Georgia HOA Accountability and Community Empowerment Act (HACEA); enact
Impact
The Act introduces specific requirements concerning board member elections, stating that elections must occur at least once a year, and they must be conducted according to established term limits outlined in each association's bylaws. Furthermore, the act stipulates that each lot or unit should have a singular voting right, promoting clarity and fairness in decision-making. The provisions of the bill are designed to improve transparency within HOAs, necessitating that election results be filed with the Secretary of State's Corporations Division and maintaining certified records for public inspection.
Summary
House Bill 62, known as the Georgia HOA Accountability and Community Empowerment Act (HACEA), seeks to reform the existing regulations concerning homeowners' associations (HOAs), particularly focusing on condominium and property owners' associations. The bill aims to establish clearer requirements and enhance accountability for board members, ensuring that they are residents of the community they serve. Notably, it mandates that board members must be current homeowners within the association, thus promoting local representation and involvement in governance.
Contention
While the bill enjoys support for its intent to enhance accountability and resident empowerment, there are concerns regarding how the implementation might affect existing associations. Critics argue that the new regulations could create administrative burdens for smaller associations that may lack the resources to adapt to these requirements. Moreover, the stipulation that only residents can serve on boards may exclude valuable input from non-resident stakeholders, leading to potential governance challenges in areas with high non-residency amongst homeowners.
Restricts increases in monthly common expenses and limit special assessments to cover unforeseen costs not included in condo association’s approved annual budget for common expenses in associations where the minority of the units are deed-restricted units
Restricts increases in monthly common expenses and limit special assessments to cover unforeseen costs not included in condo association’s approved annual budget for common expenses in associations where the minority of the units are deed-restricted units