ATLANTA — Several Georgia lawmakers are hoping to push through legislation allowing local governments to implement rent control.

According to a July 2022 report from Rent.com, the average cost of a one-bedroom apartment in Atlanta increased 9% over the previous year, with an average monthly rent of $1,993. A two-bedroom apartment increased 10% over the previous year, with an average rent of $2,477.

While rental costs in smaller cities aren’t as high, drastic increases in rent prices have been reported in recent years.

Rents for one bedrooms in south Georgia’s Valdosta rose 10% in 2022 over the previous year, and two-beds jumped up by 30%. The average one bedroom still has an average rent of $775. Two bedrooms rented for an average monthly cost of $1,075, according to Rent.com.

Senate Bill 125 seeks to repeal Section 44-7-19 of the Georgia Code preventing county or municipal governments from enacting or enforcing any ordinance or resolution that would regulate the amount of rent to be charged for privately-owned, single-family or multiple-unit residential rental property.

Under the proposal, local governments would be able to regulate rent in their jurisdictions as the cost of living increases.

“It’s very important that we look at this to stop rentals and leases that are doubling and tripling and causing foreclosures and evictions,” said Democrat Sen. Donzella James, sponsor of SB 125, during the Senate Urban Affairs Committee meeting Sept. 13. “Without a cap placed on rent, costs skyrocket and cause many social issues in communities around the state and the nation.”

James said most rent increase comes from companies from outside Georgia that own rental properties in Georgia, and that her proposal is just a start to address companies’ price-gouging rent increases.

“We’re seeing more issues with individuals and families struggling to pay rent in both metro and rural areas. And consequently, many of those people cannot afford it anymore and have become homeless and stay in hotels when they can afford to do that,” James said. “Those who are on fixed incomes also struggle, while rental costs have no fixed cap. So we want to look at lifting this ban so that if cities and if municipalities want to put a ban or cap or something on rent, they’ll be able to do it so that they can take care of their residents.”

Rep. Mandisha Thomas, a Democrat who represents South Fulton, said she was informed that one of her constituent’s rent had gone from $800 in August to $1,800 when she went to renew her lease this month.

“Where is she going to go? At 76 years old, retired, disabled, and her rent has doubled and supersedes her Social Security benefits, where is she going to go?” Thomas said.

Stephen Davis, government affairs director for the Georgia Apartment Association, said implementing rent control would be counterproductive and have damaging consequences on the availability of housing, new developments, and tax revenues to jurisdictions.

Davis said research suggests that rent control reduces housing supply, lowers property values, reduces the quality of available properties and disincentives new construction of apartment.

“Governments at all levels must look beyond regulations which add cost and develop legislation that reduces barriers to new construction and expands tax policies to encourage development,” Davis said. “… Rent control will deter investment in housing stock, which we so desperately need in the state of Georgia, and rent control will not address our supply and demand imbalance and will only exacerbate the deficiency of housing opportunities for all.”

In 2021 St. Paul, Minn. residents voted to allow rent control in their city. The legislation took effect in January 2023.

Davis said since the enactment of the Minnesota bill, building permits dropped by 80%, while building in Minneapolis approximately 10 miles aways has increased.

The Senate Urban Affairs Committee also heard another housing-related proposal, SB 29, during its Sept. 13 meeting.

SB 29, introduced earlier this year during the legislative session, seeks to protect homeowners from Homeowners Associations that may impose hefty fees that could lead to foreclosure.

Lawmakers testified that some homeowners have reported that fines and fees from HOAs have resulted in their HOA attempting to, or successfully acquiring, their home through foreclosure because of unpaid HOA dues and fines.

“We need to make sure that HOAs are protecting the citizens that live there and not abusing them and not stealing homes as people have sent me so many letters and said that it’s happening,” James said.

Georgia is one of few states — including Colorado, Florida, North Carolina, Oregon, South Carolina — that allows an HOA to foreclose on a property due to to liens owed to an HOA

In Georgia, an HOA can foreclose on the property if the judgment balance is $2,000.00 or more.

“I think that’s draconian law. I think that those who put together our form of government in no way intended that should be the case,” said House Minority Caucus Chairman Billy Mitchell. “I don’t have a problem with HOAs assessing penalties but to literally foreclose on a piece of property because of the homeowners association fee, I think is bad legislation. I think we should join the overwhelming majority of states in this nation, which do not allow that.”

SB 29 would require all HOAs to adopt a policy that provides “fair, reasonable, and expeditious alternative dispute resolution procedure” for resolving any dispute regarding monies assessed by the association.