Georgia House Bill 1032: Ending Foreclosure for Unpaid Property Association Fees

By State Representatives Viola Davis (D-Stone Mountain), Sandra Scott (D-Rex) and Kim Schofield (D-Atlanta)

(583 words)

We plan to refile House Bill 1032, the "Property Owner Rights and Accountability Act," which proposes to eliminate the option for property associations to foreclose on homes for unpaid assessments. By removing the $2,000 minimum threshold for foreclosure, the bill aims to protect property owners from losing their homes over association fees. This move seeks to address concerns about the potential abuse of assessment fees, which have, at times, been used to unfairly target homeowners.

"Over the years, I've attended countless HOA and Condo Association meetings, as well as committee hearings on housing in my ongoing effort to draft and pass legislation that protects homeowners from abuses and unfair business practices," said Rep. Davis. "My commitment has always been to ensure that property owners have their rights safeguarded and that we foster a fair and transparent system. The end results must protect the American Dream of Homeownership."

"We drafted this bill because no one should lose their home because of HOA fees/assessments," said Rep. Scott. "When a person pays their mortgage and taxes, they have paid the two bills that make them homeowners. People's American Dream of Homeownership should not be taken away because of fees/assessments. We are asking for homeowners to support HB 1032. We would like to have a hearing and vote when we return to session in January 2025."

"As a homeowner who, for years, dealt with HOA abuses of authority, power and lack of transparency, I am committed to ensuring fair treatment and protections for all," said Rep. Schofield. "Our goal is to address the systemic issues that have caused distress and create a more equitable environment where condo owners feel secure and empowered."

Advocates for the bill argue that some associations have been exploiting the foreclosure process, using small unpaid assessments as leverage to take over homes. By removing the foreclosure option, lawmakers will increase homeowner protection, limit unfair and abusive enforcement options and maintain homeowners' stability. The bill's goal is to prevent abuse while exploring more balanced measures for managing property associations' finances.

Removing the foreclosure option will:

1. Increase Homeowner Protection:
   1. Prevent abuse: The bill eliminates the risk of foreclosure solely due to unpaid assessments, protecting homeowners from losing their homes over relatively small dues.
   2. Enhance checks and balances: The elimination allows time to establish more robust checks and balances that ensure fair and transparent processes, better protecting property owners from overreach.
2. Challenges for Property Associations:
   1. Limit enforcement options: Without the option to foreclose, associations will need alternative ways to ensure compliance, which might require legislative changes for better balance between homeowners and associations.
   2. More cooperative solutions: Associations may need to focus on dispute resolution mechanisms that emphasize cooperation rather than punitive measures.
3. Maintain Stability for Homeowners:
   1. Alternative solutions: Associations can explore other methods to recover fees while safeguarding their ability to maintain essential services and shared facilities.
   2. Shared responsibility: Clearer and fairer processes will encourage shared financial responsibility across all property owners.
   3. Reform process: Further regulation may be needed to prevent future abuse while maintaining the financial stability of associations.

Furthermore, House Bill 1032 aims to protect property owners from losing their homes due to unfair foreclosure practices over unpaid assessments. By temporarily removing foreclosure as an option, we as lawmakers hope to establish better checks and balances. The long-term solution will require collaboration between legislators, property associations and homeowners to create a system that is fair and transparent, prioritizing both homeowner protection and association stability.

*Editor's Note: A photo of these Representatives is attached.

Representative Viola Davis represents the citizens of District 87, which includes portions of DeKalb County. She was elected to the House of Representatives in 2018 and currently serves on the Defense & Veterans Affairs, Insurance, Interstate Cooperation, Natural Resources & Environment and Urban Affairs committees.

Representative Sandra Scott represents the citizens of District 76, which includes portions of Clayton County. She was elected to the House of Representatives in 2010 and currently serves as the Minority Caucus Chief Deputy Whip. She also serves on the Banks & Banking, Defense & Veterans Affairs, Human Relations & Aging, Insurance and Reapportionment and Redistricting committees.

Representative Kim Schofield represents the citizens of District 63, which includes portions of Fulton County. She was elected to the House of Representatives in 2017 and currently serves as the Secretary of the Urban Affairs Committee. She also serves on the Creative Arts & Entertainment, Health, Interstate Cooperation and Small Business Development committees.

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