What Is Georgia SB 406? A Complete Guide for HOA Boards

What is SB 406?

SB 406 — the Georgia Property Owners’ Bill of Rights Act — is a sweeping overhaul of Georgia law governing homeowners associations, property owners’ associations, and condominium associations. It is the most significant change to HOA law in Georgia in over a decade.

The law does several things simultaneously: it creates a mandatory registration system, strengthens homeowner rights, limits certain enforcement powers, and establishes a state oversight mechanism. The 51–0 Senate vote signals near-universal legislative support and makes the law’s implementation a certainty.

For HOA boards, the practical question is simple: register and comply, or lose the ability to collect fines, issue liens, and foreclose.

Who does SB 406 affect?

SB 406 amends both Title 43 and Title 44 of the Official Code of Georgia Annotated. It applies to:

• Property owners’ associations (HOAs) governed by recorded declarations of covenants, conditions, and restrictions
• Condominium associations subject to Title 44, Chapter 3 of Georgia law
• New associations formed on or after July 1, 2026 are automatically subject to the Georgia Property Owners’ Association Act and its requirements
• Existing associations have the choice to register (and gain or retain enforcement powers) or opt out (and lose them)

If your community has recorded covenants that restrict what owners can do with their property and allow for assessments, fines, or other enforcement, SB 406 almost certainly applies.

The registration requirement: the most important provision

The cornerstone of SB 406 is mandatory registration with the Georgia Secretary of State. Here is what it requires:

• Associations must file annual registration documents with the Secretary of State
• The registration fee is $100 per year
• Registration must be renewed annually to maintain enforcement authority
• The Secretary of State will maintain a public database of registered associations

The foreclosure threshold changes

SB 406 raises the minimum amount of unpaid assessments required before an HOA can initiate foreclosure proceedings:

• Old threshold: $2,000 in unpaid assessments
• New threshold: $4,000 in unpaid assessments, OR 12 months of consecutive non-payment — whichever comes first
• Critical change: Fines and fees no longer count toward the threshold. Only regular and special assessments count.
• Board members and their immediate family members are prohibited from purchasing properties at HOA foreclosure sales
• Longer mandatory written notice periods before foreclosure action begins

Governing documents that reference the old $2,000 threshold or allow fines to count toward foreclosure eligibility must be amended to avoid unenforceability.

Record retention: the 10-year requirement

Associations must now retain all financial records for a minimum of 10 years. This includes:

• Annual budgets and budget meeting minutes
• Financial statements and audits
• Reserve fund documentation
• Assessment collection records
• Bank statements and check registers

Owners gain explicit statutory rights to inspect association financial records on request. Governing documents that specify shorter retention periods — commonly 3 or 5 years in older documents — must be updated to avoid conflict with the new law.

Owner notice requirements

SB 406 significantly strengthens the procedural protections for homeowners before enforcement actions are taken:

• Written notice with adequate lead time is required before any fine is imposed
• Notice must describe the specific violation and the applicable governing document provision
• Owners must be given the opportunity to cure the violation before fines accrue
• Electronic notices are explicitly addressed and must be handled in accordance with governing document provisions

Assessment payment priority

When an owner makes a partial payment, SB 406 now mandates the order in which that payment is applied. Regular assessments must be satisfied first before any payment is applied to fines, fees, attorney costs, or late charges. This is the opposite of how many existing governing documents treat partial payments, where late charges and attorney fees are satisfied first, keeping owners perpetually delinquent on assessments.

Associations with governing documents that specify a different payment application order must update those provisions to avoid conflicts.

The state complaint board

SB 406 establishes a five-member State Board for Review of Complaints to investigate homeowner grievances against associations. Key provisions:

• Homeowners can file complaints with the state board
• During an active complaint proceeding, the association’s ability to collect fines or fees from the complaining owner is automatically stayed
• The board has authority to order associations to comply with governing documents and applicable law
• Binding arbitration is available as an alternative dispute resolution option

Board elections and state filings

SB 406 introduces new requirements for HOA board elections:

• Annual board elections are required for registered associations
• Formal procedures for contesting election results must be available
• Electronic record-keeping of ballots is addressed
• Election results must be filed with the state

Bylaws that permit less frequent elections, allow indefinite board terms, or lack election procedures may need to be amended.

Attorney fees and cost transparency

Before attorney fees incurred by an association can be passed on to a homeowner, SB 406 requires:

• An itemized statement of all attorney fees and costs
• Judicial review of the reasonableness of those fees before they can be collected

Governing documents that grant blanket authority to collect attorney fees without itemization requirements will conflict with this provision.

What your board should do right now

1. Pull your governing documents. You need your CC&Rs, bylaws, and any rules and regulations. If you don’t have digital copies, contact your county recorder’s office.
2. Run a compliance check. The fastest way to identify conflicts between your existing documents and SB 406 is a systematic review against the law’s 12 major requirement categories. Use our free tool to get started.
3. Decide whether to register. For most associations with any meaningful enforcement needs, registration is the clear choice. The $100 annual fee is negligible compared to losing the ability to place liens or foreclose.
4. Identify document amendments needed. Your full compliance review will identify specific provisions that must be amended before or shortly after registration.
5. Engage legal counsel. Document amendments require homeowner votes in most cases. An HOA attorney can guide the amendment process and ensure the new language is enforceable.