Johns Creek homeowners gained new protections against surprise HOA attorney fees on July 1, and a broader set of rules governing foreclosures, fines, and record-keeping takes effect Jan. 1, 2027, under a state law that touches nearly every neighborhood in the city.

Gov. Brian Kemp signed Senate Bill 406, the Georgia Property Owners' Bill of Rights Act, on May 12. The law passed nearly unanimously: 51-0 in the Senate and 155-10 in the House, both on March 31.

The stakes are local. The Johns Creek Community Association lists 74 HOAs covering more than 12,000 homes in and adjacent to the city on its website, making Johns Creek one of the most HOA-dense communities in North Atlanta. Statewide, roughly 2.3 million Georgians live in association-governed housing, according to the Foundation for Community Association Research.

What took effect July 1

Before an HOA governed by the Georgia Property Owners' Association Act can collect or be awarded attorney's fees in a collections matter, it must now send written notice by certified mail identifying outstanding fines or delinquent fees, along with an itemized list of attorney's fees claimed. The homeowner then gets 30 days to pay before fees can be pursued.

In bench trials, a judge must review attorney's fees for reasonableness and issue a formal order before any award, according to the law's text. That provision applies to all actions filed on or after July 1.

What changes Jan. 1, 2027

The bigger shift arrives in five months. Starting Jan. 1:

  • State registration: Every HOA must register annually with the Georgia Secretary of State, submitting governing documents, current officer information, and a financial statement no more than one year old. The annual fee is $100. An HOA that fails to register loses its ability to collect fines, file liens, or initiate foreclosure.
  • Foreclosure threshold: An HOA cannot foreclose unless unpaid regular assessments reach the lesser of $4,000 or 12 months of regular dues, with a floor of $2,000. Fines, late charges, and other fees cannot count toward that threshold.
  • Longer warning period: The required notice before foreclosure doubles from 30 to 60 days. The notice must tell the homeowner that paying the qualifying balance during that window eliminates the association's right to foreclose.
  • Payment priority: HOAs must apply payments first to regular assessments, then to special assessments, then to specific assessments, and only last to fines and fees. Associations cannot refuse any payment in any amount and cannot impose accelerated assessments.
  • Record retention: Associations must keep assessment, fine, lien, and foreclosure records for at least 10 years at a Georgia office.

Complaint process and enforcement

Homeowners who believe they've been harmed by HOA action or inaction can file a written complaint with the Secretary of State within 180 days. Filing automatically stays the HOA's collection of any related fines or fees while the matter is under review.

The Secretary of State gains authority to deny, suspend, or revoke an HOA's registration; limit fines or fees an association may collect; and bar individual officers or board members where it finds doing so is in the public interest.

Why the legislature acted

HOA-related foreclosure filings hit 6,376 properties nationally during the first quarter of 2026, nearly 40 percent more than two years earlier and outpacing mortgage foreclosures, according to real-estate analytics firm Attom, as reported by the North Atlanta Star.

Georgia court records show how disputes escalate. A 2025 Court of Appeals decision documented a Gwinnett County case in which a 2018 lien of $14,231 grew into a $29,854 judgment by 2023. In Forsyth County, Deerlake HOA sought $80,225 in fines against a property owner, including a $25 daily charge that ran almost five years over a mailbox the association said needed cleaning. The trial judge found the fines unreasonable.

Atlanta community association law firm Nowack Howard described SB 406 as the most significant change to Georgia community association law in decades in a July 8 compliance guide, noting that the heaviest burdens fall on associations operating without adequate records or handling disputes informally.

What Johns Creek homeowners should know

The attorney's fees and foreclosure provisions apply specifically to communities governed by the Property Owners' Association Act. Condominium associations are subject to the registration, payment-priority, and oversight provisions but not the same foreclosure threshold changes. Homeowners should verify which statute governs their community.

The HOA registration deadline with the Secretary of State is Dec. 31, 2026. The state has not yet published the registration form or procedures.