Georgia House Committee reviews HOA reform bill to limit fees and foreclosures

In a recent government meeting held on March 3, 2025, discussions centered around a proposed bill aimed at reforming the practices of homeowners associations (HOAs) in Georgia. The bill seeks to provide homeowners with greater protections and assurances, addressing long-standing concerns regarding the power dynamics between property owners and HOAs.

The primary focus of the bill is to establish alternative dispute resolution processes for homeowners before liens can be placed on their properties. This initiative is designed to mitigate conflicts and ensure that homeowners are not unfairly burdened by excessive fees when seeking closing letters, which are often required during property sales. Currently, homeowners can face charges ranging from $400 to $500 for these letters, with the proposed legislation capping the fee at $250, and an additional $50 for expedited requests.

During the meeting, representatives expressed their concerns about the extraordinary powers held by HOAs in Georgia, particularly the ability to foreclose on properties for unpaid fines. This practice, which is relatively uncommon in other states, has raised alarms among lawmakers who argue that it places undue stress on homeowners. The bill aims to address these issues by providing a framework for dispute resolution that could prevent such drastic measures.

Several representatives highlighted the need for transparency in HOA operations, noting that homeowners should receive timely statements confirming the payment of assessments without incurring additional costs. This provision is intended to protect homeowners from unexpected financial surprises that could arise during property transactions.

While the bill has garnered support for its potential to protect homeowners, some lawmakers expressed concerns about the complexity of HOA regulations and the need for clearer guidelines. The discussions underscored a desire to balance the interests of homeowners with the operational needs of HOAs, ensuring that both parties can coexist without conflict.

As the bill moves forward, it is anticipated that further refinements will be made to address the concerns raised during the meeting. The outcome of this legislation could significantly impact the relationship between homeowners and their associations, potentially reshaping the landscape of property ownership in Georgia.