SB406: SB406 "Georgia Property Owners' Bill of Rights Act"; enact

26 LC 49 2879S Senate Bill 406 By: Senators Brass of the 6th, James of the 28th, Kirkpatrick of the 32nd, Dixon of the 45th, Sims of the 12th and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend Title 43 of the Official Code of Georgia Annotated, re lating to professions and1 businesses, so as to require the registration of owners' associ ations; to provide for an2 exception; to provide for renewals and amendments; to provide f or fees; to provide for3 inspection, maintenance, and retention of records; to provide f or records maintenance; to4 provide for denial, suspension, and revocation of records; to provide for notices, orders, and5 complaints; to provide for hearings; to provide for a stay of c ollections of fines or fees; to6 provide for binding arbitration; to provide for reports; to provide for appeals; to provide for7 rights of owners' association owners; to provide for priority of application of payments by8 owners to owners' associations; to provide for rules and regula tions; to provide for9 definitions; to provide for authorization of liens and use of a ssessments; to provide for10 written notice of certain sums; to amend Title 44 of the Official Code of Georgia Annotated,11 relating to property, so as to provide for property owners' associations to submit to Article12 6 of Chapter 3, relating to owners' associations, after the cre ation of such associations; to13 provide for voting procedures; to provide for applicability of such article; to provide for14 recordation of a vote to submit to such article; to provide for notice; to provide for records15 of dispossessory proceedings; to provide for a time certain to pay outstanding sums; to16 provide for an itemized list of attorney's fees claimed; to pro vide for an order finding17 S. B. 406 - 1 - 26 LC 49 2879S reasonableness; to provide for related matters; to provide for a short title; to provide for18 effective dates and applicability; to repeal conflicting laws; and for other purposes.19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:20 SECTION 1.21 This Act shall be known and may be cited as the "Georgia Property Owners' Bill of Rights22 Act."23 SECTION 2.24 Title 43 of the Official Code of Georgia Annotated, relating to professions and businesses,25 is amended by adding a new chapter to read as follows:26 "CHAPTER 17A27 43-17A-1.28 As used in this chapter, the term:29 (1) 'Accelerated assessment' means any regular assessment that would otherwise not be30 due until some future date but has been accelerated and made du e and payable prior to31 such future date.32 (2) 'Assessment' means and includes regular assessments, speci al assessments, and33 specific assessments.34 (3) 'Governing documents' means an owners' association's declaration, bylaws, articles35 of incorporation, and any rules and regulations established by its board of directors.36 (4) 'Nonregistered owners' association' means an owners' association that elects not to37 register with the Secretary of State pursuant to subparagraph ( a)(2)(B) of Code38 Section 43-17A-2.39 S. B. 406 - 2 - 26 LC 49 2879S (5) 'Owner' means the record owner or owners of fee simple title to a single lot, unit, or40 other individually owned property located in an owners' develop ment, excluding,41 however, any person holding such interest merely as security fo r the performance or42 satisfaction of any obligation.43 (6) 'Owners' association' means a nongovernmental association of participating owners44 of residential property in a delineated geographic area in which recorded covenants apply45 to such delineated geographic area, comprising a neighborhood, condominium46 development, common interest community, as such term is defined in Code47 Section 44-16-2, or group of homeowners or property owners, including, but not limited48 to, associations formed pursuant to Articles 3 and 6 of Chapter 3 of Title 44 and;49 provided, however, that such term shall not include nonregistered owners' associations.50 (7) 'Owners' development' means real property which is located within this state, is51 subject to governing documents, and contains lots, and which ma y contain common52 areas.53 (8) 'Regular assessments' or 'dues' means assessments imposed on owners on a regular54 or recurring basis for the purpose of funding the owners' association's regular operating55 budget for costs which may include, but shall not be limited to , common area56 maintenance and routine repairs, utilities, landscaping, and re serve fund contributions. 57 Such term shall not include special assessments or specific assessments.58 (9) 'Special assessments' means an assessment imposed on owners for costs which are59 not included in the owners' association's regular operating bud get, and which may60 include, but shall not be limited to, legal costs and common area nonroutine or emergency61 repairs, renovations, and other capital projects. Such term sh all not include regular62 assessments or specific assessments.63 (10) 'Specific assessments' means an assessment imposed on an owner for:64 S. B. 406 - 3 - 26 LC 49 2879S (A) Costs incurred by the owners' association to repair or remediate damage caused by65 such owner to the owners' association, which may include, but shall not be limited to,66 damage to common areas; or67 (B) Fees or fines for nonpayment, insufficient payment, or untimely payment of any68 assessment or for violation of a covenant of the owners' association.69 43-17A-2.70 (a)(1) No person shall operate an owners' association in this state unless such person is71 registered under this chapter as an owners' association.72 (2)(A) Subject to subparagraph (B) of this paragraph, no owner s' association or its73 agent shall collect fines or fees against any owner, or file or record liens or initiate74 foreclosure proceedings against any lot unless such owners' ass ociation is registered75 pursuant to this Code section.76 (B)(i) An entity that would otherwise constitute an owners' as sociation may by77 written notice to the Secretary of State elect not to register under this chapter as an78 owners' association or otherwise to comply with this chapter an d thereby shall be79 deemed a nonregistered owners' association.80 (ii) No nonregistered owners' association or its agent shall assess or collect fines or81 fees or accelerated assessments against any owner.82 (3) Each owners' association shall file with the Secretary of State a copy of the governing83 documents of the owners' association with a registration statem ent on a form as84 prescribed by the Secretary of State that shall be signed by the applicant, who shall be an85 authorized officer or representative of the owners' association . Such form shall, at a86 minimum, require:87 (A) The name, address, and officers of the owners' association; and88 (B) That each registration statement include a financial state ment of the owners'89 association dated no more than one year prior to filing.90 S. B. 406 - 4 - 26 LC 49 2879S (b) Upon the Secretary of State's determination of an owners' association's compliance91 with subsection (a) of this Code section and unless the Secretary of State finds grounds for92 denial pursuant to Code Section 43-17A-3, the Secretary of Stat e shall register such93 owners' association. The owners' association shall be authorized to operate immediately94 upon the filing of the registration statement under paragraph (3) of subsection (a) of this95 Code section, unless and until the Secretary of State finds grounds for denial pursuant to96 Code Section 43-17A-3. The date of such filing shall constitute the effective date of the97 registration statement. The Secretary of State shall immediate ly notify the owners'98 association of such registration.99 (c) Each registration statement issued pursuant to this Code s ection shall expire on100 December 31 of each year and each owners' association shall ann ually submit to the101 Secretary of State by such date a renewal application containing the information required102 for a registration statement in subsection (a) of this Code section.103 (d) In the event of a change in name, address, officers, or other change which materially104 affects the business and control of an owners' association, the owners' association shall105 within 30 days file an amended registration statement with the Secretary of State.106 (e) The fee for filing of an owners' association's initial reg istration statement and each107 annual renewal shall be $100.00.108 (f) Records relating to an owners' association's governing doc uments, finances,109 assessments, fines, fees, liens, and foreclosures shall be subj ect to such reasonable110 examinations by representatives of the Secretary of State as th e Secretary of State may111 deem in the public interest or for the protection of the public.112 (g) An owners' association shall maintain for not less than te n years at an office located113 in this state or, if it has no office in this state, its princi pal office all records, including114 electronic records and records in any other format, relating to any assessments, fines, fees,115 liens, and foreclosures. The owners' association or its agent shall notify the Secretary of116 S. B. 406 - 5 - 26 LC 49 2879S State of the address of the office at which such records are ke pt, if different from the117 address provided in response to subparagraph (a)(3)(A) of this Code section.118 (h) The Secretary of State in the administration of this chapt er shall comply with the119 record retention provisions of Article 5 of Chapter 18 of Title 50, relating to state records120 management.121 43-17A-3.122 (a) The Secretary of State, by order, may deny, suspend, or revoke a registration statement123 of an owners' association; may limit the fines or fees that an owners' association may124 collect or perform in this state; or bar a person who is an off icer, director, trustee, or125 executive personnel employee, or board member of an owners' association if the Secretary126 of State finds that such action is in the public interest and that the officer, director, trustee,127 or executive personnel employee, or board member has:128 (1) Filed an application for a registration statement with the Secretary of State which, as129 of its effective date, or any date after filing in the case of an order denying effectiveness,130 was incomplete in any material respect or contained a statement that was, in light of the131 circumstances under which it was made, false or misleading with respect to a material132 fact;133 (2) Willfully violated or failed to comply with this chapter or a rule promulgated by the134 Secretary of State under this chapter;135 (3) Failed to pay the proper filing fee within 30 days after notification from the Secretary136 of State of a deficiency, provided that the Secretary of State may provide for the137 reinstatement of the registration or the suspension of a fine or penalty at such time as the138 deficiency is corrected; or139 (4) Failed to comply with a subpoena or order issued by the Secretary of State.140 S. B. 406 - 6 - 26 LC 49 2879S (b) The Secretary of State shall not begin a proceeding based solely on a fact or transaction141 known to the Secretary of State on or before the effective date of the registration statement142 unless the proceeding is begun within 90 days after such effective date.143 (c) If the Secretary of State finds that an applicant or regis tered person is no longer in144 existence; has ceased to do business as an owners' association or its agent; is adjudicated145 mentally incompetent or subjected to the control of a committee, conservator, or guardian;146 or cannot be located after reasonable search, the Secretary of State, by order, may deny the147 application or revoke the registration statement.148 (d) Any order issued by the Secretary of State pursuant to thi s Code section shall state149 specifically the grounds for its issuance and a copy of such or der shall be mailed to the150 owners' association at its registered address.151 (e) The Secretary of State may delegate any of his or her powe rs and duties under this152 chapter as he or she desires to a division director in his or h er office. Such division153 director, when duly appointed, shall be the ultimate decision maker in all contested case154 hearings held pursuant to Code Section 43-17-16 and Chapter 13 of Title 50, the 'Georgia155 Administrative Procedure Act.'156 43-17A-4.157 (a)(1) When the Secretary of State has issued any order denying, suspending, or revoking158 a registration statement of an owners' association, limiting th e fines or fees that an159 owners' association may collect or perform in this state, or ba rring a person who is an160 officer, director, trustee, or executive personnel employee, or board member of an161 owners' association under Code Section 43-17A-3, he or she shall promptly send to the162 owners' association a notice of opportunity for hearing.163 (2) Before entering an order refusing to register any person u nder Code164 Section 43-17A-3 and after the entering of any order for revoca tion or suspension, the165 Secretary of State shall promptly send to such person a notice of opportunity for hearing.166 S. B. 406 - 7 - 26 LC 49 2879S (3) Any hearing conducted pursuant to this Code section shall be overseen by the167 Secretary of State or a person designated by the Secretary of State.168 (b) Notices of opportunity for hearing shall be served by inve stigators appointed by the169 Secretary of State or sent by registered or certified mail or s tatutory overnight delivery,170 return receipt requested, to the addressee's business mailing address or residential address171 as shown on information filed with the Secretary of State or di rected for service to the172 sheriff of the county where such person resides or is found. Such notice shall state:173 (1) The order which has been issued or which is proposed to be issued;174 (2) The grounds for issuing such order or proposed order; and175 (3) That the person to whom such notice is sent will be afforded a hearing upon request176 if such request is made within ten days after receipt of the notice.177 (c) When a person requests a hearing after receipt of the noti ce provided for in178 subsection (b) of this Code section, a date, time, and place fo r such hearing shall be179 immediately set and the person requesting such hearing shall be notified of such hearing. 180 Except as provided in subsection (b) of Code Section 43-17A-3, the date set for such181 hearing shall be within 30 days, but not earlier than five days after the request for hearing182 has been made, unless otherwise agreed to by the person requesting the hearing.183 (d) For the purpose of conducting any hearing as provided in t his Code section, the184 Secretary of State shall have the power to administer oaths, to call any party to testify under185 oath at such hearing, to require the attendance of witnesses and the production of books,186 records, and papers, and to interview and take written statements of witnesses; and for such187 purposes the Secretary of State is authorized to issue a subpoe na for any witness or a188 subpoena for production of documentary evidence to compel the production of any books,189 records, or papers. A subpoena may be served by registered or certified mail or statutory190 overnight delivery, return receipt requested, to the addressee's business mailing address or191 residential address as shown on information filed with the Secr etary of State or by192 investigators appointed by the Secretary of State or shall be d irected for service to the193 S. B. 406 - 8 - 26 LC 49 2879S sheriff of the county where such witness resides or is found or where the person in custody194 of any books, records, or papers resides or is found. The fees and mileage of the sheriff,195 witness, or person shall be paid from the funds in the state tr easury for the use of the196 Secretary of State in the same manner that other expenses of the Secretary of State are paid.197 (e)(1) At any hearing conducted under this Code section, a party or any affected person198 may appear in their own behalf or may be represented by an agent. Upon written request199 of both parties, the hearing shall be held virtually.200 (2) A stenographic record of the testimony and other evidence submitted shall be taken201 unless the Secretary of State and the person requesting the hearing shall agree that such202 a stenographic record of the testimony shall not be taken.203 (3) The Secretary of State shall determine the admissibility of such evidence, but a party204 may at any time make objection to any such determination; provi ded, however, that, if205 the Secretary of State refuses to admit evidence, the party off ering such evidence shall206 make a proffer thereof and such proffer shall be made a part of the record of the hearing.207 (f)(1) In the case of any hearing conducted under this Code se ction, the Secretary of208 State may conduct the hearing or may appoint a referee to condu ct such hearing. The209 appointed referee shall have the same powers and authority in conducting the hearing as210 are granted in this Code section to the Secretary of State.211 (2) In any hearing conducted by a referee, the referee shall s ubmit to the Secretary of212 State a written report that includes the transcript of the testimony and evidence, if such213 transcript is requested by the Secretary of State; the findings of fact and conclusions of214 law; and any recommendations of action to be taken by the Secre tary of State. Within215 30 days of the time of submission of such report to the Secretary of State, a copy of the216 report shall be served upon the person who requested the hearin g or their attorney or217 other representative of record by registered or certified mail or statutory overnight218 delivery, return receipt requested. That person or their attorney, within 30 days of service219 of the copy of such written report and recommendations, may file with the Secretary of220 S. B. 406 - 9 - 26 LC 49 2879S State written objections to the report which shall be considered by the Secretary of State221 before a final order is entered.222 (3) No recommendation of the referee shall be approved, modified, or disapproved by223 the Secretary of State until after 30 days following the service of such report as provided224 in this subsection.225 (4) The recommendations of the referee may be approved, modified, or disapproved by226 the Secretary of State. The Secretary of State may direct the referee to take additional227 testimony or to permit the introduction of further documentary evidence.228 (5) In any hearing conducted by a referee, a transcript of tes timony, evidence, and229 objections, if any, shall have the same force and effect as if such hearing or hearings had230 been conducted by the Secretary of State.231 (6) All recommendations of the referee shall be advisory only and shall not have the232 effect of an order of the Secretary of State.233 (g) If the Secretary of State does not receive a request for a hearing as provided in234 subsection (b) of this Code section, he or she may permit an or der previously entered to235 remain in effect or may enter a proposed order. If a hearing is requested and conducted as236 provided for in this Code section, the Secretary of State shall issue a written order which237 shall set forth his or her findings with respect to the matters involved.238 (h) All orders entered pursuant to Code Section 43-17A-3 shall be entered pursuant to this239 Code section, except when:240 (1) The Secretary of State deems that the public health, safety, or welfare imperatively241 requires emergency action and incorporates a finding to that effect in the order, in which242 case the order may be effective immediately pending proceedings , which proceedings243 shall be promptly instituted and determined; or244 (2) The order is expressly required by a court order, to be ma de without the right to a245 hearing or continuance of any type.246 S. B. 406 - 10 - 26 LC 49 2879S (i) Unless the owners' association prevails in a hearing conducted under this Code section,247 it shall be required to pay an administrative service fee of $100.00 to the Secretary of State248 by order of the Secretary of State.249 43-17A-5.250 (a)(1) Any person residing in an owners' development claiming that he or she has been251 damaged by such owners' association's action or inaction may file a complaint with the252 Secretary of State, who shall appoint a hearing officer to conduct the proceedings. Such253 complaint shall be a written statement of the facts constituting the complaint and shall be254 made within 180 days of the alleged action or inaction.255 (2) Upon the filing of such complaint under this subsection, t he hearing officer shall256 investigate the statement of facts made and in his or her discretion order a hearing before257 the hearing officer, giving the complainant and the respondent notice of such filing and258 the time and place of such hearing. Immediately upon the conclusion of the hearing, the259 hearing officer shall report his or her findings and render conclusions upon the matter to260 the complainant and respondent in each case, who shall have 15 days thereafter in which261 to make effective and satisfy the hearing officer's conclusions.262 (3) If such settlement is not effected within the time frames set forth in paragraph (2) of263 this subsection, the hearing officer, the complainant, or the r espondent may bring an264 action to enforce the claim.265 (b) It shall be unlawful in connection with any hearing under this Code section for any266 person to knowingly make or cause to be made to the Secretary o f State, the hearing267 officer, or anyone acting on their behalf any false or misleading written or oral statement268 of material fact or any statement which omits a material fact.269 (c) The filing of a complaint under this subsection shall act as an automatic stay270 prohibiting the respondent from collecting or attempting to collect from the complainant271 any fines or fees that are the subject of the complaint or rela ted to the subject of the272 S. B. 406 - 11 - 26 LC 49 2879S complaint. Such automatic stay shall expire upon the rendering of the hearing officer's273 conclusions following the hearing; provided, however, that the hearing officer shall be274 authorized to extend such stay for 15 days after the rendering of his or her conclusions275 following the hearing.276 (d) The nonprevailing party in a hearing conducted under this Code section shall be277 required to pay an administrative service fee of $100.00 to the Secretary of State by order278 of the Secretary of State.279 43-17A-6.280 (a)(1) An appeal may be taken from any order of the Secretary of State resulting from281 a hearing held in accordance with Code Section 43-17A-4 or any decision of a hearing282 officer resulting from a hearing held in accordance with Code Section 43-17A-5 by any283 person adversely affected by such order or decision to:284 (A) Where the amount demanded or the value of the property claimed does not exceed285 the amount provided for in paragraph (5) of subsection (a) of Code Section 15-10-2, the286 magistrate court of the county in which the largest portion of the owners' development287 is located; or288 (B) In all other cases, the superior court of the county in which the largest portion of289 the owners' development is located.290 (2) Appeals pursuant to paragraph (1) of this subsection shall be accomplished by291 serving the Secretary of State, within 20 days after the date of entry of such order, a copy292 of the petition for de novo review filed in the appropriate cou rt and signed by the293 petitioner, stating:294 (A) The order from which the appeal is taken;295 (B) The grounds upon which a reversal or modification of the order is sought; and296 (C) A demand for a certified transcript of the record of the order.297 S. B. 406 - 12 - 26 LC 49 2879S (b) Upon receipt of the petition for review, the Secretary of State shall, within ten days298 thereafter, make, certify, and deliver to the appropriate court a transcript of the record of299 the order from which the appeal is taken, provided that the app ellant shall pay the300 reasonable costs of such transcript. Such petition and such tr anscript shall constitute301 appellant's complaint which shall be entered on the trial calendar of the court.302 (c) If the order of the Secretary of State is reversed, the re viewing court shall by its303 mandate specifically direct the Secretary of State as to any further action to be taken by the304 Secretary of State in the matter, including the making and entering of an order or orders in305 connection with such reversal and the conditions, limitations, or restrictions to be included306 in such order or orders.307 (d) A decision of a magistrate court pursuant to this Code sec tion may be appealed by308 petition for review pursuant to Chapter 3 of Title 5.309 (e) The nonprevailing party in an appeal conducted under this Code section shall be310 required to pay the court costs of the prevailing party, if any, by order of the court.311 43-17A-7.312 Owners shall have the right to:313 (1) Inspect and obtain copies of owners' association records, accounting records, and314 other records of the owners' association upon written demand and in compliance with the315 laws of this state and the governing documents. Such accountin g records shall be the316 finalized balance sheet, budget, profit and loss statements, an d bank statements for the317 past three years;318 (2) Upon written demand to the owners' association, a copy of the owners' association319 certificate of insurance for all such insurance obtained by the owners' association for the320 benefit of the owner and that may apply to a potential claim or submitted claim;321 (3) Notice of meetings of members in a fair and reasonable manner consistent with the322 governing documents and the laws of this state;323 S. B. 406 - 13 - 26 LC 49 2879S (4) Attend meetings of the members of the owners' association, which shall be called and324 held by the board of directors at least annually;325 (5) Access to common areas, amenities, and common elements sub ject to the terms326 contained in the governing documents;327 (6) Ingress, egress, and access to their individually owned property;328 (7) Statutory notice and process requirements under the laws o f this state should an329 owners' association proceed with foreclosure action against an individually owned330 property;331 (8) Amend governing documents with the approval thresholds required by the laws of332 this state and the governing documents;333 (9) Expect, unless otherwise provided by the laws of this stat e, that a director of an334 owners' association board of directors shall perform his or her duties in good faith and335 with the degree of care an ordinary, prudent person in a like p osition would exercise336 under similar circumstances;337 (10) Expect directors to disclose to the other directors on the owners' association's board338 of directors any conflicting interest with respect to a transaction;339 (11) Be free from governing documents that interfere with the freedom of residents to340 determine the composition of their household, except that owners' associations shall have341 the power, subject to the laws of this state and federal law, to require that all occupants342 of a household be members of a single housekeeping unit, and to limit the total number343 of occupants permitted in each individually owned property and its fair share use of the344 common facilities, including parking; and345 (12) Challenge discriminatory practices by an owners' association as authorized by the346 laws of this state or federal law.347 S. B. 406 - 14 - 26 LC 49 2879S 43-17A-8.348 (a) All funds remitted by an owner to an owners' association s hall be applied by such349 owners' association to the following expenses by ranking of highest to lowest priority as350 follows:351 (1) Regular assessments or dues until current;352 (2) Special assessments until current;353 (3) Specific assessments until current; and354 (4) Other fees and fines.355 (b) No owners' association shall:356 (1) Refuse to accept payment from an owner in any amount for any assessment; or357 (2) Assess or collect accelerated assessments against any owner.358 43-17A-9.359 The Secretary of State shall adopt such policies, rules, regulations, and procedures as are360 necessary to implement this chapter."361 SECTION 3.362 Title 44 of the Official Code of Georgia Annotated, relating to property, is amended in363 Article 6 of Chapter 3, relating to owners' associations, by revising Code Section 44-3-222,364 relating to creation of property owners' development and affirmative election to be governed365 by article, as follows:366 "44-3-222.367 A property owners' development shall come into existence upon either the recordation of368 the declaration pursuant to this article, or the amendment of a recorded declaration in369 accordance with paragraph (2) of subsection (a) of Code Section 44-3-235, or the370 recordation of an instrument pursuant to paragraph (3) of subse ction (a) of Code371 Section 44-3-235. Any declaration or amendment intending to br ing or avail a372 S. B. 406 - 15 - 26 LC 49 2879S development of the benefits and provisions of this article shall state an affirmative election373 to be so governed. Any original declaration shall be duly executed by or on behalf of all374 of the owners of the submitted property. Any such amendment to an existing declaration375 shall be executed in accordance with the terms of the recorded declaration being amended376 thereby. Any such instrument specified in paragraph (3) of sub section (a) of Code377 Section 44-3-235 shall be executed pursuant to such Code section."378 SECTION 4.379 Said article is further amended in Code Section 44-3-226, relat ing to amendments of380 instrument and presumption of validity in court action, by revising subsection (b) as follows:381 "(b)(1) No amendment of an instrument shall require approval of lot o wners to which382 more than 80 percent of the association vote pertains and the m ortgagees holding 80383 percent of the voting interest of mortgaged lots; any property owners' association which384 exists prior to July 1, 1994, and amends its documents to avail itself of the provisions of385 this article, or otherwise submits to this article pursuant to Code Section 44-3-235, shall386 be deemed to have amended the association instrument to conform to this such limitation. 387 This subsection shall not be deemed to eliminate or modify any right of the declarant388 provided for in the instrument to approve amendments to the instrument so long as the389 declarant owns any lot primarily for the purpose of sale and, f urthermore, this Code390 section shall not be construed as modifying or altering the rights of a mortgagee set forth391 elsewhere in this article.392 (2) Provisions of any declaration of an association that submits to this article pursuant393 to paragraph (3) of subsection (a) of Code Section 44-3-235 tha t require a majority in394 excess of 80 percent of the association vote to amend shall not be affected or modified395 by this Code section if, by the first anniversary of the date of submission, the association396 and those mortgagees permitted to vote on amendments vote to retain the requirements397 S. B. 406 - 16 - 26 LC 49 2879S by a majority and, if no such vote occurs, those provisions requiring more than 80 percent398 of the voting interest shall be deemed to only require 80 percent of the voting interest.399 (3) This subsection shall not be deemed to eliminate or modify any right of a declarant400 provided for in the instrument to approve amendments to such instrument so long as the401 declarant owns any lot primarily for the purpose of sale and, f urthermore, this Code402 section shall not be construed as modifying or altering the rights of a mortgagee set forth403 elsewhere in this article."404 SECTION 5.405 Said article is further amended in Code Section 44-3-232, relating to assessments against lot406 owners as constituting lien in favor of association, additional charges against lot owners,407 procedure for foreclosing lien, and obligation to provide state ment of amounts due, by408 revising subsection (c) as follows:409 "(c) Not less than 30 60 days after notice is sent by certified mail or statutory overn ight410 delivery, return receipt requested, to the lot owner both at the address of the lot and at any411 other address or addresses which the lot owner may have designated to the association in412 writing, the lien may be foreclosed by the association by an ac tion, judgment, and court413 order for foreclosure in the same manner as other liens for the improvement of real414 property, subject to superior liens or encumbrances, but any such court order for judicial415 foreclosure shall not affect the rights of holders of superior liens or encumbrances to416 exercise any rights or powers afforded to them under their security instruments. The notice417 provided for in this subsection shall specify the amount of the assessments then due and418 payable together with authorized late charges and the rate of interest accruing thereon and419 shall state that payment of such amount prior to the sixtieth d ay following receipt of the420 notice will eliminate the right of foreclosure. No foreclosure action against a lien arising421 out of this subsection shall be permitted unless the amount of the lien is at least $2,000.00422 the lesser of $4,000.00 or an amount equal to 12 months of regu lar assessments, as such423 S. B. 406 - 17 - 26 LC 49 2879S term is defined in Code Section 43-17A-1, in arrears but not less than $2,000.00; provided,424 however, that no specific assessment, as such term is defined in Code Section 43-17A-1,425 or other fine or fee shall be included in the calculation of the amount of such lien. Unless426 prohibited by the instrument, the association shall have the power to bid up to the amount427 of the lien on the lot at any foreclosure sale and to acquire, hold, lease , encumber, and428 convey the same. The lien for assessments shall lapse and be o f no further effect, as to429 assessments or installments thereof, together with late charges and interest applicable430 thereto, four six years after the assessment or installment first became due and payable."431 SECTION 6.432 Said article is further amended in Code Section 44-3-235, relating to applicability of article,433 by revising subsection (a) as follows:434 "(a)(1) This article shall apply to all property which is submitted to this article.435 (2) This article shall also apply to any association of owners su bject to a recorded436 declaration of covenants upon property, which covenants are administered by an owners'437 association in which membership is mandatory for all owners of lots in the development,438 which declaration is amended in accordance with Code Section 44 -3-222 in order to439 submit the property owners' association to this article; provid ed, however, that any440 amendment must shall conform the instrument creating the property owners' association441 to this article, and the property owners' development shall the reafter be deemed to be442 submitted to this article.443 (3) This article shall also apply to any association of owners subject to a recorded444 declaration of covenants upon property, which covenants are administered by an owners'445 association in which membership is mandatory for all owners of lots in the development446 subject to such declaration, where 80 percent of the associatio n vote to approve the447 submission of such association to this article and records an instrument certifying such448 S. B. 406 - 18 - 26 LC 49 2879S vote. Such instrument shall give notice that the recordation of the instrument subjects the449 association to the provisions of this article."450 SECTION 7.451 Said Code section is further amended to add new subsections to read as follows:452 "(f) Except under circumstances necessitated by emergency conditions involving public453 safety or the preservation of property by the association, before an association may collect454 or be awarded attorney's fees, it shall provide:455 (1) An initial written notice by certified mail or statutory o vernight delivery to the lot456 owner from the association or its agent identifying any outstan ding fines or delinquent457 fees;458 (2) Lot owners with 30 days from the receipt of the notice required under paragraph (1)459 of this subsection to pay such outstanding fines or delinquent fees; and460 (3) An itemized list of reasonable attorney's fees claimed.461 (g) Judges conducting bench trials for an action to recover su ms assessed against a lot462 owner shall review such claims of attorney's fees for reasonabl eness and shall enter an463 order stating whether the attorney's fees were reasonable befor e an association can be464 awarded such attorney's fees."465 SECTION 8.466 Said title is further amended in Article 3 of Chapter 7, relating to dispossessory proceedings,467 by adding a new subsection to Code Section 44-7-50, relating to demand for possession,468 procedure upon a tenant's refusal, and notice to vacate or pay, to read as follows:469 "(e) A court of competent jurisdiction may, upon the filing of a motion and a hearing470 thereon, order all records of the court relating to a disposses sory proceeding to be made471 unavailable to the public when the tenant has prevailed in the proceeding resulting in a472 judgment in favor of such tenant; has satisfied the judgment in full, including the payment473 S. B. 406 - 19 - 26 LC 49 2879S of interest and costs; or seven years have lapsed since the fil ing of a dismissal or a474 judgment, provided that the judgment is paid in full with interests and costs. Nothing in475 this Code section shall prevent the landlord from pursuing all amounts due and owing such476 landlord in a separate action or through collections."477 SECTION 9.478 (a) Except as provided in subsection (b) of this section, this Act shall become effective on479 January 1, 2027.480 (b) Section 7 of this Act shall become effective on July 1, 2026, and shall apply to all actions481 filed on or after such date.482 SECTION 10.483 All laws and parts of laws in conflict with this Act are repealed. 484 S. B. 406 - 20 -