One case involved a 77-year-old retiree in Kennesaw facing foreclosure over unpaid fines for not pressure washing his house and leaving a ladder outside. Under the law as it stood, that was completely legal — because an HOA could initiate foreclosure the moment unpaid amounts exceeded two thousand dollars, and fines counted toward that threshold.
Dozens of homeowners packed the Georgia State Capitol in February 2026 for an HOA Advocacy Day, pleading with lawmakers to act. They did. Senators Matt Brass (R-Newnan) and Donzella James (D-Atlanta) co-sponsored SB 406 in a rare show of bipartisan urgency, and it sailed through both chambers.
"This has been a lot of work, way more than I anticipated, but much needed. At the end of the day we've got a really good bill I'm very proud of." — Sen. Matt Brass, R-Newnan
It is worth being clear about this: SB 406 was not written to punish well-run boards. It was written because some associations operated without guardrails, and the absence of a framework made every board look like the worst ones. The law modernizes how associations operate. It does not eliminate HOA authority — it defines it.
The Six Major Changes SB 406 Makes
1. Mandatory Annual Registration with the Secretary of State
Every HOA, condo association, and property owners' association in Georgia must now register annually with the Georgia Secretary of State. The annual fee is $100. Registration must be renewed each year to maintain full enforcement authority.
This is where the law has real teeth. Associations that do not register — or that formally opt out — lose the ability to:
- Collect fines
- Accelerate assessments
- Place liens on property
- Initiate foreclosure proceedings
There are an estimated 4,000-plus active associations in Georgia. Every one of them is affected. At registration, associations must submit three years of financial records along with their governing documents.
The registration requirement is not bureaucratic paperwork. It is the switch that keeps your enforcement authority on.
2. New Foreclosure Threshold and Notice Requirements
Under the old law, an HOA could begin foreclosure proceedings once unpaid amounts exceeded $2,000 — and fines and fees counted toward that number. That made it relatively easy for a dispute over a minor violation to escalate into a foreclosure threat.
SB 406 raises the standard threshold to $4,000 in unpaid regular assessments only. Fines and fees are specifically excluded from the threshold calculation. There is also a separate trigger: if an owner has gone a full twelve months without paying dues and the amount exceeds $2,000, foreclosure may proceed. Think of it this way — the standard bar is $4,000 in unpaid dues. The twelve-month rule is a secondary trigger for chronic non-payment. Either way, fines no longer count.
Beyond the threshold, SB 406 requires associations to provide a ninety-day written notice before foreclosure can begin. That notice must specifically state that paying within the ninety-day window eliminates the right to foreclose. This is a new due process requirement that the governing documents of most associations do not currently reflect.
3. Assessment Payment Priority
This provision catches boards off guard because many governing documents are written in exactly the opposite way.
SB 406 establishes a mandatory payment waterfall: when a homeowner makes a partial payment, it must be applied to regular assessments first, then special assessments, then specific assessments, and finally to fines, late charges, and attorney fees. Associations cannot refuse partial payments.
If your collection policy or CC&Rs currently apply payments to fines and attorney fees first — which is common — that language is now in direct conflict with state law. This is one of the provisions most likely to require a governing document amendment before January 1st.
4. Ten-Year Record Retention
All financial records must be retained for a minimum of ten years. Homeowners gain an explicit statutory right to inspect those records on request. If your governing documents specify a shorter retention period, that language needs to be updated.
At annual registration, associations submit three years of financials to the Secretary of State. That means your records need to be organized, accurate, and accessible — not sitting in someone's personal email or scattered across board member laptops.
5. A State Complaint Board
For the first time, Georgia homeowners have a place to take a dispute that isn't a courtroom.
SB 406 establishes a five-member State Board for Review of Complaints under the Secretary of State's office. If a homeowner files a complaint, a hearing officer reviews the case. While a complaint is active, collection of fines from the complaining homeowner is automatically stayed. Binding arbitration is also available.
For boards, this is a meaningful shift. Disputes that previously required both parties to hire attorneys and go to court now have an administrative lane. That can actually work in a well-run board's favor — if your documentation is clean and your process was followed correctly, a hearing officer can resolve a dispute without costly litigation. But it also means the days of homeowners having no practical recourse are over.
Your documentation trail — notices issued, cure periods given, payment records, communication logs — is now evidence in a formal process. Treat it that way.
6. Attorney Fee Transparency and Annual Board Elections
Before any attorney fees can be passed to a homeowner in a collection matter, SB 406 requires three things: an itemized statement of the fees, a thirty-day written notice giving the homeowner an opportunity to pay, and a judicial finding that the fees are reasonable before they can be awarded. Blanket attorney fee authority in governing documents — which is standard language in most CC&Rs — conflicts with this requirement.
The attorney fee provisions carry an earlier effective date: July 1, 2026, for any legal actions filed on or after that date. This is the first SB 406 deadline boards will face.
On elections: registered associations must hold annual board elections with formal procedures for contesting results, electronic record-keeping of ballots, and state filing of election outcomes. This is a new administrative requirement for most self-managed communities.
Key Dates Your Board Needs to Know
July 1, 2026 — Attorney fee provisions take effect for new legal actions filed on or after this date
July 1, 2026 — New associations formed on or after this date are immediately subject to SB 406
Jan. 1, 2027 — Full law takes effect for all existing associations
What Your Board Should Do Before January 1, 2027
The window between now and the full effective date is not a grace period — it is a preparation period. Here is a practical sequence for self-managed boards.
- Decide whether to register. If your association depends on the ability to collect fines, place liens, or enforce your governing documents, the answer is almost certainly yes. Registration costs $100 per year and is what keeps your enforcement authority intact.
- Audit your governing documents. Pull your CC&Rs, bylaws, and collection policy and review them against each SB 406 provision. Pay particular attention to payment priority language, your foreclosure threshold references, record retention periods, attorney fee provisions, and notice requirements. Several are likely in conflict with the new law.
- Get your financial records organized. The law requires ten years of retention. Registration requires three years of financials submitted to the state. If those records aren't in order, start now.
- Review your enforcement and notice process. Before any fine can accrue, homeowners must receive written notice citing the specific violated provision along with a cure period. If your current violation process doesn't document that chain, it needs to be rebuilt.
- Review your collection policy specifically for the July 1 attorney fee deadline. If your association has any active collection matters or anticipates filing legal action after July 1, 2026, the new attorney fee requirements apply. Talk to your association's attorney before that date.
- Consult a qualified Georgia attorney. SB 406 is a comprehensive overhaul. The provisions above are the core changes, but the full text contains additional detail. A one-hour conversation with an HOA attorney now is significantly cheaper than a compliance problem later.
How Solume Helps Georgia Boards Stay Compliant
Here is the honest reality of what SB 406 is asking boards to do: demonstrate that you're running a legitimate operation. That means documented processes, accurate records, proper notice chains, and the ability to show your work if a complaint ever lands at the Secretary of State's office.
Most self-managed communities in Georgia are doing good work. The problem is they don't have a system that makes any of it easy to prove — or easy to manage, period.
Solume is built specifically for self-managed HOA and condo communities. Not a property management company. Not a platform designed for communities with a hired manager. A tool designed for boards running their own association, who want to do it right without it consuming every weekend.
Here's what that looks like in practice against SB 406's requirements:
- Annual registration readiness. Solume keeps your financial records organized and accessible. When registration time comes, your three years of financials aren't scattered across email threads — they're in one place, ready to submit.
- Violation and notice documentation. Every violation notice, cure period, and follow-up is logged with timestamps. If a homeowner files a complaint with the Secretary of State, your documentation chain is already built.
- Dues collection with payment priority tracking. Solume's dues collection is built to apply payments correctly — regular assessments first, in compliance with the new payment priority requirements.
- Document storage for governing documents. Your CC&Rs, bylaws, and amendments live in Solume, versioned and accessible. When you update governing documents to reflect SB 406, the new version is the one everyone is working from.
- Communications and record keeping. Board communications, meeting minutes, and homeowner correspondence are stored and searchable. That's not just good practice — under SB 406, it's the documentation standard the state can ask you to demonstrate.
Frequently Asked Questions
Does SB 406 apply to condo associations or just HOAs?
Both. SB 406 applies to property owners' associations, homeowners associations, and condominium associations. If your community governs shared property and collects assessments, you are covered.
What happens if our association doesn't register?
An unregistered association loses the authority to collect fines, accelerate assessments, place liens, and initiate foreclosure proceedings. There is a formal opt-out mechanism, but opting out carries the same consequence. Registration is what keeps your enforcement powers active.
Do fines count toward the new foreclosure threshold?
No. This is one of the most significant changes. The new $4,000 threshold applies only to unpaid regular assessments. Fines, late fees, and attorney fees cannot be used to reach the threshold. The secondary twelve-month trigger also applies only to unpaid dues, not fines.
Our CC&Rs apply payments to attorney fees first. Do we need to change that?
Yes. SB 406 establishes a mandatory payment priority: regular assessments must be satisfied before fines, late charges, or attorney fees. Language in governing documents that specifies a different order is now in conflict with state law and should be amended before January 1, 2027.
When do the attorney fee rules go into effect?
July 1, 2026, for any legal actions filed on or after that date. This is earlier than the full law and is the first SB 406 deadline your board will face. If your association has any active or anticipated collection matters, speak with your attorney before that date.
Can homeowners opt out of the complaint process?
The complaint process is a right available to homeowners, not something they opt into or out of. Once a complaint is filed with the Secretary of State, the hearing officer process is the mechanism. Fines from the complaining homeowner are automatically stayed while the complaint is active.
Does our board need to hold annual elections under SB 406?
Registered associations are required to hold annual board elections with formal procedures, electronic ballot records, and state filing of results. If your association currently holds elections on a different schedule or without documented procedures, this will require a process change.
Is this law already in effect?
As of this writing, SB 406 has passed both chambers of the General Assembly and is on Governor Kemp's desk awaiting signature. The broad expectation is that it will be signed. Once signed, the attorney fee provisions take effect July 1, 2026. The full law takes effect January 1, 2027.
Boards that are organized before the deadline will register cleanly, update their documents once, and move on. Boards that aren't will be scrambling under a compliance deadline while still trying to run their community.
It seems like having a system in place before January 1st — rather than building one under pressure — would make this a lot more manageable. But you'd know your community better than we would.
If Solume sounds like it might be worth a look, there's a link below to book a free 30-minute demo. No pitch deck, no pressure. Just a real conversation about whether it fits what your board is trying to do.
This article is for educational and informational purposes only and does not constitute legal advice. Laws and regulations may change. Consult a qualified Georgia attorney for guidance specific to your association's governing documents, structure, and compliance obligations under SB 406.
