HB 1219: Property; require new property owners' associations to be subject to Georgia Property Owners' Association Act

Georgia's Property Owners' Association Act (O.C.G.A. § 44-3-235) currently only covers associations whose property has been formally submitted to the act. This bill changes that starting July 1, 2026: any new property owners' association created on or after that date would automatically be covered, whether or not the property is submitted. Associations that already exist before that date would have to hold a vote at their next annual meeting on whether to amend their governing documents to opt into the act. The bill also adds a brand new Code section, 44-3-236, laying out a detailed process for terminating (dissolving) a property owners' association. It covers how members can petition for termination, how a plan of termination gets voted on and approved by a superior court, the powers and duties of a 'termination trustee' who winds down the association's affairs, how leftover funds are distributed, and civil penalties of up to $5,000 for officers or directors who obstruct the process.

• Makes the Georgia Property Owners' Association Act automatically apply to any property owners' association created on or after July 1, 2026, regardless of whether the property was formally submitted to the act.
• Requires associations that already exist before July 1, 2026 to hold a members' vote at their next annual meeting on whether to opt into the act.
• Creates a new process (O.C.G.A. § 44-3-236) letting lot owners petition to terminate an association with signatures from at least 20 percent of voting members.
• Requires a superior court to review and approve any termination plan within 45 days before the association can actually be dissolved.
• Establishes a termination trustee, usually the existing board, to wind down the association's contracts, debts, and property after members vote to terminate.
• Sets civil penalties of up to $5,000 per violation for officers or directors who block a termination vote, misuse funds to campaign on it, or hide relevant records.

Homeowners and lot owners who belong to property owners' associations in Georgia, both new associations formed after mid-2026 and existing ones that must now vote on coverage; association boards and officers, who face new duties and potential penalties; and superior courts, which would review termination plans and resolve disputes.

Georgians living in planned communities would gain a formal, court-supervised way to dissolve their homeowners association if enough members want out, something not clearly available before. New communities would automatically fall under statewide rules rather than relying solely on private governing documents, and existing associations would face a required vote on whether those rules apply to them.

• Section 1 revises O.C.G.A. § 44-3-235(a) so the act applies automatically to any association created on or after July 1, 2026, regardless of whether the property is submitted to the article.
• Section 1 adds subsection (d), requiring associations existing before July 1, 2026 to hold a members' meeting to vote on amending their instrument to specify whether the act applies.
• Section 2 creates new Code Section 44-3-236(b), letting a lot owner start termination by getting signatures from 20 percent of voting members, triggering a board meeting within 60 days.
• Section 2 requires superior court approval of a termination plan within 45 days, and bars reconsidering a rejected termination plan for at least 18 months.
• Section 2 subsection (f) keeps the board in existence after termination approval to liquidate assets, pay debts, defend lawsuits, and dispose of association property.
• Section 2 subsection (g) requires remaining funds to be distributed equally among members and limits members' personal liability to assessments existing before the termination vote.
• Section 2 subsection (i) sets civil penalties up to $5,000 per violation, removal from office, or personal liability for legal fees for officers who obstruct termination or misuse funds.

1. 2026-02-09House Second Readers (Cámara de Representantes)
2. 2026-02-06House First Readers (Cámara de Representantes)
3. 2026-02-05House Hopper (Cámara de Representantes)

• Regina Lewis-Ward (D, HD-115)Patrocinador principal
• Alan Powell (R, HD-033)
• Carolyn Hugley (D, HD-141)
• Gerald Greene (R, HD-154)
• Billy Mitchell (D, HD-088)
• David Wilkerson (D, HD-038)

• homeowners associations
• property law
• HOA termination
• real estate regulation