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Committee hears homeowner-protection bill seeking caps on closing letters and mediation before liens
Summary
A bill that would require HOAs to send annual letters of good standing, cap some closing-statement fees and offer mediation before liens drew testimony about aggressive fines and foreclosures; the committee asked for supporting documentation and additional drafting before further action.
A bill proposing new consumer protections for homeowners association (HOA) members — including an annual good-standing letter, a cap on charges for closing letters and a requirement that owners be offered mediation before an HOA may record a lien — was presented and debated in committee testimony and public comment.
The bill’s sponsor (identified in the hearing record as Representative Liz Ward) told the committee that about "more than 2,000,000 Georgians who live in communities that are governed by associations," and said the bill aims to give property owners "peace and assurance that the associations are not their enemy." The sponsor summarized the bill’s central provisions: an annual letter of good standing within 45 days after an association’s fiscal period closes; limits on what associations may charge for a statement of account or closing letter; and a requirement that…
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