The Senate Committee on Economic Development and Tourism offered the following
substitute to SB 107:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to
regulation of specialized land transactions, so as to provide for protections of homeowners
in community associations; to revise provisions concerning the foreclosure of liens by
condominium associations and property owner's associations; to provide definitions; to
provide for limitations on the ability of community associations to foreclose liens; to provide
for a right of redemption following a foreclosure sale on a home by a community association;
to provide for the waiver of assessments owed by homeowners to community associations
in the event of death or disability; to provide for action and relief; to create the office of the
Community Association Ombudsman; to provide for powers and duties of the ombudsman;
to provide procedures concerning the submission of complaints to the ombudsman by
homeowner and community associations; to provide procedures concerning the resolution
of such complaints; to provide for the submission of certain recommendations made by the
ombudsman with respect to such complaints to community associations; to provide
procedures concerning the approval or rejection of such recommendations by community
associations; to provide for the monitoring of elections for boards of directors for community
associations; to provide for annual registration of community associations and related fees;
to provide for 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.
Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to regulation of
specialized land transactions, is amended in 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, by revising subsection (c)
as follows:
"(c) 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 <ins>the limitations set forth in Code Section 44-3-270 and to</ins> 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. <del>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.</del> 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."
SECTION 2.
Said chapter is further amended in Code Section 44-3-232, relating to assessments against
lot owners as constituting liens in favor of association, additional charges against lot owners,
procedure for foreclosing lien, and obligation to provide statement of amounts due, by
revising subsection (c) as follows:
"(c) 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 <ins>the limitations set forth in Code Section 44-3-270 and to</ins> 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. <del>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.</del> 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."
SECTION 3.
Said chapter is further amended by adding a new article to read as follows:
<ins>"ARTICLE 8
Part 1
44-3-260.
As used in this article, the term:
(1) 'Community association' means an organization or corporation of homeowners or
residential property owners of a particular residential community created for the purpose
of managing or regulating such residential community, including, without limitation,
enforcing covenants set forth in a declaration of such residential community. Such term
shall include a condominium association and a property owners' association.
(2) 'Condominium association' means an organization or corporation formed pursuant
to Article 3 of this chapter, the 'Georgia Condominium Act,' for the purpose of exercising
the powers of an association of any condominium under such Act.
(3) 'Declaration' means a recordable instrument creating restrictive covenants upon real
property within a particular residential community which are administered by a
community association in which membership is mandatory for all unit owners in such
residential community.
(4) 'Governing documents' means the instruments that govern the administration or
operation of the community association of a particular residential community, including,
without limitation, the declaration of such residential community and the bylaws and
articles of incorporation of such community association.
(5) 'Property owners' association' means a corporation formed pursuant to Article 6 of
this chapter, the 'Georgia Property Owners' Association Act,' for the purpose of
exercising the powers of an association of property owners under such Act.
(6) 'Residential community' means a residential subdivision, planned community, or
condominium.
</ins>
<ins>(7) 'Unit' means a portion of a residential community intended for any type of
independent ownership and use that is subject to a declaration and managed or regulated
by a community association.
(8) 'Unit owner' means the owner of a unit.
Part 2
44-3-270.
(a) Notwithstanding any provision of law to the contrary, no foreclosure action against a
lien on a unit in favor of a community association shall be permitted if the amount of the
lien:
(1) Is less than the total amount of assessments levied by the community association
against the unit in the preceding 12 months; or
(2) Consists solely of fines imposed by the community association for the failure to
comply with the provisions of the declaration or with the rules or regulations adopted by
the community association, including, without limitation, fines imposed or levied
pursuant to Code Section 44-3-76 or 44-3-223, and any late charges, interest, or costs
associated with such fines.
(b) No community association that brings a foreclosure action against a lien on a unit in
favor of the community association, nor any subsidiary, parent, affiliate, or any current or
former member of the board of such community association, shall be permitted to purchase
the unit at the foreclosure sale.
44-3-271.
(a) A unit owner may redeem a unit from any purchaser at a sale foreclosing a lien on such
unit in favor of a community association, including, without limitation, a lien arising out
of Code Section 44-3-109 or Code Section 44-3-232, by paying the amounts required for
</ins>
<ins>redemption, as set forth in this Code section, not later than 180 days after the date of such
sale.
(b) A person who purchases a unit at a sale foreclosing a lien on such unit in favor of a
community association shall not transfer ownership of such unit to a person other than the
unit owner during the redemption period provided in subsection (a) of this Code section.
(c) To redeem a unit that was purchased at the foreclosure sale, the unit owner shall:
(1) Pay to the community association:
(A) All amounts owed by the unit owner to the community association at the time of
the foreclosure sale, less the sale price received by the community association at the
foreclosure sale, and plus interest on such net amount from the date of foreclosure to
the date of redemption at the rate stated in the declaration for delinquent assessments
or, if no such rate is stated, at an annual interest rate of 10 percent;
(B) The costs incurred by the community association in foreclosing the lien, including
reasonable attorney's fees; and
(C) Any unpaid assessments levied against the unit by the community association after
the date of the foreclosure sale; and
(2) Pay to the person who purchased the unit at the foreclosure sale:
(A) The purchase price paid by such person at the foreclosure sale;
(B) The cost incurred by such person in recording the foreclosure deed and conveying,
after redemption, the unit to the unit owner, including reasonable attorney's fees;
(C) Any assessments levied against the unit by the community association after the
date of the foreclosure sale that were paid by such person; and
(D) Any amounts paid by such person as ad valorem taxes, penalties, and interest on
the unit after the date of the foreclosure sale.
(d) If a unit owner redeems a unit in accordance with the provisions of this Code section,
the purchaser of the unit at the foreclosure sale shall immediately execute and deliver to
the unit owner a deed transferring the unit to the unit owner. If a purchaser fails to comply
</ins>
<ins>with the provisions of this subsection, a unit owner may bring an action against such
purchaser for an order compelling the conveyance of such unit to such unit owner. If a unit
owner is the prevailing party in an action brought pursuant to this subsection, such unit
owner shall be entitled to recover the costs incurred in bringing such action, including
reasonable attorney's fees.
(e) The redemption rights conferred by this Code section are personal privileges and not
property or property rights. The privileges shall be exercised in the manner prescribed in
this Code section and such privileges may not be waived in a deed, declaration, judgment,
or any agreement.
(f) This Code section shall only apply to liens in favor of a community association that are
foreclosed on or after July 1, 2025.
44-3-272.
(a) As used in this Code section, the term:
(1) 'Disability' means a medically determinable physical or mental impairment caused
by injury or illness that renders a person unable to engage in any substantial gainful
employment.
(2) 'Disabled' means a person who is unable to engage in any substantial gainful
employment as a result of a medically determinable physical or mental impairment
caused by injury or illness.
(3) 'Personal representative' shall have the same meaning as provided in Code
Section 53-1-2.
(b)(1) Each community association created pursuant to a declaration executed on or after
July 1, 2025, shall waive all assessments or installments thereof that become due and
payable by any unit owner if such unit owner:
</ins>
<ins>(A) Dies with an insolvent estate, provided that the personal representative of such unit
owner's estate certifies in writing to the community association that such unit owner's
estate is insolvent; or
(B) Becomes disabled, which causes a financial hardship on such unit owner, provided
that such unit owner certifies in writing to the community association that, because of
such disability, he or she is experiencing a financial hardship.
(2) A waiver of such assessments or installments thereof under paragraph (1) of this
subsection shall begin on the date such unit owner dies or becomes disabled and shall
continue for a period of not less than 12 months; provided, however, that, if such waiver
is granted because of a disability of a unit owner, such waiver shall terminate if the
financial hardship on such unit owner resulting from such disability ceases to exist prior
to the expiration of such 12 month period.
(c) If a unit owner previously paid any assessments or installments thereof that are
required to be waived by a community association pursuant to subsection (a) of this Code
section, such unit owner or such unit owner's estate shall be entitled to a refund of such
assessments or installments thereof, provided that the written certification that the estate
of such unit owner is insolvent required under paragraph (1) of subsection (a) of this Code
section or the written certification of financial hardship required under paragraph (2) of
subsection (a) of this Code section, whichever is applicable, was provided to the
community association within 12 months of the date such unit owner died or became
disabled.
(d)(1) If a community association fails to waive or refund any assessments or
installments thereof that are required to be waived or refunded under the provisions of
this Code section, the unit owner or the personal representative of the unit owner's estate
may bring an action against such community association for a declaration that such
assessments or installments thereof are required to be waived and for recovery of any
</ins>
<ins>amount of such assessments or installments thereof that are required to be refunded.
Such relief shall not be granted unless the court determines in such action that:
(A) The unit owner either:
(i) Became disabled, which caused a financial hardship on such unit owner; or
(ii) Died with an insolvent estate; and
(B) The written certification that the estate of such unit owner is insolvent required
under paragraph (1) of subsection (a) of this Code section or the written certification
of financial hardship required under paragraph (2) of subsection (a) of this Code
section, whichever is applicable, was provided to the community association within 12
months of the date such unit owner died or became disabled.
(2) A unit owner or the personal representative of a unit owner's estate who prevails in
an action brought pursuant to this subsection shall be entitled to recover the costs incurred
in bringing such action, including reasonable attorney's fees.
Part 3
44-3-280.
(a) There is created within the Department of Community Affairs the Office of the
Community Association Ombudsman.
(b) The commissioner of community affairs shall appoint the ombudsman, who shall be
an attorney admitted to practice before the Georgia Supreme Court. The ombudsman shall
serve at the pleasure of the commissioner of community affairs.
(c) Neither the ombudsman nor any full-time employee of the ombudsman's office shall:
(1) Actively engage in any other business or profession that directly or indirectly relates
to or conflicts with his or her work in the ombudsman's office;
(2) Serve as the representative, or an executive, officer, or employee, of any political
party, executive committee, or other governing body of a political party;
</ins>
<ins>(3) Receive remuneration for activities on behalf of any candidate for public office;
(4) Engage in soliciting votes or other activities on behalf of a candidate for public
office; or
(5) Become a candidate for election to public office unless he or she first resigns from
his or her office or employment.
(d) The ombudsman shall maintain his or her principal office at a place convenient to the
commissioner of community affairs, which will enable the ombudsman to expeditiously
carry out the duties and functions of his or her office. The ombudsman may establish
branch offices elsewhere in the state upon the concurrence of the commissioner of
community affairs.
44-3-281.
The ombudsman shall have the powers necessary to carry out the duties of his or her office,
including, without limitation:
(1) Employing professional and clerical staff as necessary for the efficient operation of
the office;
(2) Preparing and issuing reports and recommendations to the Governor, the
commissioner of community affairs, the President of the Senate, and the Speaker of the
House of Representatives on any matter or subject within the jurisdiction of this article;
(3) Acting as a liaison between unit owners, or other affected parties, and community
associations, including the boards of directors, board members, officers, and managers
of such community associations;
(4) Monitoring and reviewing procedures and disputes concerning elections or meetings
of community associations;
(5) Providing resources to assist board members and officers of community associations
in carrying out their powers and duties in a manner consistent with this article, other
applicable law, and their governing documents;
</ins>
<ins>(6) Acting as a neutral resource regarding the rights and responsibilities of unit owners
and community associations, including the boards of directors, board members, officers,
and managers of such community associations;
(7) Encouraging and facilitating voluntary meetings between unit owners and community
associations, including the boards of directors, board members, officers, and managers
of such community associations, when the meetings may assist in resolving a dispute
within a residential community;
(8) Assisting with the resolution of disputes between unit owners and their community
associations, or between two or more unit owners within a residential community, if
applicable, including mediating such disputes, issuing opinions with respect to such
disputes, and the making of recommendations on actions that can be taken by unit owners
and community associations to resolve such disputes;
(9) Receiving and compiling complaints and responses in relation to violations of
applicable law and the governing documents of community associations; and
(10) Promulgating and adopting such rules and regulations as may be necessary to carry
out the provisions of this article.
44-3-282.
The ombudsman shall:
(1) Develop policies and procedures to assist unit owners and community associations,
including the boards of directors, board members, officers, and managers of such
community associations, understand their rights and responsibilities as set forth in this
article, under other applicable law, and in their governing documents;
(2) Coordinate and assist in the preparation and adoption of educational and reference
material, and shall endeavor to coordinate with private or volunteer providers of these
services, so that the availability of these resources is made known to the largest possible
audience;
</ins>
<ins>(3) Assist unit owners in understanding their rights and responsibilities under applicable
law and their governing documents, including, without limitation, publishing materials
related to those rights and responsibilities;
(4) Assist board members and officers of community associations in carrying out their
duties; and
(5) Compile and maintain a registration of each community association operating within
the state which includes, at a minimum, the following information:
(A) The name, address, and phone number of the community association;
(B) The name of each person who is authorized to manage the community association;
(C) The names, mailing addresses, and telephone numbers of the board members of the
community association;
(D) The number of units in the community association;
(E) The total annual assessment required to be paid by unit owners to the community
association; and
(F) The number of foreclosures that were completed by the community association on
units within its residential community.
44-3-283.
(a) The ombudsman shall adopt policies and procedures for submission and receipt of
complaints from unit owners and community associations regarding disputes concerning
the rights and responsibilities of unit owners and community associations or alleged
violations of the provisions of this article, other applicable law, or their governing
documents.
(b) The ombudsman shall publish a form for such complaints which, at a minimum, shall
include the following information:
(1) The unit owner's name;
(2) The name and contact information of the community association;
</ins>
<ins>(3) The name of the community association management company, if any, and its contact
information, including telephone number and mailing addresses;
(4) Whether a unit owner:
(A) Was informed of the requirement of membership in a community association as
a condition of ownership, including when that information was provided and by whom;
(B) Received a copy of the governing documents of the community association and if
the copy was obtained before or after receiving title to the unit;
(C) Was denied access to the governing documents and, if so, what remedies the unit
owner took to obtain the governing documents; and
(D) Understands his or her rights and obligations under the governing documents;
(5) The nature of the unit owner's or community association's complaint; and
(6) An explanation of:
(A) Any communications between the unit owner and the community association
regarding the complaint;
(B) Any remedies the unit owner or community association sought in relation to the
complaint; and
(C) Any actions the unit owner or community association took concerning the
complaint.
(c) Upon receiving a unit owner's or community association's complaint, the ombudsman
shall:
(1) Provide the complaint to the community association or the unit owner complained
against in a manner that verifies receipt of such complaint by the community association
or unit owner, so the unit owner or community association may determine if the unit
owner or community association desires to make a response to the complaint;
(2) Conduct an investigation into the allegations of the complaint;
(3) Offer to mediate the complaint among the affected parties, and conduct such
mediation if the affected parties agree to participate; and
</ins>
<ins>(4) If practicable, issue to the affected parties his or her opinions or recommendations
with respect to the complaint. Such opinions or recommendations may include, without
limitation, a proposed course of action, including, but not limited to, waiver of any fines
imposed by a community association on a unit owner.
(d)(1) The ombudsman shall, at least annually, provide a report of all complaints
received and any opinions or recommendations issued by the ombudsman with respect
to such complaints as provided in this Code section to the Governor, the commissioner
of community affairs, the General Assembly, and to the public on the ombudsman's
public website.
(2) The report provided for in this Code section shall include categorized, filterable, and
searchable information compiled from the complaints, responses, and any opinions or
recommendations issued by the ombudsman with respect thereto. The ombudsman shall
redact from such report any personal or private information of the affected parties, such
as names, addresses, and telephone numbers of individuals, contained in the complaints,
responses, or in any opinions or recommendations issued by the ombudsman with respect
thereto.
44-3-284.
(a) If, in connection with a complaint received pursuant to Code Section 44-3-283, the
ombudsman recommends that any fines imposed by a community association against a unit
owner be waived, such recommendation shall be submitted by the board of directors of the
community association to the entire membership of the community association for approval
or rejection. Unless a majority of such members rejects such recommendation within 120
days from the date such recommendation is issued by the ombudsman, such
recommendation shall automatically be approved and such fines imposed by the
community association against the unit owner, together with all late fees, interest, and other
charges associated with such fines, shall be waived. During such 120 day period, the
</ins>
<ins>community association shall not take any effort to collect such fines and shall not impose
any further late fees, interest, or charges with respect to such fines.
(b) This Code section shall only apply to community associations created pursuant to a
declaration executed on or after July 1, 2025.
44-3-285.
(a) Fifteen percent of the total membership in a community association, or six unit owners,
whichever is greater, may petition the ombudsman to appoint an election monitor to attend
a meeting of the community association to be held for the purpose of electing members of
the community association's board of directors and to conduct at such meeting the election
of such members of the board of directors.
(b) Upon receiving a petition for the appointment of an election monitor from a sufficient
number of unit owners pursuant to subsection (a) of this Code section, the ombudsman
shall appoint an employee of his or her office, a person who specializes in community
association election monitoring, or an attorney licensed to practice in this state as the
election monitor who shall attend the community association meeting and conduct the
election of the members of the board of directors.
(c) The ombudsman shall, by rule or regulation, establish procedures for the appointment
of election monitors under this Code section and the scope and extent of the monitor's role
in the election process.
44-3-286.
(a) Each community association shall register annually with the ombudsman on a form
prescribed by the ombudsman, which shall include the information required to be
maintained pursuant to paragraph (5) of Code Section 44-3-282.
(b) Each community association shall pay an annual registration fee to the ombudsman in
the amount of $25.00 per unit within the residential community of such community
</ins>
<ins>association. All such annual registration fees received by the ombudsman pursuant to this
subsection shall be paid into the state treasury; provided, however, that it is the intent of
the General Assembly that such fees shall be annually appropriated to the Department of
Community Affairs for the purpose of paying the expenses of the Office of the Community
Association Ombudsman and other costs associated with carrying out the provisions this
part."
</ins> SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.