HB1035: HB1035 Georgia Homeownership Protection Act of 2026; enact

Right now, some Georgia local governments can add unpaid water, sewer, or trash bills to a home's property tax bill, letting the home be sold at tax sale over a service charge. Condominium and homeowners' associations can also foreclose on a home over unpaid dues or fines. This bill, called the Georgia Homeownership Protection Act of 2026, would end both practices for owner occupied dwellings, meaning a person's primary home. The bill blocks counties, municipalities, and local boards from moving unpaid service charges onto the ad valorem tax roll for tax execution or tax sale of an owner occupied home. It also rewrites Georgia's condominium and property owners' association laws (O.C.G.A. §§ 44-3-109 and 44-3-232) so association assessments become unsecured debts collectible only through a money judgment lawsuit, not foreclosure. Utilities are barred from foreclosing over unpaid service fees, and tax officials cannot run a tax sale based on nontax service charges. The bill creates civil penalties and lets homeowners and the Attorney General sue over violations. It would take effect July 1, 2026, and apply to foreclosure actions filed on or after that date.

• Bars counties, municipalities, and local boards from adding unpaid water, sewer, storm-water, or solid waste charges to a home's property tax roll for tax sale purposes (new O.C.G.A. § 36-80-32).
• Rewrites condominium association lien law so association assessments become unsecured debts collectible only by lawsuit, not by foreclosure or power of sale, against an owner occupied home (O.C.G.A. § 44-3-109).
• Applies the same unsecured debt and no-foreclosure rule to property owners' associations under O.C.G.A. § 44-3-232.
• Creates a new law (O.C.G.A. § 44-14-166) voiding any foreclosure, tax sale, or forced transfer of an owner occupied home based on nonpayment of nontax service charges.
• Prohibits utilities and local authorities from foreclosing on a home over unpaid service charges, while still allowing them to sue for the debt (new O.C.G.A. § 46-1-7).
• Sets up civil remedies including statutory damages up to $5,000 per violation for homeowners and penalties up to $10,000 per violation the Attorney General can seek (new O.C.G.A. § 44-14-168).

Homeowners whose primary residence is at risk of foreclosure or tax sale over unpaid utility bills, condo or homeowners' association dues, or fines; condominium and property owners' associations that currently rely on foreclosure to collect; local governments and tax officials; water, sewer, and other utility providers; and the Attorney General's office, which gains enforcement authority.

Homeowners who fall behind on service fees or association dues would no longer risk losing their house through foreclosure or tax sale over those debts; associations and utilities would instead have to sue for money, and violators could face damages, penalties, and voided sales.

• Section 2 adds O.C.G.A. § 36-80-32, barring local governments from moving unpaid service charges to the tax roll for tax execution or sale of an owner occupied home.
• Sections 3 through 9 amend condominium and property owners' association law so assessments are unsecured debts and liens cannot be foreclosed against an owner occupied home, though liens under $2,000 already could not be foreclosed and that threshold remains for other liens.
• Section 11 adds O.C.G.A. §§ 44-14-166 through 44-14-168, voiding foreclosures based on nontax service charges, making related association liens personal unsecured obligations, and creating civil remedies including statutory damages up to $5,000 per violation and Attorney General penalties up to $10,000 per violation.
• Section 12 adds O.C.G.A. § 46-1-7, letting utilities sue for unpaid charges but barring foreclosure or tax sale liens, and requiring due process and hardship protections before shutting off water or sewer service.
• Section 13 adds O.C.G.A. § 48-3-29, prohibiting tax officials from issuing a tax execution or holding a sale of an owner occupied home based on nontax service charges.
• Section 14 sets the effective date as July 1, 2026, applying to foreclosure actions filed on or after that date.

1. 2026-02-26House Committee Favorably Reported (House)
2. 2026-01-29House Second Readers (House)
3. 2026-01-28House First Readers (House)
4. 2026-01-27House Hopper (House)

• Sandra Scott (D, HD-076)Primary sponsor
• Viola Davis (D, HD-087)
• Kim Schofield (D, HD-063)
• Gerald Greene (R, HD-154)
• Rhonda Taylor (D, HD-092)
• David Huddleston (R, HD-072)

• homeowner protection
• foreclosure law
• property tax sales
• homeowners associations
• utility shutoffs