Georgia Lawmakers to Rein in Aggressive HOAs After Hearing Homeowner Horror Stories
Homeowners in Georgia face foreclosure by their homeowners associations (HOAs) even when up to date on their mortgages. Karen Gibbons of Gwinnett County paid her HOA dues regularly but received a foreclosure notice for over $30,000 in late fees and attorney fees.
Trisha Quigley lost her Cherokee County home at a foreclosure auction for $3.25 after missing two biannual payments totaling $800. Despite paying over $10,000 to settle with the HOA, additional fees kept accruing.
Juliet Graham’s HOA bill reached $250,000 by the time she sold her downtown Atlanta condo. Two Metro Atlanta law firms specializing in HOA representation filed 279 foreclosure notices in the past three years.
State Senator Donzella James introduced bills to curb aggressive HOAs. James McAdoo faced $36,000 in wage garnishment due to HOA penalties for weeds in his yard, leading him to file for bankruptcy.
A bipartisan bill passed, creating a study committee to examine HOA foreclosure laws. The committee will focus on protecting homeowners from losing generational wealth. Potential bills are expected next year, led by Republican Rules Committee Chairman Matt Brass. Several states have enacted limits on HOA foreclosures, and Georgia may follow suit.
