SB 107: Specialized Land Transactions; protections of homeowners in community associations; provide

Under current Georgia law, condominium and property owners' associations can foreclose on a home once a lien for unpaid assessments reaches a certain size. This bill removes the old $2,000 minimum lien threshold and instead bars foreclosure if the lien is less than a year's worth of assessments, or if it consists only of fines rather than unpaid dues. It also bans the association itself, its board members, or affiliates from buying the home at the foreclosure sale. The bill gives homeowners up to 180 days after a foreclosure sale to redeem their home by repaying the association and the buyer for costs and fees. For associations created after July 1, 2025, it requires waiving a year of assessments for owners who die insolvent or become disabled and suffer financial hardship. It also creates a Community Association Ombudsman inside the Department of Community Affairs to field complaints, mediate disputes, monitor board elections, and register associations, which would pay a $25 per unit annual fee.

• Removes the current requirement that a lien must total at least $2,000 before a community association can foreclose on a home.
• Bars foreclosure if the lien is less than 12 months of assessments or consists only of unpaid fines rather than dues.
• Prohibits the foreclosing association, its board members, or affiliates from buying the home at its own foreclosure sale.
• Creates a 180 day right for homeowners to redeem a foreclosed home by repaying the association and the purchaser's costs.
• Requires newer community associations to waive a year of assessments for owners who die insolvent or become disabled with financial hardship.
• Establishes a state Community Association Ombudsman to handle complaints, monitor elections, and register associations for a $25 per unit fee.

Homeowners living in condominiums and planned communities governed by mandatory homeowners or condominium associations, the associations and their boards and management companies, and the Department of Community Affairs, which would house the new ombudsman office and collect registration fees.

Homeowners facing foreclosure over unpaid dues would gain new legal protections, including a chance to buy their home back and limits on how small a debt can trigger foreclosure. Associations would face new reporting duties, fees, and a state office empowered to review their elections and disputes.

• Sections 1 and 2 remove the $2,000 minimum lien amount required before condominium and property owners' associations can foreclose (O.C.G.A. §§ 44-3-109, 44-3-232).
• New Code Section 44-3-270 bars foreclosure if the lien is under a year's assessments or consists only of fines, and bars the association or its board members from buying the home at sale.
• New Code Section 44-3-271 gives homeowners 180 days after a foreclosure sale to redeem the home by repaying the association and purchaser's costs, effective for foreclosures on or after July 1, 2025.
• New Code Section 44-3-272 requires associations formed after July 1, 2025 to waive at least 12 months of assessments for owners who die insolvent or become disabled with financial hardship, with refunds for prior payments.
• New Code Sections 44-3-280 through 44-3-282 create the Office of the Community Association Ombudsman within the Department of Community Affairs, appointed by the commissioner, to mediate disputes and maintain a registry of associations.
• New Code Section 44-3-284 lets the ombudsman recommend waiving fines, which become automatically approved unless a majority of association members reject the recommendation within 120 days.
• New Code Section 44-3-285 lets 15 percent of members or six unit owners petition for an independent election monitor at board elections.
• New Code Section 44-3-286 requires annual registration with the ombudsman and a $25 per unit fee, deposited in the state treasury for the office's operations.

1. 2026-01-12Senate Recommitted (Senado)
2. 2025-03-04Senate Read Second Time (Senado)
3. 2025-03-03Senate Committee Favorably Reported By Substitute (Senado)
4. 2025-02-06Senate Read and Referred (Senado)
5. 2025-02-05Senate Hopper (Senado)

• Donzella James (D, SD-028)Patrocinador principal
• Harold Jones (D, SD-022)
• Sheikh Rahman (D, SD-005)
• RaShaun Kemp (D, SD-038)
• Jason Esteves (D, SD-035)
• Ed Harbison (D, SD-015)
• Kenya Wicks (D, SD-034)
• Randal Mangham (D, SD-055)
• Tonya Anderson (D, SD-043)
• Nan Orrock (D, SD-036)
• Sonya Halpern (D, SD-039)
• Michael Rhett (D, SD-033)
• Freddie Sims (D, SD-012)
• Gail Davenport (D, SD-017)

• homeowners associations
• condominium law
• foreclosure protections
• community association ombudsman
• property law