A homeowners association has been using money from its capital reserve fund to cover routine operating expenses for the past two years, and the reserve fund is now depleted. A prospective buyer asks about the association's legal obligations regarding reserve funds. Under Georgia law, what is the status of HOA reserve fund regulation?
Correct Answer
D) Georgia's Property Owners' Association Act does not contain specific statutory requirements governing HOA reserve fund management
Georgia's Property Owners' Association Act (O.C.G.A. § 44-3-220 et seq.) does not include specific statutory mandates for how HOAs must manage, maintain, or restrict the use of reserve funds. Unlike some other states that impose reserve study requirements or fund segregation rules, Georgia leaves reserve fund management largely to the association's governing documents and board discretion. Buyers should carefully review the association's financial statements and governing documents to understand how reserves are handled.
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Previous Question
An HOA is proposing to amend its covenants to prohibit rental properties, replacing the current provision that allows rentals with board approval. Which of the following is NOT required under Georgia law for this covenant amendment to be valid?
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Paul is helping a buyer who wants to install solar panels on their roof in Meadowbrook Subdivision. The HOA architectural guidelines are silent on solar panels, but the covenants require board approval for exterior modifications. Under Georgia law, how should the association handle this solar panel request?