Senate · Introduced · 2025-2026 Regular Session

SB107: SB107 Specialized Land Transactions; protections of homeowners in community associations; provide

Last action January 12, 2026 · Senate Recommitted

A Georgia Senate bill would limit when condominium and homeowners associations can foreclose on unpaid dues, give homeowners a chance to reclaim foreclosed homes, and create a state ombudsman office to referee association disputes.

In plain language

Georgia law currently lets condominium associations and property owners' associations foreclose liens for unpaid assessments once the debt reaches $2,000. This bill keeps that dollar threshold but adds new limits: associations cannot foreclose if the lien is smaller than a year's worth of assessments, or if it consists only of fines rather than unpaid dues, and association board members cannot buy the foreclosed home themselves. The bill also creates a 180 day right of redemption letting a former homeowner buy back a foreclosed unit by repaying the association and the purchaser. For associations formed after July 1, 2025, it requires waiving assessments for a year if an owner dies with an insolvent estate or becomes disabled and faces financial hardship. It creates a new Office of the Community Association Ombudsman inside the Department of Community Affairs to handle complaints, monitor board elections upon petition, and require associations to register annually and pay a $25 per unit fee.

What the bill does

Bars community associations from foreclosing a lien that is smaller than a year of assessments or that consists only of fines, late fees, or interest on fines.
Prohibits an association, its board members, or affiliates from buying a foreclosed unit at the foreclosure sale.
Creates a 180 day right for homeowners to redeem their foreclosed home by repaying the association and the purchaser's costs, including attorney's fees.
Requires associations formed under declarations executed after July 1, 2025 to waive a year of assessments for owners who die insolvent or become disabled and face financial hardship.
Establishes the Office of the Community Association Ombudsman within the Department of Community Affairs to mediate disputes, issue recommendations, and monitor board elections upon request.
Requires every community association to register annually with the ombudsman and pay a $25 per unit fee to fund the office.

Who it affects

Homeowners in condominiums and planned communities governed by mandatory homeowners associations, the associations and their boards and management companies, buyers at foreclosure sales, and the Department of Community Affairs, which would run the new ombudsman office.

Why it matters

Homeowners facing foreclosure over small unpaid assessments or fines would gain new protections and a chance to reclaim their home for six months after a sale. Associations would face new limits on foreclosure and new registration fees, and disputed elections or complaints could now go through a state-run mediation process.

Key provisions

Section 1 and 2 amend O.C.G.A. §§ 44-3-109 and 44-3-232 keeping the $2,000 minimum lien for foreclosure but folding in new limits from new Code Section 44-3-270.
New Code Section 44-3-270 bars foreclosure if the lien is less than 12 months of assessments or consists solely of fines, and bars association insiders from buying the unit at sale.
New Code Section 44-3-271 creates a 180 day redemption period requiring the homeowner to repay the association's costs and the purchaser's costs, including attorney's fees, to reclaim the home.
New Code Section 44-3-272 requires associations formed after July 1, 2025 to waive at least 12 months of assessments for owners who die insolvent or become disabled with resulting financial hardship, with refunds for prior payments.
New Code Sections 44-3-280 through 44-3-282 create the Office of the Community Association Ombudsman, appointed by the commissioner of community affairs, with powers to mediate disputes, publish educational materials, and maintain a registry of associations.
New Code Section 44-3-283 sets complaint procedures, requiring the ombudsman to investigate, offer mediation, and issue an annual public report of complaints and recommendations.
New Code Section 44-3-284 lets an ombudsman's fine-waiver recommendation take effect automatically unless a majority of association members reject it within 120 days.
New Code Section 44-3-286 requires annual registration and a $25 per unit fee, paid into the state treasury to fund the ombudsman's office.

Status timeline

2026-01-12Senate Recommitted (Senate)
2025-03-04Senate Read Second Time (Senate)
2025-03-03Senate Committee Favorably Reported By Substitute (Senate)
2025-02-06Senate Read and Referred (Senate)
2025-02-05Senate Hopper (Senate)

Topics

homeowners associations
foreclosure protections
condominium law
property rights
consumer protection