⚠️ Be Careful if Your HOA Wants to Convert to a POA

If your HOA board suddenly starts talking about converting your community into a POA (Property Owners' Association), pay attention. It may sound like just a technical or legal term, but this switch can dramatically change your rights as a homeowner — especially when it comes to covenant expiration, enforcement power, and legal exposure.

Let’s break down what this change really means, why your HOA might want it, and what you need to do before you vote yes.

🧾 What’s the Difference Between an HOA and a POA?

In Georgia, the term HOA (Homeowners Association) is commonly used, but a POA refers specifically to communities that have adopted the Georgia Property Owners' Association Act (O.C.G.A. § 44-3-220 through § 44-3-235).

You’re not automatically a POA just because you’re an HOA — your community has to officially “opt in” to the POA Act through a vote and a recorded amendment to your covenants.

🔍 Typical HOA vs. POA Differences

Feature	HOA (Non-POA)	POA (Opted-In)
Based On	Common law & governing docs	Georgia POA Act (codified law)
Lien Rights	Limited; must follow strict process	Automatic statutory lien authority
Covenant Enforcement	Based on contract law	Backed by statute with stronger teeth
Foreclosure Power	Must follow long process	Streamlined foreclosure under POA Act
Covenant Expiration	Subject to 20-year expiration (see below)	Still subject to expiration unless properly renewed
Owner Protections	Depends on HOA docs	Some protections built into statute
Flexibility	More ambiguous	More structured & legally defined

⚠️ Why Would an HOA Want to Become a POA?

It usually comes down to power and enforcement. Boards often want to:

• Make it easier to place liens or foreclose for unpaid dues

• Have statutory lien authority instead of relying only on court-ordered judgments

• Strengthen their legal footing for enforcing rules and collecting assessments

Sounds reasonable — until it's used against you.

🧠 Be Careful — Here’s Why:

❌ You May Be Giving Away Legal Protections

Once your community adopts the POA Act, the board gains statutory lien rights — meaning they can move faster to fine you, lien you, and potentially foreclose on your home without as much court involvement.

❌ It May Cement Bad Leadership

POA status can strengthen the power of a board that’s already mismanaging funds, ignoring transparency, or silencing homeowners.

❌ You Could Lose Control of Expiring Covenants

🕰️ POAs & the 20-Year Covenant Expiration Rule (O.C.G.A. § 44-5-60)

Many homeowners don’t know this, but restrictive covenants expire after 20 years if your community is in a city or county with zoning laws — unless certain conditions are met:

✅ If your subdivision has 15 or more lots → covenants automatically renew every 20 years unless 51% of owners vote to terminate them.✅ You can still terminate covenants by following the proper legal process, even in a POA.

So converting to a POA does not stop the 20-year expiration rule, but it may give the board more control during and after renewal.

✅ Pros and Cons of POA Status

🔷 Pros

• Stronger legal authority to enforce rules

• Easier to collect dues and impose liens

• May improve legal clarity in disputes

• Offers uniform statutory rules

🔻 Cons

• Greater power to foreclose

• Homeowners may lose flexibility

• Can amplify existing board abuse

• More aggressive collection methods

• Harder to challenge fines and liens

• 
  

💬 What Should You Do?

If your HOA proposes converting to a POA:

1. Request the amendment language in writing — and read it.

2. Ask what changes POA status will bring in enforcement and foreclosure powers.

3. Verify if your covenants are near the 20-year expiration mark — and how this move affects that.

4. Organize neighbors and consult an attorney if needed.

5. Vote carefully — don’t sign blindly.

   
   

🧱 Final Thought

A POA isn’t inherently bad — but when in the wrong hands, it can give unchecked power to an HOA board already acting beyond its limits. Do not approve the switch until you understand the full impact.

If you're unsure how close your neighborhood is to covenant expiration or need help understanding what your board is trying to change — I'm here to help.

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