Georgia HOA Oversight Bill SB 406: What Homeowners Need to Know

Georgia is on the verge of passing one of the most comprehensive HOA reform bills in the country. Senate Bill 406 — officially titled the Georgia Property Owners' Bill of Rights Act — unanimously passed the Georgia Senate 53-0 on March 4, 2026, and is now moving through the House with a deadline of April 2 to pass before the legislative session ends.

If signed into law, SB 406 would create the first state oversight board for HOAs in Georgia, require all associations to register with the Secretary of State, raise the foreclosure threshold, and establish explicit homeowner rights that do not currently exist in Georgia law.

For the estimated 4 million Georgia residents living in HOA communities, this bill could fundamentally change the way their associations operate — and significantly strengthen their ability to fight unfair fines, fees, and foreclosures.

The most transformative provision of SB 406 is the registration requirement. For the first time, all Georgia HOAs would be required to register annually with the Secretary of State's office and pay a $100 fee.

What Registration Means

• HOAs must submit basic financial information and contact details annually
• Registration creates a public database of every HOA operating in Georgia
• The Secretary of State can deny, suspend, or revoke registration for violations

The Enforcement Hammer

Here is the critical part: an HOA that fails to register loses its ability to collect dues, levy fines, place liens, or pursue foreclosures. This is an extraordinary enforcement mechanism. An unregistered HOA is essentially toothless — it cannot take any financial action against homeowners.

HOAs can opt out of registration by providing written notice to the Secretary of State, but opting out carries the same consequence: no fines, no fees, no liens, no foreclosures.

SB 406 creates a five-person state review board funded by HOA registration fees. This board represents something Georgia homeowners have never had: a formal government body that can investigate HOA complaints without requiring expensive litigation.

Board Powers

• Investigate homeowner complaints: If your HOA is overstepping its authority, retaliating against you, or failing to follow its own rules, you can file a complaint with the state board instead of hiring a lawyer
• Formal dispute resolution: The board provides a structured avenue to challenge HOA decisions outside of court
• Registration enforcement: The board can recommend that the Secretary of State suspend or revoke an HOA's registration for violations

Currently, if a Georgia homeowner has a dispute with their HOA, the only real options are negotiation, mediation, or a lawsuit. The oversight board creates a middle ground that is more accessible and less expensive than going to court.

One of the most alarming powers HOAs have in Georgia is the ability to foreclose on your home for unpaid dues and fines. Under current law, an HOA can begin foreclosure proceedings for as little as $2,000 in unpaid assessments.

SB 406 raises this threshold to $4,000 in unpaid association dues — not including fines or fees. A substitute provision also allows foreclosure if dues have been unpaid for 12 months and the amount exceeds $2,000.

Additional Foreclosure Protections

• Ban on self-dealing: HOAs, their management companies, and anyone connected to them are prohibited from purchasing homes at HOA foreclosure sales. This prevents the conflicts of interest that have plagued some Georgia communities.
• Recordkeeping: HOAs must maintain financial records related to dues, fines, fees, liens, and foreclosures for at least 10 years at an office in Georgia

Beyond registration and foreclosure reform, SB 406 establishes explicit homeowner rights that do not currently exist in Georgia statute:

• Access to records: Homeowners have the right to inspect HOA financial records, meeting minutes, and governing documents
• Meeting notifications: HOAs must provide adequate notice before board meetings
• Voting protections: Clear standards for how homeowner votes are conducted and counted
• Board conduct standards: Guidelines for how board members must act, reducing the potential for abuse of power

These rights may seem basic, but Georgia currently has minimal HOA regulation compared to states like Florida and California. SB 406 would bring Georgia in line with national trends toward greater HOA accountability.

As of late March 2026, SB 406 has passed the Georgia Senate unanimously (53-0) and cleared the House Judiciary Committee on March 20. However, the House made several amendments, and the bill still needs a full House floor vote before the legislative session ends on April 2, 2026.

State Rep. Reynaldo Martinez (R-Loganville) is carrying the bill on the House floor. Co-sponsors include Sen. Josh Brass (R) and Sen. Donzella James (D-Atlanta), who has championed HOA oversight legislation for several years.

The bipartisan support — a unanimous Senate vote and active backing from both parties — suggests strong momentum. However, the tight timeline before session's end means the bill's fate may depend on whether it reaches the House floor for a vote in time.