Over one-third of Georgians—2.3 million people—live in approximately 873,600 homes in 11,200+ community associations. According to the Foundation for Community Association Research and its Community Association Fact Book, these Georgia homes are generally valued at least 4% more than other homes. However, proposed legislation in the Georgia House and Senate, including SB 107, SB 108, and HB 512, threatens to disrupt the financial stability of community associations and their members by increasing association expenses, reducing revenue, and forcing higher assessments (dues), potentially leading to declines in home sales and property values.
How Proposed Legislation Threatens Community Associations
Favoring Noncompliance Over Responsibility
State legislators report receiving complaints from owners who have failed to pay dues or violated their association’s governing documents. These complaints often focus on the consequences of these actions. Yet, the proposed legislation would reward noncompliance—shifting financial and operational burdens onto responsible, dues-paying homeowners.
Unintended Consequences
Recent House and Senate hearings on the proposed bills have demonstrated a lack of understanding of how community associations operate. While they may be well-intended, if passed, the bills would:
- Higher costs for homeowners – Assessments would be waived for some owners, forcing other owners to cover the shortfall.
- Weakened Governance – Enforcement of covenants would be restricted, making it harder to maintain property values and quality of life.
- Added Bureaucracy – A new ombudsman’s office would be established, providing excessive oversight and state-mandated fees, further straining associations.
Understanding How Georgia Community Associations Work
Community associations are nonprofit corporations governed by the Georgia Nonprofit Corporation Code. Every owner in the community is a member of the association and must pay dues to fund their community’s shared expenses. There is no separate “association” — the homeowners are the association.
Volunteer boards, elected by fellow homeowners, manage the association’s operations and must follow standard business practices. They adopt budgets, set assessments, and ensure financial obligations are met. Board members can even be sued personally if they fail to meet legal standards.
Key Expenses for Community Associations
Associations must cover non-discretionary costs, including:
- Common area maintenance, repair, and replacement (exteriors, landscaping, amenities)
- Mechanical systems (including some unit utilities)
- Liability and property insurance (which has sharply risen, up to 400% for older communities)
- Government-mandated stormwater and detention pond maintenance
- Reserve funding, required for mortgage eligibility and future expenses.
Unlike private businesses, associations cannot stop providing services to non-paying owners. Georgia law mandates that associations continue covering all shared expenses—even when some owners refuse to pay.
Financial Impact of the Legislation
The proposed legislation would add thousands of dollars in costs per association. The bills include new requirements like:
- Assessment waivers for some homeowners, forcing others to pay more.
- Refund requirements for certain assessments.
- Subordination of association liens to unpaid medical bills.
- Mandatory alternative dispute resolution, at the association’s expense, for any dispute—no matter how small.
- Prohibiting foreclosure on liens that include fines, late fees, or court costs—weakening rule enforcement.
- A new Community Association Ombudsman’s Office, with authority over elections, complaint investigations, and fine waivers.
- A $25 per unit/lot annual fee to fund the Ombudsman’s Office, further increasing homeowner costs.
Current Reality of HOA Foreclosures in Georgia
Under current Georgia law for condominiums and HOAs subject to the Georgia Property Owners’ Association Act, unpaid assessments automatically become a lien against an owner’s home. If the owner’s balance exceeds $2,000, the association may file a lawsuit to collect the amount due and ask the court for an order to foreclose the association’s lien. However, foreclosure is rare. A recent 11Alive News investigation found that over the past two years in DeKalb County, no HOA case ended in foreclosure. Yet, the average debt in HOA lawsuits filed was over $7,000—critical funds needed for maintaining common areas and essential services.
Protecting Property Values in Georgia Community Associations
Research confirms that homes in community associations are worth more. Additionally, 74% of association residents oppose additional regulation. Yet, the Georgia legislature is advancing bills that would increase regulation, reduce property values, and impose additional financial burdens on homeowners.
Why Fair Policies Matter
Community associations play an essential role in preserving property values and protecting homeowners’ investments. Overreaching government intervention and excessive taxation would have a devastating impact on associations. Rather than penalizing responsible homeowners, legislation should prioritize fair, effective policies that protect all homeowners and ensure the long-term financial stability of Georgia’s communities.
A Message About the Authors
George E. Nowack, Jr. and Julie M. Howard are co-founders of NowackHoward, LLC, an Atlanta based law firm dedicated to representing condominium and homeowners’ associations throughout Georgia. Together, they have represented community associations for over 70 years and are both past presidents of the international and Georgia Chapter of CAI | Community Associations Institute, and the College of Community Association Lawyers.
