Georgia’s SB 406, the HOA law formally titled the Property Owners’ Bill of Rights Act, gives Georgia homeowners their first real state-level protections against aggressive HOA collection and foreclosure practices. Signed by Governor Brian Kemp on May 12, 2026, the law forces every homeowners association in the state to register with the Secretary of State, raises the amount a homeowner must owe before an HOA can foreclose, limits attorney fees, and creates an administrative complaint process homeowners can use without hiring a lawyer.1Signed into law by Governor Brian Kemp on May 12, 2026. Most of it takes effect January 1, 2027. The attorney fee rules are already in force.
When the Law Takes Effect
SB 406 rolls out in two phases. The attorney fee provisions — itemization, a 30-day cure period, and judicial review of reasonableness — took effect July 1, 2026, and apply to any collection action filed on or after that date. Everything else, including mandatory registration, the higher foreclosure threshold, the complaint process, and the homeowner transparency rights, takes effect January 1, 2027.
The law is not retroactive. If you were already in active litigation with your association when the relevant section took effect, the new rules do not apply to that case.
The New Foreclosure Threshold
This is the change most homeowners will feel first. Under prior Georgia law, an HOA could begin foreclosure once a homeowner owed $2,000. That number was easy to hit once fines and legal costs piled on top of missed dues.
Under SB 406, the threshold rises to the lesser of $4,000 or 12 months of regular assessments, with a $2,000 floor. Only unpaid regular assessments count toward that figure. Fines, late fees, attorney costs, and other charges are explicitly excluded from the calculation. An association can no longer stack a $100 fine with hundreds of dollars in legal fees to cross the foreclosure line.
Before starting foreclosure, the HOA must send at least 60 days’ notice by certified mail. The notice must state clearly that paying the outstanding regular assessment balance within that window “completely eliminates the association’s right to foreclose.” The statutory lifespan of an assessment lien also extends from four years to six.
These specific foreclosure changes apply to associations governed by the Georgia Property Owners’ Association Act. Condominium associations remain under their existing foreclosure and lien rules on these points.
How Your Payments Must Be Applied
Associations can no longer decide on their own how to allocate a partial payment. SB 406 sets a fixed order: first to regular dues until current, then to outstanding special assessments, then to specific assessments such as remediation costs or violation fines, and finally to any other fees. Associations are also barred from refusing partial payments.
The point of this hierarchy is straightforward. Under the old practice, an HOA could apply a homeowner’s check to fines and legal fees first, leaving the underlying dues unpaid so the balance kept marching toward the foreclosure threshold. That path is now closed.
Attorney Fee Limits (Already in Effect)
Since July 1, 2026, associations must give homeowners specific written notice and a 30-day window to pay before tacking attorney fees onto an account. Any fees added must be fully itemized. And before a court can award attorney fees in a collection case, a judge must make an independent finding that the fees are reasonable.
If your HOA has added legal fees to your account without written notice and a chance to pay, or without itemization, those charges may not stand.
Filing a Complaint With the Secretary of State
SB 406 creates a new administrative dispute process through the Secretary of State’s office. A homeowner who believes an association’s action or inaction has caused harm can file a written complaint within 180 days. A hearing officer investigates and has discretion to order a formal hearing.
The most important practical effect: filing a complaint automatically stays the association’s collection of any fines or fees tied to the dispute. The HOA cannot pursue that money while your complaint is pending.
The Secretary of State has authority to resolve the grievance, adjust or eliminate fines the association imposed, and discipline officers or directors. Either side can appeal the hearing officer’s decision to magistrate or superior court within 20 days. The losing party in the administrative process pays a $100 administrative service fee, and the losing party in any court appeal pays the prevailing party’s court costs.
Mandatory HOA Registration
Starting January 1, 2027, every HOA in Georgia must register annually with the Secretary of State. Registration requires the association’s governing documents, prior-year financial information, and a list of officers. The annual fee is $100, and registrations expire each December 31. Associations must keep at least ten years of financial records and provide three years to the state.
The teeth are in what happens if an HOA doesn’t register, or opts out. That association forfeits its legal authority to collect fines or fees, file or record liens, or start foreclosure proceedings. The Secretary of State can also deny, suspend, or revoke a registration and bar individuals from serving in HOA roles.
If you’re being pursued by an HOA after the registration deadline, check whether it is actually registered. An unregistered association has no legal authority to collect from you.
Records, Meetings, and Board Conduct
The law codifies several transparency rights. On written demand, you can inspect and copy association records. You can request a certificate of the HOA’s insurance. You are entitled to fair notice of meetings and the right to attend, and the board must hold at least one annual member meeting. Directors must act in good faith and disclose conflicts of interest.
Does It Apply to Condominiums?
Partly. Registration, the payment-priority rules, and the attorney fee provisions apply to condominium associations, homeowners associations, and property owners associations alike. The specific foreclosure threshold increase, the 60-day certified notice, and the extended lien lifespan apply only to associations governed by the Georgia Property Owners’ Association Act, not to condominium associations.
What the Law Does Not Do
SB 406 does not reach backward. Cases already in active litigation when the law took effect stay under the old rules. It does not eliminate HOA foreclosure — associations retain that power, just at a higher threshold and with more notice. And it does not, on its own, forgive fines or fees you already owe; challenging those still requires either paying within the new cure windows, filing a complaint with the Secretary of State, or contesting the charges in court.