ATLANTA — When people get upset with their homeowner’s association, there’s often a property management company or collections attorney involved. On Tuesday, a Senate subcommittee heard their perspective, as it decides whether the state’s HOA laws need to change.
This is the second of two meetings to help educate committee members on how HOAs are supposed to function and what happens when they do not.
According to John Krueger, the vice president of government affairs for the HOA Management Company Associa, more than three million people in Georgia live in some type of community association.
Krueger told lawmakers that most board members have the best interest in mind as they work to protect property values by maintaining standards within the community.
Julie Howard with Nowack Howard Community Association Attorneys echoed that statement.
“I am proud to say I have worked with hundreds, thousands likely volunteer leaders of community associations over these 28 years who are there to help protect what is for the most part the biggest investment of every owner in that community’s life,” Howard said, who helps provide legal representation and resources to HOAs.
Both talked about how HOAs should run by law, countering claims people had no knowledge their home was in foreclosure or that greedy boards were only out for money by assessing frivolous fines.
“When they (HOA board members) go off the rails it is the most fundamental democratic process, the community can elect new leaders and I’ve seen that happen as well. So, I often say to the homeowner who is really angry with their board, run for the board. It’s everybody’s right,” Howard added.
However, when asked by lawmakers, both Howard and Krueger admitted that there was little recourse outside of going to court when a board wasn’t following its own rules, ignoring votes to elect new leaders, providing financial documents, or dispute fines.
Committee Chair Senator Matt Brass told the audience that lawmakers were there to listen, learn, and seek solutions. He made it clear the group would make recommendations during the next legislative session to help protect homeowners impacted by instances of poor management, whether by a professional company or volunteer board.
“There needs to be oversight. There is no oversight of HOAs,” said Newnan resident Christina Potts, a homeowner who spoke to committee members. “We know it’s like a wild, wild west. It really is a wild, wild west. Everyone wants to put their hands in the pot. Everyone wants to get the money.”
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Industry groups did voice some support for limiting foreclosure to people who fail to pay dues – not violations – like tall grass and busted mailboxes. They told lawmakers it would be good to increase the education provided before someone buys in an HOA community so they understand what’s involved. Krueger suggested HOAs provide better communication on violations and a period of time to resolve the issue before fines are assessed. Howard also said lawmakers could consider requiring HOAs to maintain a reserve for large or unexpected repairs to avoid unexpected and costly special assessments.
Several homeowners in attendance also said they would like to see a requirement that board members actually live in the community.