Georgia Property Owners Association Act: A 2025 guide

What is the Georgia Property Owners Association Act?

The Georgia Property Owners Association Act (POAA) is a state law adopted in 1994 to strengthen the legal powers of homeowners associations (HOAs). Unlike other statutes that automatically apply to all HOAs, the POAA is a voluntary law. This means communities must affirmatively opt in, either at the time of development or through a future amendment to the governing documents.

The POAA was modeled in part after laws that govern condominium associations, offering potentially robust tools for HOA governance, collections, and enforcement. When a Georgia HOA opts in to the POAA, it may gain access to several statutory powers that aren't automatically available under common law or standard covenants.

In practice, the POAA helps streamline community operations, particularly in the areas of rule enforcement and financial administration. It creates consistency and provides legal backing for actions such as issuing fines, recovering assessments, and amending documents. For communities that have opted in, the POAA can serve as a useful framework to guide decision-making and help reduce legal ambiguity.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Do HOAs have to follow the POAA?

No, compliance with the Georgia POAA is entirely optional. An HOA must actively choose to adopt the Act for its provisions to apply.

There are two primary ways a community can become subject to the POAA:

1. Developer inclusion: If the original developer includes language in the declaration of covenants affirmatively electing to be governed by POAA, then the community will be subject to its provisions from the beginning.
    
2. Amendment by the association: A community that was not originally under the POAA may choose to opt in by amending its declaration. This typically requires a majority or supermajority vote of the members, depending on what the governing documents specify. Once the amendment is approved, it must be recorded with the county.

Benefits of following the POAA as a Georgia HOA

The POAA may equip HOAs with enhanced authority that goes beyond what's found in typical governing documents. For boards and managers focused on financial health, compliance, and community engagement, these benefits can make a measurable difference.
 

Enhanced collection tools

One of the POAA’s most valuable features is its support for assessments and collections. Associations that adopt the POAA will have an automatic lien on an owner’s property for any amounts owed by that owner to the association, including assessments, without needing to file a separate lien with the court. These statutory liens are generally enforceable and can make it easier to recover funds owed to the community.

In cases of prolonged delinquency, the POAA authorizes judicial foreclosure for assessments and related charges exceeding $2,000. This legal mechanism gives HOAs another path to resolution, while still requiring court oversight to protect the rights of all parties involved. Associations must ensure that all legal steps are followed carefully. Foreclosure is a serious legal remedy and should only be pursued under the guidance of qualified legal counsel.
 

Late fees and interest charges

Under the POAA, a declaration can authorize an HOA  to charge a late fee of $10 or 10% of the unpaid amount (whichever is greater), and interest at 10% per year, and to pursue all costs of collections, including reasonable attorneys’ fees. These charges can be instrumental in encouraging timely payments and maintaining a balanced budget. It may also clarify which charges are permissible, minimizing the risk of legal disputes. HOAs should verify that their governing documents authorize these charges and consult legal counsel before implementing them.
 

The ability to impose and enforce fines

For HOAs, creating and enforcing rules can be one of the most difficult responsibilities. Without legal backing, boards may hesitate to issue fines or suspend amenity privileges.

Under the POAA, however, fines and suspensions are authorized as long as these powers are spelled out in the declaration. This can enable associations to more effectively address issues like repeated parking violations, improper property modifications, or violations of community rules. Additionally, the POAA grants associations the right to pursue injunctive relief in the event of any noncompliance with the governing documents.  However, due process and proper notice procedures must be followed so that enforcement actions may be legally defensible.
 

More flexibility with amendments

Another potential advantage of POAA adoption is the ability to amend governing documents with fewer procedural obstacles. For communities not under the POAA, some types of amendments — such as leasing restrictions — may require 100% approval from members. This threshold can be difficult or impossible to reach.

The POAA can change that. Once adopted, it generally permits associations to implement amendments with the approval of two-thirds of the membership, unless the governing documents specify otherwise. This can help boards respond to evolving community needs without being constrained by unanimous consent requirements. However, associations should still consult legal counsel and their property management partner before proposing amendments to support compliance with both the POAA and their governing documents.
 

Protection during bankruptcy

If an owner files for bankruptcy, the lien an HOA has to unpaid assessments under the POAA  positions the HOA as a secured creditor when it comes to recovering unpaid assessments. That means the HOA is has a better likelihood of receiving payment through a court-approved repayment plan than it would if it was only an unsecured creditor. However, bankruptcy proceedings are highly fact-specific, and legal outcomes can vary.
 

No expiration of covenants

Under a separate Georgia statute, associations were required to renew covenants after 20 years to remain enforceable. The POAA clarifies any confusion that prior statute may cause by explicitly providing that the prior statute is inapplicable to associations that have adopted the POAA, thereby allowing their declarations to have perpetual duration. However, perpetual duration is not guaranteed by the POAA alone. Associations should review their documents and consult legal counsel to verify that their covenants are structured to remain enforceable beyond 20 years. Careful legal review is essential to avoid unintended lapses in covenant enforceability.

Navigating Georgia laws like the POAA is just one part of managing a successful community. At FirstService Residential, we help provide the tools, expertise, and day-to-day support boards need to operate confidently and efficiently. Let’s talk about how we can help simplify your responsibilities and protect the value of your property: contact a member of our team today.