What is SB 406?
SB 406 — the Georgia Property Owners’ Bill of Rights Act — is a comprehensive overhaul of Georgia law governing homeowners associations, property owners’ associations, and condominium associations. It passed the Georgia Senate 51–0 and the House 155–10 on March 31, 2026.
The law creates a mandatory registration system, strengthens homeowner rights, raises enforcement thresholds, and establishes a state oversight board. Associations that register maintain full enforcement authority. Those that do not lose the ability to collect fines, issue liens, and foreclose.
The enforcement consequence: Non-registered associations cannot collect fines, accelerate assessments, place liens, or initiate foreclosure. For communities that depend on assessments to fund operations, this is an existential compliance question.
Who does SB 406 affect?
SB 406 applies to property owners’ associations (HOAs), condominium associations, and new associations formed on or after July 1, 2026. Georgia has an estimated 4,000+ active associations. Every one is affected.
The six major changes
1. Mandatory registration
Associations must file annual registration documents with the Georgia Secretary of State. The fee is $100/year. Registration must be renewed annually to maintain enforcement authority.
2. New foreclosure threshold
The foreclosure minimum rises from $2,000 to $4,000 in unpaid assessments. Fines and fees no longer count toward the threshold. Existing governing documents referencing $2,000 must be amended.
3. Assessment payment priority
When an owner makes a partial payment, regular assessments must be satisfied first before fines, late charges, or attorney fees. Many existing documents specify the opposite order and must be updated.
4. Ten-year record retention
All financial records must be retained for a minimum of 10 years. Owners gain explicit statutory rights to inspect records on request. Documents specifying shorter periods must be updated.
5. State complaint board
A five-member State Board for Review of Complaints is established. During an active complaint, collection of fines from the complaining owner is automatically stayed. Binding arbitration is also available.
6. Strengthened owner notices
Written notice requirements apply before any enforcement action. Owners must receive specific citation of the violated provision and a cure period before fines accrue.
What to do now: Run a free compliance check on your governing documents at GeorgiaHOACompliance.com to identify which provisions need to change before your association registers.
Attorney fee transparency
Before attorney fees can be passed to a homeowner, SB 406 requires an itemized statement and judicial review of reasonableness. Blanket attorney fee authority in governing documents will conflict with this provision.
Board elections and state filings
Registered associations must hold annual board elections with formal procedures for contesting results, electronic ballot record-keeping, and state filing of outcomes.