| 1 | 1 | | 25 LC 50 1035 |
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| 2 | 2 | | House Bill 512 |
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| 3 | 3 | | By: Representatives Lewis-Ward of the 115 |
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| 4 | 4 | | th |
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| 5 | 5 | | , Hugley of the 141 |
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| 6 | 6 | | st |
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| 7 | 7 | | , Washburn of the 144 |
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| 8 | 8 | | th |
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| 9 | 9 | | , |
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| 10 | 10 | | Powell of the 33 |
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| 11 | 11 | | rd |
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| 12 | 12 | | , Campbell of the 35 |
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| 13 | 13 | | th |
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| 14 | 14 | | , and others |
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| 15 | 15 | | A BILL TO BE ENTITLED |
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| 16 | 16 | | AN ACT |
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| 17 | 17 | | To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to |
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| 18 | 18 | | 1 |
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| 19 | 19 | | regulation of specialized land transactions, so as to revise provisions related to property2 |
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| 20 | 20 | | owners' associations; to require such associations to provide annual certificates of good3 |
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| 21 | 21 | | standing for the payment of assessments and other charges; to require such associations to4 |
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| 22 | 22 | | offer participation in alternative dispute resolution prior to the creation of a lien for unpaid5 |
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| 23 | 23 | | assessments and other charges; to provide for the issuance of statements of accounts; to6 |
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| 24 | 24 | | provide for information required in and the manner of requesting and providing such7 |
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| 25 | 25 | | statements; to provide for the effect of failure to furnish such statements as required; to8 |
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| 26 | 26 | | provide for alternative dispute resolution policies and requirements therefor; to provide for9 |
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| 27 | 27 | | definitions; to amend Code Section 44-14-15 of the Official Code of Georgia Annotated,10 |
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| 28 | 28 | | relating to fee for a future conveyance and limited circumstances relative to property, so as11 |
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| 29 | 29 | | to provide for a cross-reference; to provide for related matters; to provide for applicability;12 |
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| 30 | 30 | | to repeal conflicting laws; and for other purposes.13 |
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| 31 | 31 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:14 |
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| 32 | 32 | | H. B. 512 |
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| 33 | 33 | | - 1 - 25 LC 50 1035 |
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| 34 | 34 | | SECTION 1. |
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| 35 | 35 | | 15 |
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| 36 | 36 | | Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to regulation of16 |
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| 37 | 37 | | specialized land transactions, is amended by revising subsection (c) of Code Section17 |
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| 38 | 38 | | 44-3-225, relating to assessment of expenses, exemption from liability, and liability for18 |
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| 39 | 39 | | unpaid assessments, and by adding a new subsection to read as follows:19 |
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| 40 | 40 | | "(c) Unless otherwise provided in the instrument and except as provided in subsection (d)20 |
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| 41 | 41 | | of this Code section, the grantee in a conveyance of a lot shall be jointly and severally21 |
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| 42 | 42 | | liable with the grantor thereof for all unpaid assessments against the latter up to the time22 |
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| 43 | 43 | | of the conveyance without prejudice to the grantee's right to recover from the grantor the23 |
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| 44 | 44 | | amounts paid by the grantee; provided, however, that, |
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| 45 | 45 | | if the grantor or grantee shall request24 |
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| 46 | 46 | | a statement of account from the association as provided in subsection (d) of Code Section25 |
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| 47 | 47 | | 44-3-232 44-3-236, such grantee and his or her successors, successors-in-title successors26 |
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| 48 | 48 | | in title, and assigns shall not be liable for nor shall the property owners' association lot27 |
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| 49 | 49 | | conveyed be subject to a lien for any unpaid assessments against such grantor in excess of28 |
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| 50 | 50 | | any amount set forth in the statement."29 |
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| 51 | 51 | | "(e) For each lot for which all assessments and other amounts due to the association have30 |
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| 52 | 52 | | been paid in full, the association or its authorized agent shall provide the lot owner a31 |
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| 53 | 53 | | certificate stating that such lot is in good standing within 45 days of the end of each fiscal32 |
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| 54 | 54 | | year and without cost to the lot owner."33 |
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| 55 | 55 | | SECTION 2.34 |
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| 56 | 56 | | Said chapter is further amended by revising subsections (a), (d), and (e) of Code Section35 |
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| 57 | 57 | | 44-3-232, relating to assessments against lot owners as constituting lien in favor of36 |
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| 58 | 58 | | association, additional charges against lot owners, procedure for foreclosing lien, and37 |
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| 59 | 59 | | obligation to provide statement of amounts due, as follows:38 |
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| 60 | 60 | | "(a)(1) All sums lawfully assessed by the association against any lot owner or property39 |
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| 61 | 61 | | owners' association lot, whether for the share of the common expenses pertaining to that40 |
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| 62 | 62 | | H. B. 512 |
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| 63 | 63 | | - 2 - 25 LC 50 1035 |
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| 64 | 64 | | lot, fines, or otherwise, and all reasonable charges made to any lot owner or lot for |
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| 65 | 65 | | 41 |
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| 66 | 66 | | materials furnished or services rendered by the association at the owner's request to or on42 |
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| 67 | 67 | | behalf of the lot owner or lot, shall, from the time the sums became due and payable, be43 |
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| 68 | 68 | | the personal obligation of the lot owner, |
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| 69 | 69 | | and shall, from the time the association44 |
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| 70 | 70 | | completes its requirements pursuant to Code Section 44-3-237, constitute a lien in favor45 |
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| 71 | 71 | | of the association on the lot prior and superior to all other liens whatsoever except:46 |
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| 72 | 72 | | (1)(A) Liens for ad valorem taxes on the lot;47 |
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| 73 | 73 | | (2)(B) The lien of any first priority mortgage covering the lot and the lien of any48 |
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| 74 | 74 | | mortgage recorded prior to the recording of the declaration; or49 |
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| 75 | 75 | | (3)(C) The lien of any secondary purchase money mortgage covering the lot, provided50 |
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| 76 | 76 | | that neither the grantee nor any successor grantee on the mortgage is the seller of the51 |
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| 77 | 77 | | lot.52 |
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| 78 | 78 | | (2) The recording of the declaration pursuant to this article shall constitute record notice53 |
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| 79 | 79 | | of the existence of the lien provided for in paragraph (1) of this subsection, and no further54 |
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| 80 | 80 | | recordation of any claim of lien for assessments shall be required."55 |
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| 81 | 81 | | "(d) Any lot owner, mortgagee of a lot, person having executed a contract for the purchase56 |
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| 82 | 82 | | of a lot, or lender considering the loan of funds to be secured by a lot shall be entitled upon57 |
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| 83 | 83 | | request to a statement from the association or its management agent setting forth the58 |
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| 84 | 84 | | amount of assessments past due and unpaid together with late charges and interest59 |
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| 85 | 85 | | applicable thereto against that lot. Such request shall be in writing, shall be delivered to60 |
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| 86 | 86 | | the registered office of the association, and shall state an address to which the statement is61 |
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| 87 | 87 | | to be directed. Failure on the part of the association, within five business days from the62 |
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| 88 | 88 | | receipt of such request, to mail or otherwise furnish such statement regarding amounts due63 |
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| 89 | 89 | | and payable at the expiration of such five-day period with respect to the lot involved to64 |
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| 90 | 90 | | such address as may be specified in the written request therefor shall cause the lien for65 |
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| 91 | 91 | | assessments created by this Code section to be extinguished and of no further force or66 |
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| 92 | 92 | | effect as to the title or interest acquired by the purchaser or lender, if any, as the case may67 |
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| 93 | 93 | | H. B. 512 |
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| 94 | 94 | | - 3 - 25 LC 50 1035 |
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| 95 | 95 | | be, and their respective successors and assigns, in the transaction contemplated in68 |
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| 96 | 96 | | connection with such request. The information specified in such statement shall be binding69 |
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| 97 | 97 | | upon the association and upon every lot owner. Payment of a fee not exceeding $10.0070 |
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| 98 | 98 | | may be required as a prerequisite to the issuance of such a statement if the instrument so71 |
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| 99 | 99 | | provides.72 |
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| 100 | 100 | | (e) Nothing in this Code section shall be construed to prohibit actions maintainable73 |
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| 101 | 101 | | pursuant to Code Section 44-3-223 to recover sums for which subsection (a) of this Code74 |
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| 102 | 102 | | section creates a lien."75 |
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| 103 | 103 | | SECTION 3.76 |
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| 104 | 104 | | Said chapter is further amended by adding new Code sections to read as follows:77 |
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| 105 | 105 | | "44-3-236.78 |
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| 106 | 106 | | (a) Within ten business days after receiving a written or electronic request for a statement79 |
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| 107 | 107 | | of account from a lot owner or the lot owner's designee, a mortgage lender, or a mortgagee80 |
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| 108 | 108 | | of a lot or the designee of such mortgagee of a lot, the association shall issue a statement81 |
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| 109 | 109 | | of account as provided for in this Code section. A request for a statement of account shall82 |
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| 110 | 110 | | be considered received at the time it is sent if transmitted by electronic means or by hand83 |
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| 111 | 111 | | delivery, within three days if transmitted by first-class mail, and upon delivery if84 |
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| 112 | 112 | | transmitted by statutory overnight delivery.85 |
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| 113 | 113 | | (b) Each association shall designate on its public website or otherwise publish the name86 |
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| 114 | 114 | | of a person or entity with a street or email address for receipt of a request for a statement87 |
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| 115 | 115 | | of account. A statement of account may be prepared and issued by an officer, authorized88 |
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| 116 | 116 | | agent, or authorized representative of the association, including any authorized agent,89 |
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| 117 | 117 | | authorized representative, or employee of a management company authorized to complete90 |
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| 118 | 118 | | the statement of account on behalf of the board or association. The statement of account91 |
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| 119 | 119 | | shall be provided by email, electronic download, hand delivery, first-class mail, or statutory92 |
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| 120 | 120 | | overnight delivery to the requester on the date of its issuance.93 |
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| 121 | 121 | | H. B. 512 |
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| 122 | 122 | | - 4 - 25 LC 50 1035 |
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| 123 | 123 | | (c) A statement of account as provided for in this Code section shall contain all of the94 |
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| 124 | 124 | | following information regarding the property for which the transaction is to occur:95 |
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| 125 | 125 | | (1) Date of issuance;96 |
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| 126 | 126 | | (2) Name of the lot owner or owners as reflected in the books and records of the97 |
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| 127 | 127 | | association;98 |
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| 128 | 128 | | (3) Lot designation and address;99 |
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| 129 | 129 | | (4) Assigned parking or garage space number, as reflected in the books and records of100 |
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| 130 | 130 | | the association, as applicable;101 |
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| 131 | 131 | | (5) Attorney's name and contact information if the account is delinquent and has been102 |
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| 132 | 132 | | turned over to an attorney for collection;103 |
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| 133 | 133 | | (6) Name of the requester;104 |
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| 134 | 134 | | (7) Assessment information and other information:105 |
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| 135 | 135 | | (A) The amount of the regular periodic assessment levied against the lot and the106 |
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| 136 | 136 | | frequency of such assessment;107 |
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| 137 | 137 | | (B) The date through which the regular periodic assessments have been paid;108 |
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| 138 | 138 | | (C) The due date for the next installment of the regular periodic assessment and the109 |
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| 139 | 139 | | amount due;110 |
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| 140 | 140 | | (D) An itemized list of all assessments, special assessments, and other moneys owed111 |
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| 141 | 141 | | to the association for the lot as of the date of issuance of the statement of account; and112 |
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| 142 | 142 | | (E) An itemized list of any additional assessments, special assessments, and other113 |
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| 143 | 143 | | moneys that are scheduled to become due for each day after the date of issuance for the114 |
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| 144 | 144 | | effective period of the statement of account. In calculating the amounts that are115 |
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| 145 | 145 | | scheduled to become due, the association may assume that any delinquent amounts will116 |
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| 146 | 146 | | remain delinquent during the effective period of the statement of account; and117 |
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| 147 | 147 | | (8) Additional information:118 |
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| 148 | 148 | | (A) Any open violation of any rule or regulation notice to the lot owner in the119 |
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| 149 | 149 | | association official records;120 |
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| 150 | 150 | | H. B. 512 |
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| 151 | 151 | | - 5 - 25 LC 50 1035 |
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| 152 | 152 | | (B) A list of and contact information for all other associations of which the lot owner121 |
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| 153 | 153 | | is a member by virtue of ownership of the lot;122 |
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| 154 | 154 | | (C) A copy of the current covenants and bylaws of the association and a copy of the123 |
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| 155 | 155 | | rules and regulations adopted by the association;124 |
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| 156 | 156 | | (D) A copy of the association's certificate of insurance for any insurance provided by125 |
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| 157 | 157 | | the association for the lot or the name, address, email address, and telephone number126 |
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| 158 | 158 | | of the association's insurance provider of any such insurance; and127 |
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| 159 | 159 | | (E) The signature of an officer or authorized agent of the association.128 |
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| 160 | 160 | | (d) A statement of account issued pursuant to this Code section shall have a 30 day129 |
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| 161 | 161 | | effective period. If additional information is needed or a mistake related to the statement130 |
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| 162 | 162 | | of account becomes known to the association or its agent within the effective period, an131 |
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| 163 | 163 | | amended statement of account may be delivered and become effective if a sale or132 |
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| 164 | 164 | | refinancing of the lot has not been completed during such effective period. An amended133 |
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| 165 | 165 | | statement of account shall be delivered on the date of issuance and a new 30 day effective134 |
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| 166 | 166 | | period shall begin on such date.135 |
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| 167 | 167 | | (e) An association waives the right to collect any moneys owed in excess of the amounts136 |
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| 168 | 168 | | specified in the statement of account from any person and such person's successors or137 |
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| 169 | 169 | | assigns who in good faith rely upon such statement of account.138 |
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| 170 | 170 | | (f) If the association or its agent fails to disclose in the statement of account the correct139 |
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| 171 | 171 | | amount of an assessment, a special assessment, or other moneys owed to the association,140 |
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| 172 | 172 | | the purchaser of the lot shall not be obligated to pay the incorrectly disclosed amount and141 |
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| 173 | 173 | | any lien for the incorrectly disclosed amount owed to the association shall be extinguished.142 |
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| 174 | 174 | | (g)(1) An association's authorized agent may charge the association a reasonable fee for143 |
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| 175 | 175 | | the preparation and issuance of a statement of account which shall not exceed $250.00.144 |
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| 176 | 176 | | (2) If a statement of account is requested on an expedited basis and issued within three145 |
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| 177 | 177 | | business days after the request, the association's authorized agent may charge the146 |
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| 178 | 178 | | association an additional fee of $50.00.147 |
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| 179 | 179 | | H. B. 512 |
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| 180 | 180 | | - 6 - 25 LC 50 1035 |
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| 181 | 181 | | (3) Neither the association nor its authorized agent shall charge the requester of a148 |
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| 182 | 182 | | statement of account pursuant to this Code section any fees associated with the149 |
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| 183 | 183 | | preparation and issuance of the statement of account as provided for in this Code section.150 |
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| 184 | 184 | | 44-3-237.151 |
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| 185 | 185 | | (a) As used in this Code section, the term 'alternative dispute resolution' means mediation,152 |
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| 186 | 186 | | arbitration, conciliation, or any other nonjudicial procedure that involves a neutral third153 |
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| 187 | 187 | | party in the decision-making process.154 |
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| 188 | 188 | | (b)(1) An association shall adopt a written policy providing for a fair, reasonable, and155 |
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| 189 | 189 | | expeditious alternative dispute resolution procedure for resolving any dispute regarding156 |
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| 190 | 190 | | sums assessed by the association.157 |
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| 191 | 191 | | (2) The association shall provide a copy of such policy to each lot owner annually and158 |
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| 192 | 192 | | shall make a copy of such policy available to a lot owner upon request.159 |
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| 193 | 193 | | (c) In developing an alternative dispute resolution procedure pursuant to this Code section,160 |
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| 194 | 194 | | an association shall make maximum, reasonable use of available local alternative dispute161 |
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| 195 | 195 | | resolution programs involving a neutral third party, including low-cost mediation162 |
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| 196 | 196 | | programs.163 |
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| 197 | 197 | | (d) A fair, reasonable, and expeditious alternative dispute resolution procedure shall, at a164 |
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| 198 | 198 | | minimum, satisfy all of the following requirements:165 |
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| 199 | 199 | | (1) The procedure may be invoked by a lot owner. A request invoking the procedure166 |
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| 200 | 200 | | shall be in writing;167 |
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| 201 | 201 | | (2) The procedure shall provide for prompt deadlines. The procedure shall state the168 |
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| 202 | 202 | | maximum time for the association to act on a request invoking the procedure;169 |
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| 203 | 203 | | (3) If the procedure is invoked by a lot owner, the association shall participate in the170 |
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| 204 | 204 | | procedure; and171 |
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| 205 | 205 | | (4) A lot owner shall not be charged a fee to participate.172 |
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| 206 | 206 | | H. B. 512 |
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| 207 | 207 | | - 7 - 25 LC 50 1035 |
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| 208 | 208 | | (e) The lien for unpaid assessments or other charges as provided for in Code Section173 |
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| 209 | 209 | | 44-3-225 shall not be created unless the association offers the lot owner participation in174 |
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| 210 | 210 | | alternative dispute resolution in accordance with this Code section, and, if so requested by175 |
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| 211 | 211 | | the lot owner, the association participates in such alternative dispute resolution."176 |
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| 212 | 212 | | SECTION 4.177 |
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| 213 | 213 | | Code Section 44-14-15 of the Official Code of Georgia Annotated, relating to fee for a future178 |
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| 214 | 214 | | conveyance and limited circumstances relative to property, is amended by revising paragraph179 |
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| 215 | 215 | | (3) of subsection (c) as follows:180 |
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| 216 | 216 | | "(3) A property owners' association formed for the purposes of exercising the powers of181 |
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| 217 | 217 | | an association of property owners that has not been formed pursuant to or which has not182 |
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| 218 | 218 | | adopted the provisions of Article 6 of Chapter 3 of this title, the 'Georgia Property183 |
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| 219 | 219 | | Owners' Association Act,' provided that such association shall comply with subsection184 |
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| 220 | 220 | | (d) of Code Section 44-3-232 44-3-236;"185 |
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| 221 | 221 | | SECTION 5.186 |
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| 222 | 222 | | This Act shall not apply to contracts entered into prior to July 1, 2025, before the expiration187 |
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| 223 | 223 | | or first renewal of such contract.188 |
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| 224 | 224 | | SECTION 6.189 |
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| 225 | 225 | | All laws and parts of laws in conflict with this Act are repealed.190 |
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| 226 | 226 | | H. B. 512 |
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| 227 | 227 | | - 8 - |
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