The basics
What is Georgia SB 406?
SB 406 is the Georgia Property Owners’ Bill of Rights Act, passed 51–0 in the Senate and 155–10 in the House on March 31, 2026. It establishes mandatory HOA registration, creates a state complaint board, raises foreclosure thresholds, and strengthens owner notice requirements.
Is SB 406 already law?
As of early April 2026, SB 406 has passed both chambers and awaits the Governor’s signature. Given the near-unanimous support, signature is expected.
See the full timeline.Does SB 406 apply to our association?
If your community has recorded covenants and an association that collects assessments and enforces rules, SB 406 almost certainly applies. It covers both HOAs and condo associations under Georgia law.
Does it apply to condo associations too?
Yes. SB 406 amends both Title 43 (property owners’ associations) and Title 44 (condominium associations) of the Official Code of Georgia Annotated.
Registration
What does registration require?
Annual filing with the Georgia Secretary of State and a $100 annual fee. The SoS will maintain a public database of registered associations. Registration must be renewed each year to maintain enforcement authority.
What happens if our HOA doesn’t register?
Non-registered associations cannot collect fines, cannot charge accelerated assessments, cannot place liens, and cannot initiate foreclosure. They can still collect regular assessments through civil litigation but lose all other enforcement mechanisms.
When is the registration deadline?
The specific deadline will be set by the Secretary of State after the law takes effect. New associations formed on or after July 1, 2026 are immediately subject. We recommend beginning your compliance review now.
Can we choose not to register?
Yes, but opting out means losing all enforcement powers. For any association with meaningful enforcement needs, registration is the better choice.
Governing documents
Do we need to amend our CC&Rs or bylaws?
Probably yes. SB 406 changes lien thresholds, foreclosure minimums, payment priority rules, record retention requirements, and notice procedures. Enforcement actions taken under conflicting provisions may be challenged.
What are the most common conflicts in existing documents?
Three are especially common: (1) lien and foreclosure thresholds referencing $2,000 instead of $4,000; (2) payment application provisions that satisfy fees before assessments; and (3) record retention periods shorter than 10 years.
A free compliance scan identifies these in your specific documents.
Can we register before amending our documents?
Yes. Registration itself does not require amended documents. However, enforcement actions under conflicting provisions may be challenged. The safest approach is to review and amend around the same time as registration.
Enforcement and fines
What is the new foreclosure threshold?
SB 406 raises the minimum to $4,000 in unpaid assessments (up from $2,000). Fines and fees no longer count toward this threshold — only regular and special assessments. Documents referencing $2,000 must be amended.
What is the assessment payment priority rule?
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, which kept owners perpetually delinquent.
What is the State Board for Review of Complaints?
A five-member state board that investigates homeowner complaints. During an active complaint, the association’s ability to collect fines from the complaining owner is automatically stayed. Binding arbitration is also available.
Records and operations
What is the record retention requirement?
All financial records must be retained for a minimum of 10 years. This includes budgets, financial statements, bank statements, assessment records, and reserve fund documentation. Owners have the right to inspect records on request.
Are there new rules for board elections?
Yes. Registered associations must hold annual elections with formal dispute procedures, electronic ballot records, and state filing of outcomes. Bylaws permitting longer terms without elections will need amendment.