25 LC 44 3170
Senate Bill 361
By: Senators Brass of the 6th and James of the 28th
A BILL TO BE ENTITLED
AN ACT
To amend Article 6 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated,
1
relating to property owners' associations, so as to provide for authorization of liens and use2
of assessments; to provide for registration of property owners' associations; to provide for3
rules and regulations regarding administrative hearings and escrow of funds; to provide for4
related matters; to repeal conflicting laws; and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Article 6 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to8
property owners' associations, is amended by revising subsection (c) of Code Section9
44-3-232, relating to assessments against lot owners as constituting lien in favor of10
association, additional charges against lot owners, procedure for foreclosing lien, and11
obligation to provide statement of amounts due, as follows:12
"(c) Upon receipt of a written authorization to proceed from the office of the Secretary of
13
State and not Not less than 30 days after notice is sent by certified mail or statutory14
overnight delivery, return receipt requested, to the lot owner both at the address of the lot15
and at any other address or addresses which the lot owner may have designated to the16
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association in writing, the lien may be foreclosed by the association by an action, judgment,
17
and court order for foreclosure in the same manner as other liens for the improvement of18
real property, subject to superior liens or encumbrances, but any such court order for19
judicial foreclosure shall not affect the rights of holders of superior liens or encumbrances20
to exercise any rights or powers afforded to them under their security instruments. The21
notice provided for in this subsection shall specify the amount of the assessments then due22
and payable together with authorized late charges and the rate of interest accruing thereon. 23
No foreclosure action against a lien arising out of this subsection shall be permitted unless24
the amount of the lien is at least $2,000.00
$4,000.00, and no portion of any assessments25
shall be applied by an association to the cost of foreclosing against a lien. Unless26
prohibited by the instrument, the association shall have the power to bid on the lot at any27
foreclosure sale and to acquire, hold, lease, encumber, and convey the same. The lien for28
assessments shall lapse and be of no further effect, as to assessments or installments29
thereof, together with late charges and interest applicable thereto, four years after the30
assessment or installment first became due and payable."31
SECTION 2.32
Said article is further amended by adding a new Code section to read as follows:33
"44-3-236.34
(a) Simultaneously with filing articles of incorporation with the office of the Secretary of35
State pursuant to Chapter 3 of Title 14, the declarant shall also file with such office a36
registration of the association that includes:37
(1) The name and address of the association;38
(2) A copy of the association's by-laws;39
(3) The name of the association's officers;40
(4) A list of all lots included in the declaration; and41
(5) The number of lot owners.42
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(b) By December 31 of the calendar year after the filing of the articles of incorporation and43
by December 31 of each year thereafter, the declarant or the association shall file a new44
registration with current data regarding the information provided pursuant to subsection (a)45
of this Code section.46
(c) By January 1, 2026, the Secretary of State shall promulgate rules and regulations47
providing for administrative hearings regarding disputes between associations and owners. 48
Such hearings may be requested by any owner or association. The person who files a49
request for a hearing shall, at the time of filing, pay the filing fee set by the Secretary of50
State; provided, however, that the filer shall be reimbursed the filing fee by the other party51
should the Secretary of State rule in favor of the filer.52
(d) By January 1, 2026, the Department of Banking and Finance shall promulgate rules53
and regulations providing for the escrow of funds held by an association."54
SECTION 3.55
All laws and parts of laws in conflict with this Act are repealed.56
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