Georgia Lawmakers Aim to Rein in Aggressive HOAs After Hearing Homeowner Horror Stories (Video)

HOA Nightmares Prompt Legislative Action

State lawmakers in Georgia are taking action to address aggressive practices by homeowners associations (HOAs) following numerous complaints and horror stories from residents. These issues have been highlighted by investigative reports and are now the focus of bipartisan legislative efforts.

Homeowners Face Unexpected Foreclosures

In Georgia, HOAs have the authority to foreclose on homes, even if homeowners are current on their mortgage payments. Karen Gibbons, a homeowner in Gwinnett County, faced foreclosure after inconsistencies in the cashing of her HOA dues checks. Despite mailing her checks regularly, Devastating Financial Consequences

Trisha Quigley of Cherokee County experienced a foreclosure on her home of 18 years, which was sold for a mere $3.25 due to unpaid biannual dues totaling $800. Despite paying over $10,000 to settle her dues, escalating attorney fees compounded her debt. Similarly, Juliet Graham accumulated an HOA bill of $250,000, forcing her to sell her downtown Atlanta condo.

Legal and Financial Struggles

James McAdoo of South Fulton faced wage garnishment of $600 every two weeks due to HOA penalties, predominantly for weeds in his yard. He eventually filed for bankruptcy to halt the garnishment, now owing $36,000.

Legislative Response

State Senator Donzella James has introduced multiple bills to curb overly aggressive HOAs. A bipartisan bill co-sponsored with Republican Senator Matt Brass passed this year, establishing a study committee to explore legislative changes. The committee aims to address the issue of HOA foreclosures, which Senator Brass argues are stripping families of generational wealth.

Future Legislative Actions

The study committee is set to begin work late this summer, with the potential for new bills to emerge from their findings. With Senator Brass chairing the Rules Committee, there is significant legislative support to push these reforms forward in the next session.

Conclusion

The stories of homeowners like Karen Gibbons, Trisha Quigley, Juliet Graham, and James McAdoo have highlighted the urgent need for legislative reform to protect residents from aggressive HOA practices. Georgia lawmakers are now taking steps to ensure that homeowners are safeguarded against unfair foreclosures and excessive fees.