Committee hears homeowner-protection bill seeking caps on closing letters and mediation before liens

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 homeowners be offered mediation before liens are attached to property.

Key provisions described in the hearing record include:

- Annual good-standing letters: Associations would be required to send one letter per homeowner within 45 days after the close of the association’s fiscal period. - Closing-letter/statement-of-account timing and caps: The sponsor described a cap on closing-letter charges as $250 for a standard closing letter and an expedited charge (three-day response) of $50 in addition to that fee. At another point in the presentation, the bill text as read aloud appeared to reference a ceiling of $5,250 for statements of account; lawmakers and staff requested clarification because the transcript contains both figures. - Mediation before liens: The bill would require that associations offer mediation procedures or that a homeowner be allowed to invoke mediation before an association may place a lien on a property for unpaid fines or assessments.

During public comment, Deitra Poindexter, who identified herself as a homeowner in Clayton County and as working with the sponsor’s office, described experiences she characterized as punitive HOA enforcement—such as fines imposed without prior discussion and liens placed that cost homeowners thousands of dollars. “If your garbage can ain’t 2 feet away from the curb, she’ll put a fine on you,” Poindexter said, explaining why she supports mediation and clearer procedures.

Committee members raised legal and practical questions. Several legislators noted that Georgia law already allows HOAs to foreclose on property for unpaid assessments and that foreclosure authority in practice raises serious consumer-protection issues. Members requested documentary evidence of the fee and foreclosure practices cited in testimony and asked staff to produce examples showing high closing-letter charges and examples of HOA foreclosures for relatively small sums. Members also noted a senate study committee had recently examined HOAs and foreclosures and suggested coordination.

Outcome and next steps

Committee members did not take a final vote. Several members urged the sponsor to tighten language and to provide supporting documentary evidence of the practices cited by witnesses (for example, copies of closing-letter invoices and examples of liens or foreclosures). A committee member noted that some time limits and deadlines referenced in the bill are existing code provisions moved to the new sections; staff pointed out much of the language repackages current code. The committee indicated it would continue work on the bill and asked the sponsor to provide clarifications and supporting documentation prior to any final action.