Government Action May Lead to Increased HOA & Condo Dues! Don't let that happen!

Last week, we wrote a post asking for your help with Georgia House Bill 410, which will adversely impact management companies, and your association dues if lobbyists get their way.  Now, we need your help again.

What does this bill do?

HB 410 addresses fees paid by sellers and buyers of homes.  During a closing, your Association Management company provides up-to-date records and documents to the buyer and seller, and that work comes with an associated fee.  Only the buyer and seller are involved in the arrangement, and only they have to get that work paid for.  This proposed legislation controls the exact amount of those fees.  The Association's Board of Directors no longer gets to have any say.

The thing is, up until now, the Board of Directors has had the right to decide how these closing services are paid for, and Boards consistently choose to put the fees on to the buyer and seller, rather than having the HOA pay using everyone's dues.  This free-market arrangement is the reason that Association Management firms in Atlanta are charging the Associations 30% less than the national average!

This proposed legislation is similar to a statute passed in Florida last year; however, Florida actually has caps that go up to $400 for estoppel information and up to a $100 rush fee.  As passed out of committee, the proposed bill for Georgia provides for up to $250 for estoppel information and up to a $50 rush fee.  At that amount, Management firms across Georgia can deal with that sort of government regulation.

What's the problem, then?

Proponents of the bill continue to push for a lower dollar amount.  Lobbyists representing Realtors and those opposed to community life are trying to have the bill amended at the last minute.  There's just one problem: the government regulating a management company's work doesn't make it cheaper for us to do it.  If the cost to closing services stays the same, and the amount we can bill for it goes down, then the monthly management costs across all of Georgia are going to go up to make the difference.  This means everyone in the community will have to start paying for the closing services that only benefit the buyer and seller.  You'll have to cover costs for the one person leaving your community!

What can we do?

Please contact the Senate Judiciary Committee immediately and ask them to oppose any last-minute amendments to HB 410 that lower this fee!  If there has to be government regulation between HOAs and their Management firms, we want it to be as little as possible!

We know that lobbyists are after the legislators to sneak in a last minute amendment.  Legislators need to hear from you and as many of their constituents as possible.  Please contact your State Senators below and respectfully ask that they oppose any amendments to HB 410 that lower the fees.

Senate Committee Member

Phone Number

Email Address

Bill Cowsert

(404) 463-1366

Harold Jones

(404) 463-3942

John Kennedy

(404) 656-0045

Greg Kirk

(404) 463-5258

William Ligon

(404) 463-1383

Joshua McKoon

(404) 463-3931

Elena Parent

(404) 656-5109

Michael Rhett

(404) 656-0054

Jesse Stone

(404) 463-1314

Brian Strickland

(404) 656-7454

Curt Thompson

(404) 463-1318

Blake Tillery

(404) 656-0089

Please forward this on to your friends and neighbors and ask that they take action too.  Thank you in advance for your time and help on this issue.