Georgia SB 406 Passes: HOA Reform Awaits Governor Kemp's Signature

UPDATE (May 8, 2026): Governor Brian Kemp has until May 12, 2026 to sign, veto, or allow Georgia SB 406 to automatically become law without his signature. If no action is taken by May 12, the bill becomes law automatically. The Community Associations Institute (CAI) — an industry group representing HOA management companies and board-side attorneys — has publicly urged Kemp to veto the bill, warning it "treats HOAs as state-controlled entities rather than private communities." Georgia homeowner advocates counter that the bill is a necessary check on an industry with virtually no state oversight, citing surveys showing an average of $8,500 in fines owed by the roughly 250 Georgia homeowners who reported HOA issues to investigators. Watch this page for updates as the May 12 deadline approaches.

UPDATE (April 3, 2026): Georgia SB 406 passed the House overwhelmingly on March 31, 2026 and is now heading to Governor Brian Kemp's desk for signature. The bill passed the Senate unanimously 53-0 on March 4 and cleared the House before the April 2 session deadline. If signed, most provisions take effect January 1, 2027, with the attorney-fee section effective July 1, 2026.

Senate Bill 406 — officially titled the Georgia Property Owners' Bill of Rights Act — is the most comprehensive HOA reform bill any state has passed in years. It creates the first state oversight board for HOAs in Georgia, requires all associations to register with the Secretary of State, raises the foreclosure threshold, and establishes explicit homeowner rights that do not currently exist in Georgia law.

For the estimated 4 million Georgia residents living in HOA communities, this bill will 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.

SB 406 has now passed both chambers of the Georgia legislature with overwhelming bipartisan support. The Senate approved it unanimously 53-0 on March 4, 2026, and the House passed it 155-10 on March 31 before the April 2 session deadline.

State Rep. Reynaldo Martinez (R-Loganville) carried 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. Michael Shepherd of The WATCH Project — a Georgia homeowner advocacy group — called it "the end of an era where people lose their homes because of arbitrary fines."

Governor's Deadline: May 12, 2026

Governor Brian Kemp has until May 12, 2026 to sign or veto the bill. If he takes no action by that date, it automatically becomes law. A Kemp spokesperson said the office is still reviewing the bill as of early May.

Industry Opposition: Community Associations Institute

The Community Associations Institute (CAI) — whose members include HOA management companies, board attorneys, and industry vendors — has urged Kemp to veto SB 406. The CAI argues the bill "introduces a new statewide regulatory framework with significant administrative responsibilities, without a clearly defined implementation plan or funding structure." The organization warns the registration requirement and oversight board will "make it more difficult to recruit volunteer board members, leading to higher costs, lawsuits, and unintended harm."

Homeowner advocates respond that the CAI represents the HOA industry's financial interests, not homeowners, and that Georgia's near-complete absence of HOA regulation created exactly the conditions the bill targets — average fines of $8,500, 37% of reporting homeowners in lawsuits with their HOA, and 27% with liens on their homes.

Key Effective Dates (If Signed or Auto-Enacted)

• July 1, 2026: Attorney-fee provisions take effect for actions filed on or after that date
• January 1, 2027: Full bill takes effect — registration requirement, oversight board, foreclosure threshold increase, and all homeowner rights provisions