Georgia Senate Bill 406: The Georgia Property Owners’ Bill of Rights Act

Overview

During the 2026 legislative session, the Georgia General Assembly passed Senate Bill 406, also known as the “Georgia Property Owners’ Bill of Rights Act” (the Act). On May 12, 2026, Governor Brian Kemp signed the Act into law. The Act brings significant change to laws governing Georgia “owners’ associations,” which are defined in the Act as “a nongovernmental association of participating owners of residential property in a delineated geographic area in which recorded covenants apply to such delineated geographic area, comprising a neighborhood, condominium development, common interest community…or group of homeowners or property owners.” Most notably, the Act creates registration requirements for all owners’ associations, requires a ten-year retention of owners’ association documents and establishes a formal process for resolving disputes between owners’ associations and their owners. The Act takes effect on January 1, 2027, except for notice requirements for collecting attorney’s fees, which became effective on July 1, 2026. 

Required Registration 

Owners’ associations are required to register annually with the Secretary of State, which registration shall include (i) the name, address and officers of the owners’ association, (ii) a financial statement dated no more than one year prior to filing, and (iii) a copy of the owners’ association’s governing documents. If an owners’ association experiences changes to its name, address or officers or other material change that affects its business and control, it must file an amended registration statement within thirty days of the change.

An entity that would otherwise qualify as an owners’ association may elect not to register by providing written notice to the Secretary of State. Such an entity will be considered a “nonregistered owners’ association” and is prohibited from assessing or collecting fines, fees or accelerated assessments against an owner, filing or recording liens, or initiating foreclosures against any lot.

Record Retention

The Act requires owners’ associations to retain records “relating to any assessments, fines, fees, liens, and foreclosures” for at least ten years. The Secretary of State may request the production of such records, along with records relating to governing documents and finances, for “reasonable examinations” in the “public interest or for the protection of the public.” Additionally, as described below, property owners have the right to inspect the owners’ association’s documents upon request.

Dispute Resolution

The Act provides a formal dispute resolution process where a resident may bring a claim within 180 days of an action or inaction by an owners’ association that has caused damage to the resident. Importantly, the filing of the complaint acts as an automatic stay prohibiting the owners’ association from collecting fines or fees related to the complaint. Although effective immediately upon filing, the stay will expire when the hearing officer renders a conclusion, provided that the officer is authorized to extend the stay an additional fifteen days after the conclusion of the hearing.

Owners’ Rights 

The Act also provides property owners in an owners’ association’s development with a clear and fundamental set of rights: 

• to inspect and obtain copies of owners’ association records, accounting records and other records upon written demand in compliance with applicable law and the governing documents
• to obtain a copy of the owners’ association’s certificate of insurance for all insurance obtained for the benefit of the owner and that may apply to a potential claim or submitted claim
• to have notice of meetings, which shall be consistent with applicable law and the governing documents, and to attend meetings of the owners’ association, which shall be called at least annually
• to have access to common areas, amenities and common elements subject to the terms of the governing documents
• to have ingress, egress and access to the owners’ individual property
• to be provided adequate due process with foreclosure actions initiated by the owners’ association
• to amend governing documents with thresholds set by applicable law and the governing documents
• to expect good faith performance and disclosure of conflicting interests of the owners’ association’s board of directors 
• to be “free from governing documents that interfere with the freedom of residents to determine the composition of their household” with various exceptions
• to challenge discriminatory practices by the owners’ association 

Permitted and Restricted Payments

The Act requires that owners’ associations apply payments from owners in the following order: (i) regular assessments and dues, (ii) special assessments, (iii) specific assessments, and (iv) additional fees and fines. Furthermore, owners’ associations are prohibited from refusing payments from owners for assessments and from assessing or collecting accelerated assessments against owners.

Changes in Foreclosure Proceedings and Notice Requirements

The Act brings several changes to the foreclosure process and process for collecting attorney’s fees for owners’ associations governed under the Georgia Property Owners’ Association Act, notably excluding those governed under the Georgia Condominium Act. 
First, the foreclosure notice period before the owners’ association may foreclose a lien was extended from thirty days to sixty days. Additionally, the minimum lien threshold required for a foreclosure was modified from $2,000.00 to “the lesser of $4,000.00 or an amount equal to 12 months of regular assessments…in arrears but not less than $2,000.00.” The lien amount calculation excludes specific assessments and other fines and fees. At a foreclosure sale, the owners’ association can bid only up to the amount of the lien, unless prohibited by its governing documents. Finally, the timeline under which liens will lapse was increased from four years to six years after the assessment or installment first became due and payable.

Further, before an owners’ association governed under the Georgia Property Owners’ Association Act can collect attorney’s fees, the owners’ association must provide the owner written notice of outstanding fines and fees, allow the owner thirty days to pay the fees, and provide an itemized list of attorney’s fees claimed. These notice requirements took effect on July 1, 2026.

Action Steps for Owners’ Associations

Most imminently, owners’ associations should become aware of the notice requirements surrounding attorney’s fees as that portion of the Act took effect on July 1, 2026. As the remaining provisions take effect on January 1, 2027, owners’ associations that want the ability to assess fees and initiate foreclosures should begin to prepare for the upcoming registration requirements. Owners’ associations need to locate all records from the last ten years as they are subject to review by both the Secretary of State and property owners. It is important for owners’ associations to become familiar with the new dispute process, as well as the required order for applying payments from owners.

Special thank you to summer associate Kit Turner for her contributions to this Legal Briefing.

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If you have any questions about this Legal Briefing, please feel free to contact any of the attorneys listed or the Eversheds Sutherland attorney with whom you regularly work.