SB521: SB521 Specialized Land Transactions; a residency requirement for board members and officers of condominium associations and property owners' associations; establish

26 LC 60 0302 Senate Bill 521 By: Senators James of the 28th, Merritt of the 9th, Rhett of the 33rd, McLaurin of the 14th, Harbison of the 15th and others A BILL TO BE ENTITLED AN ACT To amend Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to1 regulation of specialized land transactions, so as to establish a residency requirement for2 board members and officers of condominium associations and property owners' associations;3 to require the instruments and bylaws of each condominium association and property owners'4 association to provide for such residency requirement; to provide for construction; to provide5 for definitions; to provide for related matters; to repeal conf licting laws; and for other6 purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Chapter 3 of Title 44 of the Official Code of Georgia Annotated , is amended in Article 3,10 relating to condominiums, by revising Code Section 44-3-104, re lating to directors and11 officers and eligibility as follows:12 "44-3-104.13 (a) As used in this Code section, the term 'resident unit owner' means:14 (1) A unit owner who has maintained and physically occupied a unit within the15 condominium governed by the association as his or her principal place of residence for16 S. B. 521 - 1 - 26 LC 60 0302 at least six months during the year preceding the date of his o r her election or17 appointment as an officer; or18 (2) A unit owner who is an active duty member of the regular or reserve component of19 the United States Army, United States Navy, United States Marine Corps, United States20 Coast Guard, United States Air Force, United States Space Force, United States National21 Guard, Georgia National Guard, Georgia Air National Guard, Georgia Naval Militia, the22 Georgia State Defense Force, or in the National Guard or Air National Guard of any state23 or territory of the United States, and who would otherwise meet the requirements set forth24 in paragraph (1) of this subsection but for a temporary inability to physically occupy his25 or her unit directly attributable to ordered duty, deployment, or training required as part26 of such active duty membership.27 (b)(1) Except as provided in paragraph (2) of this subsection, on and after28 January 1, 2027, each member of the board and officer shall be a resident unit owner.29 (2) Any board member or officer elected or appointed prior to January 1, 2027,30 regardless of his or her status as a resident unit owner, shall serve out the term of such31 office; provided, however, that this paragraph shall not be construed to impair any rights,32 privileges, entitlements, obligations, or duties of any party i n connection with such33 election or appointment. In all such instances, upon the expiration of the board member's34 or officer's term of office, each successor of such board membe r or officer shall be35 elected or appointed in accordance with the requirement set forth in paragraph (1) of this36 subsection.37 (3) For any board member or officer serving a term of more than one year, if such board38 member or officer is not an active duty member as set forth in paragraph (2) of39 subsection (a) of this Code section and does not meet the requi r e m e n t s e t f o r t h i n40 paragraph (1) of subsection (a) of this Code section relative to the day of the anniversary41 of his or her election or appointment, such board member or off icer shall be subject to42 S. B. 521 - 2 - 26 LC 60 0302 removal in accordance with the procedures set forth in the asso ciation's condominium43 instruments or bylaws and any other applicable law.44 (c) Each association shall cause its condominium instruments and bylaws, as applicable,45 to include a requirement that each board member and officer be a resident unit owner. In46 cases where If the condominium instruments or bylaws provide that any member of the47 board of directors board member or any officer of the association must be a unit owner,48 then, notwithstanding paragraph (1) of subsection (a) of Code S ection 44-3-75, the term49 'unit owner' in such context shall, unless the condominium instruments or bylaws otherwise50 provide, be deemed to include, without limitation, any shareholder, director, officer, partner51 in, or trustee of any person who is, either alone or in conjunction with any other person or52 persons, a unit owner. Any individual who would not be eligible to serve as a member of53 the board of directors board member or officer were he or she not a shareholder, director,54 officer, partner in, or trustee of such a person shall be deemed to have disqualified himself55 or herself from continuing in office if he or she ceases to have any such affiliation with that56 such person.57 (d) Nothing in this Code section shall be construed to impair any voting rights of a unit58 owner provided under this article or any property rights of a unit owner provided under any59 applicable law.60 SECTION 2.61 Said chapter is further amended in Article 6, relating to prope rty owners' associations, by62 revising a Code Section 44-3-229, relating to persons deemed to be "lot owner," as follows:63 "44-3-229.64 (a) As used in this Code section, the term 'resident lot owner' means:65 (1) A lot owner who has maintained and physically occupied a l ot within the property66 owners' development governed by the association as his or her p rincipal place of67 S. B. 521 - 3 - 26 LC 60 0302 residence for at least six months during the year preceding the date of his or her election68 or appointment as an officer; or69 (2) A lot owner who is an active duty member of the regular or reserve component of the70 United States Army, United States Navy, United States Marine Co rps, United States71 Coast Guard, United States Air Force, United States Space Force, United States National72 Guard, Georgia National Guard, Georgia Air National Guard, Georgia Naval Militia, the73 Georgia State Defense Force, or in the National Guard or Air National Guard of any state74 or territory of the United States, and who would otherwise meet the requirements set forth75 in paragraph (1) of this subsection but for a temporary inability to physically occupy his76 or her lot directly attributable to ordered duty, deployment, or training required as part77 of such active duty membership.78 (b)(1) Except as provided in paragraph (2) of this subsection, on and after79 January 1, 2027, each member of the board and officer shall be a resident lot owner.80 (2) Any board member or officer elected or appointed prior to January 1, 2027,81 regardless of his or her status as a resident lot owner, shall serve out the term of such82 office; provided, however, that this paragraph shall not be construed to impair any rights,83 privileges, entitlements, obligations, or duties of any party i n connection with such84 election or appointment. In all such instances, upon the expiration of the board member's85 or officer's term of such office, each successor of such board member or officer shall be86 elected or appointed in accordance with the requirement set forth in paragraph (1) of this87 subsection.88 (3) For any board member or officer serving a term of more than one year, if such board89 member or officer is not an active duty member as set forth in paragraph (2) of90 subsection (a) of this Code section and does not meet the requi r e m e n t s e t f o r t h i n91 paragraph (1) of subsection (a) of this Code section relative to the day of the anniversary92 of his or her election or appointment, such board member or off icer shall be subject to93 S. B. 521 - 4 - 26 LC 60 0302 removal in accordance with the procedures set forth in the property owners' association94 instrument or bylaws and any other applicable laws.95 (c) Each property owners' association shall cause its property owners' association96 instrument and bylaws, as applicable, to include a requirement that each board member and97 officer shall be a resident lot owner. In cases where If the instrument or bylaws provides98 provide that any member of the board of directors board member or any officer of the99 association must be a lot owner, then, notwithstanding Code Section 44-3-221, the term 'lot100 owner' in such context shall, unless the instrument or bylaws otherwise provides provide,101 be are deemed to include, without limitation, any shareholder, director, officer, partner in,102 or trustee of any person who is, either alone or in conjunction with any other person or103 persons, a lot owner. Any individual who would not be eligible to serve as a member of104 the board of directors board member or officer were he or she not a shareholder, director,105 officer, partner in, or trustee of such a person shall be deemed to have disqualified himself106 or herself from continuing in office if he or she ceases to have any such affiliation with that107 such person.108 (d) Nothing in this Code section shall be construed to impair any voting rights of a lot109 owner provided under this article or any property rights of a lot owner provided under any110 applicable law."111 SECTION 3.112 All laws and parts of laws in conflict with this Act are repealed.113 S. B. 521 - 5 -