{"id":51840,"date":"2026-04-09T12:46:47","date_gmt":"2026-04-09T12:46:47","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/04\/09\/georgia-passes-major-hoa-reform-bill-can-the-rest-of-the-country-follow\/"},"modified":"2026-04-09T12:47:11","modified_gmt":"2026-04-09T12:47:11","slug":"georgia-passes-major-hoa-reform-bill-can-the-rest-of-the-country-follow","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/04\/09\/georgia-passes-major-hoa-reform-bill-can-the-rest-of-the-country-follow\/","title":{"rendered":"Georgia passes major HOA reform bill\u2014can the rest of the country follow?"},"content":{"rendered":"<p>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" id=\"post-content\" :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n                            <!-- Table of contents: mobile --><\/p>\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n                    <button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n                        <default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><default:path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/default:svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">in this article<\/p>\n<p>                    <\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Back off, HOAs: There&#8217;s a new sheriff in town. That appears to be the message from Georgia lawmakers, who recently passed new legislation that limits the ability of HOAs to deal with homeowners by exempting them from costly fees and penalties.<\/span><\/p>\n<p><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.legis.ga.gov\/api\/legislation\/document\/20252026\/239925\"><span data-preserver-spaces=\"true\">SB 406<\/span><\/a><span data-preserver-spaces=\"true\">    makes a<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/trends\/georgia-lawmakers-pass-homeowners-association-bill\/\"><span data-preserver-spaces=\"true\">    Administrative process for resolving disputes<\/span><\/a><span data-preserver-spaces=\"true\">    between landlords and <\/span><span data-preserver-spaces=\"true\">homeowners<\/span><span data-preserver-spaces=\"true\">    Association and, by doing so, could save landlords in the state thousands of dollars, which would promote <\/span><span data-preserver-spaces=\"true\">cash flow<\/span><span data-preserver-spaces=\"true\">. Should other states follow the same strategy, it could be a game-changer for investors who are tired of seeing profits eroded due to rising, unpredictable HOA costs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While most investors focus only on <\/span><span data-preserver-spaces=\"true\">cap rates<\/span><span data-preserver-spaces=\"true\">    Based on standard cash flow metrics \u2013 rent minus expenses like mortgage payments, taxes, insurance, utilities and repairs \u2013 they often ignore HOA fees. In view of this, they are increasing rapidly throughout the country, especially in Florida<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/news\/florida-may-no-longer-retirees-010115747.html\"><span data-preserver-spaces=\"true\">    Surfside Condo Collapse<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">What does Georgia&#8217;s new HOA bill do?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">According to Realtor.com, Bill 406, branded the &#8220;Georgia Property Owners Bill of Rights Act,&#8221; creates formal state oversight of homeowner associations for the first time in state history. <\/span><span data-preserver-spaces=\"true\">prior to<\/span><span data-preserver-spaces=\"true\">    Bill, HOAs operate under their own rules, generally in an ad hoc manner.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Under the bill, each HOA would have to register annually with the Secretary of State, pay fees, and disclose key governance and financial information or risk losing the ability to levy fines, place liens, or foreclose on homes in the communities. The bill, which received support from both parties, comes in the wake of complaints from property owners about the &#8220;aggressive&#8221; tactics of HOAs, including fines and threats of legal action.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.atlantanewsfirst.com\/2026\/02\/10\/homeowners-plead-help-hoa-day-georgia-state-capitol\/\"><span data-preserver-spaces=\"true\">    relatively minor disputes<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Realtor.com had this to say about bill co-sponsor Senator Donzella James:<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">\u201cFor years, I have been a strong advocate for homeowners, and I have heard countless cases of predatory associations taking advantage of people. This legislation represents a meaningful step forward in protecting homeowners by promoting transparency and fairness. It helps ensure that no Georgian <\/span><span data-preserver-spaces=\"true\">is under the<\/span><span data-preserver-spaces=\"true\">    Threats of unreasonable fees, fines, or foreclosure without proper oversight and due process.&#8221;<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">If an HOA fails to register with the state, it will be barred from collecting fines, issuing liens, or initiating foreclosure actions, giving owners state-level recourse rather than spending money on a private attorney.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThis bill will create regulation, oversight and enforcement <\/span><span data-preserver-spaces=\"true\">And<\/span><span data-preserver-spaces=\"true\">    It also requires that HOA boards have members who live in the communities, ensuring that boards are not run by just one or two people,\u201d explained South Fulton City Councilwoman Linda Pritchett.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.fox5atlanta.com\/news\/georgia-bill-targets-aggressive-hoas-new-state-oversight\"><span data-preserver-spaces=\"true\">    Vaga-TV<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(('r720x90'), '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n<div class=\" hidden sm:block\"><\/div>\n<div class=\"block sm:hidden\">\n          <img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\" loading=\"lazy\" fetchpriority=\"low\"\/>\n        <\/div>\n<\/p><\/div>\n<h2><span data-preserver-spaces=\"true\">HOA Fees: A Cash Flow Killer<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Well-known investor and real estate guru Ken McElroy raises the issue of HOA fees and their impact on homeowners&#8217; cash flow.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/kenmcelroy.com\/education\/rising-hoa-fees-shrinking-cash-flow\/\"><span data-preserver-spaces=\"true\">    december newspaper<\/span><\/a><span data-preserver-spaces=\"true\">Write:<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">&#8220;Every dollar that goes into HOA dues is a dollar that doesn&#8217;t reach your bottom line. In many markets, rents are going down, but HOA dues are still rising. This mismatch reduces margins. A $5,000 or $10,000 special assessment can wipe out an entire year&#8217;s profits. Buyers avoid properties with unstable or rapidly increasing HOA dues. Higher fees drive resale prices. Let&#8217;s push it down. <\/span><span data-preserver-spaces=\"true\">it<\/span><span data-preserver-spaces=\"true\">    This is why analyzing the HOA is almost as important as analyzing the property.<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">One component of Bill 406 is that HOAs will be required to meet higher minimum requirements for unpaid dues and provide better notice before taking legal action, thereby reducing the risk of a landlord&#8217;s rental property ending up in default on disputed fines or short-term hardship, making it easier to mitigate HOA-related risks in their pro forma rather than treating association enforcement as a wild card, wiping out months or years of cash flow. <\/span><span data-preserver-spaces=\"true\">equity<\/span><span data-preserver-spaces=\"true\">    Benefit.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Adopting a nationwide HOA inspection policy could be an investment game changer<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">HOA fees apply to many condos, townhomes, and single-family homes. Their relevance is increasing in the American housing landscape. according to<\/span> <em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.wsj.com\/personal-finance\/homeowners-association-hoa-dues-increasing-costs-aa6eddf5\"><span data-preserver-spaces=\"true\">wall street journal<\/span><\/a><\/em><span data-preserver-spaces=\"true\">Citing the U.S. Census Bureau, 81% of new single-family homes sold in 2023 were in an HOA, compared to 73% a decade ago. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">A<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/homeowners-associations-2025\"><span data-preserver-spaces=\"true\">    Realtor.com Homeowners Associations Report<\/span><\/a><span data-preserver-spaces=\"true\">    Found that 1 in 3 single-family homes (33.4%) have an HOA, and more than 4 in 5 (84.8%) condos and townhomes do.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Georgia did not act in isolation. The national backlash against HOAs is growing across the country. An industry review of<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/hub.associaonline.com\/blog\/latest-hoa-legal-updates\"><span data-preserver-spaces=\"true\">    2026 legislative activity<\/span><\/a><span data-preserver-spaces=\"true\">    Note that 46 states will meet in session this year, and many are considering bills that either curb the powers of HOAs, increase transparency, or create pathways to disbanding HOAs altogether, which would dramatically change the investment viability of many buildings.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Harnessing the national potential zeitgeist<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">With housing affordability a central topic in the national cost of living debate, especially for single-family homes, it is hardly surprising that excessive, unregulated HOA fees have come under the microscope as property owners try to hold on to their homes.<\/span><\/p>\n<aside class=\"my-10 xl:my-4\">\n<p class=\"font-bold mt-0 mb-4 text-xl text-slate capitalize\">You might also like<\/p>\n<\/aside>\n<p><span data-preserver-spaces=\"true\">The same issue applies to landlords, who supply much-needed housing to tenants while often struggling to make a profit amid rising expenses. Landlords, not tenants, are responsible for HOA fees, and higher fees translate into higher rents and put pressure on cost-burdened tenants.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The only saving grace for homeowners is that there are HOA fees.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.turbotenant.com\/property-management\/hoa-fees\/\"><span data-preserver-spaces=\"true\">    tax exemption<\/span><\/a><span data-preserver-spaces=\"true\">    and can <\/span><span data-preserver-spaces=\"true\">be itemized<\/span><span data-preserver-spaces=\"true\">    On IRS Schedule E, along with other rental-related expenses.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">&#8220;When you&#8217;re paying $500 or more per month, it&#8217;s a really big deal, especially when you consider how tight a budget many Americans are,&#8221; said Matt Shull, chief consumer finance analyst at LendingTree.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/trends\/hoa-rising-fees-homeowners-maintenance\/\"><span data-preserver-spaces=\"true\">    realtor.com<\/span><\/a><strong><span data-preserver-spaces=\"true\">. <\/span><\/strong><span data-preserver-spaces=\"true\">&#8220;That&#8217;s money that can&#8217;t be put toward other financial priorities, like building an emergency fund, paying off high-interest debt, or saving for retirement.&#8221;<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">final thoughts<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">For investors, HOAs can be a gift and a curse. By taking care of landscaping, snow removal and other essential duties, they can maintain the aesthetic appeal of a housing community and make it an attractive proposition for tenants, while helping landlords maintain a dwelling. <\/span><span data-preserver-spaces=\"true\">passive participation<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, this concept only works if the fees are nominal and not much higher than what the landlord would pay if he outsourced maintenance to private companies. When costs are unexpected and severe, with cash flows severely disrupted, checks and balances are needed, as is happening in Georgia. Hopefully, other states will also follow suit.<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>in this article Back off, HOAs: There&#8217;s a new sheriff in town. That appears to be the message from Georgia lawmakers, who recently passed new legislation that limits the ability of HOAs to deal with homeowners by exempting them from costly fees and penalties. SB 406 makes a Administrative process for resolving disputes between landlords<\/p>\n","protected":false},"author":1,"featured_media":51841,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[18642,520,229,2643,18641,2335,491,3390,9247],"class_list":["post-51840","post","type-post","status-publish","format-standard","has-post-thumbnail","category-devotionals","tag-billcan","tag-country","tag-follow","tag-georgia","tag-hoa","tag-major","tag-passes","tag-reform","tag-rest"],"_links":{"self":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/51840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/comments?post=51840"}],"version-history":[{"count":1,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/51840\/revisions"}],"predecessor-version":[{"id":51842,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/51840\/revisions\/51842"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media\/51841"}],"wp:attachment":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media?parent=51840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/categories?post=51840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/tags?post=51840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}