HB1036: HB1036 Property Rights Through the Ballot Act; enact

Georgia homeowners' associations and property owners' associations currently have broad power to fine, place liens on, and in some cases foreclose on homes over unpaid dues and assessments. This bill, called the Property Rights Through the Ballot Act, would change that by creating a binding referendum process. If at least 20 percent of eligible voters in a covered community sign a petition, a county-run or county-approved vote would be held within 90 days on whether to keep or dissolve the association. If a majority votes to dissolve, the association would be legally ended within 180 days, its governing documents and liens voided or converted to unsecured debt, and leftover funds distributed to owners. The bill also flatly bars associations from foreclosing on or forcing the sale of an owner-occupied home over unpaid dues, fines, or fees, regardless of the referendum outcome. It requires open meetings, financial audits, and fiduciary duties for associations that continue to exist, and it makes violations an unfair or deceptive act under Georgia's Fair Business Practices Act.

• Creates a binding referendum process letting homeowners petition (with 20 percent of eligible voters' signatures) to vote on dissolving their homeowners' or property owners' association.
• Bans any association from foreclosing on, forcing the sale of, or otherwise involuntarily transferring an owner-occupied home over unpaid dues, fines, or assessments.
• Raises the minimum lien amount needed before an association can pursue foreclosure on condos and lots to $2,000 under O.C.G.A. §§ 44-3-109 and 44-3-232.
• Requires that if voters choose dissolution, the association's liens convert to unsecured debt, its governing documents become void, and leftover funds go to owners after debts are paid.
• Requires associations that continue to exist to hold open meetings, provide records access, get annual independent audits, and follow fiduciary duties enforceable in court.
• Sets rules for handing off shared infrastructure like roads and stormwater systems to the county or a voluntary agreement if an association dissolves.

Homeowners living in communities governed by homeowners' associations, property owners' associations, condominium associations, or master associations; the associations themselves and their boards; county election officials who would administer referendums; and local governments that may take over shared infrastructure like roads and stormwater systems after a dissolution.

Homeowners in HOA-governed communities would gain a formal, county-run process to vote their association out of existence, and no association could foreclose on an owner-occupied home over unpaid dues even if the association survives. Associations would face new audit, transparency, and referendum-cost obligations.

• Section 3 and Section 4 amend O.C.G.A. §§ 44-3-109 and 44-3-232 to require a lien of at least $2,000 before a condo or lot association can pursue foreclosure.
• Section 5 adds new Code Section 44-3-232.2 defining 'association,' 'covered community,' 'eligible voter,' 'referendum,' and 'essential shared infrastructure.'
• Section 5(c) sets the petition threshold at 20 percent of eligible voters to trigger a referendum, with the vote held within 90 days by the county elections superintendent or an approved third-party administrator.
• Section 5(e) gives each dwelling unit one vote and bans proxy, weighted, developer-controlled, or class voting; Section 5(f) makes the association pay all referendum costs.
• Section 5(g) specifies that dissolution by majority vote voids governing documents within 180 days, converts association liens to unsecured debt, and bars any foreclosure or involuntary transfer.
• Section 5(h) limits how often a new referendum can be initiated to once every three years if the association is retained.
• Section 5(i) bars any association, regardless of referendum outcome, from foreclosing on or forcing sale of an owner-occupied home over unpaid dues, fines, or fees.
• Section 5(m) makes violations of the new Code section an unfair or deceptive act under the Fair Business Practices Act of 1975 (O.C.G.A. Title 10).

1. 2026-01-29House Second Readers (House)
2. 2026-01-28House First Readers (House)
3. 2026-01-27House Hopper (House)

• Sandra Scott (D, HD-076)Primary sponsor
• Kim Schofield (D, HD-063)
• Viola Davis (D, HD-087)
• Rhonda Taylor (D, HD-092)
• Sylvia Baker (D, HD-064)
• Imani Barnes (D, HD-086)

• homeowners associations
• property rights
• foreclosure protection
• HOA reform
• real estate law