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Georgia's first HOA registration bill sat in Senate Rules for twelve months

Georgia's first HOA registration bill sat in Senate Rules for twelve months
Georgia · Legislation

Georgia's first HOA registration bill sat in Senate Rules for twelve months

What happened. Georgia's landmark HOA statute was not the first attempt. An earlier bill carried substantially the same architecture, was filed a year sooner, and spent its entire legislative life in a committee that never took it up.

Senate Bill 361 was introduced on 25 March 2025 by Senators Matt Brass (R-Newnan) and Donzella James (D-Atlanta) — the same bipartisan pair who would later carry SB 406.

What it proposed

Read the list against what Georgia eventually enacted and the family resemblance is obvious:

  • raising the minimum lien threshold for foreclosure from $2,000 to $4,000;
  • mandatory Secretary of State registration, including bylaws, officers and a list of lots;
  • requiring written authorisation from the Secretary of State before foreclosing on a lien;
  • prohibiting associations from applying assessments to foreclosure costs;
  • administrative hearing procedures to be developed by the Secretary of State by 1 January 2026; and
  • regulation of escrow funds by the Department of Banking and Finance, with the aim of letting HOA dues be paid through mortgage escrow.

Its entire legislative life

The House's Session Final composite status report records SB 361 with a single notation: “RULES S 3/27” — referred to Senate Rules on 27 March 2025.1

There is nothing after it. Twelve months and six days in a committee, with no hearing, no report and no vote, and then the biennium ended.

But it was not entirely idle

On 16 September 2025, the Senate Rules Committee held what Atlanta News First described as the first hearing on HOA oversight legislation — and SB 361 was the bill on the table. About two dozen homeowners testified about management-company incentives, payment portals that locked them out once fines were assessed, and boards they said were improperly constituted.2

Noula Zaharis, assistant commissioner of securities and director of the Secretary of State's securities and charities division, testified — recommending association registration and asking for resources to support oversight. That is the division that now houses Georgia's Property Owners' Associations function.

And Brass said something legislators rarely say on the record:

“I take full responsibility for not getting anything done last year. The laws are bad right now. We're gonna make sure we get it right and we're gonna make sure we get it done this session.”

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He did — with a different bill

Brass kept the promise, but not by moving SB 361. In mid-January 2026 he filed a new bill, SB 406, which went to Senate Judiciary rather than Rules, was favourably reported on 26 February and passed the Senate on 4 March.3

Refiling rather than reviving was the right call procedurally — a bill parked in Rules with no hearing record is worth less than a fresh bill in a substantive committee — and it explains a fact that otherwise looks odd: Georgia's HOA statute moved from introduction to passage in seven weeks, after two years of apparent inaction.

What survived the redraft, and what did not

Three of SB 361's ideas did not make it, and each absence shapes how Act 715 works.

Secretary of State authorisation before foreclosing. SB 361 would have required an association to obtain written state authorisation before foreclosing a lien — a prior-approval model. Act 715 uses a threshold instead: an association may foreclose if the arrears clear the statutory bar, with no state involvement in the individual case. The state's role is registration and complaint, not permission.

A bar on applying assessments to foreclosure costs. This became something different and arguably stronger. Section 43-17A-8(a) now dictates that owner payments go to regular assessments first and “other fees and fines” last, and § 44-3-232(c) excludes fines and specific assessments from the foreclosure threshold entirely.

HOA dues through mortgage escrow. Escrowing association dues alongside taxes and insurance would prevent a great many Georgia delinquencies from ever arising, and it is one of the few structural fixes that helps owners and associations simultaneously. It required the Department of Banking and Finance to regulate the escrow. It is entirely absent from Act 715, and nothing has replaced it.

What survived, and one thing that got sharper

The threshold arrived, but not as SB 361 wrote it. Where SB 361 proposed a flat $4,000, the enacted § 44-3-232(c) provides for the lesser of $4,000 or twelve months of regular assessments, with a $2,000 floor — a formula that leaves many low-dues Georgia associations exactly where they were.

The registration arrived close to as proposed, with the addition of a $100 fee, a 31 December expiry and the ten-year records duty.

And the administrative hearing procedures arrived — but the deadline did not. SB 361 would have required the Secretary of State to develop them by 1 January 2026. Section 43-17A-9 of the enacted law simply directs the Secretary of State to adopt rules, with no date attached. As of early September 2026, none had been proposed.

The lesson in the timeline

For anyone tracking Georgia HOA legislation into 2027, SB 361's history is the most useful precedent available, and it cuts against pessimism.

A bill can spend a year in a committee with no hearing and still become the architecture of a statute that passes 155-10. What changed between March 2025 and March 2026 was not the policy — the policy was already written. It was the accumulation of a hearing record, sustained investigative reporting, and homeowners appearing at the Capitol in numbers.

What to watch next

Which committee any 2027 Georgia HOA bill is referred to. SB 361 went to Rules and died; SB 406 went to Judiciary and passed in seven weeks. In a chamber losing several senior Judiciary members to statewide races, that referral decision is the earliest reliable signal of whether a bill is meant to move.

Related Georgia HOA Topics

← All Georgia HOA Topics

  1. 2026 Composite Status Report, Session Final, Georgia House of Representatives (14 May 2026)
  2. “Georgia Senate committee holds first hearing on HOA oversight legislation” — Atlanta News First, 16 September 2025
  3. Georgia SB 361 (2025-2026) — bill detail and status
  4. Senate Bill 406, as passed (26 LC 49 2879S) — signed copy, Office of the Governor

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