Georgia's New HOA Law Limits When Associations Can Bill Owners for Attorney Fees (SB 406 Takes Partial Effect July 1)

Georgia's New HOA Law Limits When Associations Can Bill Owners for Attorney Fees (SB 406 Takes Partial Effect July 1)

Georgia's first statewide Property Owners' Bill of Rights begins to take effect on July 1, 2026. The first piece to become operative, Section 7 of Senate Bill 406, bars a community association from collecting or being awarded attorney's fees against an owner unless it first gives written notice, a chance to pay, and an itemized accounting, with a judge reviewing the fees for reasonableness.

Information last verified on July 1, 2026. This is a developing story; we update it as the record changes.

Status: Signed by Governor Brian Kemp on May 12, 2026 as the Georgia Property Owners' Bill of Rights Act (SB 406, Act 715). Section 7, on attorney's-fee prerequisites, takes effect July 1, 2026 for actions filed on or after that date. Most other provisions take effect January 1, 2027.

Jurisdiction scope: This article addresses Georgia law governing community associations under Title 44, Chapter 3 of the Georgia Code. It explains the statute generally and does not advise on any specific dispute. For related Georgia resources, see Georgia landlord-tenant laws and Georgia squatters rights.

What Happened

Governor Brian Kemp signed Senate Bill 406, the Georgia Property Owners' Bill of Rights Act, on May 12, 2026. It became Act 715 of the 2025-2026 session. The Act is Georgia's first broad statewide framework regulating community associations, and it phases in on two dates. Most of the Act, including a requirement that associations register with the Secretary of State and a change raising the unpaid-dues threshold for foreclosure from $2,000 to $4,000, takes effect January 1, 2027. One part, Section 7, takes effect earlier, on July 1, 2026, and applies to actions filed on or after that date.

Section 7 addresses attorney's fees. Under the new provision, a community association may not collect or recover attorney's fees from an owner unless it satisfies several prerequisites first. The association must provide the owner written notice identifying the outstanding fines or delinquent amounts, give the owner an opportunity to pay, and provide an itemized statement of the attorney's fees being claimed. A court must then review any fee request for reasonableness before fees are awarded. The result is that an association pursuing an owner for unpaid dues or fines on or after July 1 cannot simply add its legal bill to the amount demanded; it must follow the notice-and-itemization steps and submit the fees to judicial review.

What the Law Actually Says

Georgia community associations operate under Title 44, Chapter 3 of the Georgia Code, which includes the Georgia Property Owners' Association Act and the condominium provisions. Historically, governing documents and that framework gave associations broad authority to assess fines, charge fees, place liens, and pursue collection, and attorney's-fee provisions in association covenants often shifted the cost of collection onto the owner. Georgia had no comprehensive statewide bill of rights for owners facing those processes.

SB 406 changes that in stages. Section 7, the July 1 provision, targets the attorney's-fee mechanism specifically. By requiring pre-award notice, an itemized accounting, and a reasonableness review, the section inserts procedural checks between an association's decision to pursue an owner and its ability to recover legal fees. The later provisions, effective in 2027, add the registration requirement and the higher foreclosure threshold, which limits when an association can foreclose over unpaid amounts. For owners weighing their position in a dispute, the practical point is that the fee-shifting rules are the first to change. Readers comparing how other states are reworking association powers can see the site's coverage of the Indiana HOA rental-cap and voting law, and those dealing with association cameras and monitoring can review HOA security camera rules.

Analysis: Why This Matters

The following is analysis from the Recording Law Editorial Team.

Attorney's fees are often the pressure point in HOA disputes. A modest unpaid balance can balloon once an association's legal fees attach, and owners frequently report that the fees, not the underlying dues, are what push a dispute toward a lien or foreclosure. Section 7 does not eliminate fee recovery, but it changes the sequence: an association must now show it gave notice and an itemized accounting, and a judge must find the fees reasonable before they are awarded. That is a meaningful procedural shift in a state that had left most of these questions to the governing documents.

The staggered effective dates are the part most likely to cause confusion, and they are worth keeping straight. Only the attorney's-fee prerequisites are live on July 1, 2026, and only for actions filed on or after that date. The registration requirement and the higher foreclosure threshold do not arrive until January 1, 2027. An owner who assumes the entire bill of rights is in force this summer could misjudge an association's obligations, and an association that ignores Section 7 on a new collection action risks losing its fee recovery. We are not advising any owner or association on a specific dispute; the point is that the calendar matters, and the first change is the fee rule.

How This Affects You

This section describes general implications, not advice about any specific situation. If you are a Georgia homeowner in a community association and you receive a demand for unpaid dues or fines on or after July 1, 2026, Section 7 generally requires the association to provide written notice of the amounts owed, an opportunity to pay, and an itemized statement of any attorney's fees before it can recover those fees, with a court reviewing the fees for reasonableness. If you are an association or a manager, collection actions filed on or after July 1 should follow the new notice-and-itemization steps to preserve the ability to recover fees. Because the rest of the Act does not take effect until January 1, 2027, the registration and foreclosure-threshold changes are not yet operative. Anyone facing a specific association dispute should consult a lawyer licensed in Georgia.

What Happens Next

The next milestone is January 1, 2027, when the remainder of SB 406 takes effect, including the Secretary of State registration requirement and the increase in the foreclosure threshold from $2,000 to $4,000 in unpaid dues. Between now and then, associations and their counsel are expected to update collection practices to comply with Section 7, and courts will begin applying the reasonableness review to fee requests in newly filed actions. As Georgia courts interpret the new notice and itemization requirements, the practical contours of Section 7 will become clearer. The event that would expand this into a larger legal story is the first appellate decision construing the provision or any challenge to how associations implement it.

This is general legal information, not legal advice. It covers Georgia community-association law and reflects sources verified on July 1, 2026. Laws change and this story is developing; consult a lawyer licensed in Georgia about your specific situation.

Sources

• Georgia Senate Bill 406 (2025-2026), Georgia Property Owners' Bill of Rights Act, enrolled text, Georgia General Assembly (primary source; legis.ga.gov)
• Georgia Office of the Governor, 2026 Signed Legislation: SB 406 (primary source; gov.georgia.gov)
• Freeman Mathis and Gary: Georgia Property Owners' Bill of Rights Act, What's New and When It Takes Effect (Tier-2 firm analysis of effective dates)

Related articles

• Georgia Landlord-Tenant Laws
• Georgia Squatters Rights and Adverse Possession Laws
• HOA Security Camera Rules
• Indiana HEA 1210: HOA Rental Votes and Local Rental Caps
• Squatters Rights by State

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Last updated: 2026-07-01. This is a developing story; details verified as of 2026-07-01.

Frequently Asked Questions

What is Georgia SB 406?

SB 406 is the Georgia Property Owners' Bill of Rights Act, signed by Governor Brian Kemp on May 12, 2026 as Act 715. It is Georgia's first broad statewide framework regulating homeowners, property owners', and condominium associations under Title 44, Chapter 3 of the Georgia Code.

What takes effect on July 1, 2026?

Only Section 7, which governs attorney's fees, takes effect July 1, 2026, and it applies to actions filed on or after that date. It requires written notice of amounts owed, an opportunity to pay, an itemized statement of attorney's fees, and judicial review of the fees for reasonableness before they can be awarded.

What changes on January 1, 2027?

Most of the Act takes effect January 1, 2027, including a requirement that community associations register with the Georgia Secretary of State and an increase in the unpaid-dues foreclosure threshold from $2,000 to $4,000.

Does SB 406 stop my HOA from charging attorney's fees?

No. It does not eliminate fee recovery. Section 7 adds prerequisites: the association must give notice and an itemized accounting, and a court must find the fees reasonable before awarding them. This applies to collection actions filed on or after July 1, 2026.

Which associations does the law cover?

The Act covers community associations governed by Title 44, Chapter 3 of the Georgia Code, which includes homeowners associations, property owners' associations, and condominium associations.

Where can I read the law?

The enrolled text of SB 406 is available through the Georgia General Assembly and the Governor's signed-legislation records, both linked in the Sources section. This article is general information, not legal advice.