SB580: SB580 Property; the minimum amount required for a foreclosure on a lien on a property under the "Georgia Condominium Act" and the "Georgia Property Owners' Association Act"; increase

26 LC 46 1446 Senate Bill 580 By: Senators Rahman of the 5th, James of the 28th, Anderson of the 43rd, Jones II of the 22nd, Jackson of the 41st and others A BILL TO BE ENTITLED AN ACT To amend Title 44 of the Official Code of Georgia Annotated, relating to property, so as to1 increase the minimum amount required for a foreclosure on a lie n on a property under the2 "Georgia Condominium Act" and the "Georgia Property Owners' Ass ociation Act"; to3 provide for related matters; to repeal conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Title 44 of the Official Code of Georgia Annotated, relating to property, is amended by7 revising subsection (c) of Code Section 44-3-109, relating to l iens for assessments and8 foreclosures under the "Georgia Condominium Act," as follows:9 "(c) Not less than 30 days after notice is sent by certified ma il or statutory overnight10 delivery, return receipt requested, to the unit owner both at the address of the unit and at11 any other address or addresses which the unit owner may have designated to the association12 in writing, the lien may be foreclosed by the association by an action, judgment, and13 foreclosure in the same manner as other liens for the improvement of real property, subject14 to superior liens or encumbrances, but any such court order for judicial foreclosure shall15 not affect the rights of holders of superior liens or encumbrances to exercise any rights or16 S. B. 580 - 1 - 26 LC 46 1446 powers afforded to them under their security instruments. The notice provided for in this17 subsection shall specify the amount of the assessments then due and payable together with18 authorized late charges and the rate of interest accruing there on. No foreclosure action19 against a lien arising out of this subsection shall be permitted unless the amount of the lien20 is at least $2,000.00 $20,000.00. Unless prohibited by the condominium instruments, the21 association shall have the power to bid on the unit at any foreclosure sale and to acquire,22 hold, lease, encumber, and convey the same. The lien for assessments shall lapse and be23 of no further effect, as to assessments or installments thereof , together with late charges24 and interest applicable thereto, four years after the assessment or installment first became25 due and payable."26 SECTION 2.27 Said title is further amended by revising subsection (c) of Code Section 44-3-232, relating28 to liens for assessments and foreclosures under the "Georgia Property Owners' Association29 Act," as follows:30 "(c) Not less than 30 days after notice is sent by certified ma il or statutory overnight31 delivery, return receipt requested, to the lot owner both at the address of the lot and at any32 other address or addresses which the lot owner may have designated to the association in33 writing, the lien may be foreclosed by the association by an ac tion, judgment, and court34 order for foreclosure in the same manner as other liens for the improvement of real35 property, subject to superior liens or encumbrances, but any such court order for judicial36 foreclosure shall not affect the rights of holders of superior liens or encumbrances to37 exercise any rights or powers afforded to them under their security instruments. The notice38 provided for in this subsection shall specify the amount of the assessments then due and39 payable together with authorized late charges and the rate of interest accruing thereon. No40 foreclosure action against a lien arising out of this subsection shall be permitted unless the41 amount of the lien is at least $2,000.00 $20,000.00. Unless prohibited by the instrument,42 S. B. 580 - 2 - 26 LC 46 1446 the association shall have the power to bid on the lot at any foreclosure sale and to acquire,43 hold, lease, encumber, and convey the same. The lien for assessments shall lapse and be44 of no further effect, as to assessments or installments thereof , together with late charges45 and interest applicable thereto, four years after the assessment or installment first became46 due and payable."47 SECTION 3.48 All laws and parts of laws in conflict with this Act are repealed.49 S. B. 580 - 3 -