Homeowners associations (HOAs) have come under fire in Georgia for abusing homeowners with excessive fees and foreclosures.

“None of it makes any sense,” said Karyn Gibbons, who received a foreclosure notice from her HOA in Gwinnett County, for allegedly skipping her monthly dues.

Gibbons told WSBTV Channel 2 investigators that she mailed a check every month to the address she was provided at closing, but she soon noticed “random” activity around when her checks were cashed, noting that it sometimes took months.

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Those delays ended up costing Gibbons her home. Out of the blue, she received a notice of foreclosure by her HOA, plus a bill for $34,000 in late fees, interest charges and, ultimately, attorney fees.

“I don’t know how it’s legal,” Gibbons said, adding that her only escape from her HOA nightmare was to sell her home.

Gibbons is one of many home and condo owners in the state embroiled in a similar wrestling match with an HOA. The situation has grown so dire that local lawmakers plan to re-file legislation that would prevent people from losing their homes due to unpaid HOA fees. For many, that protection can’t come quickly enough. Here’s what’s going on.

‘Totally insane’ fees

The WSBTV Channel 2 investigation featured several Georgia homeowners and renters who have been slapped with foreclosure notices over unpaid HOA fees.

Tricia Quigley’s Cherokee County home was sold at foreclosure for just $3.25 after she failed to pay two of her biannual HOA dues payments totaling $800. Quigley claimed she paid more than $10,000 to try and set things right with the HOA but that did little to keep up with her bill, which kept growing due to penalties and attorney fees.

“It’s totally insane,” she said. “I kept thinking I paid all this money; how come it’s not stopping?”

Meanwhile, James McAdoo, a homeowner in South Fulton County, claimed his HOA “garnished [his] wages” — taking $600 from his paycheck every two weeks — to cover a mounting $36,000 bill because of weeds in his front yard.

McAddo’s only way out — before he was forced out of his home through foreclosure — was selling his home and “just getting out of this neighborhood.”

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Here’s how HOA fees, liens and foreclosures come about.

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HOA liens

Living in an HOA or Condominium Owners Association (COA) community subjects homeowners to periodic fees or dues to cover costs of things like landscaping, security, snow removal, and repairs and maintenance for shared facilities, like pools, tennis courts, gyms and clubhouses.

The HOA might also levy special assessments for one-time expenses if their reserves don’t cover the cost of major repairs or improvements. If homeowners fall behind or fail to make these payments — like Quigley, whose problems started after she did not pay two biannual homeowner association dues payments totaling $800 — the HOA or COA can attach a lien to the property.

Under Georgia state law, an HOA or COA may include the following charges in a lien:

• Unpaid assessments;

• Late charges of the greater of $10 or 10% of the amount of each assessment or installment due;

• Collection costs, including court costs, attorney fees and expenses of sale;

• Interest on unpaid assessments, with a rate of less than 10%;

• Fines; and

• Fair rental value, from the time the action is initiated until the foreclosure sale

Once a lien is placed on a property, the most straightforward way to remove it is to pay your outstanding balance in full. But that is not always possible — especially if the debt has ballooned to extremes.

For example, Juliet Graham told WSBTV Channel 2 that her HOA bill had reached $250,000 by the time she finally sold her downtown Atlanta condo, adding: “You [the HOAs] broke us. We’re broke.”

If you fail to make your payments, the HOA or COA may foreclose on the property (but only if the lien is worth $2,000 or more) to force a sale to a new owner — even if you have a mortgage on it.

Lawmakers respond

Aggressive HOA and COA actions have caught the attention of lawmakers in the Peach State.

On May 7, state representatives Viola Davis (D-Stone Mountain), Sandra Scott (D-Rex) and Kim Schofield (D-Atlanta) announced their intentions to refile House Bill 1032, the “Property Owner Rights and Accountability Act,” which proposes to eliminate the option for property associations to foreclose on homes for unpaid assessments.

By removing the $2,000 minimum threshold for foreclosure, the bill aims to protect property owners from losing their homes over association fees and “address concerns about the potential abuse of assessment fees, which have, at times, been used to unfairly target homeowners,” the lawmakers summarized in a press release.

“We drafted this bill because no one should lose their home because of HOA fees/assessments,” said Rep. Scott. “When a person pays their mortgage and taxes, they have paid the two bills that make them homeowners. People’s American Dream of Homeownership should not be taken away because of fees/assessments.”

One of the lawmakers, Rep. Schofield, said she’s had personal experience with “HOA abuses of authority, power and lack of transparency.”

“I am committed to ensuring fair treatment and protections for all,” she said. “Our goal is to address the systemic issues that have caused distress and create a more equitable environment where condo owners feel secure and empowered.”

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.