Georgia 2025-2026 Regular Session

Georgia House Bill HB62 Compare Versions

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11 25 LC 62 0034
22 House Bill 62
33 By: Representatives Scott of the 76
44 th
55 , Davis of the 87
66 th
77 , and Schofield of the 63
88 rd
99
1010 A BILL TO BE ENTITLED
1111 AN ACT
1212 To amend Articles 3 and 6 of Chapter 3 of Title 44 of the Official Code of Georgia
1313 1
1414 Annotated, relating to condominium associations and property owners' associations,2
1515 respectively, so as to provide requirements for board members for condominium associations3
1616 and property owners' associations; to provide for allocation of votes; to provide for proxies;4
1717 to provide for quorums; to provide for residency for board members; to provide for size5
1818 requirements for boards; to provide for board elections, filing, and certification; to provide6
1919 for contests of election results; to provide for annual registration requirements for such7
2020 associations; to provide for a short title; to provide for a purpose; to provide for related8
2121 matters; to provide for an effective date and applicability; to provide for severability; to9
2222 repeal conflicting laws; and for other purposes.10
2323 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
2424 SECTION 1.12
2525 This Act shall be known as the "Georgia HOA Accountability and Community13
2626 Empowerment Act (HACEA)."14
2727 H. B. 62
2828 - 1 - 25 LC 62 0034
2929 SECTION 2.
3030 15
3131 The purpose of this Act is to establish fair, transparent, and enforceable regulations for16
3232 homeowners' associations, including condominium associations and property owner's17
3333 associations, to ensure accountability, enhance resident engagement, and protect the interests18
3434 of community members.19
3535 SECTION 3.20
3636 Article 3 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to21
3737 condominiums, is amended by revising paragraph (8) of subsection (a) of Code22
3838 Section 44-3-77, relating to contents of declaration, as follows:23
3939 "(8) The allocation to each unit of a number of votes
4040 in the association of one vote in24
4141 accordance with Code Section 44-3-79."25
4242 SECTION 4.26
4343 Said article is further amended by revising Code Section 44-3-79, relating to27
4444 allocation – votes in association, how votes cast, and majority vote requirements, as follows:28
4545 "44-3-79.29
4646 (a) The declaration shall allocate a number of votes in the association to each unit depicted30
4747 on plats or plans that comply with subsections (a) and (b) of Code Section 44-3-83. The31
4848 allocation of such votes may be by percentage, fraction, formula, or any other method32
4949 which indicates the relative voting power allocated to each unit. If an equal vote is33
5050 allocated to each unit, the declaration may merely so state. All of the votes in the34
5151 association shall be allocated among the units depicted on such plats or plans and shall be35
5252 subject to reallocation as provided in this article one vote to each unit.36
5353 (b) Since a unit owner may be more than one person, if only one of those persons is37
5454 present at a meeting of the association or is voting by proxy, ballot, or written consent, that38
5555 such person shall be entitled to cast the votes vote pertaining to that unit. However, if more39
5656 H. B. 62
5757 - 2 - 25 LC 62 0034
5858 than one of those such persons is are present or each executes a proxy, ballot, or written40
5959 consent, the vote pertaining to that unit shall be cast only in accordance with their41
6060 unanimous agreement unless the condominium instruments expressly provide otherwise;42
6161 and such consent shall be conclusively presumed if any one of them purports to cast the43
6262 votes vote pertaining to that unit without protest being made immediately by any of the44
6363 others to the person presiding over the meeting or vote.45
6464 (c) The votes vote pertaining to any unit may, and, in the case of any unit owner not a46
6565 natural person or persons, shall, be cast pursuant to a proxy or proxies duly executed by or47
6666 on behalf of the unit owner or, in cases where the unit owner is more than one person, by48
6767 or on behalf of the joint owners of the unit. No such proxy shall be revocable except as49
6868 provided in Code Section 14-2-722 or 14-3-724 or by written notice delivered to the50
6969 association by the unit owner or by any joint owners of a unit. Any proxy shall be void if51
7070 it is not dated or if it purports to be revocable without such notice. Any proxy shall also52
7171 reasonably identify the unit owner or owners and the unit for which it is a proxy. If such53
7272 proxy does not reasonably identify the unit owner or owners and the unit for which it is a54
7373 proxy, such proxy shall be void.55
7474 (d) Except in the case of any condominium of which no part is restricted exclusively to56
7575 residential use, if 50 percent or more of the votes in the association pertain to 25 percent57
7676 or less of the condominium units, then in any case where a majority vote is required by the58
7777 condominium instruments or by this article the requirement for such a majority shall be59
7878 deemed to include, in addition to the specified majority of the votes, assent by the unit60
7979 owners of a like majority of the condominium units.61
8080 (e)(d) Anything in this Code section to the contrary notwithstanding, no votes vote in the62
8181 association shall be deemed to pertain to any condominium unit during such time as the63
8282 unit owner thereof is the association nor shall any vote be allocated to any condominium64
8383 unit unless the condominium unit is depicted on plats or plans that comply with65
8484 subsections (a) and (b) of Code Section 44-3-83. Except to the extent otherwise expressly66
8585 H. B. 62
8686 - 3 - 25 LC 62 0034
8787 provided or permitted by this article, the votes vote allocated to any condominium unit67
8888 shall not be altered."68
8989 SECTION 5.69
9090 Said article is further amended by revising Code Sections 44-3-103 and 44-3-104, relating70
9191 to quorums at meetings of association or board and directors and officers and eligibility,71
9292 respectively, as follows;72
9393 "44-3-103.73
9494 (a) Unless the condominium instruments or bylaws provide otherwise, a quorum shall be74
9595 deemed present throughout any meeting, except the annual meeting, of the members of the75
9696 association if persons entitled to cast more than one-third of the votes are present at the76
9797 beginning of the meeting. Unless the condominium instruments or bylaws specify a larger77
9898 percentage, the presence of persons entitled to cast one-half of the votes of the board of78
9999 directors shall constitute a quorum for the transaction of any business at any meeting of the79
100100 board.80
101101 (b) A quorum shall be deemed present throughout any annual meeting of the members of81
102102 the association. Decisions and elections may proceed regardless of the number of members82
103103 of the association in attendance at such meeting.83
104104 44-3-104.84
105105 (a) If the condominium instruments provide that any member of the board of directors or85
106106 any officer of the association must be a unit owner, then, notwithstanding paragraph (1) of86
107107 subsection (a) of Code Section 44-3-75, the Members of a board of directors or any officer87
108108 of an association shall be a unit owner with residency in the community. A unit owner88
109109 establishes residency by being a unit owner of a condominium governed by the89
110110 condominium association, paying utilities for the unit, using the unit address for voter90
111111 registration, and listing the unit on his or her driver's license or other government91
112112 H. B. 62
113113 - 4 - 25 LC 62 0034
114114 identification. Nonresident individuals shall not be eligible to serve on the board. The92
115115 term 'unit owner' in such context shall, unless the condominium instruments otherwise93
116116 provide, be deemed to include, without limitation, any shareholder, director, officer, partner94
117117 in, or trustee of any person who is, either alone or in conjunction with any other person or95
118118 persons, a unit owner. Any individual who would not be eligible to serve as a member of96
119119 the board of directors or officer were he or she not a shareholder, director, officer, partner97
120120 in, or trustee of such a person shall be deemed to have disqualified himself or herself from98
121121 continuing in office if he or she ceases to have any such affiliation with that such person.99
122122 (b) A board of directors shall consist of three or more individuals. Only one individual100
123123 residing in a unit shall be eligible to serve on such board at any time.101
124124 (c) The association shall provide proof of meeting the minimum number of board members102
125125 as part of filing its annual registration for the Secretary of State pursuant to Code103
126126 Section 14-2-1622 or Code Section 14-3-1622.104
127127 (d) Failure to meet the requirements in subsection (c) of this Code section shall subject the105
128128 condominium association to administrative suspension by the Secretary of State until the106
129129 following conditions are met:107
130130 (1) A successful election is held to reinstate the board with at least three members; and108
131131 (2) A reinstatement request providing proof of meeting the minimum number of board109
132132 members is submitted and approved by the Secretary of State."110
133133 SECTION 6.111
134134 Said article is further amended by adding new Code sections to read as follows:112
135135 "44-3-104.1.113
136136 (a) Elections of board members shall be held not less frequently than annually. Board114
137137 members shall be elected by winning a majority of the voting units. Elections shall be held115
138138 in accordance with the term limits set forth in the association's bylaws.116
139139 H. B. 62
140140 - 5 - 25 LC 62 0034
141141 (b) Ballots shall include the names of candidates and shall be given to each voting117
142142 member, including such members voting by proxy.118
143143 (c) The association shall maintain electronic scans of each ballot to be made available for119
144144 inspection by unit owners for one year following any election for board members.120
145145 (d) Election results shall be filed with the Secretary of State's Corporations Division121
146146 within 30 days of such election.122
147147 (e) The Secretary of State shall certify election results not fewer than 30 days nor more123
148148 than 45 days after such election or more than 15 days after the Secretary of State's124
149149 Corporations Division resolves election contests, whichever is later. The Secretary of125
150150 State's Corporations Division shall maintain certified election records for at least three126
151151 years after certification.127
152152 44-3-104.2.128
153153 (a) A petition to contest the result of an election provided for in Code Section 44-3-104.1129
154154 shall be filed with the Secretary of State's Corporations Division by a unit owner within130
155155 seven days of an association filing an election result with such division. Such petition shall131
156156 allege:132
157157 (1) The contestant's qualification to institute the contest;133
158158 (2) The contestant's desire to contest the result of such election;134
159159 (3) The name of each person who was a candidate at such election;135
160160 (4) Each ground of contest;136
161161 (5) The date the association filed the result of such election with the Secretary of State's137
162162 Corporations Division;138
163163 (6) The relief sought; and139
164164 (7) Such other facts as are necessary to provide a full, particular, and explicit statement140
165165 of such contest.141
166166 H. B. 62
167167 - 6 - 25 LC 62 0034
168168 (b) Such contestant may file documentation and other evidence to support the contest with142
169169 the petition.143
170170 (c) The petition shall be verified by the affidavit of each contestant. Such affidavit shall144
171171 be taken and subscribed before some person authorized by law to administer oaths and145
172172 shall state that the contestant believes the facts alleged therein are true and that according146
173173 to the best of his or her knowledge and belief the contested result of the election is incorrect147
174174 and the petition to contest the same is made in good faith.148
175175 (d) Upon the filing of a petition provided for in this Code section, the Secretary of State's149
176176 Corporations Division shall issue to the association notice requiring the association to150
177177 answer such petition by a day to be fixed in such notice not more than ten days nor fewer151
178178 than five days after the service of such notice. Such notice shall be sent to the association152
179179 by certified mail.153
180180 (e) After the filing of a petition and answer, the Secretary of State's Corporations Division154
181181 shall render a decision on the petition not more than 15 days after the filing of such answer. 155
182182 When a contestant prevails, the election for board members shall be repeated. When the156
183183 association prevails, the results of such election shall stand as filed with the Secretary of157
184184 State's Corporations Division.158
185185 (f) Petitions filed pursuant to this Code section after the Secretary of State's Corporations159
186186 Division has certified the election but on or before seven days after the association filed the160
187187 election result shall be deemed timely.161
188188 44-3-104.3.162
189189 The Secretary of State is authorized to investigate complaints, enforce compliance, and163
190190 impose penalties for violations of this Act."164
191191 H. B. 62
192192 - 7 - 25 LC 62 0034
193193 SECTION 7.
194194 165
195195 Article 6 of Chapter 3 of Title 44, relating to property owners' associations, is amended by166
196196 revising Code Section 44-3-224, relating to voting at association meetings, as follows:167
197197 "44-3-224.168
198198 (a) The declaration shall allocate one vote to each lot.
199199 169
200200 (a)(b) Since a lot owner may be more than one person, if only one of those persons is170
201201 present at a meeting of the association, or is voting by proxy, ballot, or written consent, that171
202202 such person shall be entitled to cast the votes vote pertaining to that lot. However, if more172
203203 than one of those such persons is are present, or each executes a proxy, ballot, or written173
204204 consent, the vote pertaining to that lot shall be cast only in accordance with their174
205205 unanimous agreement unless the instrument expressly provides otherwise; and such175
206206 consent shall be conclusively presumed if any one of them purports to cast the votes vote176
207207 pertaining to that lot without protest being made immediately by any of the others to the177
208208 person presiding over the meeting or vote.178
209209 (b)(c) The votes vote pertaining to any lot may, and, in the case of any lot owner not a179
210210 natural person or persons, shall, be cast pursuant to a proxy or proxies duly executed by or180
211211 on behalf of the lot owner or, in cases where the lot owner is more than one person, by or181
212212 on behalf of the joint owners of the lot. No such proxy shall be revocable except as182
213213 provided in Code Section 14-2-722 or Code Section 14-3-724 or by written notice183
214214 delivered to the association by the lot owner or by any joint owners of a lot. Any proxy184
215215 shall be void if it is not dated or if it purports to be revocable without such notice. Any185
216216 proxy shall reasonably identify the lot owner or owners and the lot for which it is a proxy. 186
217217 If such proxy does not reasonably identify the lot owner or owners and the lot for which187
218218 it is a proxy, such proxy shall be void."188
219219 SECTION 8.189
220220 Said article is further amended by adding new Code sections to read as follows:190
221221 H. B. 62
222222 - 8 - 25 LC 62 0034
223223 "44-3-227.1.191
224224 (a) Members of a board or any officer of an association shall be a lot owner with residency192
225225 in the community. A lot owner establishes residency by being a lot owner of property193
226226 governed by the property owners' association, paying utilities for the lot, using the lot194
227227 address for voter registration, and listing the lot on his or her driver's license or other195
228228 government identification. Nonresident individuals shall not be eligible to serve on the196
229229 board. The term 'lot owner' in such context shall, unless the instrument otherwise provides,197
230230 be deemed to include, without limitation, any shareholder, director, officer, partner in, or198
231231 trustee of any person who is, either alone or in conjunction with any other person or199
232232 persons, a lot owner. Any individual who would not be eligible to serve as a board member200
233233 or officer were he or she not a shareholder, director, officer, partner in, or trustee of such201
234234 a person shall be deemed to have disqualified himself or herself from continuing in office202
235235 if he or she ceases to have any such affiliation with such person.203
236236 (b) A board shall consist of three or more individuals. Only one individual residing on a204
237237 property shall be eligible to serve on a board at any time.205
238238 (c) The association shall provide proof of meeting the minimum number of board members206
239239 as part of filing its annual registration for the Secretary of State pursuant to Code207
240240 Section 14-2-1622 or Code Section 16-3-1622.208
241241 (d) Failure to meet the requirements in subsection (c) of this Code section shall subject the209
242242 property owner's association to administrative suspension by the Secretary of State until210
243243 the following conditions are met:211
244244 (1) A successful election is held to reinstate the board with at least three members; and212
245245 (2) A reinstatement request providing proof of meeting the minimum number of board213
246246 members is submitted and approved by the Secretary of State.214
247247 H. B. 62
248248 - 9 - 25 LC 62 0034
249249 44-3-227.2.215
250250 (a) Elections of board members shall be held not less frequently than annually. Board216
251251 members shall be elected by winning a majority of the voting lot owners. Elections shall217
252252 be held in accordance with the term limits set forth in the association's bylaws.218
253253 (b) Ballots shall include the names of candidates and shall be given to each voting219
254254 member, including such members voting by proxy.220
255255 (c) The association shall maintain electronic scans of each ballot to be made available for221
256256 inspection by lot owners following any election for board members.222
257257 (d) Election results shall be filed with the Secretary of State's Corporations Division223
258258 within 30 days of such election.224
259259 (e) The Secretary of State shall certify board election results not fewer than 30 days nor225
260260 more than 45 days after such election or more than 15 days after the Secretary of State's226
261261 Corporations Division resolves election contests, whichever is later. The Secretary of227
262262 State's Corporations Division shall maintain certified election records for at least three228
263263 years after certification.229
264264 44-3-227.3.230
265265 (a) A petition to contest the election result shall be filed with the Secretary of State's231
266266 Corporations Division by a lot owner within seven days of an association filing an election232
267267 result with such division. Such petition shall allege:233
268268 (1) The contestant's qualification to institute the contest;234
269269 (2) The contestant's desire to contest the result of such election;235
270270 (3) The name of each person who was a candidate at such election;236
271271 (4) Each ground of contest;237
272272 (5) The date the association filed the result with the Secretary of State's Corporations238
273273 Division;239
274274 (6) The relief sought; and240
275275 H. B. 62
276276 - 10 - 25 LC 62 0034
277277 (7) Such other facts as are necessary to provide a full, particular, and explicit statement241
278278 of such contest.242
279279 (b) Such contestant may file documentation and other evidence to support the contest with243
280280 the petition.244
281281 (c) The petition shall be verified by the affidavit of each contestant. Such affidavit shall245
282282 be taken and subscribed before some person authorized by law to administer oaths and246
283283 shall state that the contestant believes the facts alleged therein are true and that according247
284284 to the best of his or her knowledge and belief the contested result of the election is incorrect248
285285 and the petition to contest the same is made in good faith.249
286286 (d) Upon the filing of a petition provided for in this Code section, the Secretary of State's250
287287 Corporations Division shall issue to the association notice requiring the association to251
288288 answer such petition by a day to be fixed in such notice not more than ten days nor fewer252
289289 than five days after the service of such notice. Such notice shall be sent to the association253
290290 by certified mail.254
291291 (e) After the filing of a petition and answer, the Secretary of State's Corporations Division255
292292 shall render a decision on the petition not more than 15 days after such filing of the answer. 256
293293 When a contestant prevails, the election for the board members shall be repeated. When257
294294 the association prevails, the results of such election shall stand as filed with the Secretary258
295295 of State's Corporations Division.259
296296 (f) Petitions filed pursuant to this Code section after the Secretary of State's Corporations260
297297 Division has certified the election but on or before seven days after the association filed the261
298298 election result shall be deemed timely.262
299299 44-3-227.4.263
300300 The Secretary of State is authorized to investigate complaints, enforce compliance, and264
301301 impose penalties for violations of this Act."265
302302 H. B. 62
303303 - 11 - 25 LC 62 0034
304304 SECTION 9.
305305 266
306306 Said article is further amended by revising Code Section 44-3-228, relating to presence of267
307307 quorums at meetings, as follows:268
308308 "44-3-228.269
309309 (a)
310310 Unless the instrument or bylaws provide otherwise, a quorum shall be deemed present270
311311 throughout any meeting, except the annual meeting, of the members of the association if271
312312 persons entitled to cast more than one-third of the votes are present at the beginning of the272
313313 meeting. Unless the instrument or bylaws specify a larger percentage, the presence of273
314314 persons entitled to cast one-half of the votes of the board of directors shall constitute a274
315315 quorum for the transaction of business at any meeting of the board.275
316316 (b) A quorum shall be deemed present throughout any annual meeting of the members of276
317317 the association. Decisions and elections may proceed regardless of the number of members277
318318 of the association in attendance at such meeting."278
319319 SECTION 10.279
320320 This Act shall become effective six months after its approval by the Governor and shall apply280
321321 to any condominium association or property owners' association created on or after such date,281
322322 any association election held on or after such date, any annual meeting held on or after such282
323323 date, and any annual registration filed on or after such date.283
324324 SECTION 11.284
325325 The provisions of this Act are severable, and if any of its provisions shall be held285
326326 unconstitutional by any court of competent jurisdiction, the decision of such court shall not286
327327 affect or impair any of the remaining provisions.287
328328 SECTION 12.288
329329 All laws and parts of laws in conflict with this Act are repealed.289
330330 H. B. 62
331331 - 12 -