On April 23, 2024, Georgia’s Governor Brian Kemp signed House Bill 220 into law, marking a significant shift in how community associations, including condominium and homeowners associations, can handle violations of their covenants.
Recently, community associations have faced uncertainty in utilizing certain enforcement mechanisms allowed under their governing documents. This is primarily due to a 2021 ruling by the Georgia Court of Appeals in the case of Deerlake Homeowners Association, Inc. v. Brown (864 SE 2d 202, 361 Ga. App. 860). The court held that if an association’s governing documents provide the option for self-help, the association must first attempt self-help before seeking injunctive relief. The practical challenges of pursuing self-help, including cost and complexity, along with potential homeowner resistance and threats, often made this approach inefficient and contentious.
House Bill 220 addresses these challenges by reassuring community associations that they are able to decide, in accordance with their governing documents, which enforcement mechanisms are best suited for their community and any particular issue. Specifically, the bill enables associations to seek injunctive relief without first attempting self-help. Moreover, it expressly grants associations the authority to impose reasonable fines and suspend membership rights, including the right to vote in association matters and/or access the common areas, provided their governing documents give the association the right to do so. These changes are designed to facilitate quicker and more cooperative resolutions of violations. Note that the new law provides that voting rights cannot be suspended simply due to unpaid fines. Once a homeowner cures a violation, any suspension of voting rights must be lifted, although fines may remain on the account for collection.
Additionally, this new law standardizes the notification period that community Associations must give to homeowners to rectify violations. Unless the governing documents provide otherwise, a community association is now required by statute to provide at least ten days’ notice before pursuing enforcement or taking corrective measures. Notwithstanding this requirement, an association may intervene and make corrections without providing notice when an emergency situation justifies immediate action.
In conclusion, House Bill 220 restores Georgia community associations with the confidence that they may enforce their governing documents as outlined therein, without the requirement to try one enforcement mechanism before another. It both supports an association’s capacity to manage and rectify violations more decisively and, also, clarifies the process, making it fairer and less burdensome for both the associations and the homeowners they serve. This change is certainly a step forward for Georgia community associations.