--- title: SB 108. Property Owners' Associations; certificates of good standing for payment of annual assessments; provide collection: bills id: 2025-2026/sb108 cite_as: SB 108, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/sb108 md_url: https://georgiacommons.org/bills/2025-2026/sb108.md text_url: https://georgiacommons.org/bills/2025-2026/sb108/text source_url: https://www.legis.ga.gov/legislation/69967 date: 2026-01-12 status: introduced corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/sb107.md next: https://georgiacommons.org/bills/2025-2026/sb109.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 254 omitted_url: https://georgiacommons.org/bills/2025-2026/sb108.md?full=1 bill_number: SB 108 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: Senate bill_type: bill status_date: 2025-02-05 last_action: Senate Recommitted sponsors: - Donzella James - Harold Jones - Sheikh Rahman - RaShaun Kemp - Ed Harbison - Randal Mangham - Tonya Anderson - Nan Orrock - Sonya Halpern - Michael Rhett - Freddie Sims - Gail Davenport text_version: Comm Sub has_text: true legiscan_url: https://legiscan.com/GA/bill/SB108/2025 upstream_id: 1958384 summaries_model: claude-sonnet-5 topic_tags: - property owners' associations - HOA liens - homeowner disputes - alternative dispute resolution - property law --- # SB 108. Property Owners' Associations; certificates of good standing for payment of annual assessments; provide ## Text 25 LC 59 0124S The Senate Committee on Economic Development and Tourism offered the following substitute to SB 108: 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 certificates of good standing2 for payment of annual assessments; to require associations to o ffer to participate in3 alternative dispute resolution prior to the effectuation of a l ien on a lot for unpaid4 assessments; to require associations to act in good faith in such alternative dispute resolution;5 to provide for the recovery of attorney's fees by lot owners; to provide that such a lien shall6 be inferior to liens for unpaid medical bills; to provide for a lternative dispute resolution7 policies and requirements therefor; to provide for a definition; to provide for related matters;8 to provide for applicability; to repeal conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Article 6 of Chapter 3 of Title 44 of the Official Code of Geor gia Annotated, relating to12 property owners' associations, is amended by adding a new subse ction to Code Section13 44-3-225, relating to assessment of expenses, exemption from li ability, and liability for14 unpaid assessments, to read as follows:15 - 1 - 25 LC 59 0124S "(e) For each lot for which all assessments and other amounts due to the association have16 been paid in full, the association or its authorized agent shal l provide the lot owner a17 certificate stating that such lot is in good standing within 45 days of the end of each fiscal18 year and without cost to the lot owner."19 SECTION 2.20 Said article is further amended by revising subsection (a) of Code Section 44-3-232, relating21 to assessments against lot owners as constituting lien in favor of association, additional22 charges against lot owners, procedure for foreclosing lien, and obligation to provide23 statement of amounts due, as follows:24 "(a)(1) All sums lawfully assessed by the association against any lot owner or property25 owners' association lot, whether for the share of the common expenses pertaining to that26 lot, fines, or otherwise, and all reasonable charges made to an y lot owner or lot for27 materials furnished or services rendered by the association at the owner's request to or on28 behalf of the lot owner or lot, shall, from the time the sums became due and payable, be29 the personal obligation of the lot owner, and shall, from the time the association30 completes its requirements pursuant to Code Section 44-3-232.2, constitute a lien in favor31 of the association on the lot prior and superior to all other liens whatsoever except:32 (1)(A) Liens for ad valorem taxes on the lot;33 (2)(B) The lien of any first priority mortgage covering the lot and the lien of any34 mortgage recorded prior to the recording of the declaration; or35 (3)(C) The lien of any secondary purchase money mortgage covering the lot, provided36 that neither the grantee nor any successor grantee on the mortgage is the seller of the37 lot; and38 (D) Liens on the lot for unpaid medical bills.39 - 2 - 25 LC 59 0124S (2) The recording of the declaration pursuant to this article shall constitute record notice40 of the existence of the lien provided for in paragraph (1) of this subsection, and no further41 recordation of any claim of lien for assessments shall be required."42 SECTION 3.43 Said article is further amended by adding a new Code section to read as follows:44 "44-3-232.2.45 (a) As used in this Code section, the term 'alternative dispute resolution' means mediation,46 arbitration, conciliation, or other nonjudicial procedure that involves a neutral party in the47 decision-making process.48 (b)(1) An association shall adopt a written policy providing f or a fair, reasonable, and49 expeditious alternative dispute resolution procedure for resolving any dispute regarding50 sums assessed by the association.51 (2) The association shall provide a copy of such policy to each lot owner annually and52 shall make a copy of such policy available to a lot owner upon request.53 (c) In developing an alternative dispute resolution procedure pursuant to this Code section,54 an association shall make maximum reasonable use of available l ocal dispute resolution55 programs involving a neutral third party, including low-cost mediation programs.56 (d) A fair, reasonable, and expeditious alternative dispute resolution procedure shall, at a57 minimum, satisfy all of the following requirements:58 (1) The procedure may be invoked by a lot owner. A request in voking the procedure59 shall be in writing;60 (2) The procedure shall provide for prompt deadlines. The pro cedure shall state the61 maximum time for the association to act on a request invoking the procedure;62 (3) If the procedure is invoked by a lot owner, the associatio n shall participate in the63 procedure; and64 (4) A lot owner shall not be charged a fee to participate.65 - 3 - 25 LC 59 0124S (e) The lien for unpaid assessments or other charges as provid ed for in Code66 Section 44-3-225 shall not be created unless the association of fers the lot owner67 participation in alternative dispute resolution in accordance with this Code section, and, if68 so requested by the lot owner, the association participates in such alternative dispute69 resolution.70 (f)(1) In any alternative dispute resolution conducted pursuant to this Code section, the71 parties shall act in good faith in all matters relating to the alternative dispute resolution,72 including, but not limited to, making reasonable efforts to pro mptly conclude such73 alternative dispute resolution.74 (2) In any alternative dispute resolution conducted pursuant to this Code section wherein75 any party violates the provisions of paragraph (1) of this subsection, the aggrieved party76 shall be entitled to recover reasonable attorney's fees incurred as a result of participating77 in such alternative dispute resolution."78 SECTION 4.79 This Act shall not apply to contracts entered into prior to July 1, 2025, before the expiration80 or first renewal of such contract.81 SECTION 5.82 All laws and parts of laws in conflict with this Act are repealed.83 - 4 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. A Senate committee substitute for SB 108 would require Georgia property owners' associations to issue annual good-standing certificates and offer dispute resolution before placing a lien on a homeowner's property for unpaid assessments. ### Plain-language summary Georgia law lets property owners' associations (POAs) place liens on a homeowner's lot for unpaid assessments. This bill changes several rules around that process. It requires associations to give lot owners a free certificate each year showing their assessments are paid in full and the lot is in good standing, within 45 days of the end of the fiscal year. Before an association can create a lien for unpaid assessments, it must first offer the lot owner a chance to use alternative dispute resolution such as mediation or arbitration, and must actually participate if the owner asks. Both sides must act in good faith, and a lot owner can recover attorney's fees if the association does not. The bill also adds unpaid medical bill liens to the list of liens that outrank the association's lien, though tax liens and mortgages still come first. These changes would not apply to contracts signed before July 1, 2025, until they expire or are first renewed. ### What it does - Requires POAs to give lot owners a free annual certificate of good standing within 45 days of the fiscal year's end if all assessments are paid. - Bars an association from creating a lien for unpaid assessments unless it first offers the lot owner alternative dispute resolution (mediation, arbitration, conciliation, or similar). - Requires associations to participate in that dispute resolution process if the lot owner requests it, and forbids charging the owner a fee for it. - Lets a lot owner recover attorney's fees if the association fails to act in good faith during the dispute resolution process. - Adds liens for unpaid medical bills to the list of liens that rank ahead of an association's assessment lien on a lot. - Exempts contracts signed before July 1, 2025 from these new rules until they expire or are first renewed. ### Who it affects Homeowners who belong to property owners' associations, the associations themselves and their managing agents, and lot owners facing liens for unpaid dues. It also touches anyone with unpaid medical debt liens on a property, since those liens would now outrank association liens. ### Why it matters Homeowners facing an association lien would gain a required chance to resolve payment disputes through mediation or arbitration before losing their good standing, plus a way to recover legal fees if the association drags its feet. Associations would face new paperwork and process obligations before they can enforce liens. ### Key provisions - Section 1 adds a new subsection (e) to O.C.G.A. § 44-3-225 requiring associations to issue a free annual certificate of good standing to lot owners current on assessments. - Section 2 revises O.C.G.A. § 44-3-232(a) to add unpaid medical bill liens to the categories of liens that rank above an association's assessment lien. - Section 3 creates new Code Section 44-3-232.2, defining alternative dispute resolution and requiring associations to adopt a written policy for a fair, reasonable, and expeditious process. - Section 3 also requires associations to give lot owners the ADR policy annually, use available low-cost local mediation programs, and bars fees to lot owners who invoke the process. - Section 3 states no lien can be created unless the association first offers ADR and participates if the owner requests it, and allows recovery of attorney's fees for bad-faith conduct in ADR. - Section 4 limits the Act's application, excluding contracts entered into before July 1, 2025 until they expire or are first renewed. - Section 5 repeals conflicting laws. ## Status - Status: Introduced (2025-02-05) - Last action: Senate Recommitted (2026-01-12) - Sponsors: Donzella James, Harold Jones, Sheikh Rahman, RaShaun Kemp, Ed Harbison, Randal Mangham, Tonya Anderson, Nan Orrock, Sonya Halpern, Michael Rhett, Freddie Sims, Gail Davenport - Official page: https://www.legis.ga.gov/legislation/69967 > The history, votes, and amendments (254 characters) are at https://georgiacommons.org/bills/2025-2026/sb108.md?full=1