Lawmakers are taking action in response to an investigation aired by Channel 2 Action News, which shed light on the distressing issue of individuals losing their homes due to aggressive homeowners’ associations. In light of this, legislation is set to be reintroduced with the aim of preventing such unfortunate circumstances from occurring again.
A group of state representatives have announced their intention to refile House Bill 1032, which aims to outlaw the practice of homeowners associations (HOAs) foreclosing on homes due to unpaid fees.
According to a news release, the purpose of this action is to tackle the issue of assessment fees being misused to unfairly target homeowners.
During his investigation, Channel 2 consumer investigator Justin Gray discovered a troubling trend in Georgia. Homeowners who diligently kept up with their mortgage payments and remained current on their loans were still at risk of losing their homes to foreclosure by their homeowners association (HOA).
Karyn Gibbons faithfully sent her monthly HOA dues payment for her Gwinnett County condo to the designated address that was given to her at the time of closing.
But she never knew when or if the check would be cashed.
Gibbons explained that the cashing of checks would occur randomly, with months passing in between each instance.
Suddenly, the homeowner received a surprising notice of foreclosure from her HOA.
She was burdened with late fees and faced the daunting task of paying thousands of dollars in attorney fees, leaving her with a total debt of over $30,000.
Gray posed a thought-provoking question to Gibbons, asking if he was aware that homeowners’ associations (HOAs) had the power to foreclose on individuals.
Gibbons responded, “No, I’ve never heard of it.”
Gray came across many stories similar to Gibbons’ during his research.
Lawmakers are currently taking action to prevent this from happening to anyone else.
“We have introduced this bill with the aim of preventing individuals from losing their homes due to HOA fees and assessments,” expressed Rep. Sandra Scott. She firmly believes that once homeowners have fulfilled their mortgage and tax obligations, they have met the essential requirements of homeownership. It is unjust to strip individuals of their American Dream simply because of additional fees and assessments. Rep. Scott urges homeowners to rally behind HB 1032 and hopes for a hearing and vote on the matter when the session resumes in January 2025.”
Representative Kim Schofield, a homeowner who has personally experienced the negative effects of HOA abuses, is determined to advocate for fair treatment and increased protection for all individuals. She is dedicated to addressing the systemic issues that have caused distress and striving to establish a more equitable environment where condominium owners can feel secure and empowered.
State senator and Rules Committee Chair Matt Brass, a Republican representing Newnan, sponsored a bipartisan bill that successfully passed at the Gold Dome this year. The bill aims to establish a study committee to evaluate and propose changes to existing laws, with the goal of enhancing homeowner protection.
Brass informed Gray that the study committee has prioritized HOA foreclosures as the main topic on their agenda. He emphasized the significant impact these foreclosures have on families’ generational wealth.
Brass expressed his strong opposition to the idea of an external group taking away his rights, stating that it goes against the principles of being American. He asserted that such actions will not be tolerated in his state.
Laws restricting HOA foreclosure have been implemented in several states.
The legislative study committee is anticipated to commence its work, most likely in the late summer.
The committee is expected to bring forth potential bills for the next session, according to Brass.
As the chair of the influential rules committee, Brass has been a key ally in advocating for potential reforms and determining which bills will receive a vote on the floor.
