House Bill 62
By: Representatives Scott of the 76th, Davis of the 87th, and Schofield of the 63rd
A BILL TO BE ENTITLED
AN ACT
To amend Articles 3 and 6 of Chapter 3 of Title 44 of the Official Code of Georgia
Annotated, relating to condominium associations and property owners' associations,
respectively, so as to provide requirements for board members for condominium associations
and property owners' associations; to provide for allocation of votes; to provide for proxies;
to provide for quorums; to provide for residency for board members; to provide for size
requirements for boards; to provide for board elections, filing, and certification; to provide
for contests of election results; to provide for annual registration requirements for such
associations; to provide for a short title; to provide for a purpose; to provide for related
matters; to provide for an effective date and applicability; to provide for severability; to
repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known as the "Georgia HOA Accountability and Community
Empowerment Act (HACEA)."
SECTION 2.
The purpose of this Act is to establish fair, transparent, and enforceable regulations for
homeowners' associations, including condominium associations and property owner's
associations, to ensure accountability, enhance resident engagement, and protect the interests
of community members.
SECTION 3.
Article 3 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to
condominiums, is amended by revising paragraph (8) of subsection (a) of Code
Section 44-3-77, relating to contents of declaration, as follows:
"(8) The allocation to each unit <del>of a number of votes</del> in the association <ins>of one vote</ins> in
accordance with Code Section 44-3-79."
SECTION 4.
Said article is further amended by revising Code Section 44-3-79, relating to
allocation – votes in association, how votes cast, and majority vote requirements, as follows:
"44-3-79.
(a) The declaration shall allocate <del>a number of votes in the association to each unit depicted
on plats or plans that comply with subsections (a) and (b) of Code Section 44-3-83. The
allocation of such votes may be by percentage, fraction, formula, or any other method
which indicates the relative voting power allocated to each unit. If an equal vote is
allocated to each unit, the declaration may merely so state. All of the votes in the
association shall be allocated among the units depicted on such plats or plans and shall be
subject to reallocation as provided in this article</del> <ins>one vote to each unit.
</ins> (b) Since a unit owner may be more than one person, if only one of those persons is
present at a meeting of the association or is voting by proxy, ballot, or written consent, <del>that
</del> <ins>such</ins> person shall be entitled to cast the <del>votes</del> <ins>vote</ins> pertaining to that unit. However, if more
than one of <del>those</del> <ins>such</ins> persons <del>is</del> <ins>are</ins> present or <ins>each</ins> executes a proxy, ballot, or written
consent, the vote pertaining to that unit shall be cast only in accordance with their
unanimous agreement unless the condominium instruments expressly provide otherwise;
and such consent shall be conclusively presumed if any one of them purports to cast the
<del>votes</del> <ins>vote</ins> pertaining to that unit without protest being made immediately by any of the
others to the person presiding over the meeting or vote.
(c) The <del>votes</del> <ins>vote</ins> pertaining to any unit may, and, in the case of any unit owner not a
natural person or persons, shall, be cast pursuant to a proxy or proxies duly executed by or
on behalf of the unit owner or, in cases where the unit owner is more than one person, by
or on behalf of the joint owners of the unit. No such proxy shall be revocable except as
provided in Code Section 14-2-722 or 14-3-724 or by written notice delivered to the
association by the unit owner or by any joint owners of a unit. Any proxy shall be void if
it is not dated or if it purports to be revocable without such notice. <ins>Any proxy shall also
reasonably identify the unit owner or owners and the unit for which it is a proxy. If such
proxy does not reasonably identify the unit owner or owners and the unit for which it is a
proxy, such proxy shall be void.
</ins> <del>(d) Except in the case of any condominium of which no part is restricted exclusively to
residential use, if 50 percent or more of the votes in the association pertain to 25 percent
or less of the condominium units, then in any case where a majority vote is required by the
condominium instruments or by this article the requirement for such a majority shall be
deemed to include, in addition to the specified majority of the votes, assent by the unit
owners of a like majority of the condominium units.
</del> <ins>(e)(d)</ins> Anything in this Code section to the contrary notwithstanding, no <del>votes</del> <ins>vote</ins> in the
association shall be deemed to pertain to any condominium unit during such time as the
unit owner thereof is the association nor shall any vote be allocated to any condominium
unit unless the condominium unit is depicted on plats or plans that comply with
subsections (a) and (b) of Code Section 44-3-83. Except to the extent otherwise expressly
provided or permitted by this article, the <del>votes</del> <ins>vote</ins> allocated to any condominium unit
shall not be altered."
SECTION 5.
Said article is further amended by revising Code Sections 44-3-103 and 44-3-104, relating
to quorums at meetings of association or board and directors and officers and eligibility,
respectively, as follows;
"44-3-103.
<ins>(a)</ins> Unless the condominium instruments or bylaws provide otherwise, a quorum shall be
deemed present throughout any meeting, <ins>except the annual meeting,</ins> of the members of the
association if persons entitled to cast more than one-third of the votes are present at the
beginning of the meeting. Unless the condominium instruments or bylaws specify a larger
percentage, the presence of persons entitled to cast one-half of the votes of the board of
directors shall constitute a quorum for the transaction of any business at any meeting of the
board.
<ins>(b) A quorum shall be deemed present throughout any annual meeting of the members of
the association. Decisions and elections may proceed regardless of the number of members
of the association in attendance at such meeting.
</ins> 44-3-104.
<ins>(a)</ins> <del>If the condominium instruments provide that any member of the board of directors or
any officer of the association must be a unit owner, then, notwithstanding paragraph (1) of
subsection (a) of Code Section 44-3-75, the</del> <ins>Members of a board of directors or any officer
of an association shall be a unit owner with residency in the community. A unit owner
establishes residency by being a unit owner of a condominium governed by the
condominium association, paying utilities for the unit, using the unit address for voter
registration, and listing the unit on his or her driver's license or other government
</ins>
<ins>identification. Nonresident individuals shall not be eligible to serve on the board. The
</ins> term 'unit owner' in such context shall, unless the condominium instruments otherwise
provide, be deemed to include, without limitation, any shareholder, director, officer, partner
in, or trustee of any person who is, either alone or in conjunction with any other person or
persons, a unit owner. Any individual who would not be eligible to serve as a member of
the board of directors or officer were he <ins>or she</ins> not a shareholder, director, officer, partner
in, or trustee of such a person shall be deemed to have disqualified himself <ins>or herself</ins> from
continuing in office if he <ins>or she</ins> ceases to have any such affiliation with <del>that</del> <ins>such</ins> person.
<ins>(b) A board of directors shall consist of three or more individuals. Only one individual
residing in a unit shall be eligible to serve on such board at any time.
(c) The association shall provide proof of meeting the minimum number of board members
as part of filing its annual registration for the Secretary of State pursuant to Code
Section 14-2-1622 or Code Section 14-3-1622.
(d) Failure to meet the requirements in subsection (c) of this Code section shall subject the
condominium association to administrative suspension by the Secretary of State until the
following conditions are met:
(1) A successful election is held to reinstate the board with at least three members; and
(2) A reinstatement request providing proof of meeting the minimum number of board
members is submitted and approved by the Secretary of State."
</ins> SECTION 6.
Said article is further amended by adding new Code sections to read as follows:
<ins>"44-3-104.1.
(a) Elections of board members shall be held not less frequently than annually. Board
members shall be elected by winning a majority of the voting units. Elections shall be held
in accordance with the term limits set forth in the association's bylaws.
</ins>
<ins>(b) Ballots shall include the names of candidates and shall be given to each voting
member, including such members voting by proxy.
(c) The association shall maintain electronic scans of each ballot to be made available for
inspection by unit owners for one year following any election for board members.
(d) Election results shall be filed with the Secretary of State's Corporations Division
within 30 days of such election.
(e) The Secretary of State shall certify election results not fewer than 30 days nor more
than 45 days after such election or more than 15 days after the Secretary of State's
Corporations Division resolves election contests, whichever is later. The Secretary of
State's Corporations Division shall maintain certified election records for at least three
years after certification.
44-3-104.2.
(a) A petition to contest the result of an election provided for in Code Section 44-3-104.1
shall be filed with the Secretary of State's Corporations Division by a unit owner within
seven days of an association filing an election result with such division. Such petition shall
allege:
(1) The contestant's qualification to institute the contest;
(2) The contestant's desire to contest the result of such election;
(3) The name of each person who was a candidate at such election;
(4) Each ground of contest;
(5) The date the association filed the result of such election with the Secretary of State's
Corporations Division;
(6) The relief sought; and
(7) Such other facts as are necessary to provide a full, particular, and explicit statement
of such contest.
</ins>
<ins>(b) Such contestant may file documentation and other evidence to support the contest with
the petition.
(c) The petition shall be verified by the affidavit of each contestant. Such affidavit shall
be taken and subscribed before some person authorized by law to administer oaths and
shall state that the contestant believes the facts alleged therein are true and that according
to the best of his or her knowledge and belief the contested result of the election is incorrect
and the petition to contest the same is made in good faith.
(d) Upon the filing of a petition provided for in this Code section, the Secretary of State's
Corporations Division shall issue to the association notice requiring the association to
answer such petition by a day to be fixed in such notice not more than ten days nor fewer
than five days after the service of such notice. Such notice shall be sent to the association
by certified mail.
(e) After the filing of a petition and answer, the Secretary of State's Corporations Division
shall render a decision on the petition not more than 15 days after the filing of such answer.
When a contestant prevails, the election for board members shall be repeated. When the
association prevails, the results of such election shall stand as filed with the Secretary of
State's Corporations Division.
(f) Petitions filed pursuant to this Code section after the Secretary of State's Corporations
Division has certified the election but on or before seven days after the association filed the
election result shall be deemed timely.
44-3-104.3.
The Secretary of State is authorized to investigate complaints, enforce compliance, and
impose penalties for violations of this Act."
</ins>
SECTION 7.
Article 6 of Chapter 3 of Title 44, relating to property owners' associations, is amended by
revising Code Section 44-3-224, relating to voting at association meetings, as follows:
"44-3-224.
<ins>(a) The declaration shall allocate one vote to each lot.
(a)(b)</ins> Since a lot owner may be more than one person, if only one of those persons is
present at a meeting of the association, or is voting by proxy, ballot, or written consent, <del>that
</del> <ins>such</ins> person shall be entitled to cast the <del>votes</del> <ins>vote</ins> pertaining to that lot. However, if more
than one of <del>those</del> <ins>such</ins> persons <del>is</del> <ins>are</ins> present, or <ins>each</ins> executes a proxy, ballot, or written
consent, the vote pertaining to that lot shall be cast only in accordance with their
unanimous agreement unless the instrument expressly provides otherwise; and such
consent shall be conclusively presumed if any one of them purports to cast the <del>votes</del> <ins>vote
</ins> pertaining to that lot without protest being made immediately by any of the others to the
person presiding over the meeting or vote.
<del>(b)(c)</del> The <del>votes</del> <ins>vote</ins> pertaining to any lot may, and, in the case of any lot owner not a
natural person or persons, shall, be cast pursuant to a proxy or proxies duly executed by or
on behalf of the lot owner or, in cases where the lot owner is more than one person, by or
on behalf of the joint owners of the lot. No such proxy shall be revocable except as
provided in Code Section 14-2-722 or Code Section 14-3-724 or by written notice
delivered to the association by the lot owner or by any joint owners of a lot. Any proxy
shall be void if it is not dated or if it purports to be revocable without such notice. <ins>Any
proxy shall reasonably identify the lot owner or owners and the lot for which it is a proxy.
If such proxy does not reasonably identify the lot owner or owners and the lot for which
it is a proxy, such proxy shall be void."
</ins> SECTION 8.
Said article is further amended by adding new Code sections to read as follows:
<ins>"44-3-227.1.
(a) Members of a board or any officer of an association shall be a lot owner with residency
in the community. A lot owner establishes residency by being a lot owner of property
governed by the property owners' association, paying utilities for the lot, using the lot
address for voter registration, and listing the lot on his or her driver's license or other
government identification. Nonresident individuals shall not be eligible to serve on the
board. The term 'lot owner' in such context shall, unless the instrument otherwise provides,
be deemed to include, without limitation, any shareholder, director, officer, partner in, or
trustee of any person who is, either alone or in conjunction with any other person or
persons, a lot owner. Any individual who would not be eligible to serve as a board member
or officer were he or she not a shareholder, director, officer, partner in, or trustee of such
a person shall be deemed to have disqualified himself or herself from continuing in office
if he or she ceases to have any such affiliation with such person.
(b) A board shall consist of three or more individuals. Only one individual residing on a
property shall be eligible to serve on a board at any time.
(c) The association shall provide proof of meeting the minimum number of board members
as part of filing its annual registration for the Secretary of State pursuant to Code
Section 14-2-1622 or Code Section 16-3-1622.
(d) Failure to meet the requirements in subsection (c) of this Code section shall subject the
property owner's association to administrative suspension by the Secretary of State until
the following conditions are met:
(1) A successful election is held to reinstate the board with at least three members; and
(2) A reinstatement request providing proof of meeting the minimum number of board
members is submitted and approved by the Secretary of State.
</ins>
<ins>44-3-227.2.
(a) Elections of board members shall be held not less frequently than annually. Board
members shall be elected by winning a majority of the voting lot owners. Elections shall
be held in accordance with the term limits set forth in the association's bylaws.
(b) Ballots shall include the names of candidates and shall be given to each voting
member, including such members voting by proxy.
(c) The association shall maintain electronic scans of each ballot to be made available for
inspection by lot owners following any election for board members.
(d) Election results shall be filed with the Secretary of State's Corporations Division
within 30 days of such election.
(e) The Secretary of State shall certify board election results not fewer than 30 days nor
more than 45 days after such election or more than 15 days after the Secretary of State's
Corporations Division resolves election contests, whichever is later. The Secretary of
State's Corporations Division shall maintain certified election records for at least three
years after certification.
44-3-227.3.
(a) A petition to contest the election result shall be filed with the Secretary of State's
Corporations Division by a lot owner within seven days of an association filing an election
result with such division. Such petition shall allege:
(1) The contestant's qualification to institute the contest;
(2) The contestant's desire to contest the result of such election;
(3) The name of each person who was a candidate at such election;
(4) Each ground of contest;
(5) The date the association filed the result with the Secretary of State's Corporations
Division;
(6) The relief sought; and
</ins>
<ins>(7) Such other facts as are necessary to provide a full, particular, and explicit statement
of such contest.
(b) Such contestant may file documentation and other evidence to support the contest with
the petition.
(c) The petition shall be verified by the affidavit of each contestant. Such affidavit shall
be taken and subscribed before some person authorized by law to administer oaths and
shall state that the contestant believes the facts alleged therein are true and that according
to the best of his or her knowledge and belief the contested result of the election is incorrect
and the petition to contest the same is made in good faith.
(d) Upon the filing of a petition provided for in this Code section, the Secretary of State's
Corporations Division shall issue to the association notice requiring the association to
answer such petition by a day to be fixed in such notice not more than ten days nor fewer
than five days after the service of such notice. Such notice shall be sent to the association
by certified mail.
(e) After the filing of a petition and answer, the Secretary of State's Corporations Division
shall render a decision on the petition not more than 15 days after such filing of the answer.
When a contestant prevails, the election for the board members shall be repeated. When
the association prevails, the results of such election shall stand as filed with the Secretary
of State's Corporations Division.
(f) Petitions filed pursuant to this Code section after the Secretary of State's Corporations
Division has certified the election but on or before seven days after the association filed the
election result shall be deemed timely.
44-3-227.4.
The Secretary of State is authorized to investigate complaints, enforce compliance, and
impose penalties for violations of this Act."
</ins>
SECTION 9.
Said article is further amended by revising Code Section 44-3-228, relating to presence of
quorums at meetings, as follows:
"44-3-228.
<ins>(a)</ins> Unless the instrument or bylaws provide otherwise, a quorum shall be deemed present
throughout any meeting, <ins>except the annual meeting,</ins> of the members of the association if
persons entitled to cast more than one-third of the votes are present at the beginning of the
meeting. Unless the instrument or bylaws specify a larger percentage, the presence of
persons entitled to cast one-half of the votes of the board of directors shall constitute a
quorum for the transaction of business at any meeting of the board.
<ins>(b) A quorum shall be deemed present throughout any annual meeting of the members of
the association. Decisions and elections may proceed regardless of the number of members
of the association in attendance at such meeting."
</ins> SECTION 10.
This Act shall become effective six months after its approval by the Governor and shall apply
to any condominium association or property owners' association created on or after such date,
any association election held on or after such date, any annual meeting held on or after such
date, and any annual registration filed on or after such date.
SECTION 11.
The provisions of this Act are severable, and if any of its provisions shall be held
unconstitutional by any court of competent jurisdiction, the decision of such court shall not
affect or impair any of the remaining provisions.
SECTION 12.
All laws and parts of laws in conflict with this Act are repealed.