| 10 | | - | assessments; to require associations to act in good faith in such alternative dispute resolution;5 |
|---|
| 11 | | - | to provide for the recovery of attorney's fees by lot owners; to provide that such a lien shall6 |
|---|
| 12 | | - | be inferior to liens for unpaid medical bills; to provide for alternative dispute resolution7 |
|---|
| 13 | | - | policies and requirements therefor; to provide for a definition; to provide for related matters;8 |
|---|
| 14 | | - | to provide for applicability; to repeal conflicting laws; and for other purposes.9 |
|---|
| 15 | | - | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 |
|---|
| 16 | | - | SECTION 1.11 |
|---|
| 17 | | - | Article 6 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to12 |
|---|
| 18 | | - | property owners' associations, is amended by adding a new subsection to Code Section13 |
|---|
| 19 | | - | 44-3-225, relating to assessment of expenses, exemption from liability, and liability for14 |
|---|
| 20 | | - | unpaid assessments, to read as follows:15 |
|---|
| 21 | | - | - 1 - 25 LC 59 0124S |
|---|
| 22 | | - | "(e) For each lot for which all assessments and other amounts due to the association have16 |
|---|
| 23 | | - | been paid in full, the association or its authorized agent shall provide the lot owner a17 |
|---|
| 24 | | - | certificate stating that such lot is in good standing within 45 days of the end of each fiscal18 |
|---|
| 25 | | - | year and without cost to the lot owner."19 |
|---|
| 26 | | - | SECTION 2.20 |
|---|
| 27 | | - | Said article is further amended by revising subsection (a) of Code Section 44-3-232, relating21 |
|---|
| 28 | | - | to assessments against lot owners as constituting lien in favor of association, additional22 |
|---|
| 29 | | - | charges against lot owners, procedure for foreclosing lien, and obligation to provide23 |
|---|
| 30 | | - | statement of amounts due, as follows:24 |
|---|
| 31 | | - | "(a)(1) All sums lawfully assessed by the association against any lot owner or property25 |
|---|
| 32 | | - | owners' association lot, whether for the share of the common expenses pertaining to that26 |
|---|
| 33 | | - | lot, fines, or otherwise, and all reasonable charges made to any lot owner or lot for27 |
|---|
| 34 | | - | materials furnished or services rendered by the association at the owner's request to or on28 |
|---|
| 35 | | - | behalf of the lot owner or lot, shall, from the time the sums became due and payable, be29 |
|---|
| 36 | | - | the personal obligation of the lot owner, and shall, from the time the association30 |
|---|
| 37 | | - | completes its requirements pursuant to Code Section 44-3-232.2, constitute a lien in favor31 |
|---|
| 38 | | - | of the association on the lot prior and superior to all other liens whatsoever except:32 |
|---|
| 39 | | - | (1)(A) Liens for ad valorem taxes on the lot;33 |
|---|
| 40 | | - | (2)(B) The lien of any first priority mortgage covering the lot and the lien of any34 |
|---|
| 41 | | - | mortgage recorded prior to the recording of the declaration; or35 |
|---|
| 42 | | - | (3)(C) The lien of any secondary purchase money mortgage covering the lot, provided36 |
|---|
| 43 | | - | that neither the grantee nor any successor grantee on the mortgage is the seller of the37 |
|---|
| 44 | | - | lot; and38 |
|---|
| 45 | | - | (D) Liens on the lot for unpaid medical bills.39 |
|---|
| 46 | | - | - 2 - 25 LC 59 0124S |
|---|
| 47 | | - | (2) The recording of the declaration pursuant to this article shall constitute record notice40 |
|---|
| 48 | | - | of the existence of the lien provided for in paragraph (1) of this subsection, and no further41 |
|---|
| 49 | | - | recordation of any claim of lien for assessments shall be required."42 |
|---|
| 50 | | - | SECTION 3.43 |
|---|
| 51 | | - | Said article is further amended by adding a new Code section to read as follows:44 |
|---|
| 52 | | - | "44-3-232.2.45 |
|---|
| 53 | | - | (a) As used in this Code section, the term 'alternative dispute resolution' means mediation,46 |
|---|
| 54 | | - | arbitration, conciliation, or other nonjudicial procedure that involves a neutral party in the47 |
|---|
| 55 | | - | decision-making process.48 |
|---|
| 56 | | - | (b)(1) An association shall adopt a written policy providing for a fair, reasonable, and49 |
|---|
| 57 | | - | expeditious alternative dispute resolution procedure for resolving any dispute regarding50 |
|---|
| 58 | | - | sums assessed by the association.51 |
|---|
| 59 | | - | (2) The association shall provide a copy of such policy to each lot owner annually and52 |
|---|
| 60 | | - | shall make a copy of such policy available to a lot owner upon request.53 |
|---|
| 61 | | - | (c) In developing an alternative dispute resolution procedure pursuant to this Code section,54 |
|---|
| 62 | | - | an association shall make maximum reasonable use of available local dispute resolution55 |
|---|
| 63 | | - | programs involving a neutral third party, including low-cost mediation programs.56 |
|---|
| 64 | | - | (d) A fair, reasonable, and expeditious alternative dispute resolution procedure shall, at a57 |
|---|
| 65 | | - | minimum, satisfy all of the following requirements:58 |
|---|
| 66 | | - | (1) The procedure may be invoked by a lot owner. A request invoking the procedure59 |
|---|
| 67 | | - | shall be in writing;60 |
|---|
| 68 | | - | (2) The procedure shall provide for prompt deadlines. The procedure shall state the61 |
|---|
| 69 | | - | maximum time for the association to act on a request invoking the procedure;62 |
|---|
| 70 | | - | (3) If the procedure is invoked by a lot owner, the association shall participate in the63 |
|---|
| 71 | | - | procedure; and64 |
|---|
| 72 | | - | (4) A lot owner shall not be charged a fee to participate.65 |
|---|
| 73 | | - | - 3 - 25 LC 59 0124S |
|---|
| 74 | | - | (e) The lien for unpaid assessments or other charges as provided for in Code66 |
|---|
| 75 | | - | Section 44-3-225 shall not be created unless the association offers the lot owner67 |
|---|
| 76 | | - | participation in alternative dispute resolution in accordance with this Code section, and, if68 |
|---|
| 77 | | - | so requested by the lot owner, the association participates in such alternative dispute69 |
|---|
| 78 | | - | resolution.70 |
|---|
| 79 | | - | (f)(1) In any alternative dispute resolution conducted pursuant to this Code section, the71 |
|---|
| 80 | | - | parties shall act in good faith in all matters relating to the alternative dispute resolution,72 |
|---|
| 81 | | - | including, but not limited to, making reasonable efforts to promptly conclude such73 |
|---|
| 82 | | - | alternative dispute resolution.74 |
|---|
| 83 | | - | (2) In any alternative dispute resolution conducted pursuant to this Code section wherein75 |
|---|
| 84 | | - | any party violates the provisions of paragraph (1) of this subsection, the aggrieved party76 |
|---|
| 85 | | - | shall be entitled to recover reasonable attorney's fees incurred as a result of participating77 |
|---|
| 86 | | - | in such alternative dispute resolution."78 |
|---|
| 87 | | - | SECTION 4.79 |
|---|
| 88 | | - | This Act shall not apply to contracts entered into prior to July 1, 2025, before the expiration80 |
|---|
| 89 | | - | or first renewal of such contract.81 |
|---|
| 90 | | - | SECTION 5.82 |
|---|
| 91 | | - | All laws and parts of laws in conflict with this Act are repealed.83 |
|---|
| 12 | + | assessments; to provide that such a lien shall be inferior to liens for unpaid medical bills; to5 |
|---|
| 13 | + | provide for alternative dispute resolution policies and requirements therefor; to provide for6 |
|---|
| 14 | + | a definition; to provide for related matters; to provide for applicability; to repeal conflicting7 |
|---|
| 15 | + | laws; and for other purposes.8 |
|---|
| 16 | + | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 |
|---|
| 17 | + | SECTION 1.10 |
|---|
| 18 | + | Article 6 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to11 |
|---|
| 19 | + | property owners' associations, is amended by adding a new subsection to Code Section12 |
|---|
| 20 | + | 44-3-225, relating to assessment of expenses, exemption from liability, and liability for13 |
|---|
| 21 | + | unpaid assessments, to read as follows:14 |
|---|
| 22 | + | "(e) For each lot for which all assessments and other amounts due to the association have |
|---|
| 23 | + | 15 |
|---|
| 24 | + | been paid in full, the association or its authorized agent shall provide the lot owner a16 |
|---|
| 25 | + | S. B. 108 |
|---|
| 26 | + | - 1 - 25 LC 50 1037 |
|---|
| 27 | + | certificate stating that such lot is in good standing within 45 days of the end of each fiscal17 |
|---|
| 28 | + | year and without cost to the lot owner."18 |
|---|
| 29 | + | SECTION 2.19 |
|---|
| 30 | + | Said article is further amended by revising subsection (a) of Code Section 44-3-232, relating20 |
|---|
| 31 | + | to assessments against lot owners as constituting lien in favor of association, additional21 |
|---|
| 32 | + | charges against lot owners, procedure for foreclosing lien, and obligation to provide22 |
|---|
| 33 | + | statement of amounts due, as follows:23 |
|---|
| 34 | + | "(a)(1) All sums lawfully assessed by the association against any lot owner or property24 |
|---|
| 35 | + | owners' association lot, whether for the share of the common expenses pertaining to that25 |
|---|
| 36 | + | lot, fines, or otherwise, and all reasonable charges made to any lot owner or lot for26 |
|---|
| 37 | + | materials furnished or services rendered by the association at the owner's request to or on27 |
|---|
| 38 | + | behalf of the lot owner or lot, shall, from the time the sums became due and payable, be28 |
|---|
| 39 | + | the personal obligation of the lot owner, and shall, from the time the association29 |
|---|
| 40 | + | completes its requirements pursuant to Code Section 44-3-232.2, constitute a lien in favor30 |
|---|
| 41 | + | of the association on the lot prior and superior to all other liens whatsoever except:31 |
|---|
| 42 | + | (1)(A) Liens for ad valorem taxes on the lot;32 |
|---|
| 43 | + | (2)(B) The lien of any first priority mortgage covering the lot and the lien of any33 |
|---|
| 44 | + | mortgage recorded prior to the recording of the declaration; or34 |
|---|
| 45 | + | (3)(C) The lien of any secondary purchase money mortgage covering the lot, provided35 |
|---|
| 46 | + | that neither the grantee nor any successor grantee on the mortgage is the seller of the36 |
|---|
| 47 | + | lot; and37 |
|---|
| 48 | + | (D) Liens on the lot for unpaid medical bills.38 |
|---|
| 49 | + | (2) The recording of the declaration pursuant to this article shall constitute record notice39 |
|---|
| 50 | + | of the existence of the lien provided for in paragraph (1) of this subsection, and no further40 |
|---|
| 51 | + | recordation of any claim of lien for assessments shall be required."41 |
|---|
| 52 | + | S. B. 108 |
|---|
| 53 | + | - 2 - 25 LC 50 1037 |
|---|
| 54 | + | SECTION 3. |
|---|
| 55 | + | 42 |
|---|
| 56 | + | Said article is further amended by adding a new Code section to read as follows:43 |
|---|
| 57 | + | "44-3-232.2. |
|---|
| 58 | + | 44 |
|---|
| 59 | + | (a) As used in this Code section, the term 'alternative dispute resolution' means mediation,45 |
|---|
| 60 | + | arbitration, conciliation, or other nonjudicial procedure that involves a neutral party in the46 |
|---|
| 61 | + | decision-making process.47 |
|---|
| 62 | + | (b)(1) An association shall adopt a written policy providing for a fair, reasonable, and48 |
|---|
| 63 | + | expeditious alternative dispute resolution procedure for resolving any dispute regarding49 |
|---|
| 64 | + | sums assessed by the association.50 |
|---|
| 65 | + | (2) The association shall provide a copy of such policy to each lot owner annually and51 |
|---|
| 66 | + | shall make a copy of such policy available to a lot owner upon request.52 |
|---|
| 67 | + | (c) In developing an alternative dispute resolution procedure pursuant to this Code section,53 |
|---|
| 68 | + | an association shall make maximum reasonable use of available local dispute resolution54 |
|---|
| 69 | + | programs involving a neutral third party, including low-cost mediation programs.55 |
|---|
| 70 | + | (d) A fair, reasonable, and expeditious alternative dispute resolution procedure shall, at a56 |
|---|
| 71 | + | minimum, satisfy all of the following requirements:57 |
|---|
| 72 | + | (1) The procedure may be invoked by a lot owner. A request invoking the procedure58 |
|---|
| 73 | + | shall be in writing;59 |
|---|
| 74 | + | (2) The procedure shall provide for prompt deadlines. The procedure shall state the60 |
|---|
| 75 | + | maximum time for the association to act on a request invoking the procedure;61 |
|---|
| 76 | + | (3) If the procedure is invoked by a lot owner, the association shall participate in the62 |
|---|
| 77 | + | procedure; and63 |
|---|
| 78 | + | (4) A lot owner shall not be charged a fee to participate.64 |
|---|
| 79 | + | (e) The lien for unpaid assessments or other charges as provided for in Code65 |
|---|
| 80 | + | Section 44-3-225 shall not be created unless the association offers the lot owner66 |
|---|
| 81 | + | participation in alternative dispute resolution in accordance with this Code section, and, if67 |
|---|
| 82 | + | S. B. 108 |
|---|
| 83 | + | - 3 - 25 LC 50 1037 |
|---|
| 84 | + | so requested by the lot owner, the association participates in such alternative dispute68 |
|---|
| 85 | + | resolution."69 |
|---|
| 86 | + | SECTION 4.70 |
|---|
| 87 | + | This Act shall not apply to contracts entered into prior to July 1, 2025, before the expiration71 |
|---|
| 88 | + | or first renewal of such contract.72 |
|---|
| 89 | + | SECTION 5.73 |
|---|
| 90 | + | All laws and parts of laws in conflict with this Act are repealed.74 |
|---|
| 91 | + | S. B. 108 |
|---|