Georgia 2023-2024 Regular Session

Georgia House Bill HB303 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	23 LC 50 0458ER
2	2	H. B. 303
3	3	- 1 -
4	4	House Bill 303
5	5	By: Representatives Davis of the 87
6	6	th
7	7	, Beverly of the 143
8	8	rd
9	9	, Scott of the 76
10	10	th
11	11	, Schofield of the
12	12	63
13	13	rd
14	14	, Taylor of the 92
15	15	nd
16	16	, and others
17	17	A BILL TO BE ENTITLED
18	18	AN ACT
19	19	To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to
20	20	1
21	21	regulation of specialized land transactions, so as to provide for protections for homeowners,2
22	22	condominium owners, and property owners in community associations; to provide for3
23	23	community association duties; to provide for policy and procedure, notice, and collection4
24	24	requirements; to provide for limitations on enforcement of violations, fees, fines, charges,5
25	25	and foreclosure; to provide for a community association ombudsman to assist owners and6
26	26	associations; to provide for rights and duties of the ombudsman; to provide for registration,7
27	27	election monitoring, and complaint requirements; to require declarants, developers, or other8
28	28	establishing entities to provide for budgets and reserve account funding for maintenance of9
29	29	community amenities; to require performance and maintenance bonds for community10
30	30	amenities; to implement requirements and procedures for turnover and transition from11
31	31	declarants, developers, or other establishing entities to property owners comprising the12
32	32	community association; to provide for civil causes of action for violations; to provide for13
33	33	civil penalties for violations and the recovery of litigation costs; to provide for a short title;14
34	34	to provide for definitions; to provide for related matters; to repeal conflicting laws; and for15
35	35	other purposes.16
36	36	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:17 23 LC 50 0458ER
37	37	H. B. 303
38	38	- 2 -
39	39	SECTION 1.
40	40	18
41	41	Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to regulation of19
42	42	specialized land transactions, is amended by revising subsections (a) and (b) of Code Section20
43	43	44-3-109, relating to lien for assessments, personal obligation of unit owner, notice and21
44	44	foreclosure, lapse, right to statement of assessments, and effect of failure to furnish22
45	45	statement, as follows:23
46	46	"(a) All sums lawfully assessed by the association against any unit owner or condominium24
47	47	unit, whether
48	48	for the share of the common expenses pertaining to that condominium unit,25
49	49	for fines, or otherwise, and all reasonable charges made to any unit owner or condominium26
50	50	unit for materials furnished or services rendered by the association at the owner's request27
51	51	to or on behalf of the unit owner or condominium unit, shall, from the time the same28
52	52	become due and payable, be the personal obligation of the unit owner and constitute a lien29
53	53	in favor of the association on the condominium unit prior and superior to all other liens30
54	54	whatsoever except:31
55	55	(1) Liens for ad valorem taxes on the condominium unit;32
56	56	(2) The lien of any first priority mortgage covering the unit and the lien of any mortgage33
57	57	recorded prior to the recording of the declaration;34
58	58	(3) The lessor's lien provided for in Code Section 44-3-86; and35
59	59	(4) The lien of any secondary purchase money mortgage covering the unit, provided that36
60	60	neither the grantee nor any successor grantee on the mortgage is the seller of the unit.37
61	61	The recording of the declaration pursuant to this article shall constitute record notice of the38
62	62	existence of the lien, and no further recordation of any claim of lien for assessments shall39
63	63	be required.40
64	64	(b) To the extent that the condominium instruments provide, the personal obligation of the41
65	65	unit owner and the lien for assessments shall also include:42
66	66	(1) A late or delinquency charge not in excess of the greater of $10.00 or 10 percent of43
67	67	the amount of each assessment or installment thereof not paid when due;44 23 LC 50 0458ER
68	68	H. B. 303
69	69	- 3 -
70	70	(2) At a rate not in excess of 10 8 percent per annum, interest on each assessment or45
71	71	installment thereof and any delinquency or late charge pertaining thereto from the date46
72	72	the same was first due and payable;47
73	73	(3) The costs of collection, including court costs, the expenses of sale, any expenses48
74	74	required for the protection and preservation of the unit, and reasonable attorney's fees49
75	75	actually incurred; and50
76	76	(4) The fair rental value of the condominium unit from the time of the institution of an51
77	77	action until the sale of the condominium at foreclosure or until the judgment rendered in52
78	78	the action is otherwise satisfied."53
79	79	SECTION 2.54
80	80	Said chapter is further amended by revising subsections (a) and (b) of Code Section55
81	81	44-3-232, relating to assessments against lot owners as constituting lien in favor of56
82	82	association, additional charges against lot owners, procedure for foreclosing lien, and57
83	83	obligation to provide statement of amounts due, as follows:58
84	84	"(a) All sums lawfully assessed by the association against any lot owner or property59
85	85	owners' association lot, whether for the share of the common expenses pertaining to that60
86	86	lot, fines, or otherwise, and all reasonable charges made to any lot owner or lot for61
87	87	materials furnished or services rendered by the association at the owner's request to or on62
88	88	behalf of the lot owner or lot, shall, from the time the sums became due and payable, be the63
89	89	personal obligation of the lot owner and constitute a lien in favor of the association on the64
90	90	lot prior and superior to all other liens whatsoever except:65
91	91	(1) Liens for ad valorem taxes on the lot;66
92	92	(2) The lien of any first priority mortgage covering the lot and the lien of any mortgage67
93	93	recorded prior to the recording of the declaration; or68
94	94	(3) The lien of any secondary purchase money mortgage covering the lot, provided that69
95	95	neither the grantee nor any successor grantee on the mortgage is the seller of the lot.70 23 LC 50 0458ER
96	96	H. B. 303
97	97	- 4 -
98	98	The recording of the declaration pursuant to this article shall constitute record notice of the
99	99	71
100	100	existence of the lien, and no further recordation of any claim of lien for assessments shall72
101	101	be required.73
102	102	(b) To the extent that the instrument provides, the personal obligation of the lot owner and
103	103	74
104	104	the lien for assessments shall also include:75
105	105	(1) A late or delinquency charge not in excess of the greater of $10.00 or 10 percent of76
106	106	the amount of each assessment or installment thereof not paid when due;77
107	107	(2) At a rate not in excess of 10 8 percent per annum, interest on each assessment or78
108	108	installment thereof and any delinquency or late charge pertaining thereto from the date79
109	109	the same was first due and payable;80
110	110	(3) The costs of collection, including court costs, the expenses required for the protection81
111	111	and preservation of the lot, and reasonable attorney's fees actually incurred; and82
112	112	(4) The fair rental value of the lot from the time of the institution of an action until the83
113	113	sale of the lot at foreclosure or until judgment rendered in the action is otherwise84
114	114	satisfied."85
115	115	SECTION 3.86
116	116	Said chapter is further amended by adding a new article to read as follows:87
117	117	"ARTICLE 888
118	118	Part 189
119	119	44-3-260.90
120	120	This article shall be known and may be cited as the 'Community Association Transparency91
121	121	and Protection Act.'92 23 LC 50 0458ER
122	122	H. B. 303
123	123	- 5 -
124	124	44-3-261.93
125	125	As used in this article, the term:94
126	126	(1) 'Amenities' means retention and detention systems or common area facilities.95
127	127	(2) 'Common area facilities' means clubhouses; golf courses; swimming pools; tennis96
128	128	courts, basketball courts, and other recreational courts; sidewalks; cart paths; nature trails;97
129	129	street lighting; accent lighting; or any other facility that is intended to be communally98
130	130	shared by property owners as recorded in the plat last filed at the time of inception.99
131	131	(3) 'Community association' or 'association' means a nongovernmental association of100
132	132	participating members in a delineated geographic area comprising a neighborhood,101
133	133	condominium, cooperative, or group of homeowners or property owners, including, but102
134	134	not limited to, a homeowners' association, condominium association, and property103
135	135	owners' association.104
136	136	(4) 'Condominium association' means an organization or corporation formed pursuant105
137	137	to the Georgia Condominium Act for the purpose of exercising the powers of an106
138	138	association of any condominium under such act.107
139	139	(5) 'Homeowners' association' means an organization or corporation of homeowners or108
140	140	declarants or developers of a particular subdivision, planned community, or condominium109
141	141	that makes and enforces rules for the properties within its jurisdiction and has an elected110
142	142	board of directors that enforces and oversees the organization's governing documents.111
143	143	(6) 'Inception' means the first property sale of said community to a member or future112
144	144	member of the community association who is not a declarant, developer, or other113
145	145	establishing entity.114
146	146	(7) 'Members other than the declarant, developer, or other establishing entity' shall not115
147	147	include builders, contractors, or others who purchase a parcel for the purpose of116
148	148	constructing improvements thereon for resale.117 23 LC 50 0458ER
149	149	H. B. 303
150	150	- 6 -
151	151	(8) 'Notice of delinquency' means a written notice that a community association sends118
152	152	to a unit owner to notify the unit owner of any unpaid assessments, fines, fees, or charges119
153	153	that the unit owner owes the community association.120
154	154	(9) 'Property owners' association' means a corporation formed pursuant to the Georgia121
155	155	Property Owners' Association Act for the purpose of exercising the powers of an122
156	156	association of property owners under such act.123
157	157	(10) 'Retention and detention systems' means any storm-water management system,124
158	158	method, or structure that is designed to provide storm-water storage or release for surface125
159	159	runoff as recorded in the plat last filed at the time of inception.126
160	160	(11) 'Turnover and transition' means the relinquishment of control by a declarant,127
161	161	developer, or other establishing entity of the amenities and community association128
162	162	voluntarily or by operation of law whereby the property owners comprising the property129
163	163	jurisdiction of the community association take control of such amenities and community130
164	164	association.131
165	165	(12) 'Unit' means a portion of the community association intended for any type of132
166	166	independent ownership and use.133
167	167	(13) 'Unit owner' means the owner of a unit subject to a community association.134
168	168	44-3-262.135
169	169	To promote responsible governance, a community association shall:136
170	170	(1) Maintain accurate and complete accounting records in accordance with generally137
171	171	accepted accounting principles;138
172	172	(2) Maintain, to the extent reasonably available and subject to reasonable deductibles:139
173	173	(A) Property insurance on common areas insuring against risks of direct physical loss140
174	174	commonly insured against, which insurance, after application of any deductibles, shall141
175	175	be not less than 80 percent of the actual cash value of the insured property at the time142 23 LC 50 0458ER
176	176	H. B. 303
177	177	- 7 -
178	178	the insurance is purchased and at each renewal date, exclusive of land, excavations,143
179	179	foundations, and other items normally excluded from property policies; and144
180	180	(B) Commercial general liability insurance, including medical payments insurance, in145
181	181	an amount determined by the board but not less than any amount specified in the146
182	182	declaration, covering all occurrences commonly insured against for bodily injury and147
183	183	property damage arising out of or in connection with the use, ownership, or148
184	184	maintenance of the common areas; and149
185	185	(3) Adopt policies, procedures, and rules and regulations concerning:150
186	186	(A) Collection of unpaid assessments, fines, fees, and other charges;151
187	187	(B) Handling of conflicts of interest involving board members, which shall, at a152
188	188	minimum:153
189	189	(i) Define or describe the circumstances under which a conflict of interest exists;154
190	190	(ii) Set forth procedures to follow when a conflict of interest exists, including how,155
191	191	and to whom, the conflict of interest shall be disclosed and whether a board member156
192	192	shall recuse himself or herself from discussing or voting on an issue;157
193	193	(iii) Describe the circumstances under which a board member, or a party related to158
194	194	a board member, shall be prohibited from engaging in a financial transaction with the159
195	195	community association; and160
196	196	(iv) Provide for the periodic review of the community association's conflict of161
197	197	interest policies, procedures, and rules and regulations;162
198	198	(C) Conduct of meetings, which may refer to applicable provisions of Chapter 3 of163
199	199	Title 14, the 'Georgia Nonprofit Corporation Code,' or other legally recognized rules164
200	200	and principles;165
201	201	(D) Enforcement of covenants and rules, including notice and hearing procedures and166
202	202	a schedule of fines, fees, or other charges;167
203	203	(E) Inspection and copying of community association records, which shall include, at168
204	204	a minimum, board meeting minutes, financial documents, budgets, contracts for169 23 LC 50 0458ER
205	205	H. B. 303
206	206	- 8 -
207	207	services or improvements, and insurance policies, by unit owners at no cost to the unit170
208	208	owners;171
209	209	(F) Investment of reserve funds;172
210	210	(G) The amenities the community association agrees to provide and the minimum173
211	211	upkeep standards of such amenities;174
212	212	(H) Policies and procedures for the election of board members, which shall require175
213	213	that, to the extent possible, a majority of the board members reside in the association;176
214	214	(I) Procedures for the adoption and amendment of policies, procedures, and rules; and177
215	215	(J) Procedures for addressing disputes arising between the community association and178
216	216	unit owners, which shall, at a minimum, comply with Code Section 44-3-263.179
217	217	44-3-263.180
218	218	(a) As used in this Code section, the term 'alternative dispute resolution' means mediation,181
219	219	arbitration, conciliation, or other nonjudicial procedure that involves a neutral party in the182
220	220	decision-making process.183
221	221	(b)(1) A community association shall adopt a written policy providing for a fair,184
222	222	reasonable, and expeditious alternative dispute resolution procedure for resolving any185
223	223	dispute regarding sums assessed by the association.186
224	224	(2) The association shall provide a copy of such policy to each unit owner annually and187
225	225	shall make a copy of such policy available to a unit owner upon request.188
226	226	(c) In developing an alternative dispute resolution procedure pursuant to this Code section,189
227	227	an association shall make maximum, reasonable use of available local dispute resolution190
228	228	programs involving a neutral third party, including low-cost mediation programs.191
229	229	(d) A fair, reasonable, and expeditious alternative dispute resolution procedure shall, at a192
230	230	minimum, satisfy all of the following requirements:193
231	231	(1) The procedure may be invoked by a unit owner in writing;194 23 LC 50 0458ER
232	232	H. B. 303
233	233	- 9 -
234	234	(2) The procedure shall provide for prompt deadlines, which shall state the maximum195
235	235	time for the association to act on a request invoking the procedure;196
236	236	(3) If the procedure is invoked by a unit owner, the association shall participate in the197
237	237	procedure; and198
238	238	(4) A unit owner shall not be charged a fee to participate in the process.199
239	239	44-3-264.200
240	240	For the purpose of providing notice required pursuant to this article:201
241	241	(1) A unit owner may notify the community association if the unit owner prefers that202
242	242	correspondence and notices sent to the unit owner from the community association be203
243	243	made in a language other than English. If a preference is not indicated, the community204
244	244	association shall send such correspondence and notices in English;205
245	245	(2) A unit owner may identify another person to serve as a designated contact for the unit206
246	246	owner to be contacted on the unit owner's behalf and may indicate that correspondence207
247	247	and notices sent to such contact from the community association be made in a language208
248	248	other than English. If a preference is not indicated, the community association shall send209
249	249	such correspondence and notices in English; and210
250	250	(3) The community association shall send the unit owner and any contact designated211
251	251	pursuant to paragraph (2) of this Code section the same correspondence and notices;212
252	252	provided, however, that the community association shall send the correspondence and213
253	253	notices in the language for which the unit owner has indicated a preference, if any.214
254	254	44-3-265.215
255	255	(a) A community association shall send each unit owner who has any outstanding balance216
256	256	owed to the community association a notice of delinquency that includes an itemized list217
257	257	of all assessments, fines, fees, and charges that the unit owner owes to the community218 23 LC 50 0458ER
258	258	H. B. 303
259	259	- 10 -
260	260	association each month by first-class mail and by email if the unit owner has provided an219
261	261	email address to the community association.220
262	262	(b) For purposes of providing a notice of delinquency, a community association shall:221
263	263	(1) Send notice by certified mail, return receipt requested;222
264	264	(2) Physically post a copy of the notice at the unit owner's unit; and223
265	265	(3) Send notice to the unit owner by one of the following means:224
266	266	(A) Text message if the unit owner has provided a cell phone number to the225
267	267	community association; or226
268	268	(B) Email if the unit owner has provided an email address to the community227
269	269	association.228
270	270	(c) A notice of delinquency that a community association sends to a unit owner for unpaid229
271	271	assessments, fines, fees, or charges shall:230
272	272	(1) Specify whether the delinquency concerns unpaid assessments; unpaid fines, fees, or231
273	273	charges; or both unpaid assessments and unpaid fines, fees, or charges, and, if the notice232
274	274	of delinquency concerns unpaid assessments, the notice of delinquency shall notify the233
275	275	unit owner that unpaid assessments may lead to foreclosure; and234
276	276	(2) Include:235
277	277	(A) A description of the steps the community association shall take before the236
278	278	community association may take legal action against the unit owner, including a237
279	279	description of the community association's cure process established in accordance with238
280	280	Code Section 44-3-268; and239
281	281	(B) A description of what legal action the community association may take against the240
282	282	unit owner.241
283	283	44-3-266.242
284	284	(a) With regard to a unit owner's delinquency in paying assessments, fines, fees, or243
285	285	charges, a community association shall:244 23 LC 50 0458ER
286	286	H. B. 303
287	287	- 11 -
288	288	(1) First contact the unit owner to alert the unit owner of the delinquency before taking245
289	289	action in relation to the delinquency pursuant to subsection (b) of this Code section; and246
290	290	(2) Maintain a record of any contacts, including information regarding the type of247
291	291	communication used to contact the unit owner and the date and time that the contact was248
292	292	made.249
293	293	(b) A community association may refer a delinquent account to a collection agency or250
294	294	attorney only if a majority of the board members votes to refer the matter in a recorded vote251
295	295	at a meeting.252
296	296	44-3-267.253
297	297	(a) No community association shall:254
298	298	(1) Charge a rate of interest on unpaid assessments, fines, or fees in an amount greater255
299	299	than 8 percent per year;256
300	300	(2) Assess a fee or other charge to recover costs incurred for providing the unit owner257
301	301	a statement of the total amount that the unit owner owes; or258
302	302	(3) Foreclose on an assessment lien if the debt securing the lien consists only of one or259
303	303	both of the following:260
304	304	(A) Fines that the community association has assessed against the unit owner; or261
305	305	(B) Collection costs or attorney's fees that the community association has incurred and262
306	306	that are only associated with assessed fines.263
307	307	(b) No community association shall impose on a daily basis against a unit owner:264
308	308	(1) Late fees; or265
309	309	(2) Fines assessed for violations of the declaration, bylaws, covenants, or other266
310	310	governing documents of the community association.267 23 LC 50 0458ER
311	311	H. B. 303
312	312	- 12 -
313	313	44-3-268.268
314	314	(a) A community association may only impose fines for violations in accordance with this269
315	315	Code section.270
316	316	(b)(1) With respect to any violation of the declaration, bylaws, covenants, or other271
317	317	governing documents of a community association that the community association272
318	318	reasonably determines threatens the public safety or health, the community association273
319	319	shall provide the unit owner written notice of the violation informing the unit owner that274
320	320	the unit owner has 72 hours to cure the violation or the community association may fine275
321	321	the unit owner.276
322	322	(2) If, after an inspection of the unit, the community association determines that the unit277
323	323	owner has not cured such violation within 72 hours after issuance of the notice, the278
324	324	community association may impose fines on the unit owner every other day and may take279
325	325	any available legal action against the unit owner for the violation.280
326	326	(c)(1) If a community association reasonably determines that a unit owner committed a281
327	327	violation of the declaration, bylaws, covenants, or other governing documents of the282
328	328	community association, other than a violation that threatens the public safety or health,283
329	329	the community association shall, through certified mail, return receipt requested, provide284
330	330	the unit owner written notice of the violation informing the unit owner that the unit owner285
331	331	has 30 days to cure the violation or the community association, after conducting an286
332	332	inspection and determining that the unit owner has not cured the violation, may fine the287
333	333	unit owner.288
334	334	(2) A community association shall grant a unit owner 60 days to cure such violation289
335	335	before the community association may take legal action against the unit owner for the290
336	336	violation.291
337	337	(3) If the unit owner cures the violation within such 60 day period to cure, the unit owner292
338	338	may notify the community association of the cure and, if the unit owner sends with the293
339	339	notice visual evidence that the violation has been cured, the violation is deemed cured on294 23 LC 50 0458ER
340	340	H. B. 303
341	341	- 13 -
342	342	the date that the unit owner sends the notice. If the unit owner's notice does not include295
343	343	visual evidence that the violation has been cured, the community association shall inspect296
344	344	the unit as soon as practicable to determine if the violation has been cured.297
345	345	(4) If the community association does not receive notice from the unit owner that the298
346	346	violation has been cured, the community association shall inspect the unit within seven299
347	347	days after the expiration of the 60 day period to cure to determine if the violation has300
348	348	been cured. If, after such inspection, the community association determines that the301
349	349	violation has not been cured, the community association may then take any available302
350	350	legal action.303
351	351	(5) If the unit owner cures the violation within the 60 day period, the community304
352	352	association shall notify the unit owner:305
353	353	(A) That the unit owner will not be further fined with regard to the violation; and306
354	354	(B) Of any outstanding balance that the unit owner still owes the community307
355	355	association in relation to such violation.308
356	356	(6) If the board determines that the unit owner should not be held responsible for an309
357	357	alleged violation, the community association shall not allocate to the unit owner's account310
358	358	with the community association any of the community association's costs or attorney's311
359	359	fees incurred in asserting or hearing the claim. Notwithstanding any provision in the312
360	360	declaration, bylaws, or rules and regulations of the community association to the313
361	361	contrary, a unit owner shall not be deemed to have consented to pay such costs or fees.314
362	362	(7) The total amount of fines imposed for the violation shall not exceed $500.00.315
363	363	44-3-269.316
364	364	(a) Notwithstanding any provision of the declaration, bylaws, articles, rules or regulations317
365	365	to the contrary, or the absence of a relevant provision in the declaration, bylaws, articles,318
366	366	or rules or regulations, the community association shall not use a collection agency or take319
367	367	legal action to collect unpaid assessments unless the community association has adopted320 23 LC 50 0458ER
368	368	H. B. 303
369	369	- 14 -
370	370	and follows a written policy governing the collection of unpaid assessments and unless the321
371	371	community association complies with this Code section.322
372	372	(b) The policy required by subsection (a) of this Code section shall, at a minimum, specify:323
373	373	(1) The date on which assessments shall be paid and when an assessment is considered324
374	374	past due and delinquent;325
375	375	(2) Any late fees and interest that a community association may impose on a delinquent326
376	376	unit owner's account;327
377	377	(3) Any returned-check charges the community association may impose;328
378	378	(4) The circumstances under which a unit owner is entitled to enter into a payment plan329
379	379	with the community association pursuant to Code Section 44-3-270 and the minimum330
380	380	terms of the payment plan mandated by that Code section;331
381	381	(5) That, before the community association turns over a delinquent account of a unit332
382	382	owner to a collection agency or refers it to an attorney for legal action, the community333
383	383	association shall send the unit owner a notice of delinquency, by certified mail, return334
384	384	receipt requested, specifying:335
385	385	(A) The total amount due, with an accounting of how the total was determined;336
386	386	(B) Whether the opportunity to enter into a payment plan exists pursuant to Code337
387	387	Section 44-3-270 and instructions for contacting the community association to enter338
388	388	into such a payment plan;339
389	389	(C) The name and contact information for the individual the unit owner may contact340
390	390	to request a copy of the unit owner's account information in order to verify the amount341
391	391	of the debt; and342
392	392	(D) That action is required to cure the delinquency and that failure to do so within 60343
393	393	days may result in the unit owner's delinquent account being turned over to a collection344
394	394	agency, a lawsuit being filed against the owner, the filing and foreclosure of a lien345
395	395	against the unit owner's property, or other available legal remedies;346 23 LC 50 0458ER
396	396	H. B. 303
397	397	- 15 -
398	398	(6) The method by which payments may be applied on the delinquent account of a unit347
399	399	owner; and348
400	400	(7) The legal remedies available to the community association to collect on a unit349
401	401	owner's delinquent account pursuant to the governing documents of the association and350
402	402	Georgia law.351
403	403	44-3-270.352
404	404	(a) In collecting past due assessments and other delinquent payments under this article, a353
405	405	community association or a holder or assignee of the community association's debt shall:354
406	406	(1) Adopt and comply with a collections policy that meets the requirements of Code355
407	407	Section 44-3-269; and356
408	408	(2) Make a good faith effort to coordinate with the unit owner to set up a payment plan357
409	409	that meets the requirements of this Code section, except when:358
410	410	(A) The unit owner does not occupy the unit and has acquired the property as a result359
411	411	of:360
412	412	(i) A default of a security interest encumbering the unit; or361
413	413	(ii) Foreclosure of the community association's lien; or362
414	414	(B) A unit owner who previously entered into a payment plan under this Code section.363
415	415	(b)(1) A payment plan negotiated between a community association and a unit owner364
416	416	shall permit:365
417	417	(A) The unit owner to pay off the deficiency in equal installments over a period of at366
418	418	least 18 months;367
419	419	(B) The unit owner to choose the amount to be paid each month, so long as each368
420	420	payment shall be in an amount of at least $25.00 until the balance of the amount owed369
421	421	is less than $25.00; and370
422	422	(C) The unit owner to pay the remaining balance owed under the repayment plan at any371
423	423	time during the duration of the repayment plan.372 23 LC 50 0458ER
424	424	H. B. 303
425	425	- 16 -
426	426	(2) Nothing in this subsection prohibits a community association from pursuing legal373
427	427	action against a unit owner if the unit owner fails to comply with the terms of the unit374
428	428	owner's payment plan. A unit owner's failure to remit payment of three or more375
429	429	agreed-upon installments, or to remain current with regular assessments as they come due376
430	430	during the 18 month period, constitutes a failure to comply with the terms of the unit377
431	431	owner's payment plan.378
432	432	(c) If a unit owner who has both unpaid assessments and unpaid fines, fees, or other379
433	433	charges makes a payment to the community association, the community association shall380
434	434	apply the payment first to the assessments owed and any remaining amount of the payment381
435	435	to the fines, fees, or other charges owed.382
436	436	(d) If a community association has violated any foreclosure laws, the unit owner in relation383
437	437	to whom the violation occurred may, within five years after the violation occurred, file civil384
438	438	suit in a court of competent jurisdiction against the community association to seek385
439	439	damages. The court may award the unit owner damages in an amount of up to $25,000.00,386
440	440	plus costs and reasonable attorney's fees, if the unit owner proves the violation by a387
441	441	preponderance of the evidence.388
442	442	44-3-271.389
443	443	A community association shall not commence a legal action to initiate a foreclosure390
444	444	proceeding based on a unit owner's delinquency in paying assessments unless:391
445	445	(1) The community association has complied with each of the requirements in this article392
446	446	related to a unit owner's delinquency in paying assessments;393
447	447	(2) The community association has provided the unit owner with a written offer to enter394
448	448	into a repayment plan pursuant to Code Section 44-3-270;395
449	449	(3) Within 30 days after the community association has provided the owner with a396
450	450	written offer to enter into a repayment plan, the unit owner has either:397
451	451	(A) Declined the repayment plan; or398 23 LC 50 0458ER
452	452	H. B. 303
453	453	- 17 -
454	454	(B) After accepting the repayment plan, failed to pay at least three of the monthly399
455	455	installments within 15 days after the monthly installments were due; and400
456	456	(4) A majority of the board members votes to initiate such foreclosure in a recorded vote401
457	457	at a meeting.402
458	458	Part 2403
459	459	44-3-280.404
460	460	(a) There is created an Office of the Community Association Ombudsman that shall be405
461	461	assigned for administrative purposes only to the office of the Secretary of State.406
462	462	(b) The Governor shall appoint the ombudsman. The ombudsman shall be an attorney407
463	463	admitted to practice before the Georgia Supreme Court and shall serve at the pleasure of408
464	464	the Governor.409
465	465	(c) The ombudsman, an officer, or a full-time employee of the ombudsman's office shall410
466	466	not:411
467	467	(1) Actively engage in any other business or profession that directly or indirectly relates412
468	468	to or conflicts with his or her work in the ombudsman's office;413
469	469	(2) Serve as the representative, or an executive, officer, or employee, of any political414
470	470	party, executive committee, or other governing body of a political party;415
471	471	(3) Receive remuneration for activities on behalf of any candidate for public office;416
472	472	(4) Engage in soliciting votes or other activities on behalf of a candidate for public417
473	473	office; or418
474	474	(5) Become a candidate for election to public office unless he or she first resigns from419
475	475	his or her office or employment.420
476	476	(d) The ombudsman shall maintain his or her principal office at a place convenient to the421
477	477	office of the Secretary of State, which will enable the ombudsman to expeditiously carry422 23 LC 50 0458ER
478	478	H. B. 303
479	479	- 18 -
480	480	out the duties and functions of his or her office. The ombudsman may establish branch423
481	481	offices elsewhere in the state upon the concurrence of the Governor.424
482	482	44-3-281.425
483	483	The ombudsman shall have the powers necessary to carry out the duties of his or her office,426
484	484	including, but not limited to:427
485	485	(1) Employing professional and clerical staff as necessary for the efficient operation of428
486	486	the office;429
487	487	(2) Preparing and issuing reports and recommendations to the Governor, the Georgia430
488	488	Real Estate Commission, the President of the Senate, and the Speaker of the House of431
489	489	Representatives on any matter or subject within the jurisdiction of this article;432
490	490	(3) Acting as a liaison between the department, unit owners, boards of directors, board433
491	491	members, community association managers, and other affected parties;434
492	492	(4) Monitoring and reviewing procedures and disputes concerning elections or meetings;435
493	493	(5) Providing resources to assist board members and officers of associations to carry out436
494	494	their powers and duties consistent with this article and the governing documents of the437
495	495	association;438
496	496	(6) Acting as a neutral resource regarding the rights and responsibilities of unit owners,439
497	497	associations, and board members;440
498	498	(7) Encouraging and facilitating voluntary meetings between unit owners, boards of441
499	499	directors, board members, community association managers, and other affected parties442
500	500	when the meetings may assist in resolving a dispute within an association before a person443
501	501	submits a dispute for a formal or administrative remedy;444
502	502	(8) Assisting with the resolution of disputes between unit owners and the association, or445
503	503	between unit owners, if applicable;446
504	504	(9) Receiving and compiling complaints and responses in relation to violations of447
505	505	applicable law and the governing documents of an association; and448 23 LC 50 0458ER
506	506	H. B. 303
507	507	- 19 -
508	508	(10) Referring associations or association management companies to the Georgia Real449
509	509	Estate Commission for investigation and enforcement pursuant to Chapter 40 of Title 43.450
510	510	44-3-282.451
511	511	The ombudsman shall:452
512	512	(1) Develop policies and procedures to assist unit owners, boards of directors, board453
513	513	members, community association managers, and other affected parties to understand their454
514	514	rights and responsibilities, as set forth in this article and the governing documents of455
515	515	associations;456
516	516	(2) Coordinate and assist in the preparation and adoption of educational and reference457
517	517	material, and shall endeavor to coordinate with private or volunteer providers of these458
518	518	services, so that the availability of these resources is made known to the largest possible459
519	519	audience;460
520	520	(3) Assist unit owners to understand their rights and responsibilities under applicable law461
521	521	and the governing documents of their associations, including, without limitation,462
522	522	publishing materials related to those rights and responsibilities;463
523	523	(4) Assist board members and officers of community associations to carry out their464
524	524	duties; and465
525	525	(5) Compile and maintain a registration of each community association operating within466
526	526	the state which includes, without limitation, the following information:467
527	527	(A) The name, address, and phone number of the community association;468
528	528	(B) The name of each person who is authorized to manage the community association,469
529	529	and if any such person is licensed with the Georgia Real Estate Commission pursuant470
530	530	to Chapter 40 of Title 43, the licensee's name, license number and status, business471
531	531	name, business address, business telephone number, type of license held, and term of472
532	532	license;473 23 LC 50 0458ER
533	533	H. B. 303
534	534	- 20 -
535	535	(C) The names, mailing addresses, and telephone numbers of the board members of the474
536	536	community association;475
537	537	(D) The name of the declarant;476
538	538	(E) The number of units in the community association;477
539	539	(F) The total annual assessment required by the community association; and478
540	540	(G) The number of foreclosures which were completed on units within the community479
541	541	association.480
542	542	44-3-283.481
543	543	(a) The ombudsman shall adopt policies and procedures for submission and receipt of482
544	544	complaints from unit owners and community associations regarding the rights and483
545	545	responsibilities of unit owners and community associations.484
546	546	(b) The ombudsman shall publish a form for such complaints which, at a minimum,485
547	547	includes the following information:486
548	548	(1) The unit owner's name;487
549	549	(2) The name and contact information of the community association;488
550	550	(3) The name of the community association management company, if any, and its contact489
551	551	information, including telephone number, owner's name, and street and mailing490
552	552	addresses;491
553	553	(4) Whether a unit owner:492
554	554	(A) Was informed of the requirement of membership in a community association as493
555	555	a condition of ownership, including when that information was provided and by whom;494
556	556	(B) Received a copy of the governing documents of the community association and if495
557	557	the copy was obtained before or after receiving title to the unit;496
558	558	(C) Was denied access to the governing documents and, if so, what remedies the unit497
559	559	owner took to obtain the governing documents; and498
560	560	(D) Understands his or her rights and obligations under the governing documents;499 23 LC 50 0458ER
561	561	H. B. 303
562	562	- 21 -
563	563	(5) The nature of the unit owner's or community association's complaint; and500
564	564	(6) An explanation of:501
565	565	(A) Any communications between the unit owner and the association regarding the502
566	566	complaint;503
567	567	(B) Any remedies the unit owner or association sought in relation to the complaint; and504
568	568	(C) Any actions the unit owner or association took concerning the complaint.505
569	569	(c) Upon receiving a unit owner's or community association's complaint, the ombudsman506
570	570	shall provide the complaint to the community association or the unit owner complained507
571	571	against in a manner that verifies receipt of such complaint by the community association508
572	572	or unit owner, so the unit owner, board, or community association may determine if the509
573	573	unit owner, board, or community association desires to make a response to the complaint.510
574	574	(d)(1) The ombudsman shall, at least annually, provide a report of all complaints511
575	575	received as provided in this Code section to the Governor and the General Assembly and512
576	576	the public on the ombudsman's website.513
577	577	(2) The public report shall include categorized, filterable, and searchable information514
578	578	compiled from the complaints and responses and redact any personal or private515
579	579	information, such as names, addresses, and telephone numbers, contained in the516
580	580	complaints and responses.517
581	581	(e) If the ombudsman has reasonable cause to believe that a community association518
582	582	manager has engaged in repeated violations of this article or other law, refer such519
583	583	community association to the Georgia Real Estate Commission for investigation and520
584	584	enforcement pursuant to Chapter 40 of Title 43.521
585	585	44-3-284.522
586	586	(a) Fifteen percent of the total voting interests in a community association, or six unit523
587	587	owners, whichever is greater, may petition the ombudsman to appoint an election monitor524
588	588	to attend the annual meeting of the unit owners and conduct the election of directors.525 23 LC 50 0458ER
589	589	H. B. 303
590	590	- 22 -
591	591	(b) The ombudsman shall appoint a division employee, a person who specializes in526
592	592	community association election monitoring, or an attorney licensed to practice in the state527
593	593	as the election monitor.528
594	594	(c) The association shall pay all costs associated with the election monitoring process.529
595	595	(d) The ombudsman shall adopt a rule establishing procedures for the appointment of530
596	596	election monitors and the scope and extent of the monitor's role in the election process.531
597	597	44-3-285.532
598	598	(a) Each community association shall register annually with the ombudsman on a form533
599	599	prescribed by the ombudsman, which shall include the information required to be534
600	600	maintained pursuant to paragraph (5) of Code section 44-3-282.535
601	601	(b) Each community association shall pay an annual registration fee to the ombudsman in536
602	602	the amount of $3.00 per unit of the community association.537
603	603	Part 3538
604	604	44-3-290.539
605	605	(a) At the establishment of a community association by a declarant, developer, or other540
606	606	establishing entity, and prior to the turnover and transition, such declarant, developer, or541
607	607	other establishing entity shall establish a two-year operating and expense budget for any542
608	608	construction and ongoing maintenance or replacement of amenities. Such budget shall be543
609	609	verified by a real estate appraiser licensed pursuant to Chapter 39A of Title 40 and544
610	610	established using a good faith method of estimation for all such construction and ongoing545
611	611	maintenance or replacement expenses and shall include a reserve fund account as provided546
612	612	for in subsection (b) of this Code section for such construction and ongoing maintenance547
613	613	or replacement of such amenities. Such budget shall be maintained as a record by such548
614	614	declarant, developer, or other establishing entity, and all such records shall be provided to549 23 LC 50 0458ER
615	615	H. B. 303
616	616	- 23 -
617	617	the unit owners upon creation of such community association and upon turnover and550
618	618	transition.551
619	619	(b) The reserve fund account provided for in subsection (a) of this Code section shall be552
620	620	fully funded by such declarant, developer, or other establishing entity, and shall include553
621	621	capital for all items that have a construction or ongoing maintenance or replacement554
622	622	expense that exceeds or will exceed $10,000.00 over the two-year period. All funds in the555
623	623	reserve account shall be maintained by the declarant, developer, or other establishing entity556
624	624	in a separate account to be held in trust upon inception and until turnover and transition.557
625	625	(c) The amount to be maintained in the reserve fund account by the declarant, developer,558
626	626	or other establishing entity shall be computed using a formula based upon estimated559
627	627	remaining useful life and estimated replacement cost or ongoing maintenance expense of560
628	628	each reserve item. The declarant, developer, or other establishing entity may adjust561
629	629	replacement reserve assessments annually to take into account any changes in estimates or562
630	630	extension of the useful life of an item caused by new construction or maintenance or563
631	631	replacement.564
632	632	(d) The establishment of the operating and expense budget, the maintenance of the reserve565
633	633	fund account, and any adjustments in such reserve fund account shall be managed by an566
634	634	independent certified public accountant who is licensed by this state who shall certify567
635	635	whether activities concerning such budget, fund, or adjustments are in conformance with568
636	636	the purposes of this Code section. The declarant, developer, or other establishing entity569
637	637	shall make such activities, records, and certifications open to public inspection.570
638	638	44-3-291.571
639	639	(a)(1) Prior to the conveyance of the first property that is or shall be subject to572
640	640	membership in a community association, a declarant, developer, or other establishing573
641	641	entity shall post a performance bond with the governing authority of the city or county574
642	642	with jurisdiction, with the community association as successor in interest to such bond,575 23 LC 50 0458ER
643	643	H. B. 303
644	644	- 24 -
645	645	for 125 percent of the cost of the construction and build-out of amenities. The amount576
646	646	affixed to the cost of the construction and build-out of amenities shall be verified by a577
647	647	real estate appraiser licensed under Chapter 39A of Title 43 where such verification shall578
648	648	be based on the plat which was last filed at the time of inception as well as other579
649	649	architectural and construction planning documents and economic forecasts.580
650	650	(2) Prior to the conveyance of the first property that is or shall be subject to membership581
651	651	in a community association, a declarant, developer, or other establishing entity shall post582
652	652	a maintenance bond with the governing authority of the city or county with jurisdiction,583
653	653	with the community association as successor in interest to such bond, for a maintenance584
654	654	term of at least 24 months beginning at inception.585
655	655	(b) The bonds required under subsection (a) of this Code section shall be issued by a586
656	656	person licensed to do such business in this state and who shall appear on the list of certified587
657	657	companies as issued by the United States Department of the Treasury.588
658	658	(c)(1) The construction and build-out of amenities shall be complete and fully589
659	659	operational, and turnover and transition shall occur, within two years after inception,590
660	660	otherwise the performance bond is forfeited.591
661	661	(2) In the case of forfeiture, the governing authority of the city or county shall pay over592
662	662	funds from the bonds to the clerk of superior court of the county having jurisdiction, who593
663	663	shall segregate the funds pending proper petition for the clerk to pay over such funds to594
664	664	the community association as the successor in interest, and such funds shall then be used595
665	665	as provided for by the superior court for the purposes of this part.596
666	666	(3) If no proper petition as provided for in paragraph (2) of this subsection is made597
667	667	within two years after such funds have been paid over to the clerk of superior court, then598
668	668	such funds shall be paid into the general funds of the city or county with jurisdiction.599 23 LC 50 0458ER
669	669	H. B. 303
670	670	- 25 -
671	671	44-3-292.600
672	672	Not more than 90 days after turnover and transition, the declarant, developer, or other601
673	673	establishing entity shall deliver to the condominium association, at the declarant's,602
674	674	developer's, or other establishing entity's expense, all property, information, and reports of603
675	675	the unit owners and of the condominium association which is held or controlled by the604
676	676	declarant, developer, or other establishing entity, including, but not limited to:605
677	677	(1) The original or a photocopy of the recorded declaration of condominiums and all606
678	678	amendments thereto. If a photocopy is provided, it shall be certified by affidavit of the607
679	679	declarant, developer, or other establishing entity or by their officer or agent as being a608
680	680	complete copy of the actual recorded declaration;609
681	681	(2) A certified copy of the articles of incorporation of the condominium association or,610
682	682	if the condominium association was established prior to the Georgia Condominium Act611
683	683	and is not incorporated, copies of the documents creating the condominium association;612
684	684	(3) A copy of the bylaws and amendments thereto;613
685	685	(4) The minute books, including all minutes, and other books and records of the614
686	686	condominium association, if any;615
687	687	(5) Any house rules and regulations that have been promulgated;616
688	688	(6) Resignations of officers and board members who are required to resign because the617
689	689	declarant, developer, or other establishing entity is required to relinquish control of the618
690	690	condominium association;619
691	691	(7) The financial records, including financial statements of the condominium association,620
692	692	and source documents from the incorporation of the condominium association through621
693	693	the date of turnover and transition. Such records shall be audited by an independent622
694	694	certified public accountant licensed by this state for the period from the incorporation of623
695	695	the condominium association or from the period covered by the last audit if an audit has624
696	696	been performed for each fiscal year since incorporation by an independent certified public625
697	697	accountant licensed by this state. All financial statements must be prepared in accordance626 23 LC 50 0458ER
698	698	H. B. 303
699	699	- 26 -
700	700	with generally accepted accounting principles and must be audited in accordance with627
701	701	generally accepted auditing standards. The accountant performing the audit shall628
702	702	examine, to the extent necessary, supporting documents and records, including the cash629
703	703	disbursements and related paid invoices to determine if expenditures were for630
704	704	condominium association purposes and the billings, cash receipts, and related records to631
705	705	determine that the declarant, developer, or other establishing entity was charged and paid632
706	706	the proper amounts of assessments. Audits required by this paragraph shall be paid for633
707	707	by the declarant, developer, or other establishing entity;634
708	708	(8) All condominium association funds or the control thereof;635
709	709	(9) All tangible personal property that is property of the condominium association, which636
710	710	is represented by the declarant, developer, or other establishing entity to be part of the637
711	711	common elements or which is ostensibly part of the common elements, and an inventory638
712	712	of that property;639
713	713	(10) A copy of the plans and specifications utilized in the construction or remodeling of640
714	714	improvements and the supplying of equipment to the condominium and in the641
715	715	construction and installation of all mechanical components serving the improvements and642
716	716	the site with a certificate in affidavit form of the declarant, developer, or other643
717	717	establishing entity, or their agent or an architect or engineer authorized to practice in this644
718	718	state, that such plans and specifications represent, to the best of his or her knowledge and645
719	719	belief, the actual plans and specifications utilized in the construction and improvement646
720	720	of the condominium association property and for the construction and installation of the647
721	721	mechanical components serving the improvements. If the condominium property has648
722	722	been declared a condominium more than three years after the completion of construction649
723	723	or remodeling of the improvements, the requirements of this paragraph shall not apply;650
724	724	(11) The names and addresses of all contractors, subcontractors, and suppliers utilized651
725	725	in the construction or remodeling of the improvements and in the landscaping of the652
726	726	condominium or condominium association property which the declarant, developer, or653 23 LC 50 0458ER
727	727	H. B. 303
728	728	- 27 -
729	729	other establishing entity had knowledge of at any time in the development of the654
730	730	condominium;655
731	731	(12) Insurance policies;656
732	732	(13) Copies of any certificates of occupancy that may have been issued for the657
733	733	condominium property;658
734	734	(14) Any other permits applicable to the condominium property which have been issued659
735	735	by governmental bodies and are in force or were issued within one year prior to the date660
736	736	the unit owners other than the declarant, developer, or other establishing entity took661
737	737	control of the condominium association;662
738	738	(15) All written warranties of the contractor, subcontractors, suppliers, and663
739	739	manufacturers, if any, that built the condominium property or condominium association664
740	740	properties that are still effective;665
741	741	(16) A roster of unit owners and their addresses and telephone numbers, if known, as666
742	742	shown on the declarant's records;667
743	743	(17) Leases of the common elements and other leases to which the condominium668
744	744	association is a party;669
745	745	(18) Employment contracts or service contracts in which the condominium association670
746	746	is one of the contracting parties or service contracts in which the condominium671
747	747	association or the unit owners have an obligation or responsibility, directly or indirectly,672
748	748	to pay some or all of the fee or charge of the person or persons performing the service;673
749	749	(19) All other contracts to which the condominium association is a party;674
750	750	(20) A turnover and transition inspection report included in the official records, under675
751	751	seal of an architect or engineer authorized to practice in this state, attesting to required676
752	752	maintenance, useful life, and replacement costs of common elements, including, but not677
753	753	limited to, the roof, structure, fireproofing and fire protection systems, elevators, heating678
754	754	and cooling systems, plumbing, electrical system, swimming pool or spa and equipment,679 23 LC 50 0458ER
755	755	H. B. 303
756	756	- 28 -
757	757	seawalls, pavement and parking areas, drainage systems, painting, and irrigation systems;680
758	758	and681
759	759	(21) A copy of the certificate of a surveyor and mapper recorded, or the recorded682
760	760	instrument, that transfers title to a unit in the condominium which is not accompanied by683
761	761	a recorded assignment of the declarant's, developer's, or other establishing entity's rights684
762	762	in favor of the grantee of such unit, whichever occurred first.685
763	763	44-3-293.686
764	764	(a) In addition to the requirements set forth in Code Section 44-3-227, homeowners'687
765	765	association or property owners' association members other than the declarant, developer,688
766	766	or other establishing entity are entitled to elect at least one member of the board of689
767	767	directors of the homeowners' association or property owners' association if 50 percent of690
768	768	the parcels in all phases of the community which will ultimately be operated by the691
769	769	homeowners' or property owners' association have been conveyed to the members.692
770	770	(b) Members of the homeowners' association or property owners' association other than693
771	771	the declarant, developer, or other establishing entity are entitled to elect at least a majority694
772	772	of the members of the board of directors of the homeowners' association or property695
773	773	owners' association when the earlier of the following events occurs:696
774	774	(1) Ninety days after 90 percent of the parcels in all phases of the community that will697
775	775	ultimately be operated by the homeowners' association or property owners' association698
776	776	have been conveyed to the members;699
777	777	(2) Such other percentage of the parcels has been conveyed to the members or such other700
778	778	date or event has occurred as is set forth in the governing documents in order to comply701
779	779	with the requirements of any governmentally chartered entity with regard to the mortgage702
780	780	financing of parcels;703
781	781	(3) Upon the declarant, developer, or other establishing entity abandoning or deserting704
782	782	its responsibility to maintain and complete the amenities or infrastructure as disclosed in705 23 LC 50 0458ER
783	783	H. B. 303
784	784	- 29 -
785	785	the governing documents. For purposes of this paragraph, there is a rebuttable706
786	786	presumption that the declarant, developer, or other establishing entity has abandoned and707
787	787	deserted the property if the declarant, developer, or other establishing entity has unpaid708
788	788	assessments for a period of more than two years;709
789	789	(4) Upon the declarant, developer, or other establishing entity filing a petition seeking710
790	790	protection under Chapter 7 of the United States Bankruptcy Code;711
791	791	(5) Upon the declarant, developer, or other establishing entity losing title to the property712
792	792	through a foreclosure action or the transfer of a deed in lieu of foreclosure, unless the713
793	793	successor owner has accepted an assignment of the declarant's, developer's, or other714
794	794	establishing entity's rights and responsibilities first arising after the date of such715
795	795	assignment; or716
796	796	(6) Upon a receiver for the declarant, developer, or other establishing entity being717
797	797	appointed by a superior court and not being discharged within 30 days after such718
798	798	appointment, unless the court determines within 30 days after such appointment that719
799	799	transfer of control would be detrimental to the association or its members.720
800	800	(c) The declarant, developer, or other establishing entity is entitled to elect at least one721
801	801	member of the board of directors of the homeowners' association or property owners'722
802	802	association as long as the declarant, developer, or other establishing entity holds for sale723
803	803	in the ordinary course of business at least 5 percent of the parcels in all phases of the724
804	804	community.725
805	805	(d) After the declarant, developer, or other establishing entity relinquishes control of the726
806	806	homeowners' association or property owners' association, the declarant, developer, or other727
807	807	establishing entity may exercise the right to vote on any matter in the same manner as any728
808	808	other member, except for purposes of reacquiring control of the homeowners' association729
809	809	or property owners' association or selecting the majority of the members of the board of730
810	810	directors.731 23 LC 50 0458ER
811	811	H. B. 303
812	812	- 30 -
813	813	(e) At such time that the members of the homeowners' association or property owners'732
814	814	association are entitled to elect at least a majority of the board of directors of the733
815	815	homeowners' association or property owners' association, the declarant, developer, or other734
816	816	establishing entity, at the declarant's, developer's, or other establishing entity's expense, and735
817	817	not later than 90 days thereafter, shall deliver the following documents to the board of736
818	818	directors of the association:737
819	819	(1) All deeds to common property owned by the homeowners' association or property738
820	820	owners' association;739
821	821	(2) The original of the association's declarations of covenants and restrictions;740
822	822	(3) A certified copy of the articles of incorporation of the association;741
823	823	(4) A copy of the bylaws;742
824	824	(5) The minute books, including all minutes;743
825	825	(6) The books and records of the association;744
826	826	(7) Policies, rules, and regulations, if any, which have been adopted;745
827	827	(8) Resignations of directors who are required to resign because the declarant is required746
828	828	to relinquish control of the association;747
829	829	(9) The financial records of the association from the date of incorporation through the748
830	830	date of turnover;749
831	831	(10) All association funds and control thereof;750
832	832	(11) All tangible property of the association;751
833	833	(12) A copy of all contracts which may be in force with the association as one of the752
834	834	parties;753
835	835	(13) A list of the names and addresses and telephone numbers of all contractors,754
836	836	subcontractors, or others in the current employ of the association;755
837	837	(14) Any and all insurance policies in effect;756
838	838	(15) Any permits issued to the association by governmental entities;757
839	839	(16) Any and all warranties in effect;758 23 LC 50 0458ER
840	840	H. B. 303
841	841	- 31 -
842	842	(17) A roster of current homeowners and property owners and their addresses and759
843	843	telephone numbers and section and lot numbers;760
844	844	(18) Employment and service contracts in effect;761
845	845	(19) All other contracts in effect to which the association is a party; and762
846	846	(20) The financial records, including, but not limited to, financial statements of the763
847	847	association and source documents from the incorporation of the association through the764
848	848	date of turnover and transition. The records shall be audited by an independent certified765
849	849	public accountant licensed by this state for the period from the incorporation of the766
850	850	association or from the period covered by the last audit, if an audit has been performed767
851	851	for each fiscal year since incorporation by an independent certified public accountant768
852	852	licensed by this state. All financial statements shall be prepared in accordance with769
853	853	generally accepted accounting principles and shall be audited in accordance with770
854	854	generally accepted auditing standards. The certified public accountant performing the771
855	855	audit shall examine to the extent necessary supporting documents and records, including772
856	856	the cash disbursements and related paid invoices to determine if expenditures were for773
857	857	association purposes and the billings, cash receipts, and related records of the association774
858	858	to determine that the declarant was charged and paid the proper amounts of assessments.775
859	859	Audits required by this paragraph shall be paid for by the declarant, developer, or other776
860	860	establishing entity.777
861	861	44-3-294.778
862	862	(a) For a community proposed or represented to have amenities, the plat for the initial779
863	863	phase of the development shall identify an area encompassing 25 percent of the proposed780
864	864	buildable lots with installed and approved infrastructure sufficient to fully support the781
865	865	houses or residential units proposed for construction in such area. Such area shall be782
866	866	clearly delineated on the plat as 'not approved for construction or building permits.' Only783
867	867	after the governing jurisdiction in which the property is located has issued the applicable784 23 LC 50 0458ER
868	868	H. B. 303
869	869	- 32 -
870	870	certificate of occupancy for those areas or amenities requiring such a certificate and has785
871	871	otherwise approved those areas or amenities not requiring a certificate of occupancy, shall786
872	872	the final plat for said area be approved by the governing jurisdiction. For large787
873	873	multi-phased projects, the governing jurisdiction shall have the discretion to shift the788
874	874	requirement to a later phase that upon completion achieves no more than 50 percent of the789
875	875	planned fully built-out project.790
876	876	(b)(1) Where a community includes amenities for which the community association will791
877	877	assume maintenance and responsibility or where a community association shall be792
878	878	established to govern all community association maintenance of property outside of all793
879	879	dwelling units, the requirements in paragraphs (2) through (7) of this subsection, in794
880	880	addition to any other requirements established by this part or the community association's795
881	881	rules and regulations, shall be met.796
882	882	(2) A prerequisite to the transfer of the declarant's, developer's, or other establishing797
883	883	entity's responsibilities to the community association shall require that not more than 60798
884	884	days prior to the date of turnover and transition the community association shall request,799
885	885	and the governing jurisdiction with enforcement action of the property shall perform, an800
886	886	inspection of the amenities to be maintained by the community association. The801
887	887	inspection shall identify those areas that do not meet the governing jurisdiction standards.802
888	888	(3) Prior to the inspection, the declarant, developer, or other establishing entity shall803
889	889	have identified the amenities and shall prepare a form affidavit in the manner provided804
890	890	in this Code section, which shall be executed by the declarant, developer, or other805
891	891	establishing entity and design professionals certifying the sufficiency and workability of806
892	892	the facilities set forth in the affidavit. The declarant, developer, or other establishing807
893	893	entity shall provide a copy of the certification affidavit to the governing jurisdiction with808
894	894	enforcement action over the property after signature of its officers and that of the809
895	895	community association authorized representative or officer as is set forth in this Code810
896	896	section. The community association shall not delay execution of the certification811 23 LC 50 0458ER
897	897	H. B. 303
898	898	- 33 -
899	899	affidavit except for good cause shown or may be liable for civil penalties provided in this812
900	900	part.813
901	901	(4) The declarant, developer, or other establishing entity shall correct and bear the cost814
902	902	of any substandard conditions identified by the inspection by the governing jurisdiction815
903	903	or any other source prior to the transfer of the infrastructure, common areas, and816
904	904	amenities or control responsibilities from the declarant, developer, or other establishing817
905	905	entity to the community association. In lieu of making the corrections, the declarant,818
906	906	developer, or other establishing entity may provide a bond to the community association819
907	907	in an amount sufficient to correct the identified deficiencies.820
908	908	(5) At least 60 days prior to turnover and transition, the declarant, developer, or other821
909	909	establishing entity shall provide the executed certification affidavit to the governing822
910	910	jurisdiction with enforcement action over the property of the community association, with823
911	911	a copy to the community association, which affidavit shall attest and certify that the items824
912	912	to be turned over under this part are fully completed as designed or modified to provide825
913	913	equivalent functional performance, or have deficiencies remaining to be completed as826
914	914	specifically identified in the affidavit.827
915	915	(6) Failure of the declarant, developer, or other establishing entity to provide the required828
916	916	certification affidavit shall subject the declarant, developer, or other establishing entity829
917	917	to the civil penalties provided under this part. Said affidavit shall be maintained by the830
918	918	governing body as a public record and shall be subject to disclosure under Article 4 of831
919	919	Chapter 18 of Title 50, relating to open records.832
920	920	(7) The declarant, developer, or other establishing entity shall provide the certification833
921	921	affidavit to the local governing body with enforcement action over the property prior to834
922	922	the turnover and transition, which shall provide as follows:835
923	923	'This certification affidavit is for (name of community as reflected in the community836
924	924	plat last filed at the time of the first property sale of said community to a member or837
925	925	future member of the community association who was not a declarant, developer, or838 23 LC 50 0458ER
926	926	H. B. 303
927	927	- 34 -
928	928	other establishing entity). I certify that the below listed items as recorded in the plat839
929	929	last filed at the time of inception are fully completed as designed or modified to provide840
930	930	equivalent functional performance or have deficiencies remaining to be completed as841
931	931	specifically identified below:842
932	932	(a) With respect to common areas of the community for which the community843
933	933	association or other entity (other than individual residential property owners) is844
934	934	responsible to assume maintenance responsibility:845
935	935	(1) All recreational areas are complete and operational;846
936	936	(2) Swimming pools and facilities requiring Board of Health approval have been847
937	937	certified acceptable by the Health Department;848
938	938	(3) Swimming pools have a fence with a self-closing and positive latching gate.849
939	939	The fence is constructed outside of the deck area and has an unclimbable space;850
940	940	(4) All storm-water management facilities, including, but not limited to, piping, as851
941	941	well as nonstructural system components, including, but not limited to, detention852
942	942	ponds, swales, and ditches are constructed and operating as intended with all853
943	943	construction sediment and debris removed, and no observable or known854
944	944	maintenance requirements existing; and855
945	945	(5) Sidewalks in the public and community association owned areas are complete856
946	946	and constructed in accordance with standards;857
947	947	(b) With respect to a clubhouse or common area buildings and structures:858
948	948	(1) All permanent street numbers are displayed;859
949	949	(2) All proposed handicap parking and accessibility is complete;860
950	950	(3) All handrails and guardrails are installed properly;861
951	951	(4) All exit signs and emergency lights are installed and working properly;862
952	952	(5) All planned and required fire extinguishers are mounted;863
953	953	(6) All required fire alarms and sprinkler systems are installed per code and are864
954	954	functioning properly; and865 23 LC 50 0458ER
955	955	H. B. 303
956	956	- 35 -
957	957	(7) A written warranty has been provided;866
958	958	(c) With respect to common or private property subject to restrictions to avoid867
959	959	negative impact to the public or environment:868
960	960	(1) All areas with slopes of 40 percent or greater subject to the steep slope869
961	961	ordinance have been defined by a properly recorded easement;870
962	962	(2) All buffers, setbacks, and easements have been properly recorded and are871
963	963	clearly identifiable; and872
964	964	(3) All temporary erosion control measures have been removed;873
965	965	(d) With respect to other items:874
966	966	(1) All conditions of zoning have been complied with; and875
967	967	(2) All construction and other areas subject to erosion have been stabilized with876
968	968	appropriate vegetation or other acceptable measures; and877
969	969	(e) Deficiencies that currently exist and that will require action before use or878
970	970	maintenance at routine level may be achieved are as follows: (list and describe such879
971	971	deficiencies)'.880
972	972	44-3-295.881
973	973	Prior to the declarant, developer, or other establishing entity relinquishing control of the882
974	974	community association pursuant to this part or other law, actions taken by members of the883
975	975	board of directors designated by the declarant, developer, or other establishing entity are884
976	976	considered actions taken by the declarant, developer, or other establishing entity and the885
977	977	declarant, developer, or other establishing entity is responsible to the community886
978	978	association and its members for all such actions.887
979	979	44-3-296.888
980	980	If, during the period prior to the time that the declarant, developer, or other establishing889
981	981	entity relinquishes control of the community association pursuant to this part or other law,890 23 LC 50 0458ER
982	982	H. B. 303
983	983	- 36 -
984	984	any provision of this part or any rule promulgated thereunder is violated by the community891
985	985	association, then the declarant, developer, or other establishing entity shall be responsible892
986	986	for such violation and subject to civil penalties as provided for in this part.893
987	987	44-3-297.894
988	988	Any community association shall have a cause of action in the superior court of the county895
989	989	of the community association. Civil penalties for violations of this part by a declarant,896
990	990	developer, or other establishing entity shall be not less than $500.00 and up to $5,000.00897
991	991	per violation at the discretion of the court, in addition to any other remedies available at898
992	992	law to the community association. A community association may recover the cost of899
993	993	litigation, including, but not limited to, court costs and reasonable attorney's fees, from a900
994	994	declarant, developer, or other establishing entity for the enforcement of this part."901
995	995	SECTION 4.902
996	996	All laws and parts of laws in conflict with this Act are repealed.903