SB361: SB361 Property Owners' Associations; authorization of liens and use of assessments; provide

25 LC 44 3170 Senate Bill 361 By: Senators Brass of the 6th and James of the 28th 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 authorization of liens and use2 of assessments; to provide for registration of property owners' associations; to provide for3 rules and regulations regarding administrative hearings and escrow of funds; to provide for4 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 subsectio n (c) of Code Section9 44-3-232, relating to assessments against lot owners as constit uting lien in favor of10 association, additional charges against lot owners, procedure f or foreclosing lien, and11 obligation to provide statement of amounts due, as follows:12 "(c) Upon receipt of a written authorization to proceed from the office of the Secretary of13 State and not N o t less than 30 days after notice is sent by certified mail or st atutory14 overnight delivery, return receipt requested, to the lot owner both at the address of the lot15 and at any other address or addresses which the lot owner may h ave designated to the16 S. B. 361 - 1 - 25 LC 44 3170 association in writing, the lien may be foreclosed by the association by an action, judgment,17 and court order for foreclosure in the same manner as other liens for the improvement of18 real property, subject to superior liens or encumbrances, but a ny such court order for19 judicial foreclosure shall not affect the rights of holders of superior liens or encumbrances20 to exercise any rights or powers afforded to them under their s ecurity instruments. The21 notice provided for in this subsection shall specify the amount of the assessments then due22 and payable together with authorized late charges and the rate of interest accruing thereon. 23 No foreclosure action against a lien arising out of this subsection shall be permitted unless24 the amount of the lien is at least $2,000.00 $4,000.00, and no portion of any assessments25 shall be applied by an association to the cost of foreclosing a gainst a lien . Unless26 prohibited by the instrument, the association shall have the power to bid on the lot at any27 foreclosure sale and to acquire, hold, lease, encumber, and convey the same. The lien for28 assessments shall lapse and be of no further effect, as to asse ssments or installments29 thereof, together with late charges and interest applicable the reto, four years after the30 assessment or installment first became due and payable."31 SECTION 2.32 Said article is further amended by adding a new Code section to read as follows:33 "44-3-236.34 (a) Simultaneously with filing articles of incorporation with the office of the Secretary of35 State pursuant to Chapter 3 of Title 14, the declarant shall al so file with such office a36 registration of the association that includes:37 (1) The name and address of the association;38 (2) A copy of the association's by-laws;39 (3) The name of the association's officers;40 (4) A list of all lots included in the declaration; and41 (5) The number of lot owners.42 S. B. 361 - 2 - 25 LC 44 3170 (b) By December 31 of the calendar year after the filing of the articles of incorporation and43 by December 31 of each year thereafter, the declarant or the as sociation shall file a new44 registration with current data regarding the information provided pursuant to subsection (a)45 of this Code section.46 (c) By January 1, 2026, the Secretary of State shall promulgat e rules and regulations47 providing for administrative hearings regarding disputes between associations and owners. 48 Such hearings may be requested by any owner or association. Th e person who files a49 request for a hearing shall, at the time of filing, pay the fil ing fee set by the Secretary of50 State; provided, however, that the filer shall be reimbursed the filing fee by the other party51 should the Secretary of State rule in favor of the filer.52 (d) By January 1, 2026, the Department of Banking and Finance shall promulgate rules53 and regulations providing for the escrow of funds held by an association."54 SECTION 3.55 All laws and parts of laws in conflict with this Act are repealed.56 S. B. 361 - 3 -