25 LC 59 0123S
The Senate Committee on Economic Development and Tourism offered the following
substitute to SB 107:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to1
regulation of specialized land transactions, so as to provide for protections of homeowners2
in community associations; to revise provisions concerning the foreclosure of liens by3
condominium associations and property owner's associations; to provide definitions; to4
provide for limitations on the ability of community associations to foreclose liens; to provide5
for a right of redemption following a foreclosure sale on a home by a community association;6
to provide for the waiver of assessments owed by homeowners to community associations7
in the event of death or disability; to provide for action and relief; to create the office of the8
Community Association Ombudsman; to provide for powers and duties of the ombudsman;9
to provide procedures concerning the submission of complaints to the ombudsman by10
homeowner and community associations; to provide procedures concerning the resolution11
of such complaints; to provide for the submission of certain recommendations made by the12
ombudsman with respect to such complaints to community associations; to provide13
procedures concerning the approval or rejection of such recommendations by community14
associations; to provide for the monitoring of elections for boards of directors for community15
associations; to provide for annual registration of community associations and related fees;16
to provide for applicability; to provide for related matters; to repeal conflicting laws; and for17
other purposes.18
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:19
SECTION 1.20
Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to regulation of21
specialized land transactions, is amended in Code Section 44-3-109, relating to lien for22
assessments, personal obligation of unit owner, notice and foreclosure, lapse, right to23
statement of assessments, and effect of failure to furnish statement, by revising subsection (c)24
as follows:25
"(c) Not less than 30 days after notice is sent by certified mail or statutory overnight26
delivery, return receipt requested, to the unit owner both at the address of the unit and at27
any other address or addresses which the unit owner may have designated to the association28
in writing, the lien may be foreclosed by the association by an action, judgment, and29
foreclosure in the same manner as other liens for the improvement of real property, subject30
to the limitations set forth in Code Section 44-3-270 and to superior liens or encumbrances,31
but any such court order for judicial foreclosure shall not affect the rights of holders of32
superior liens or encumbrances to exercise any rights or powers afforded to them under33
their security instruments. The notice provided for in this subsection shall specify the34
amount of the assessments then due and payable together with authorized late charges and35
the rate of interest accruing thereon. No foreclosure action against a lien arising out of this36
subsection shall be permitted unless the amount of the lien is at least $2,000.00. Unless37
prohibited by the condominium instruments, the association shall have the power to bid on38
the unit at any foreclosure sale and to acquire, hold, lease, encumber, and convey the same.39
The lien for assessments shall lapse and be of no further effect, as to assessments or40
installments thereof, together with late charges and interest applicable thereto, four years41
after the assessment or installment first became due and payable."42
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SECTION 2.43
Said chapter is further amended in Code Section 44-3-232, relating to assessments against44
lot owners as constituting liens in favor of association, additional charges against lot owners,45
procedure for foreclosing lien, and obligation to provide statement of amounts due, by46
revising subsection (c) as follows:47
"(c) Not less than 30 days after notice is sent by certified mail or statutory overnight48
delivery, return receipt requested, to the lot owner both at the address of the lot and at any49
other address or addresses which the lot owner may have designated to the association in50
writing, the lien may be foreclosed by the association by an action, judgment, and court51
order for foreclosure in the same manner as other liens for the improvement of real52
property, subject to the limitations set forth in Code Section 44-3-270 and to superior liens53
or encumbrances, but any such court order for judicial foreclosure shall not affect the rights54
of holders of superior liens or encumbrances to exercise any rights or powers afforded to55
them under their security instruments. The notice provided for in this subsection shall56
specify the amount of the assessments then due and payable together with authorized late57
charges and the rate of interest accruing thereon. No foreclosure action against a lien58
arising out of this subsection shall be permitted unless the amount of the lien is at59
least $2,000.00. Unless prohibited by the instrument, the association shall have the power60
to bid on the lot at any foreclosure sale and to acquire, hold, lease, encumber, and convey61
the same. The lien for assessments shall lapse and be of no further effect, as to assessments62
or installments thereof, together with late charges and interest applicable thereto, four years63
after the assessment or installment first became due and payable."64
SECTION 3.65
Said chapter is further amended by adding a new article to read as follows:66
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"ARTICLE 867
Part 168
44-3-260.69
As used in this article, the term:70
(1) 'Community association' means an organization or corporation of homeowners or71
residential property owners of a particular residential community created for the purpose72
of managing or regulating such residential community, including, without limitation,73
enforcing covenants set forth in a declaration of such residential community. Such term74
shall include a condominium association and a property owners' association.75
(2) 'Condominium association' means an organization or corporation formed pursuant76
to Article 3 of this chapter, the 'Georgia Condominium Act,' for the purpose of exercising77
the powers of an association of any condominium under such Act.78
(3) 'Declaration' means a recordable instrument creating restrictive covenants upon real79
property within a particular residential community which are administered by a80
community association in which membership is mandatory for all unit owners in such81
residential community.82
(4) 'Governing documents' means the instruments that govern the administration or83
operation of the community association of a particular residential community, including,84
without limitation, the declaration of such residential community and the bylaws and85
articles of incorporation of such community association.86
(5) 'Property owners' association' means a corporation formed pursuant to Article 6 of87
this chapter, the 'Georgia Property Owners' Association Act,' for the purpose of88
exercising the powers of an association of property owners under such Act.89
(6) 'Residential community' means a residential subdivision, planned community, or90
condominium.91
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(7) 'Unit' means a portion of a residential community intended for any type of92
independent ownership and use that is subject to a declaration and managed or regulated93
by a community association.94
(8) 'Unit owner' means the owner of a unit.95
Part 296
44-3-270.97
(a) Notwithstanding any provision of law to the contrary, no foreclosure action against a98
lien on a unit in favor of a community association shall be permitted if the amount of the99
lien:100
(1) Is less than the total amount of assessments levied by the community association101
against the unit in the preceding 12 months; or102
(2) Consists solely of fines imposed by the community association for the failure to103
comply with the provisions of the declaration or with the rules or regulations adopted by104
the community association, including, without limitation, fines imposed or levied105
pursuant to Code Section 44-3-76 or 44-3-223, and any late charges, interest, or costs106
associated with such fines.107
(b) No community association that brings a foreclosure action against a lien on a unit in108
favor of the community association, nor any subsidiary, parent, affiliate, or any current or109
former member of the board of such community association, shall be permitted to purchase110
the unit at the foreclosure sale.111
44-3-271.112
(a) A unit owner may redeem a unit from any purchaser at a sale foreclosing a lien on such113
unit in favor of a community association, including, without limitation, a lien arising out114
of Code Section 44-3-109 or Code Section 44-3-232, by paying the amounts required for115
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redemption, as set forth in this Code section, not later than 180 days after the date of such116
sale.117
(b) A person who purchases a unit at a sale foreclosing a lien on such unit in favor of a118
community association shall not transfer ownership of such unit to a person other than the119
unit owner during the redemption period provided in subsection (a) of this Code section.120
(c) To redeem a unit that was purchased at the foreclosure sale, the unit owner shall:121
(1) Pay to the community association:122
(A) All amounts owed by the unit owner to the community association at the time of123
the foreclosure sale, less the sale price received by the community association at the124
foreclosure sale, and plus interest on such net amount from the date of foreclosure to125
the date of redemption at the rate stated in the declaration for delinquent assessments126
or, if no such rate is stated, at an annual interest rate of 10 percent;127
(B) The costs incurred by the community association in foreclosing the lien, including128
reasonable attorney's fees; and129
(C) Any unpaid assessments levied against the unit by the community association after130
the date of the foreclosure sale; and131
(2) Pay to the person who purchased the unit at the foreclosure sale:132
(A) The purchase price paid by such person at the foreclosure sale;133
(B) The cost incurred by such person in recording the foreclosure deed and conveying,134
after redemption, the unit to the unit owner, including reasonable attorney's fees;135
(C) Any assessments levied against the unit by the community association after the136
date of the foreclosure sale that were paid by such person; and137
(D) Any amounts paid by such person as ad valorem taxes, penalties, and interest on138
the unit after the date of the foreclosure sale.139
(d) If a unit owner redeems a unit in accordance with the provisions of this Code section,140
the purchaser of the unit at the foreclosure sale shall immediately execute and deliver to141
the unit owner a deed transferring the unit to the unit owner. If a purchaser fails to comply142
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with the provisions of this subsection, a unit owner may bring an action against such143
purchaser for an order compelling the conveyance of such unit to such unit owner. If a unit144
owner is the prevailing party in an action brought pursuant to this subsection, such unit145
owner shall be entitled to recover the costs incurred in bringing such action, including146
reasonable attorney's fees.147
(e) The redemption rights conferred by this Code section are personal privileges and not148
property or property rights. The privileges shall be exercised in the manner prescribed in149
this Code section and such privileges may not be waived in a deed, declaration, judgment,150
or any agreement.151
(f) This Code section shall only apply to liens in favor of a community association that are152
foreclosed on or after July 1, 2025.153
44-3-272.154
(a) As used in this Code section, the term:155
(1) 'Disability' means a medically determinable physical or mental impairment caused156
by injury or illness that renders a person unable to engage in any substantial gainful157
employment.158
(2) 'Disabled' means a person who is unable to engage in any substantial gainful159
employment as a result of a medically determinable physical or mental impairment160
caused by injury or illness.161
(3) 'Personal representative' shall have the same meaning as provided in Code162
Section 53-1-2.163
(b)(1) Each community association created pursuant to a declaration executed on or after164
July 1, 2025, shall waive all assessments or installments thereof that become due and165
payable by any unit owner if such unit owner:166
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(A) Dies with an insolvent estate, provided that the personal representative of such unit167
owner's estate certifies in writing to the community association that such unit owner's168
estate is insolvent; or169
(B) Becomes disabled, which causes a financial hardship on such unit owner, provided170
that such unit owner certifies in writing to the community association that, because of171
such disability, he or she is experiencing a financial hardship.172
(2) A waiver of such assessments or installments thereof under paragraph (1) of this173
subsection shall begin on the date such unit owner dies or becomes disabled and shall174
continue for a period of not less than 12 months; provided, however, that, if such waiver175
is granted because of a disability of a unit owner, such waiver shall terminate if the176
financial hardship on such unit owner resulting from such disability ceases to exist prior177
to the expiration of such 12 month period.178
(c) If a unit owner previously paid any assessments or installments thereof that are179
required to be waived by a community association pursuant to subsection (a) of this Code180
section, such unit owner or such unit owner's estate shall be entitled to a refund of such181
assessments or installments thereof, provided that the written certification that the estate182
of such unit owner is insolvent required under paragraph (1) of subsection (a) of this Code183
section or the written certification of financial hardship required under paragraph (2) of184
subsection (a) of this Code section, whichever is applicable, was provided to the185
community association within 12 months of the date such unit owner died or became186
disabled.187
(d)(1) If a community association fails to waive or refund any assessments or188
installments thereof that are required to be waived or refunded under the provisions of189
this Code section, the unit owner or the personal representative of the unit owner's estate190
may bring an action against such community association for a declaration that such191
assessments or installments thereof are required to be waived and for recovery of any192
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amount of such assessments or installments thereof that are required to be refunded. 193
Such relief shall not be granted unless the court determines in such action that:194
(A) The unit owner either:195
(i) Became disabled, which caused a financial hardship on such unit owner; or196
(ii) Died with an insolvent estate; and197
(B) The written certification that the estate of such unit owner is insolvent required198
under paragraph (1) of subsection (a) of this Code section or the written certification199
of financial hardship required under paragraph (2) of subsection (a) of this Code200
section, whichever is applicable, was provided to the community association within 12201
months of the date such unit owner died or became disabled.202
(2) A unit owner or the personal representative of a unit owner's estate who prevails in203
an action brought pursuant to this subsection shall be entitled to recover the costs incurred204
in bringing such action, including reasonable attorney's fees.205
Part 3206
44-3-280.207
(a) There is created within the Department of Community Affairs the Office of the208
Community Association Ombudsman.209
(b) The commissioner of community affairs shall appoint the ombudsman, who shall be210
an attorney admitted to practice before the Georgia Supreme Court. The ombudsman shall211
serve at the pleasure of the commissioner of community affairs.212
(c) Neither the ombudsman nor any full-time employee of the ombudsman's office shall:213
(1) Actively engage in any other business or profession that directly or indirectly relates214
to or conflicts with his or her work in the ombudsman's office;215
(2) Serve as the representative, or an executive, officer, or employee, of any political216
party, executive committee, or other governing body of a political party;217
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(3) Receive remuneration for activities on behalf of any candidate for public office;218
(4) Engage in soliciting votes or other activities on behalf of a candidate for public219
office; or220
(5) Become a candidate for election to public office unless he or she first resigns from221
his or her office or employment.222
(d) The ombudsman shall maintain his or her principal office at a place convenient to the223
commissioner of community affairs, which will enable the ombudsman to expeditiously224
carry out the duties and functions of his or her office. The ombudsman may establish225
branch offices elsewhere in the state upon the concurrence of the commissioner of226
community affairs.227
44-3-281.228
The ombudsman shall have the powers necessary to carry out the duties of his or her office,229
including, without limitation:230
(1) Employing professional and clerical staff as necessary for the efficient operation of231
the office;232
(2) Preparing and issuing reports and recommendations to the Governor, the233
commissioner of community affairs, the President of the Senate, and the Speaker of the234
House of Representatives on any matter or subject within the jurisdiction of this article;235
(3) Acting as a liaison between unit owners, or other affected parties, and community236
associations, including the boards of directors, board members, officers, and managers237
of such community associations;238
(4) Monitoring and reviewing procedures and disputes concerning elections or meetings239
of community associations;240
(5) Providing resources to assist board members and officers of community associations241
in carrying out their powers and duties in a manner consistent with this article, other242
applicable law, and their governing documents;243
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(6) Acting as a neutral resource regarding the rights and responsibilities of unit owners244
and community associations, including the boards of directors, board members, officers,245
and managers of such community associations;246
(7) Encouraging and facilitating voluntary meetings between unit owners and community247
associations, including the boards of directors, board members, officers, and managers248
of such community associations, when the meetings may assist in resolving a dispute249
within a residential community;250
(8) Assisting with the resolution of disputes between unit owners and their community251
associations, or between two or more unit owners within a residential community, if252
applicable, including mediating such disputes, issuing opinions with respect to such253
disputes, and the making of recommendations on actions that can be taken by unit owners254
and community associations to resolve such disputes;255
(9) Receiving and compiling complaints and responses in relation to violations of256
applicable law and the governing documents of community associations; and257
(10) Promulgating and adopting such rules and regulations as may be necessary to carry258
out the provisions of this article.259
44-3-282.260
The ombudsman shall:261
(1) Develop policies and procedures to assist unit owners and community associations,262
including the boards of directors, board members, officers, and managers of such263
community associations, understand their rights and responsibilities as set forth in this264
article, under other applicable law, and in their governing documents;265
(2) Coordinate and assist in the preparation and adoption of educational and reference266
material, and shall endeavor to coordinate with private or volunteer providers of these267
services, so that the availability of these resources is made known to the largest possible268
audience;269
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(3) Assist unit owners in understanding their rights and responsibilities under applicable270
law and their governing documents, including, without limitation, publishing materials271
related to those rights and responsibilities;272
(4) Assist board members and officers of community associations in carrying out their273
duties; and274
(5) Compile and maintain a registration of each community association operating within275
the state which includes, at a minimum, the following information:276
(A) The name, address, and phone number of the community association;277
(B) The name of each person who is authorized to manage the community association;278
(C) The names, mailing addresses, and telephone numbers of the board members of the279
community association;280
(D) The number of units in the community association;281
(E) The total annual assessment required to be paid by unit owners to the community282
association; and283
(F) The number of foreclosures that were completed by the community association on284
units within its residential community.285
44-3-283.286
(a) The ombudsman shall adopt policies and procedures for submission and receipt of287
complaints from unit owners and community associations regarding disputes concerning288
the rights and responsibilities of unit owners and community associations or alleged289
violations of the provisions of this article, other applicable law, or their governing290
documents.291
(b) The ombudsman shall publish a form for such complaints which, at a minimum, shall292
include the following information:293
(1) The unit owner's name;294
(2) The name and contact information of the community association;295
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(3) The name of the community association management company, if any, and its contact296
information, including telephone number and mailing addresses;297
(4) Whether a unit owner:298
(A) Was informed of the requirement of membership in a community association as299
a condition of ownership, including when that information was provided and by whom;300
(B) Received a copy of the governing documents of the community association and if301
the copy was obtained before or after receiving title to the unit;302
(C) Was denied access to the governing documents and, if so, what remedies the unit303
owner took to obtain the governing documents; and304
(D) Understands his or her rights and obligations under the governing documents;305
(5) The nature of the unit owner's or community association's complaint; and306
(6) An explanation of:307
(A) Any communications between the unit owner and the community association308
regarding the complaint;309
(B) Any remedies the unit owner or community association sought in relation to the310
complaint; and311
(C) Any actions the unit owner or community association took concerning the312
complaint.313
(c) Upon receiving a unit owner's or community association's complaint, the ombudsman314
shall:315
(1) Provide the complaint to the community association or the unit owner complained316
against in a manner that verifies receipt of such complaint by the community association317
or unit owner, so the unit owner or community association may determine if the unit318
owner or community association desires to make a response to the complaint;319
(2) Conduct an investigation into the allegations of the complaint;320
(3) Offer to mediate the complaint among the affected parties, and conduct such321
mediation if the affected parties agree to participate; and322
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(4) If practicable, issue to the affected parties his or her opinions or recommendations323
with respect to the complaint. Such opinions or recommendations may include, without324
limitation, a proposed course of action, including, but not limited to, waiver of any fines325
imposed by a community association on a unit owner.326
(d)(1) The ombudsman shall, at least annually, provide a report of all complaints327
received and any opinions or recommendations issued by the ombudsman with respect328
to such complaints as provided in this Code section to the Governor, the commissioner329
of community affairs, the General Assembly, and to the public on the ombudsman's330
public website.331
(2) The report provided for in this Code section shall include categorized, filterable, and332
searchable information compiled from the complaints, responses, and any opinions or333
recommendations issued by the ombudsman with respect thereto. The ombudsman shall334
redact from such report any personal or private information of the affected parties, such335
as names, addresses, and telephone numbers of individuals, contained in the complaints,336
responses, or in any opinions or recommendations issued by the ombudsman with respect337
thereto.338
44-3-284.339
(a) If, in connection with a complaint received pursuant to Code Section 44-3-283, the340
ombudsman recommends that any fines imposed by a community association against a unit341
owner be waived, such recommendation shall be submitted by the board of directors of the342
community association to the entire membership of the community association for approval343
or rejection. Unless a majority of such members rejects such recommendation within 120344
days from the date such recommendation is issued by the ombudsman, such345
recommendation shall automatically be approved and such fines imposed by the346
community association against the unit owner, together with all late fees, interest, and other347
charges associated with such fines, shall be waived. During such 120 day period, the348
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community association shall not take any effort to collect such fines and shall not impose349
any further late fees, interest, or charges with respect to such fines.350
(b) This Code section shall only apply to community associations created pursuant to a351
declaration executed on or after July 1, 2025.352
44-3-285.353
(a) Fifteen percent of the total membership in a community association, or six unit owners,354
whichever is greater, may petition the ombudsman to appoint an election monitor to attend355
a meeting of the community association to be held for the purpose of electing members of356
the community association's board of directors and to conduct at such meeting the election357
of such members of the board of directors.358
(b) Upon receiving a petition for the appointment of an election monitor from a sufficient359
number of unit owners pursuant to subsection (a) of this Code section, the ombudsman360
shall appoint an employee of his or her office, a person who specializes in community361
association election monitoring, or an attorney licensed to practice in this state as the362
election monitor who shall attend the community association meeting and conduct the363
election of the members of the board of directors.364
(c) The ombudsman shall, by rule or regulation, establish procedures for the appointment365
of election monitors under this Code section and the scope and extent of the monitor's role366
in the election process.367
44-3-286.368
(a) Each community association shall register annually with the ombudsman on a form369
prescribed by the ombudsman, which shall include the information required to be370
maintained pursuant to paragraph (5) of Code Section 44-3-282.371
(b) Each community association shall pay an annual registration fee to the ombudsman in372
the amount of $25.00 per unit within the residential community of such community373
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association. All such annual registration fees received by the ombudsman pursuant to this374
subsection shall be paid into the state treasury; provided, however, that it is the intent of375
the General Assembly that such fees shall be annually appropriated to the Department of376
Community Affairs for the purpose of paying the expenses of the Office of the Community377
Association Ombudsman and other costs associated with carrying out the provisions this378
part."379
SECTION 4.380
All laws and parts of laws in conflict with this Act are repealed.381
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