25 LC 62 0034
House Bill 62
By: Representatives Scott of the 76
th
, Davis of the 87
th
, and Schofield of the 63
rd
A BILL TO BE ENTITLED
AN ACT
To amend Articles 3 and 6 of Chapter 3 of Title 44 of the Official Code of Georgia
1
Annotated, relating to condominium associations and property owners' associations,2
respectively, so as to provide requirements for board members for condominium associations3
and property owners' associations; to provide for allocation of votes; to provide for proxies;4
to provide for quorums; to provide for residency for board members; to provide for size5
requirements for boards; to provide for board elections, filing, and certification; to provide6
for contests of election results; to provide for annual registration requirements for such7
associations; to provide for a short title; to provide for a purpose; to provide for related8
matters; to provide for an effective date and applicability; to provide for severability; to9
repeal conflicting laws; and for other purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
SECTION 1.12
This Act shall be known as the "Georgia HOA Accountability and Community13
Empowerment Act (HACEA)."14
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SECTION 2.
15
The purpose of this Act is to establish fair, transparent, and enforceable regulations for16
homeowners' associations, including condominium associations and property owner's17
associations, to ensure accountability, enhance resident engagement, and protect the interests18
of community members.19
SECTION 3.20
Article 3 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to21
condominiums, is amended by revising paragraph (8) of subsection (a) of Code22
Section 44-3-77, relating to contents of declaration, as follows:23
"(8) The allocation to each unit of a number of votes
in the association of one vote in24
accordance with Code Section 44-3-79."25
SECTION 4.26
Said article is further amended by revising Code Section 44-3-79, relating to27
allocation – votes in association, how votes cast, and majority vote requirements, as follows:28
"44-3-79.29
(a) The declaration shall allocate a number of votes in the association to each unit depicted30
on plats or plans that comply with subsections (a) and (b) of Code Section 44-3-83. The31
allocation of such votes may be by percentage, fraction, formula, or any other method32
which indicates the relative voting power allocated to each unit. If an equal vote is33
allocated to each unit, the declaration may merely so state. All of the votes in the34
association shall be allocated among the units depicted on such plats or plans and shall be35
subject to reallocation as provided in this article one vote to each unit.36
(b) Since a unit owner may be more than one person, if only one of those persons is37
present at a meeting of the association or is voting by proxy, ballot, or written consent, that38
such person shall be entitled to cast the votes vote pertaining to that unit. However, if more39
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than one of those such persons is are present or each executes a proxy, ballot, or written40
consent, the vote pertaining to that unit shall be cast only in accordance with their41
unanimous agreement unless the condominium instruments expressly provide otherwise;42
and such consent shall be conclusively presumed if any one of them purports to cast the43
votes vote pertaining to that unit without protest being made immediately by any of the44
others to the person presiding over the meeting or vote.45
(c) The votes vote pertaining to any unit may, and, in the case of any unit owner not a46
natural person or persons, shall, be cast pursuant to a proxy or proxies duly executed by or47
on behalf of the unit owner or, in cases where the unit owner is more than one person, by48
or on behalf of the joint owners of the unit. No such proxy shall be revocable except as49
provided in Code Section 14-2-722 or 14-3-724 or by written notice delivered to the50
association by the unit owner or by any joint owners of a unit. Any proxy shall be void if51
it is not dated or if it purports to be revocable without such notice. Any proxy shall also52
reasonably identify the unit owner or owners and the unit for which it is a proxy. If such53
proxy does not reasonably identify the unit owner or owners and the unit for which it is a54
proxy, such proxy shall be void.55
(d) Except in the case of any condominium of which no part is restricted exclusively to56
residential use, if 50 percent or more of the votes in the association pertain to 25 percent57
or less of the condominium units, then in any case where a majority vote is required by the58
condominium instruments or by this article the requirement for such a majority shall be59
deemed to include, in addition to the specified majority of the votes, assent by the unit60
owners of a like majority of the condominium units.61
(e)(d) Anything in this Code section to the contrary notwithstanding, no votes vote in the62
association shall be deemed to pertain to any condominium unit during such time as the63
unit owner thereof is the association nor shall any vote be allocated to any condominium64
unit unless the condominium unit is depicted on plats or plans that comply with65
subsections (a) and (b) of Code Section 44-3-83. Except to the extent otherwise expressly66
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provided or permitted by this article, the votes vote allocated to any condominium unit67
shall not be altered."68
SECTION 5.69
Said article is further amended by revising Code Sections 44-3-103 and 44-3-104, relating70
to quorums at meetings of association or board and directors and officers and eligibility,71
respectively, as follows;72
"44-3-103.73
(a) Unless the condominium instruments or bylaws provide otherwise, a quorum shall be74
deemed present throughout any meeting, except the annual meeting, of the members of the75
association if persons entitled to cast more than one-third of the votes are present at the76
beginning of the meeting. Unless the condominium instruments or bylaws specify a larger77
percentage, the presence of persons entitled to cast one-half of the votes of the board of78
directors shall constitute a quorum for the transaction of any business at any meeting of the79
board.80
(b) A quorum shall be deemed present throughout any annual meeting of the members of81
the association. Decisions and elections may proceed regardless of the number of members82
of the association in attendance at such meeting.83
44-3-104.84
(a) If the condominium instruments provide that any member of the board of directors or85
any officer of the association must be a unit owner, then, notwithstanding paragraph (1) of86
subsection (a) of Code Section 44-3-75, the Members of a board of directors or any officer87
of an association shall be a unit owner with residency in the community. A unit owner88
establishes residency by being a unit owner of a condominium governed by the89
condominium association, paying utilities for the unit, using the unit address for voter90
registration, and listing the unit on his or her driver's license or other government91
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identification. Nonresident individuals shall not be eligible to serve on the board. The92
term 'unit owner' in such context shall, unless the condominium instruments otherwise93
provide, be deemed to include, without limitation, any shareholder, director, officer, partner94
in, or trustee of any person who is, either alone or in conjunction with any other person or95
persons, a unit owner. Any individual who would not be eligible to serve as a member of96
the board of directors or officer were he or she not a shareholder, director, officer, partner97
in, or trustee of such a person shall be deemed to have disqualified himself or herself from98
continuing in office if he or she ceases to have any such affiliation with that such person.99
(b) A board of directors shall consist of three or more individuals. Only one individual100
residing in a unit shall be eligible to serve on such board at any time.101
(c) The association shall provide proof of meeting the minimum number of board members102
as part of filing its annual registration for the Secretary of State pursuant to Code103
Section 14-2-1622 or Code Section 14-3-1622.104
(d) Failure to meet the requirements in subsection (c) of this Code section shall subject the105
condominium association to administrative suspension by the Secretary of State until the106
following conditions are met:107
(1) A successful election is held to reinstate the board with at least three members; and108
(2) A reinstatement request providing proof of meeting the minimum number of board109
members is submitted and approved by the Secretary of State."110
SECTION 6.111
Said article is further amended by adding new Code sections to read as follows:112
"44-3-104.1.113
(a) Elections of board members shall be held not less frequently than annually. Board114
members shall be elected by winning a majority of the voting units. Elections shall be held115
in accordance with the term limits set forth in the association's bylaws.116
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(b) Ballots shall include the names of candidates and shall be given to each voting117
member, including such members voting by proxy.118
(c) The association shall maintain electronic scans of each ballot to be made available for119
inspection by unit owners for one year following any election for board members.120
(d) Election results shall be filed with the Secretary of State's Corporations Division121
within 30 days of such election.122
(e) The Secretary of State shall certify election results not fewer than 30 days nor more123
than 45 days after such election or more than 15 days after the Secretary of State's124
Corporations Division resolves election contests, whichever is later. The Secretary of125
State's Corporations Division shall maintain certified election records for at least three126
years after certification.127
44-3-104.2.128
(a) A petition to contest the result of an election provided for in Code Section 44-3-104.1129
shall be filed with the Secretary of State's Corporations Division by a unit owner within130
seven days of an association filing an election result with such division. Such petition shall131
allege:132
(1) The contestant's qualification to institute the contest;133
(2) The contestant's desire to contest the result of such election;134
(3) The name of each person who was a candidate at such election;135
(4) Each ground of contest;136
(5) The date the association filed the result of such election with the Secretary of State's137
Corporations Division;138
(6) The relief sought; and139
(7) Such other facts as are necessary to provide a full, particular, and explicit statement140
of such contest.141
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(b) Such contestant may file documentation and other evidence to support the contest with142
the petition.143
(c) The petition shall be verified by the affidavit of each contestant. Such affidavit shall144
be taken and subscribed before some person authorized by law to administer oaths and145
shall state that the contestant believes the facts alleged therein are true and that according146
to the best of his or her knowledge and belief the contested result of the election is incorrect147
and the petition to contest the same is made in good faith.148
(d) Upon the filing of a petition provided for in this Code section, the Secretary of State's149
Corporations Division shall issue to the association notice requiring the association to150
answer such petition by a day to be fixed in such notice not more than ten days nor fewer151
than five days after the service of such notice. Such notice shall be sent to the association152
by certified mail.153
(e) After the filing of a petition and answer, the Secretary of State's Corporations Division154
shall render a decision on the petition not more than 15 days after the filing of such answer. 155
When a contestant prevails, the election for board members shall be repeated. When the156
association prevails, the results of such election shall stand as filed with the Secretary of157
State's Corporations Division.158
(f) Petitions filed pursuant to this Code section after the Secretary of State's Corporations159
Division has certified the election but on or before seven days after the association filed the160
election result shall be deemed timely.161
44-3-104.3.162
The Secretary of State is authorized to investigate complaints, enforce compliance, and163
impose penalties for violations of this Act."164
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SECTION 7.
165
Article 6 of Chapter 3 of Title 44, relating to property owners' associations, is amended by166
revising Code Section 44-3-224, relating to voting at association meetings, as follows:167
"44-3-224.168
(a) The declaration shall allocate one vote to each lot.
169
(a)(b) Since a lot owner may be more than one person, if only one of those persons is170
present at a meeting of the association, or is voting by proxy, ballot, or written consent, that171
such person shall be entitled to cast the votes vote pertaining to that lot. However, if more172
than one of those such persons is are present, or each executes a proxy, ballot, or written173
consent, the vote pertaining to that lot shall be cast only in accordance with their174
unanimous agreement unless the instrument expressly provides otherwise; and such175
consent shall be conclusively presumed if any one of them purports to cast the votes vote176
pertaining to that lot without protest being made immediately by any of the others to the177
person presiding over the meeting or vote.178
(b)(c) The votes vote pertaining to any lot may, and, in the case of any lot owner not a179
natural person or persons, shall, be cast pursuant to a proxy or proxies duly executed by or180
on behalf of the lot owner or, in cases where the lot owner is more than one person, by or181
on behalf of the joint owners of the lot. No such proxy shall be revocable except as182
provided in Code Section 14-2-722 or Code Section 14-3-724 or by written notice183
delivered to the association by the lot owner or by any joint owners of a lot. Any proxy184
shall be void if it is not dated or if it purports to be revocable without such notice. Any185
proxy shall reasonably identify the lot owner or owners and the lot for which it is a proxy. 186
If such proxy does not reasonably identify the lot owner or owners and the lot for which187
it is a proxy, such proxy shall be void."188
SECTION 8.189
Said article is further amended by adding new Code sections to read as follows:190
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"44-3-227.1.191
(a) Members of a board or any officer of an association shall be a lot owner with residency192
in the community. A lot owner establishes residency by being a lot owner of property193
governed by the property owners' association, paying utilities for the lot, using the lot194
address for voter registration, and listing the lot on his or her driver's license or other195
government identification. Nonresident individuals shall not be eligible to serve on the196
board. The term 'lot owner' in such context shall, unless the instrument otherwise provides,197
be deemed to include, without limitation, any shareholder, director, officer, partner in, or198
trustee of any person who is, either alone or in conjunction with any other person or199
persons, a lot owner. Any individual who would not be eligible to serve as a board member200
or officer were he or she not a shareholder, director, officer, partner in, or trustee of such201
a person shall be deemed to have disqualified himself or herself from continuing in office202
if he or she ceases to have any such affiliation with such person.203
(b) A board shall consist of three or more individuals. Only one individual residing on a204
property shall be eligible to serve on a board at any time.205
(c) The association shall provide proof of meeting the minimum number of board members206
as part of filing its annual registration for the Secretary of State pursuant to Code207
Section 14-2-1622 or Code Section 16-3-1622.208
(d) Failure to meet the requirements in subsection (c) of this Code section shall subject the209
property owner's association to administrative suspension by the Secretary of State until210
the following conditions are met:211
(1) A successful election is held to reinstate the board with at least three members; and212
(2) A reinstatement request providing proof of meeting the minimum number of board213
members is submitted and approved by the Secretary of State.214
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44-3-227.2.215
(a) Elections of board members shall be held not less frequently than annually. Board216
members shall be elected by winning a majority of the voting lot owners. Elections shall217
be held in accordance with the term limits set forth in the association's bylaws.218
(b) Ballots shall include the names of candidates and shall be given to each voting219
member, including such members voting by proxy.220
(c) The association shall maintain electronic scans of each ballot to be made available for221
inspection by lot owners following any election for board members.222
(d) Election results shall be filed with the Secretary of State's Corporations Division223
within 30 days of such election.224
(e) The Secretary of State shall certify board election results not fewer than 30 days nor225
more than 45 days after such election or more than 15 days after the Secretary of State's226
Corporations Division resolves election contests, whichever is later. The Secretary of227
State's Corporations Division shall maintain certified election records for at least three228
years after certification.229
44-3-227.3.230
(a) A petition to contest the election result shall be filed with the Secretary of State's231
Corporations Division by a lot owner within seven days of an association filing an election232
result with such division. Such petition shall allege:233
(1) The contestant's qualification to institute the contest;234
(2) The contestant's desire to contest the result of such election;235
(3) The name of each person who was a candidate at such election;236
(4) Each ground of contest;237
(5) The date the association filed the result with the Secretary of State's Corporations238
Division;239
(6) The relief sought; and240
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(7) Such other facts as are necessary to provide a full, particular, and explicit statement241
of such contest.242
(b) Such contestant may file documentation and other evidence to support the contest with243
the petition.244
(c) The petition shall be verified by the affidavit of each contestant. Such affidavit shall245
be taken and subscribed before some person authorized by law to administer oaths and246
shall state that the contestant believes the facts alleged therein are true and that according247
to the best of his or her knowledge and belief the contested result of the election is incorrect248
and the petition to contest the same is made in good faith.249
(d) Upon the filing of a petition provided for in this Code section, the Secretary of State's250
Corporations Division shall issue to the association notice requiring the association to251
answer such petition by a day to be fixed in such notice not more than ten days nor fewer252
than five days after the service of such notice. Such notice shall be sent to the association253
by certified mail.254
(e) After the filing of a petition and answer, the Secretary of State's Corporations Division255
shall render a decision on the petition not more than 15 days after such filing of the answer. 256
When a contestant prevails, the election for the board members shall be repeated. When257
the association prevails, the results of such election shall stand as filed with the Secretary258
of State's Corporations Division.259
(f) Petitions filed pursuant to this Code section after the Secretary of State's Corporations260
Division has certified the election but on or before seven days after the association filed the261
election result shall be deemed timely.262
44-3-227.4.263
The Secretary of State is authorized to investigate complaints, enforce compliance, and264
impose penalties for violations of this Act."265
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SECTION 9.
266
Said article is further amended by revising Code Section 44-3-228, relating to presence of267
quorums at meetings, as follows:268
"44-3-228.269
(a)
Unless the instrument or bylaws provide otherwise, a quorum shall be deemed present270
throughout any meeting, except the annual meeting, of the members of the association if271
persons entitled to cast more than one-third of the votes are present at the beginning of the272
meeting. Unless the instrument or bylaws specify a larger percentage, the presence of273
persons entitled to cast one-half of the votes of the board of directors shall constitute a274
quorum for the transaction of business at any meeting of the board.275
(b) A quorum shall be deemed present throughout any annual meeting of the members of276
the association. Decisions and elections may proceed regardless of the number of members277
of the association in attendance at such meeting."278
SECTION 10.279
This Act shall become effective six months after its approval by the Governor and shall apply280
to any condominium association or property owners' association created on or after such date,281
any association election held on or after such date, any annual meeting held on or after such282
date, and any annual registration filed on or after such date.283
SECTION 11.284
The provisions of this Act are severable, and if any of its provisions shall be held285
unconstitutional by any court of competent jurisdiction, the decision of such court shall not286
affect or impair any of the remaining provisions.287
SECTION 12.288
All laws and parts of laws in conflict with this Act are repealed.289
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