(The Center Square) – The Georgia Senate passed a bill Wednesday requiring homeowners associations to register with the secretary of state’s office and raising the delinquency threshold for foreclosures.
Senate Bill 406 was drafted by Sen. Matt Brass, R-Newnan, after a series of hearings on associations, commonly known as HOAs, and had broad support from Republicans and Democrats.
The bill stops foreclosures for homeowners who were $2,000 behind on fees and would raise that threshold to $4,000, or for homeowners who were behind on their dues by more than 12 months.
Sen. Donzella James, D-Atlanta, said the $2,000 didn’t have to be regular association fees that prompted foreclosures.
“It can be the grass was too high and they cut and they charge $800 instead of the person who comes to your house and charges $75,” James said. “And most of the land that’s being taken from people is being bought up by corporations.”
Sen. Sheikh Rahman, D-Lawrenceville, proposed an amendment that would raise the limit to $10,000.
“Someone can owe $3,000 and be referred to foreclosure on their property losing their house,” Rahman said. “That’s insane. If you don’t think that’s insane, think again.”
Brass said raising the limits could cause the bill to fail in the House of Representatives. The amendment failed.
HOAs and other associations will have to register their financial records, bylaws, officers, and addresses with the secretary of state’s office if the bill passes, which would add transparency, Brass said.
“We’ve heard issues from constituents that they can’t get a hold of their financials,” Brass said. “And so when filing them with the secretary of state’s office, they’ll be subject to the Freedom of Information and Open Records act so anyone can obtain them.”
The associations will pay $100 each to renew, according to the bill.
The secretary of state’s office will also oversee homeowner-HOA disputes through a newly created administrative process.
The bill passed the Senate 53-0 and now goes to the House for consideration.