HB 1036: Property Rights Through the Ballot Act; enact

Under current Georgia law, homeowners' and property owners' associations can place liens on properties for unpaid assessments and, after notice, foreclose on those liens through court action. This bill, called the Property Rights Through the Ballot Act, removes the existing $2,000 minimum lien amount required before an association can foreclose, and adds a new process letting residents vote the association out of existence entirely. If 20 percent of eligible voters in a community sign a petition, county election officials or an approved third party must hold a referendum within 90 days. Each home gets one vote, with no proxy or weighted voting. A simple majority to dissolve ends the association within 180 days, voids its governing documents, converts its liens to unsecured debt, and bars any foreclosure. The bill also permanently bans associations from foreclosing on owner-occupied homes over unpaid fees, requires open meetings, records access, and annual audits for associations that continue to exist, and routes shared infrastructure like roads to counties or voluntary agreements upon dissolution.

• Removes the current $2,000 minimum lien threshold that condominium and lot owner associations must meet before foreclosing on a property (O.C.G.A. §§ 44-3-109, 44-3-232).
• Creates a petition and referendum process letting residents of HOA and condo communities vote on whether their association should continue to exist.
• Bans associations from ever foreclosing on, selling, or forcing the transfer of an owner-occupied home based on unpaid dues, fines, or fees, regardless of the referendum outcome.
• Requires that if a majority votes to dissolve, the association's liens become unsecured debt, its rules become void, and remaining funds are distributed to owners after debts are paid.
• Requires ongoing associations to hold open meetings, give owners access to records, get annual independent audits, and honor fiduciary duties enforceable in court.
• Makes violations of these new rules an unfair or deceptive trade practice under Georgia's Fair Business Practices Act of 1975.

Homeowners and condo owners living in communities governed by homeowners' or property owners' associations, the associations themselves and their boards, county election offices that would run referendums, and mortgage or lien holders whose foreclosure rights are affected by the ban on involuntary transfers of owner-occupied homes.

Georgians in HOA-governed communities would gain a path to disband an association they no longer want to fund, and would be protected from ever losing their home to an association foreclosure over dues or fines. Associations would face new costs for referendums, audits, and open-meeting requirements.

• Section 3 and Section 4 strike the requirement that a lien reach at least $2,000 before an association can foreclose on a condominium unit or subdivision lot.
• Section 5 adds new Code Section 44-3-232.2 defining 'association,' 'covered community,' 'eligible voter,' 'referendum,' and 'essential shared infrastructure.'
• Section 5 lets a referendum be triggered by a petition signed by at least 20 percent of eligible voters, with the vote run by the county elections superintendent or an approved third party within 90 days.
• Section 5 requires one vote per dwelling unit, bans proxy, weighted, developer-controlled, and class voting, and puts referendum costs on the association.
• Section 5 provides that a majority vote to dissolve ends the association within 180 days, voids its governing documents, converts liens to unsecured debt, and distributes remaining funds pro rata to owners.
• Section 5 permanently bars any association from foreclosing on or forcing transfer of an owner-occupied home over unpaid assessments, dues, fines, or fees, and voids any covenant granting that authority.
• Section 5 requires surviving associations to hold open meetings, provide record access, obtain annual independent audits, and routes shared infrastructure to counties, voluntary agreements, or special service districts upon dissolution.
• Section 5 makes violations an unfair or deceptive act under the Fair Business Practices Act of 1975 (O.C.G.A. § 10-1-390 et seq.).

1. 2026-01-29House Second Readers (House)
2. 2026-01-28House First Readers (House)
3. 2026-01-27House Hopper (House)

• Sandra Scott (D, HD-076)Primary sponsor
• Kim Schofield (D, HD-063)
• Viola Davis (D, HD-087)
• Rhonda Taylor (D, HD-092)
• Sylvia Baker (D, HD-064)
• Imani Barnes (D, HD-086)

• homeowners associations
• property foreclosure
• property rights
• real estate law
• local elections