SB 406 · Foreclosure
Georgia HOA foreclosure threshold in 2027: 60 days, a new minimum and a six-year lien
Updated · For volunteer boards
The short version
- Until December 31, 2026: 30 days’ notice, a $2,000 minimum lien, and a four-year lien.
- From January 1, 2027: 60 days’ notice, a threshold of the lesser of $4,000 or 12 months of regular assessments (never under $2,000), and a six-year lien.
- Fines, late fees and other specific assessments do not count toward the threshold.
- Payments must be applied in a set order, and the association may not refuse a payment.
Not legal advice. This page is general information for volunteer boards. It is not legal advice, and laws and documents differ. Ask your association’s attorney before you act on it.
The rule today, through December 31, 2026
Section 44-3-232(c) of the Georgia Code governs foreclosing a lien for assessments in an HOA under the Property Owners’ Association Act. As it reads until the end of 2026, the notice period is 30 days, the lien has to be at least $2,000, and a lien lapses after four years.
“Not less than 30 days after notice is sent by certified mail or statutory overnight delivery, return receipt requested, to the lot owner both at the address of the lot and at any other address or addresses which the lot owner may have designated to the association in writing, the lien may be foreclosed by the association by an action, judgment, and court order for foreclosure in the same manner as other liens for the improvement of real property”
“No foreclosure action against a lien arising out of this subsection shall be permitted unless the amount of the lien is at least $2,000.00.”
“The lien for assessments shall lapse and be of no further effect, as to assessments or installments thereof, together with late charges and interest applicable thereto, four years after the assessment or installment first became due and payable.”
The rule from January 1, 2027
SB 406 rewrites that subsection. The wait grows to 60 days, the notice has to tell the owner that paying before the sixtieth day after receipt eliminates the right of foreclosure, the minimum lien changes, and the lien lasts six years.
“Not less than 60 days after notice is sent by certified mail or statutory overnight delivery, return receipt requested, to the lot owner both at the address of the lot and at any other address or addresses which the lot owner may have designated to the association in writing, the lien may be foreclosed by the association by an action, judgment, and court order for foreclosure in the same manner as other liens for the improvement of real property”
“The notice provided for in this subsection shall specify the amount of the assessments then due and payable together with authorized late charges and the rate of interest accruing thereon and shall state that payment of such amount prior to the sixtieth day following receipt of the notice will eliminate the right of foreclosure.”
“No foreclosure action against a lien arising out of this subsection shall be permitted unless the amount of the lien is at least the lesser of $4,000.00 or an amount equal to 12 months of regular assessments, as such term is defined in Code Section 43-17A-1, in arrears but not less than $2,000.00; provided, however, that no specific assessment, as such term is defined in Code Section 43-17A-1, or other fine or fee shall be included in the calculation of the amount of such lien.”
“The lien for assessments shall lapse and be of no further effect, as to assessments or installments thereof, together with late charges and interest applicable thereto, six years after the assessment or installment first became due and payable.”
What counts toward the threshold
The statute says that no specific assessment, fine or fee is included when you work out the amount of the lien. The Act defines the terms. Regular assessments, which fund the operating budget, count. Specific assessments, which include fees and fines for late or missed payments and for covenant violations, do not.
“'Regular assessments' or 'dues' means assessments imposed on owners on a regular or recurring basis for the purpose of funding the owners' association's regular operating budget for costs which may include, but shall not be limited to, common area maintenance and routine repairs, utilities, landscaping, and reserve fund contributions.”
“'Specific assessments' means an assessment imposed on an owner for:”
“Fees or fines for nonpayment, insufficient payment, or untimely payment of any assessment or for violation of a covenant of the owners' association.”
Three examples
These are made-up associations, only to show the arithmetic. “Twelve months of regular assessments” is the yearly total of the regular dues, and the threshold is the lesser of $4,000 and that figure, but never below $2,000.
- Dues of $300 a month: twelve months is $3,600. The lesser of $4,000 and $3,600 is $3,600.
- Dues of $100 a month: twelve months is $1,200, which is under the $2,000 floor, so the threshold is $2,000.
- Dues of $450 a month: twelve months is $5,400. The lesser of $4,000 and $5,400 is $4,000.
Payments and the order they are applied
Chapter 43-17A also sets the order for applying any payment an owner sends. Dues come first, then special assessments, then specific assessments, then everything else. It also bars an association from refusing a payment of any amount or accelerating assessments. The order matters because it decides how much of an owner’s balance is regular dues, and so how much counts toward the threshold.
“All funds remitted by an owner to an owners' association shall be applied by such owners' association to the following expenses by ranking of highest to lowest priority as follows:”
“Regular assessments or dues until current;”
“Special assessments until current;”
“Specific assessments until current; and”
“Other fees and fines.”
“Refuse to accept payment from an owner in any amount for any assessment; or”
“Assess or collect accelerated assessments against any owner.”
Questions to put to your attorney
Two readings deserve a lawyer’s confirmation before January.
- Whether special assessments count toward the amount of the lien, as regular assessments clearly do.
- Whether the six-year lien revives an old balance that lapsed under the four-year rule.
What to do next
- 1List every account near or above the current $2,000 minimum and note how much is regular dues.
- 2Update your pre-foreclosure notice for 60 days and the “eliminates the right of foreclosure” sentence before January 1.
- 3Decide how payments will be applied from January 1 and tell your manager or bookkeeper.
- 4Ask your attorney the two open questions above.
- 5Read the attorney’s-fee notice guide, which is a separate step that comes earlier.
What HomeownerHub does about this
- Each open collections case shows whether the amount owed clears the threshold: today’s rule and the stricter 2027 rule side by side, using the regular and special assessments owed less unapplied credit. The panel is read-only.
- From January 1, 2027 the notice before foreclosure can be drafted with the 2027 wording, a 60-day notice listing assessments, late charges and interest only. A card explains the payment order in plain words. The app does not yet apply payments in that order.
The board approves every draft. HomeownerHub prepares paperwork and cites the law; it does not file for you or give legal advice.
Frequently asked questions
- What is the Georgia HOA foreclosure threshold in 2027?
- The lien must be at least the lesser of $4,000 or 12 months of regular assessments in arrears, and never less than $2,000, with fines and fees left out of the calculation.
- How much notice must an HOA give before foreclosing in 2027?
- Not less than 60 days after the notice is sent by certified mail or statutory overnight delivery, return receipt requested.
- Do late fees count toward the threshold?
- No. Fees and fines for nonpayment are specific assessments, and the statute excludes specific assessments and other fines or fees from the calculation.
- How long does an assessment lien last?
- Four years until the end of 2026. The 2027 text says six years after the assessment first became due.
Keep reading
- GuideGeorgia HOA attorney’s fee notice (SB 406 § 7) explainedBefore a Georgia association can collect or be awarded attorney’s fees, it must send an initial written notice by certified mail or statutory overnight delivery.
- GuideGeorgia HOA late fee limit: what the law allowsA Georgia HOA may charge a late fee only to the extent its governing instrument provides for one.
- GuideGeorgia owners’ rights 2027 (SB 406): the twelve rights explainedFrom January 1, 2027, SB 406 gives owners twelve listed rights, from records to meetings to foreclosure process.
- Free toolSB 406 readiness checkTen yes/no questions. A score and a checklist. Nothing is stored or sent.