HB664: HB664 Property owners' associations; development and affirmative election; provisions

26 LC 49 2679S House Bill 664 (COMMITTEE SUBSTITUTE) By: Representatives Silcox of the 53rd, Reeves of the 99th, Panitch of the 51st, and Hilton of the 48th A BILL TO BE ENTITLED AN ACT To amend Article 6 of Chapter 3 of Title 44 of the Official Cod e of Georgia Annotated,1 relating to property owners' associations, so as to provide for property owners' associations2 to submit to said article after the creation of such associatio ns; to provide for voting3 procedures; to provide for recordation of a vote to submit to s aid article; to provide for4 notice; to provide for related matters; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Article 6 of Chapter 3 of Title 44 of the Official Code of Geor gia Annotated, relating to8 property owners' associations, is amended by revising Code Sect ion 44-3-222, relating to9 creation of property owners' development and affirmative election to be governed by article,10 as follows:11 "44-3-222.12 A property owners' development shall come into existence upon either the recordation of13 the declaration pursuant to this article, or the amendment of a recorded declaration in14 accordance with paragraph (2) of subsection (a) of Code Section 44-3-235, or the15 recordation of an instrument pursuant to paragraph (3) of subsection (a) of Code Section16 H. B. 664 (SUB) - 1 - 26 LC 49 2679S 44-3-235. Any declaration or amendment intending to bring or avail a development of the17 benefits and provisions of this article shall state an affirmative election to be so governed. 18 Any original declaration shall be duly executed by or on behalf of all of the owners of the19 submitted property. Any such amendment to an existing declaration shall be executed in20 accordance with the terms of the recorded declaration being amended thereby. Any such21 instrument specified in paragraph (3) of subsection (a) of Code Section 44-3-235 shall be22 executed pursuant to that Code section."23 SECTION 2.24 Said article is further amended in Code Section 44-3-226, relat ing to amendments of25 instrument and presumption of validity in court action, by revising subsection (b) as follows:26 "(b)(1) No amendment of an instrument shall require approval of lot o wners to which27 more than 80 75 percent of the association vote pertains and the mortgagees holding 8028 75 percent of the voting interest of mortgaged lots; any property owners' association29 which exists prior to July 1, 1994, and amends its documents to avail itself of the30 provisions of this article or otherwise submits to this article pursuant to Code Section31 44-3-235 shall be deemed to have amended the association instrument to conform to this32 limitation. This subsection shall not be deemed to eliminate or modify any right of the33 declarant provided for in the instrument to approve amendments to the instrument so long34 as the declarant owns any lot primarily for the purpose of sale and, furthermore, this Code35 section shall not be construed as modifying or altering the rights of a mortgagee set forth36 elsewhere in this article.37 (2) Provisions of any declaration of an association that submits to this article pursuant38 to paragraph (3) of subsection (a) of Code Section 44-3-235 tha t require a majority in39 excess of 75 percent of the association votes to amend shall not be affected or modified40 by this Code section if, by the first anniversary of the date of submission, the association41 and those mortgagees permitted to vote on amendments vote to retain the requirements42 H. B. 664 (SUB) - 2 - 26 LC 49 2679S by a majority and, if no such vote occurs, those provisions requiring more than 75 percent43 of the voting interest shall be deemed to only require 75 percent of the voting interest.44 (3) This subsection shall not be deemed to eliminate or modify any right of the declarant45 provided for in the instrument to approve amendments to the instrument so long as the46 declarant owns any lot primarily for the purpose of sale and, f urthermore, this Code47 section shall not be construed as modifying or altering the rights of a mortgagee set forth48 elsewhere in this article."49 SECTION 3.50 Said article is further amended in Code Section 44-3-235, relating to applicability of article,51 by revising subsection (a) as follows:52 "(a)(1) This article shall apply to all property which is submitted to this article.53 (2) This article shall also apply to any association of owners su bject to a recorded54 declaration of covenants upon property, which covenants are administered by an owners'55 association in which membership is mandatory for all owners of lots in the development,56 which declaration is amended in accordance with Code Section 44 -3-222 in order to57 submit the property owners' association to this article; provid ed, however, that any58 amendment must conform the instrument creating the property owners' association to this59 article, and the property owners' development shall thereafter be deemed to be submitted60 to this article.61 (3) This article shall also apply to any association of owners subject to a recorded62 declaration of covenants upon property, which covenants are administered by an owners'63 association in which membership is mandatory for all owners of lots in the development64 subject to such declaration, where 75 percent of the associatio n votes to approve the65 submission of such association to this article and records an instrument certifying such66 vote. Such instrument shall give notice that the recordation of the instrument subjects the67 association to the provisions of this article."68 H. B. 664 (SUB) - 3 - 26 LC 49 2679S SECTION 4.69 All laws and parts of laws in conflict with this Act are repealed.70 H. B. 664 (SUB) - 4 -