---
title: SB 361. Property Owners' Associations; authorization of liens and use of assessments; provide
collection: bills
id: 2025-2026/sb361
cite_as: SB 361, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb361
md_url: https://georgiacommons.org/bills/2025-2026/sb361.md
text_url: https://georgiacommons.org/bills/2025-2026/sb361/text
source_url: https://www.legis.ga.gov/legislation/71712
date: 2025-03-27
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/sb360.md
next: https://georgiacommons.org/bills/2025-2026/sb362.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 95
omitted_url: https://georgiacommons.org/bills/2025-2026/sb361.md?full=1
bill_number: SB 361
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2025-03-25
last_action: Senate Read and Referred
sponsors:
  - Matt Brass
  - Donzella James
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB361/2025
upstream_id: 2014741
summaries_model: claude-sonnet-5
topic_tags:
  - property owners' associations
  - HOA liens
  - homeowner foreclosure rules
  - Secretary of State regulations
  - escrow of association funds
---

# SB 361. Property Owners' Associations; authorization of liens and use of assessments; provide

## Text

25 LC 44 3170
Senate Bill 361
By: Senators Brass of the 6th and James of the 28th
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 authorization of liens and use2
of assessments; to provide for registration of property owners' associations; to provide for3
rules and regulations regarding administrative hearings and escrow of funds; to provide for4
related matters; to repeal conflicting laws; and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Article 6 of Chapter 3 of Title 44 of the Official Code of Geor gia Annotated, relating to8
property owners' associations, is amended by revising subsectio n (c) of Code Section9
44-3-232, relating to assessments against lot owners as constit uting lien in favor of10
association, additional charges against lot owners, procedure f or foreclosing lien, and11
obligation to provide statement of amounts due, as follows:12
"(c) Upon receipt of a written authorization to proceed from the office of the Secretary of13
State and not N o t less than 30 days after notice is sent by certified mail or st atutory14
overnight delivery, return receipt requested, to the lot owner both at the address of the lot15
and at any other address or addresses which the lot owner may h ave designated to the16
S. B. 361
- 1 -
25 LC 44 3170
association in writing, the lien may be foreclosed by the association by an action, judgment,17
and court order for foreclosure in the same manner as other liens for the improvement of18
real property, subject to superior liens or encumbrances, but a ny such court order for19
judicial foreclosure shall not affect the rights of holders of superior liens or encumbrances20
to exercise any rights or powers afforded to them under their s ecurity instruments. The21
notice provided for in this subsection shall specify the amount of the assessments then due22
and payable together with authorized late charges and the rate of interest accruing thereon. 23
No foreclosure action against a lien arising out of this subsection shall be permitted unless24
the amount of the lien is at least $2,000.00 $4,000.00, and no portion of any assessments25
shall be applied by an association to the cost of foreclosing a gainst a lien . Unless26
prohibited by the instrument, the association shall have the power to bid on the lot at any27
foreclosure sale and to acquire, hold, lease, encumber, and convey the same. The lien for28
assessments shall lapse and be of no further effect, as to asse ssments or installments29
thereof, together with late charges and interest applicable the reto, four years after the30
assessment or installment first became due and payable."31
SECTION 2.32
Said article is further amended by adding a new Code section to read as follows:33
"44-3-236.34
(a) Simultaneously with filing articles of incorporation with the office of the Secretary of35
State pursuant to Chapter 3 of Title 14, the declarant shall al so file with such office a36
registration of the association that includes:37
(1) The name and address of the association;38
(2) A copy of the association's by-laws;39
(3) The name of the association's officers;40
(4) A list of all lots included in the declaration; and41
(5) The number of lot owners.42
S. B. 361
- 2 -
25 LC 44 3170
(b) By December 31 of the calendar year after the filing of the articles of incorporation and43
by December 31 of each year thereafter, the declarant or the as sociation shall file a new44
registration with current data regarding the information provided pursuant to subsection (a)45
of this Code section.46
(c) By January 1, 2026, the Secretary of State shall promulgat e rules and regulations47
providing for administrative hearings regarding disputes between associations and owners. 48
Such hearings may be requested by any owner or association. Th e person who files a49
request for a hearing shall, at the time of filing, pay the fil ing fee set by the Secretary of50
State; provided, however, that the filer shall be reimbursed the filing fee by the other party51
should the Secretary of State rule in favor of the filer.52
(d) By January 1, 2026, the Department of Banking and Finance shall promulgate rules53
and regulations providing for the escrow of funds held by an association."54
SECTION 3.55
All laws and parts of laws in conflict with this Act are repealed.56
S. B. 361
- 3 -

## 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 Georgia Senate bill would raise the minimum unpaid debt a property owners' association must have before it can foreclose a lien on a homeowner's lot, and would require these associations to register with the Secretary of State.

### Plain-language summary

Georgia law lets property owners' associations (HOAs for planned communities) place liens on lots for unpaid assessments and foreclose on those liens under certain conditions. This bill changes several of those rules. It raises the minimum lien amount required before an association can start a foreclosure action from $2,000 to $4,000, and it adds a requirement that the association first get written authorization to proceed from the Secretary of State before foreclosing, on top of the existing 30 day notice requirement.
The bill also creates a new registration system: when a property owners' association is first incorporated, its organizer must file registration information (contact details, bylaws, officer names, a list of lots, and the number of lot owners) with the Secretary of State, and must refile updated information every year by December 31. It directs the Secretary of State to write rules for administrative hearings to resolve disputes between associations and owners, with a filing fee that gets refunded to whoever wins, and directs the Department of Banking and Finance to write rules for how associations must hold member funds in escrow. Both sets of rules are due by January 1, 2026.

### What it does

- Raises the minimum unpaid lien amount required before a property owners' association can foreclose on a lot from $2,000 to $4,000.
- Adds a requirement that associations receive written authorization from the Secretary of State before starting a foreclosure, in addition to existing notice rules.
- Creates a new registration requirement (O.C.G.A. § 44-3-236) requiring associations to file their bylaws, officer names, lot lists, and owner counts with the Secretary of State when incorporating, and to refile updated information every year by December 31.
- Directs the Secretary of State to create administrative hearing rules by January 1, 2026 for disputes between owners and associations, with a refundable filing fee for the winning party.
- Directs the Department of Banking and Finance to create rules by January 1, 2026 governing how associations must hold owners' funds in escrow.

### Who it affects

Homeowners who live in communities governed by a property owners' association, the associations themselves and their officers, declarants who set up new associations, and the state offices of the Secretary of State and the Department of Banking and Finance, which gain new regulatory duties.

### Why it matters

Homeowners facing an association lien would need to owe at least $4,000, not $2,000, before foreclosure could start, and would gain a new administrative hearing option to dispute charges. Associations would face new registration paperwork, state oversight of foreclosure authorization, and new rules for how they hold members' money.

### Key provisions

- Section 1 amends O.C.G.A. § 44-3-232(c) to require written authorization from the Secretary of State before an association forecloses a lien, on top of the existing 30 day certified mail notice.
- Section 1 raises the minimum lien amount needed to permit a foreclosure action from $2,000.00 to $4,000.00.
- Section 1 keeps the existing rule that no part of an assessment may be used to pay for the cost of foreclosing on a lien.
- Section 2 adds new Code Section 44-3-236 requiring declarants to file an association registration with the Secretary of State at incorporation, including bylaws, officer names, lot lists, and owner counts.
- Section 2 requires an updated registration filing every year by December 31 after the initial filing.
- Section 2 requires the Secretary of State to issue administrative hearing rules for owner-association disputes by January 1, 2026, with filing fees reimbursed to the prevailing party.
- Section 2 requires the Department of Banking and Finance to issue rules for escrow of association funds by January 1, 2026.
- Section 3 repeals all conflicting laws.

## Status

- Status: Introduced (2025-03-25)
- Last action: Senate Read and Referred (2025-03-27)
- Sponsors: Matt Brass, Donzella James
- Official page: https://www.legis.ga.gov/legislation/71712

> The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb361.md?full=1