House Bill 1035
By: Representatives Scott of the 76th, Davis of the 87th, Schofield of the 63rd, Greene of the
154th, Taylor of the 92nd, and others
A BILL TO BE ENTITLED
AN ACT
To amend Titles 36, 44, 46, and 48 of the Official Code of Georgia Annotated, relating to
local government, property, public utilities and public transportation, and revenue and
taxation, respectively, so as to prohibit local governments from adding unpaid service
charges to the ad valorem tax roll for purposes of tax execution or tax sale of an owner
occupied dwelling; to prohibit foreclosure sales based on liens from condominium and
property owners' associations for unpaid assessments; to provide for assessments from
condominium associations and property owners' associations to be considered unsecured
debts; to prohibit forced sales of owner occupied dwellings for nontax service charges; to
prohibit utilities from foreclosing on owner occupied dwellings for unpaid service fees; to
prohibit tax sales based on nontax service charges; to provide for civil remedies and
penalties; to make conforming changes; to provide for a short title; to provide for an effective
date and applicability; to provide for related matters; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Georgia Homeownership Protection Act
of 2026."
SECTION 2.
Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended
in Chapter 80, relating to general provisions relative to provisions applicable to counties,
municipal corporations, and other governmental entities, by adding a new Code section to
read as follows:
<ins>"36-80-32.
Counties, municipalities, local authorities, or local boards shall not certify, transfer, or add
any unpaid water, sewer, storm-water, solid waste, or other service charges of a residential
account to the ad valorem tax roll for purposes of tax execution or tax sale of an owner
occupied dwelling."
</ins> SECTION 3.
Title 44 of the Official Code of Georgia Annotated, relating to property, is amended in Code
Section 44-3-80, relating to allocation of and liability for common expenses and how
assessments made, by revising subsection (g) as follows:
"(g) A condominium instrument recorded on or after July 1, 2015, shall not authorize the
board of directors to impose:
(1) Except as provided in subsections (a) and (b) of this Code section and subsections (a)
and <del>(b)(c)</del> of Code Section 44-3-109, a special assessment fee per unit in excess of
one-sixth of the annual common expense assessment for the unit levied pursuant to
subsection (c) of this Code section per fiscal year without the approval of a majority of
the unit owners; or
(2) A monthly maintenance fee increase in excess of the percentage equal to the annual
rate of inflation as measured by the Consumer Price Index for All Urban Consumers for
the immediately preceding 12 month period may be disapproved by unit owners holding
a majority of the association vote."
SECTION 4.
Said title is further amended by revising Code Section 44-3-109, relating to lien for
assessments, personal obligation of unit owner, notice and foreclosure, lapse, right to
statement of assessments, and effect of failure to furnish statement, as follows:
"44-3-109.
(a) All sums lawfully assessed by the association against any unit owner or condominium
unit, whether for the share of the common expenses pertaining to that condominium unit,
for fines, or otherwise, and all reasonable charges made to any unit owner or condominium
unit for materials furnished or services rendered by the association at the owner's request
to or on behalf of the unit owner or condominium unit, shall, from the time the same
become due and payable, be the personal obligation of the unit owner and constitute a lien
in favor of the association on the condominium unit, <ins>which shall be unenforceable by
foreclosure or power of sale against an owner occupied dwelling</ins> <del>prior and superior to all
other liens whatsoever except:
(1) Liens for ad valorem taxes on the condominium unit;
(2) The lien of any first priority mortgage covering the unit and the lien of any mortgage
recorded prior to the recording of the declaration;
(3) The lessor's lien provided for in Code Section 44-3-86; and
(4) The lien of any secondary purchase money mortgage covering the unit, provided that
neither the grantee nor any successor grantee on the mortgage is the seller of the unit.
</del>
<ins>(b)</ins> The recording of the declaration pursuant to this article shall constitute record notice
of the existence of the lien, and no further recordation of any claim of lien for assessments
shall be required.
<ins>(b)(c)(1)</ins> To the extent that the condominium instruments provide, the personal
obligation of the unit owner and the lien for assessments shall also include:
<ins>(1)(A)</ins> A late or delinquency charge not in excess of the greater of $10.00 or 10 percent
of the amount of each assessment or installment thereof not paid when due;
<ins>(2)(B)</ins> At a rate not in excess of 10 percent per annum, interest on each assessment or
installment thereof and any delinquency or late charge pertaining thereto from the date
the same was first due and payable; <ins>and
(3)(C)</ins> The costs of collection, including court costs, the expenses of sale, any expenses
required for the protection and preservation of the unit, and reasonable attorney's fees
actually incurred; <del>and
(4) The fair rental value of the condominium unit from the time of the institution of an
action until the sale of the condominium at foreclosure or until the judgment rendered in
the action is otherwise satisfied.
</del> <ins>(2) Such assessments shall only be collectable as an unsecured debt. No lien created
pursuant to this Code section may be foreclosed or enforced by power of sale against an
owner occupied dwelling.
(c)(d)</ins> <del>Not less than 30 days after notice is sent by certified mail or statutory overnight
delivery, return receipt requested, to the unit owner both at the address of the unit and at
any other address or addresses which the unit owner may have designated to the association
in writing, the lien may be foreclosed by the association by an action, judgment, and
foreclosure in the same manner as other liens for the improvement of real property, subject
to superior liens or encumbrances, but any such court order for judicial foreclosure shall
not affect the rights of holders of superior liens or encumbrances to exercise any rights or
powers afforded to them under their security instruments. The notice provided for in this
</del>
<del>subsection shall specify the amount of the assessments then due and payable together with
authorized late charges and the rate of interest accruing thereon. No foreclosure action
against a lien arising out of this subsection shall be permitted unless the amount of the lien
is at least $2,000.00. Unless prohibited by the condominium instruments, the association
shall have the power to bid on the unit at any foreclosure sale and to acquire, hold, lease,
encumber, and convey the same. The lien for assessments shall lapse and be of no further
effect, as to assessments or installments thereof, together with late charges and interest
applicable thereto, four years after the assessment or installment first became due and
payable.</del> <ins>Any provision authorizing foreclosure of a lien created pursuant to this Code
section shall be void.
</ins> <del>(d)(e)</del> Any unit owner, mortgagee of a unit, person having executed a contract for the
purchase of a condominium unit, or lender considering the loan of funds to be secured by
a condominium unit shall be entitled upon request to a statement from the association or
its management agent setting forth the amount of assessments past due and unpaid together
with late charges and interest applicable thereto against that condominium unit. Such
request shall be in writing, shall be delivered to the registered office of the association, and
shall state an address to which the statement is to be directed. Failure on the part of the
association to mail or otherwise furnish such statement regarding amounts due and payable
at the expiration of such five-day period with respect to the condominium unit involved to
such address as may be specified in the written request therefor within five business days
from the receipt of such request shall cause the lien for assessments created by this Code
section to be extinguished and of no further force or effect as to the title or interest acquired
by the purchaser or lender, if any, as the case may be, and their respective successors and
assigns, in the transaction contemplated in connection with such request. The information
specified in such statement shall be binding upon the association and upon every unit
owner. Payment of a fee not exceeding $10.00 may be required as a prerequisite to the
issuance of such a statement if the condominium instruments so provided.
<del>(e)(f)</del> Nothing in this Code section shall be construed to prohibit actions maintainable
pursuant to Code Section 44-3-76 to recover sums for which subsection (a) of this Code
section creates a lien."
SECTION 5.
Said title is further amended in Code Section 44-3-117, relating to application to
subcondominiums, creation of subcondominium, subassociation, insurance, effect of certain
liens, eminent domain, description of certain units, and assessments, by revising subsection
(g) as follows:
"(g) <del>Not less than 30 days after notice is sent by certified mail or statutory overnight
delivery, return receipt requested, to the subunit owner both at the address of the subunit
and at any other address or addresses which the subunit owner may have designated to the
master association in writing, the lien of the master association may be foreclosed by the
master association by an action, judgment, and foreclosure in the same manner as other
liens for the improvement of real property, subject to superior liens or encumbrances, but
any such court order for judicial foreclosure shall not affect the rights of holders of superior
liens or encumbrances to exercise any rights or powers afforded to them under their
security instruments. The notice provided for in this subsection shall specify the amount
of the assessments then due and payable together with authorized late charges and the rate
of interest accruing thereon. No foreclosure action against a lien arising out of this
subsection shall be permitted unless the amount of the lien is at least $2,000.00. Unless
prohibited by the master condominium instruments, the master association shall have the
power to bid on the subunit at any foreclosure sale and to acquire, hold, lease, encumber,
and convey the same. The lien for assessments shall lapse and be of no further effect, as
to assessments or installments thereof, together with late charges and interest applicable
thereto, four years after the assessment or installment first became due and payable.</del> <ins>Any
</ins>
<ins>provision authorizing foreclosure of a lien created pursuant to this Code section shall be
void."
</ins> SECTION 6.
Said title is further amended by revising Code Section 44-3-206, relating to foreclosure by
owners' association, procedure, and effect of sale, as follows:
"44-3-206.
(a) An owners' association may foreclose its lien upon a time-share estate in accordance
with <del>subsection (c) of Code Section 44-3-109 or with</del> Code Section 44-3-207 or may
foreclose its lien under a power of sale that such owners' association shall have under this
Code section in order to sell a time-share estate for the purpose of paying any or all unpaid
assessments and other charges owed by the owner of such time-share estate.
(b)(1) In order for an owners' association to foreclose its lien upon a time-share estate
under a power of sale, a notice of sale shall be:
(A) Accomplished in writing sent by registered or certified mail or statutory overnight
delivery, return receipt requested, to the property address of the owner most recently
provided to the owners' association no later than 30 days prior to the date of the
proposed sale and shall be deemed given on the official postmark day or the day on
which it is received for delivery by a commercial delivery firm;
(B) Provided in writing to any lien holder, sent by registered or certified mail or
statutory overnight delivery, return receipt requested; and
(C) Provided by advertising the time, place, and terms of said sale in a newspaper in
which sheriff's advertisements are published in the county where the development is
located, once a week during the four calendar weeks immediately preceding the
calendar week of the date of such sale.
(2) Any sale pursuant to this subsection shall occur on a legal sale day within the legal
hours of sale at the legal place of sale in the county where the development is located.
(c) A sale undertaken as authorized by this Code section shall divest the owner of all right,
title, interest, and equity that such owner has in or to the time-share estate and shall vest
fee simple title to the time-share estate in the purchaser or purchasers at said sale. The
proceeds of said sale <del>shall be applied first in accordance with the lien priorities set forth in
paragraphs (1) through (4) of subsection (a) of Code Section 44-3-109, after which any
remaining proceeds</del> shall be applied to the payment in full of such unpaid assessments and
other charges and next to the payment of all expenses actually incurred by the owners'
association in connection with said proceedings, including attorneys' fees, and any
remaining proceeds shall be paid to the owner. The owners' association may bid at said
sale and purchase the time-share estate.
(d) For the purpose of carrying out and effectuating the power of sale authorized by this
Code section, the owners' association shall be constituted the true and lawful
attorney-in-fact of such owner to sell such time-share estate, as provided in this Code
section, and convey the same to the purchaser or purchasers at said sale in as full and ample
a manner as such owner could do in person. The power and agency hereby granted are
coupled with an interest and are irrevocable by death or otherwise."
SECTION 7.
Said title is further amended in Code Section 44-3-207, relating to time-share estates, trustee
foreclosures, and requirements, by revising subparagraph (a)(1)(A) and paragraph (4) of
subsection (e) as follows:
"(a)(1)(A) In order to sell a time-share estate for the purpose of paying any or all
unpaid assessments and other charges owed by the owner of such time-share estate, an
owners' association, or its managing agent on behalf of the owner's association, may
foreclose its lien for all assessments and other charges assessed by the owners'
association upon a time-share estate pursuant to the time-share instrument or
<del>subsections (a) and (b) of Code Section 44-3-109,</del> in accordance with:
(i) <del>The judicial foreclosure procedure of subsection (c) of Code Section 44-3-109 or
44-3-232, as applicable;
(ii)</del> The trustee foreclosure procedure under this Code section; or
<del>(iii)(ii)</del> The nonjudicial foreclosure procedure under Code Section 44-3-206."
"(4) The proceeds of the trustee foreclosure sale <del>shall be applied first in accordance with
the lien priorities set forth in paragraphs (1) through (4) of subsection (a) of Code Section
44-3-109, after which any remaining proceeds</del> shall be applied to the payment in full of
such unpaid assessments and other charges or mortgage obligations, as applicable, and
next to the payment of all expenses actually incurred by the owners' association in
connection with the trustee foreclosure proceedings, including <del>attorneys'</del> <ins>attorney's</ins> fees.
Any remaining proceeds shall be paid to the prior owner of the time-share estate. The
owners' association or mortgagee, as applicable, may bid at the sale and purchase the
time-share estate and receive a credit up to the amount of unpaid assessments and other
charges or mortgage obligations, as applicable, and all expenses actually incurred by the
owners' association or mortgagee, as applicable, in connection with the trustee
foreclosure proceedings, including attorney's fees."
SECTION 8.
Said title is further amended in Code Section 44-3-225, relating to assessment of expenses,
exemption from liability, and liability for unpaid assessments, by revising subsection (c) as
follows:
"(c) Unless otherwise provided in the instrument and except as provided in subsection (d)
of this Code section, the grantee in a conveyance of a lot shall be jointly and severally
liable with the grantor thereof for all unpaid assessments against the latter up to the time
of the conveyance without prejudice to the grantee's right to recover from the grantor the
amounts paid by the grantee; provided, however, that, if the grantor or grantee shall request
a statement from the association as provided in subsection <del>(d)(e)</del> of Code Section 44-3-232,
such grantee and his or her successors, successors-in-title, and assigns shall not be liable
for nor shall the property owners' association lot conveyed be subject to a lien for any
unpaid assessments against such grantor in excess of any amount set forth in the statement."
SECTION 9.
Said title is further amended by revising Code Section 44-3-232, relating to assessments
against lot owners as constituting lien in favor of association, additional charges against lot
owners, procedure for foreclosing lien, and obligation to provide statement of amounts due,
as follows:
"44-3-232.
(a) All sums lawfully assessed by the association against any lot owner or property owners'
association lot, whether for the share of the common expenses pertaining to that lot, fines,
or otherwise, and all reasonable charges made to any lot owner or lot for materials
furnished or services rendered by the association at the owner's request to or on behalf of
the lot owner or lot, shall, from the time the sums became due and payable, be the personal
obligation of the lot owner and constitute a lien in favor of the association on the lot, <ins>which
shall be unenforceable by foreclosure or power of sale against an owner occupied dwelling.
</ins> <del>prior and superior to all other liens whatsoever except:
(1) Liens for ad valorem taxes on the lot;
(2) The lien of any first priority mortgage covering the lot and the lien of any mortgage
recorded prior to the recording of the declaration; or
(3) The lien of any secondary purchase money mortgage covering the lot, provided that
neither the grantee nor any successor grantee on the mortgage is the seller of the lot.
</del> <ins>(b)</ins> The recording of the declaration pursuant to this article shall constitute record notice
of the existence of the lien, and no further recordation of any claim of lien for assessments
shall be required.
<ins>(b)(c)(1)</ins> To the extent that the instrument provides, the personal obligation of the lot
owner and the lien for assessments shall also include:
<ins>(1)(A)</ins> A late or delinquency charge not in excess of the greater of $10.00 or 10 percent
of the amount of each assessment or installment thereof not paid when due;
<ins>(2)(B)</ins> At a rate not in excess of 10 percent per annum, interest on each assessment or
installment thereof and any delinquency or late charge pertaining thereto from the date
the same was first due and payable; <ins>and
(3)(C)</ins> The costs of collection, including court costs, the expenses required for the
protection and preservation of the lot, and reasonable attorney's fees actually incurred;
<del>and
(4) The fair rental value of the lot from the time of the institution of an action until the
sale of the lot at foreclosure or until judgment rendered in the action is otherwise
satisfied.
</del> <ins>(2) Such assessments shall only be collectable as an unsecured debt. No lien created
pursuant to this Code section may be foreclosed or enforced by power of sale against an
owner occupied dwelling.
(c)(d)</ins> <del>Not less than 30 days after notice is sent by certified mail or statutory overnight
delivery, return receipt requested, to the lot owner both at the address of the lot and at any
other address or addresses which the lot owner may have designated to the association in
writing, the lien may be foreclosed by the association by an action, judgment, and court
order for foreclosure in the same manner as other liens for the improvement of real
property, subject to superior liens or encumbrances, but any such court order for judicial
foreclosure shall not affect the rights of holders of superior liens or encumbrances to
exercise any rights or powers afforded to them under their security instruments. The notice
provided for in this subsection shall specify the amount of the assessments then due and
payable together with authorized late charges and the rate of interest accruing thereon. No
foreclosure action against a lien arising out of this subsection shall be permitted unless the
</del>
<del>amount of the lien is at least $2,000.00. Unless prohibited by the instrument, the
association shall have the power to bid on the lot at any foreclosure sale and to acquire,
hold, lease, encumber, and convey the same. The lien for assessments shall lapse and be
of no further effect, as to assessments or installments thereof, together with late charges
and interest applicable thereto, four years after the assessment or installment first became
due and payable.</del> <ins>Any provision of this article authorizing foreclosure of a lien created
pursuant to this Code section shall be void.
</ins> <del>(d)(e)</del> Any lot owner, mortgagee of a lot, person having executed a contract for the
purchase of a lot, or lender considering the loan of funds to be secured by a lot shall be
entitled upon request to a statement from the association or its management agent setting
forth the amount of assessments past due and unpaid together with late charges and interest
applicable thereto against that lot. Such request shall be in writing, shall be delivered to
the registered office of the association, and shall state an address to which the statement is
to be directed. Failure on the part of the association, within five business days from the
receipt of such request, to mail or otherwise furnish such statement regarding amounts due
and payable at the expiration of such five-day period with respect to the lot involved to
such address as may be specified in the written request therefor shall cause the lien for
assessments created by this Code section to be extinguished and of no further force or
effect as to the title or interest acquired by the purchaser or lender, if any, as the case may
be, and their respective successors and assigns, in the transaction contemplated in
connection with such request. The information specified in such statement shall be binding
upon the association and upon every lot owner. Payment of a fee not exceeding $10.00
may be required as a prerequisite to the issuance of such a statement if the instrument so
provides.
<del>(e)(f)</del> Nothing in this Code section shall be construed to prohibit actions maintainable
pursuant to Code Section 44-3-223 to recover sums for which subsection (a) of this Code
section creates a lien."
SECTION 10.
Said title is further amended in Code Section 44-14-15, relating to fee for a future
conveyance and limited circumstances, by revising paragraph (3) of subsection (c) as
follows:
"(3) A property owners' association formed for the purposes of exercising the powers of
an association of property owners that has not been formed pursuant to or which has not
adopted the provisions of Article 6 of Chapter 3 of this title, the 'Georgia Property
Owners' Association Act,' provided that such association shall comply with subsection
<del>(d)(e)</del> of Code Section 44-3-232;"
SECTION 11.
Said title is further amended in Part 1 of Article 7 of Chapter 14, relating to foreclosure in
general, by adding new Code sections to read as follows:
<ins>"44-14-166.
(a) Notwithstanding any other provision of law, no person or government entity shall
commence a foreclosure, a tax sale, a tax execution sale, a sale of a lien, or any other
involuntary forfeiture of an owner occupied dwelling based on nonpayment of nontax
service charges.
(b) A foreclosure or involuntary sale of an owner occupied dwelling may be commenced
for nonpayment of ad valorem or other taxes or default under a duly recorded purchase
money mortgage.
(c) A foreclosure or involuntary transfer of title made pursuant to subsection (a) of this
Code section shall be void and may be set aside upon petition by the owner.
</ins>
<ins>44-14-167.
(a) Any lien by a property owners' association or condominium association for nontax
service charges, including but not limited to assessments and fines, shall not be enforceable
by foreclosure or power of sale against an owner occupied dwelling.
(b) Any lien by a property owners' association or condominium association for nontax
service charges on an owner occupied dwelling shall be considered a personal unsecured
obligation of the owner, collectable only by an action for a money judgment.
(c) Any contractual or recorded provision authorizing foreclosure or power of sale for
nontax service charges shall be deemed void and unenforceable against public policy.
(d) Nothing in this Code section shall impair the right of a property owners' association
or condominium association to:
(1) Suspend the use of common area amenities for delinquency;
(2) Levy reasonable late charges; and
(3) Record a notice of delinquency for informational purposes.
44-14-168.
(a) Property owners harmed by a violation of Code Section 36-80-32, 44-14-166,
44-14-167, or 48-3-29, may bring a civil action for:
(1) Declaratory and injunctive relief setting aside any sale or transfer;
(2) Actual damages;
(3) Statutory damages of not more than $5,000.00 per violation; and
(4) Reasonable attorney's fees and costs.
(b) The Attorney General may bring a civil action seeking a penalty of not more than
$10,000.00 per violation.
(c) Any deed or transfer recorded in violation of Code Section 36-80-32, 44-14-166,
44-14-167, or 48-3-29 shall not provide bonafide purchaser protection and such
instruments shall be considered void."
</ins>
SECTION 12.
Title 46 of the Official Code of Georgia Annotated, relating to public utilities and public
transportation, is amended by adding a new Code section to read as follows:
<ins>"46-1-7.
(a) Utilities and local authorities may pursue collections for unpaid service charges by civil
action but shall not obtain or enforce a lien resulting in foreclosure or tax sale of an owner
occupied dwelling.
(b) Service disconnections of essential water and sewage services shall comply with due
process, notice, medical hardship, and payment plan protections adopted by the
commission."
</ins> SECTION 13.
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is
amended in Article 1 of Chapter 3, relating to general provisions relative to tax executions,
by adding a new Code section to read as follows:
<ins>"48-3-29.
No tax commissioner, tax collector, or other official shall issue a tax execution or conduct
a sale of an owner occupied dwelling based solely or in part on nontax service charge."
</ins> SECTION 14.
This Act shall become effective on July 1, 2026, and shall to apply to all foreclosure actions
filed on or after such date.
SECTION 15.
All laws and parts of laws in conflict with this Act are repealed.