HB512: HB512 Property owners' associations; revise provisions

Georgia's Property Owners' Association Act (O.C.G.A. Chapter 3 of Title 44) governs how homeowners' associations collect assessments and place liens on properties for unpaid dues. This bill adds several new consumer protections. Associations would have to give each lot owner a free certificate confirming their account is in good standing within 45 days of the end of each fiscal year. When a lot is sold or refinanced, the association would have to provide a detailed statement of account within ten business days, listing assessments owed, violations, insurance information, and more, with limits on what it can charge for this. The bill also requires associations to adopt a written alternative dispute resolution policy, such as mediation, for assessment disputes, and it blocks associations from creating a lien for unpaid assessments unless they first offered the owner this dispute resolution option. These changes would not apply to contracts signed before July 1, 2025 until those contracts expire or renew.

• Requires property owners' associations to give lot owners a free certificate of good standing within 45 days after each fiscal year if all assessments are paid.
• Creates a new statement of account process requiring associations to respond to requests from owners, lenders, or mortgagees within ten business days with detailed financial and property information.
• Caps the fee an association's agent can charge for preparing a statement of account at $250, plus an extra $50 for expedited three-day service.
• Bars associations from charging the person requesting a statement of account any separate fees beyond those charged to the association itself.
• Requires associations to adopt a written alternative dispute resolution policy (such as mediation) for assessment disputes and share it with owners annually.
• Prohibits an association from creating a lien for unpaid assessments unless it first offered the owner alternative dispute resolution.

Homeowners who live in communities governed by property owners' associations, the associations and their management companies, mortgage lenders and mortgagees evaluating loans on association-governed lots, and buyers or sellers of homes within these associations who need account statements before closing.

Homebuyers, sellers, and lenders would get clearer, faster financial disclosures before closing, reducing surprise debts tied to a property. Owners disputing unpaid assessments would get a required mediation option before an association could place a lien on their home, changing how these disputes are resolved.

• Section 1 adds a new subsection (e) to O.C.G.A. § 44-3-225 requiring associations to issue a free certificate of good standing within 45 days of each fiscal year's end for lots with no unpaid amounts.
• Section 2 revises O.C.G.A. § 44-3-232 to clarify lien priority for assessments and update cross-references to the new statement of account process.
• Section 3 creates new Code Section 44-3-236, detailing the required contents of a statement of account, including assessment history, violations, insurance information, and fee limits ($250 standard, $50 extra for expedited service).
• Section 3 also creates new Code Section 44-3-237, requiring associations to adopt a written alternative dispute resolution policy and barring liens for unpaid assessments unless dispute resolution was first offered.
• Section 4 updates a cross-reference in O.C.G.A. § 44-14-15 to point to the new statement of account section.
• Section 5 states the Act does not apply to contracts entered into before July 1, 2025, until those contracts expire or are first renewed.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-03-04House Committee Favorably Reported (House)
3. 2025-02-21House Second Readers (House)
4. 2025-02-20House First Readers (House)
5. 2025-02-19House Hopper (House)

• Regina Lewis-Ward (D, HD-115)Primary sponsor
• Carolyn Hugley (D, HD-141)
• Dale Washburn (R, HD-144)
• Alan Powell (R, HD-033)
• Lisa Campbell (D, HD-035)
• Kim Schofield (D, HD-063)

• homeowners associations
• property owners' associations
• liens and assessments
• dispute resolution
• real estate transactions