In Georgia’s recently passed Georgia Property Owners’ Bill of Rights Act (SB 406), the entire collections process—not just foreclosure—is getting a major overhaul.
While most provisions don’t take effect until January 1, 2027, management companies should begin preparing now. New registration requirements, longer notice periods, stricter documentation standards, and updated foreclosure rules will all require associations to rethink how they manage delinquent accounts.
As the Georgia General Assembly explains in the legislation, the Act is intended to establish new statewide standards governing owners’ associations, their operations, and enforcement procedures.
The Biggest Change: Foreclosure Is Now Further Down the Road
The headline grabbing most of the attention is Georgia’s new foreclosure threshold.
Under SB 406:
- Before foreclosure, HOAs must give 90 days’ notice. If the homeowner pays within that window, the HOA loses the right to foreclose.
- Foreclosure is only allowed when arrears meet the threshold: generally the lesser of $4,000 or 12 months of regular assessments, but the amount must be at least $2,000. Fines and fees do not count toward that threshold.
In essence, the law doubles the minimum in unpaid dues that an association needs before it can file to foreclose.
And ICYMI; Effective July 1st, an HOA cannot charge homeowners attorneys fees without prior written notice, stating what the fines are and providing an itemized list of reasonable attorneys fees claimed.
But Foreclosure Isn’t the Real Story
The operational changes will likely have a greater impact on community management companies than the foreclosure threshold itself.
Other rules from SB 406 include:
- HOAs must register with the Georgia Secretary of State
- Unregistered HOAs cannot collect fines or fees, record liens, or start foreclosures
- HOAs must keep records for 10 years and submit three years of records plus governing documents to the state
- The Secretary of State can investigate, hold hearings, and deny, suspend, or revoke HOA registrations
- Homeowners can file complaints with the Secretary of State and appeal certain decisions in court
- Homeowners get clearer rights around notices, records, insurance information, meetings, and due process
- HOAs must apply payments in this order: regular dues, special assessments, specific assessments, then other fees or fines. They also cannot refuse partial payments.
HunterMaclean, one of Georgia’s leading community association law firms, notes that these changes create significant new administrative responsibilities for associations and their managers:
“The potential impact of SB 406 on real estate developers, association officers, boards, property managers, and property owners should not be underestimated. The Act represents a significant shift toward greater government regulation for Georgia owners’ associations that will result in permanent changes to how these communities operate and the baseline cost of operation. Owners will have significantly greater rights to compel records inspections, dispute association actions, and defend against enforcement remedies.”
It’s A Pattern We See Everywhere, Every Day
While many community association management companies based in Georgia were surprised by the passing of SB 406, the reality is, this type of legislation is occurring throughout the whole of the United States. Regardless of where a community association management company is based, owners should take note: The days of relying on spreadsheets, scattered email chains, and inconsistent collection practices are quickly coming to an end.
Management companies should begin reviewing:
- Collection timelines and notice procedures.
- Documentation standards.
- Communication records.
- Board reporting processes.
- Collection policies with association legal counsel.
The better documented every homeowner interaction is, the easier it becomes to demonstrate compliance if questions arise later.
Where TechCollect Fits
Georgia’s new law doesn’t eliminate collections, butit raises the importance of managing them correctly.
That’s where TechCollect helps.
Rather than waiting until accounts reach legal action, TechCollect helps management companies engage homeowners earlier through consistent, automated outreach across email, text, letters, and phone calls. Every interaction is logged automatically, creating a complete communication history that supports transparency with boards, homeowners, and legal counsel. That means that all of the communication records that may be needed by the Secretary of State are readily available. Plus, the flow of communications are automatically in compliance with state legislation, whether one is based in Georgia, Colorado, or any other state.
At the end of the day, lawmakers are creating legislation around foreclosures and collection-based communications to improve homeowner integrity. And that’s exactly what TechCollect does. We don’t want people to spend thousands in legal fees for a late payment; we want to support them in any way we can. And that creates harmony among the homeowners, Board members, and the management company. As Kent Grothe, CEO of PMI of Northeast Atlanta, notes:
“We’ve seen an immediate impact with a significant increase in self-resolved delinquencies and a decrease in emotionally charged conversations. It’s helped us preserve relationships in the community, simplify the process on our end, and avoid the need for legal action in many cases. TechCollect is truly a game changer for our delinquency management.”
As regulations continue to evolve, successful collections won’t depend on who sends the most demand letters; they’ll depend on who has the most consistent, documented process, and acts with compassion. If you want to get ahead, not stay behind, on your processes, reach out to us.
