Georgia establishes Office of Community Association Ombudsman to assist homeowners

On March 3, 2025, the Georgia State Legislature introduced Senate Bill 107, a significant legislative proposal aimed at addressing financial hardships faced by unit owners in community associations. The bill seeks to provide relief to individuals who become disabled or die with an insolvent estate, allowing for the potential refund of assessments or installments that may otherwise burden their estates.

Key provisions of Senate Bill 107 include the establishment of criteria under which relief can be granted. Specifically, the bill stipulates that a court must determine that a unit owner either became disabled, resulting in financial hardship, or died with an insolvent estate. Furthermore, it requires that written certification of the financial hardship or insolvency be submitted to the community association within 12 months of the event.

In addition to these provisions, the bill introduces the Office of the Community Association Ombudsman within the Department of Community Affairs. This office will be led by an attorney appointed by the commissioner of community affairs, who will oversee issues related to community associations and ensure compliance with the new regulations.

The introduction of Senate Bill 107 has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the bill addresses a critical gap in support for vulnerable homeowners, while opponents raise concerns about the potential financial implications for community associations and the administrative burden of implementing the new ombudsman office.

The economic implications of this bill could be significant, as it aims to alleviate financial pressures on families during difficult times, potentially reducing the number of foreclosures and enhancing community stability. Socially, the bill reflects a growing recognition of the need for protective measures for individuals facing unforeseen hardships.

As the legislative process unfolds, experts suggest that the bill's success will depend on the ability of lawmakers to balance the interests of community associations with the need for compassionate support for struggling homeowners. The outcome of Senate Bill 107 could set a precedent for similar legislation in other states, highlighting the importance of addressing financial vulnerabilities within community living arrangements.