Georgia HOAs fight for authority amid legislative changes

ATLANTA, Ga. (Atlanta News First) - Board members of homeowners associations (HOAs) and industry representatives are urging Georgia lawmakers to preserve the authority of homeowner associations as the legislature considers new oversight measures.

Many of the proposed laws address key issues uncovered by the Atlanta News First Investigates’ series, HOA Nightmares.

The advocacy push comes as several bills move through the General Assembly aimed at limiting HOA power across the state, but the advocates bring a different perspective. They want lawmakers to understand the effectiveness of associations to keep communities functioning efficiently.

A few dozen representatives from HOA boards, community management companies, and law firms attended an advocacy day at the state capitol organized by the Community Association Institute, a national organization. According to the institute’s latest data, one-third of Georgians live in communities governed by an HOA.

Samantha Bailey, owner of PMI Terminus Smyrna, which manages 300 HOA communities in Georgia, said funding is central to how associations operate.

An Atlanta News First investigation

HOA Nightmares

“The only income HOAs have are from the assessments,” Bailey said. “If homeowners don’t pay, they can’t pay their insurance; they can’t pay the landscapers; they can’t pay the pool vendor. Things go into disarray.”

Connie Suhr served on the HOA board for a Roswell townhome community for two decades.

“There’s a huge learning curve when you join a board,” she said. “There is so much to know. You have to learn your documents. You have to know a little bit about the law. You have to know collections.”

“But you also have to manage people and the property,” Suhr said. “It’s a lot to take on as a board, especially when all the boards are volunteer.”

An Atlanta News First Investigates survey of nearly 200 homeowners experiencing issues with their HOAs found 63% owe fines and fees, averaging more than $8,000. Nearly 40% are in lawsuits with their HOA, with most carrying liens on their homes.

Under current state law, an HOA can file to foreclose on a home when a lien exceeds $2,000.

The survey also found homeowners have no state office to turn to with HOA complaints. Those who dispute fines are required to take their cases to court, where they face HOA attorneys funded by community dues.

Some proposed bills aim to change that. SB406 would create a five-person board through the Secretary of State’s office to receive complaints and conduct investigations. The bill would also require training for HOA board members. It is described as a comprehensive HOA oversight bill and is currently the only HOA-related bill advancing in the legislature.

The bill passed out of Senate Judiciary committee with amendments Wednesday and is now eligible for a vote on the Senate floor before Crossover Day on March 6.

Suhr supports the measure.

“I know a lot of homeowners who complain are just mad at their boards. They don’t like living under the rules,” she said. “I think it’s important if they’re not willing to come to a board meeting or if they feel like their board is really subjecting them to something heinous, they need somebody to talk to.”

Suhr said she received training from the Community Association Institute.

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