Alabama HOA laws that may apply to your association will differ from others. They usually depend on the community’s type and when its declaration was recorded. Here are the Alabama HOA regulations that govern association operations and establish homeowner rights.
Laws Governing HOAs in Alabama
Alabama Homeowners’ Association Act
This legislation applies to residential developments with HOA declarations recorded on or after January 1, 2016. However, associations created before that date may choose to adopt it by majority vote.
- § 35-20-1: Short Title: Names the Alabama Homeowners’ Association Act.
- § 35-20-2: Definitions: Provides the definition for associations, declarations, common areas, and membership.
- § 35-20-3: Applicability: Outlines the developments the legislation covers, as well as exclusions.
- § 35-20-4: Construction and Administration: Addresses interpretation and administration of the Act.
Alabama Condominium Laws
The older Condominium Ownership Act governs condominiums built before 1991. Those that are built starting that year are governed by the Uniform Condominium Act
- Chapter 35-8: Condominium Ownership Act: establishes the older condominium framework.
- Chapter 35-8A: Alabama Uniform Condominium Act: covers condominium creation, management, and purchaser protections.
- § 35-8A-102: Applicability: explains older-community applicability and special rules for qualifying condominiums with four or fewer units.
Alabama Nonprofit Corporation Law
Incorporated nonprofit associations must also follow Alabama’s corporate requirements. Chapter 3A applies to existing Alabama nonprofit corporations as of January 1, 2025.
- Chapter 10A-3A: Alabama Nonprofit Corporation Law: Governs corporate operations, membership, and board procedures.
- § 10A-3A-14.01: Existing Nonprofit Corporations: Establishes the transition to Chapter 3A.
HOA Governance and Board Responsibilities
Association governance depends on applicable homeowners association laws and corporate legislation.
Board Qualifications and Duties
- § 10A-3A-8.02: Director Qualifications: Requires directors to be at least 19 and permits additional lawful qualifications.
- § 10A-3A-8.05: Director Terms: Establishes a default one-year term unless the governing documents specify otherwise.
- § 10A-3A-8.08: Director Removal: Addresses removal by members and other authorized persons.
- § 10A-3A-8.30: Director Conduct: Requires good faith, appropriate care, and action in the corporation’s best interests.
- § 35-8A-303: Condominium Boards: Establishes condominium board duties and owner election and removal rights.
Developer Turnover
- § 35-20-7: Developer Control: Permits governing documents to reserve a developer-control period.
- § 35-20-9: Election Notice: Requires notice within 120 days after members obtain the right to elect their board.
- § 35-20-10: Turnover Documents: Requires specified records to be delivered within 90 days after board selection.
- § 35-8A-303(d)–(f): Condominium Turnover: Sets phased owner representation and deadlines for ending developer control.
Meetings and Voting
- § 10A-3A-7.05: Meeting Notices: Generally requires 10–60 days’ notice of nonprofit membership meetings.
- § 10A-3A-7.24: Quorum and Voting: Establishes a default majority quorum unless the certificate or bylaws provide otherwise.
- § 35-8A-308: Condominium Meetings: Requires annual association meetings and 10–60 days’ notice.
- § 35-8A-309: Condominium Quorums: Generally sets an owner-meeting quorum at 20% unless the bylaws provide otherwise.
HOA Financial Requirements
Associations must follow their governing documents when setting assessments and managing funds. Condominium statutes provide additional budget and collection requirements.
Budgets and Financial Records
- § 35-20-5(c): HOA Budgets and Records: Requires provisions for complete financial records and annual budgets submitted to members.
- § 35-20-5(d): Periodic Audits: Allows governing documents to require audits; does not mandate annual audits for every HOA.
- § 35-8A-303(c): Condominium Budget Ratification: Requires budget delivery within 30 days and a ratification meeting 10–50 days after delivery.
- § 35-8A-315: Common-Expense Assessments: Requires annual budgeting and assessments after assessments begin.
Reserves and Assessment Increases
The HOA Act does not establish a universal reserve-study schedule, minimum reserve balance, or percentage cap on assessment increases. Associations should check their governing documents for additional requirements.
- § 35-20-13(b)(3): Reserve Information: Requires disclosure of reserve funds, if any, with specified financial information.
- § 35-8A-302(a)(2): Condominium Budget Powers: Authorizes budgets for expenses and reserves, subject to the declaration.
Late Charges and Collections
- § 35-8A-302(a)(11): Late-Payment Charges: Authorizes condominium assessment late charges.
- § 35-8A-315(b): Assessment Interest: Caps interest on overdue condominium common-expense assessments at 18% annually.
- § 35-20-12: HOA Assessment Liens: Requires specified notices, including certified-mail notice at least 30 days before recording a lien statement.
- § 35-8A-316: Condominium Liens: Addresses lien priority, foreclosure, and the three-year enforcement deadline.
HOA Rules and Enforcement
Boards must act within their governing-document authority and follow applicable enforcement procedures.
Governing Documents and Restrictions
- § 35-20-8: Declaration Priority: Establishes the declaration’s priority over conflicting association documents.
- § 35-20-5(c)(4): Common-Area Rules: Requires provisions for reasonable rules governing common areas.
- § 35-8A-302: Condominium Rulemaking: Authorizes rules and common-element regulation, subject to the declaration.
- § 35-8A-217: Declaration Amendments: Generally requires two-thirds approval or a higher declaration threshold; certain changes require unanimity.
Hearings and Penalties
- § 35-20-11(a): HOA Penalties: Allows authorized reasonable penalties after an opportunity to be heard and represented by counsel.
- § 35-20-11(b): Tenant Violations: Establishes enforcement options and notice requirements involving tenants.
- § 35-20-11(c): Penalties as Assessments: Treats valid penalties as assessments for statutory lien purposes.
- § 35-8A-302(a)(11): Condominium Fines: Requires notice and an opportunity to be heard before reasonable fines are imposed.
HOA Maintenance and Insurance
Maintenance responsibilities depend on the declaration and applicable statutes. Condominium insurance requirements should not be assumed to apply to every planned-community HOA.
Maintenance Responsibilities
- § 35-20-2: Common Areas: Recognizes property the HOA owns, leases, or must maintain under the declaration.
- § 35-8A-307: Condominium Upkeep: Generally assigns common-element maintenance to the association and unit maintenance to owners.
- § 35-8A-307(a): Repair Access: Requires reasonably necessary access and repair of damage caused during that access.
Insurance and Property Damage
- § 35-20-5(d): HOA Insurance: Permits governing documents to provide for insurance and fidelity bonds.
- § 35-8A-313: Condominium Insurance: Requires specified property and liability coverage to the extent reasonably available.
- § 35-8A-313(h): Repair and Rebuilding: Generally requires prompt restoration of covered property, subject to statutory exceptions.
Homeowner Rights and Protections
Owners have statutory rights to records and protections against certain enforcement actions.
Association Records
- § 35-20-13: HOA Records: Requires specified information within a reasonable time, no longer than 30 days after a written request.
- § 35-8A-318: Condominium Records: Requires records to be reasonably available for examination in the condominium’s county.
- § 10A-3A-4.02: Member Inspection Rights: Provides corporate inspection rights, generally with five business days’ advance written notice and conditions for certain records.
Limits on Association Authority
- § 35-20-11(a)(1): Access to a Lot: Prohibits authorized suspension of facilities or services from denying access to a member’s lot.
- § 35-8A-303(b): Limits on Board Powers: Reserves specified condominium decisions to owners.
HOA Disclosures and Property Transfers
Buyer disclosure requirements differ between planned communities and condominiums.
HOA Disclosures
- § 35-20-13: Purchaser Information: Gives qualifying potential purchasers access to specified association information.
- § 35-20-13(b)(8): Transfer Fees: Requires disclosure of initiation or transfer fees payable at closing.
Condominium Disclosures
- § 35-8A-409: Resale Certificates: Establishes buyer request deadlines, certificate delivery requirements, and conditional cancellation rights.
- § 35-8A-316(h): Assessment Statements: Generally requires a response within 10 business days and limits an authorized statement fee to $25.
- § 35-8A-408: Purchaser Cancellation: Provides a seven-day cancellation right under specified offering-statement delivery conditions.
HOA Disputes and Complaints
Owners should review their governing documents for internal complaint procedures. Alabama’s HOA Act does not impose mediation or arbitration on every association dispute.
- § 35-8A-414: Condominium Legal Remedies: Allows actual damages or equitable relief and discretionary attorney’s fees in appropriate cases.
- § 10A-3A-4.04: Court-Ordered Inspection: Provides a remedy when qualifying corporate records requests are denied.
- Alabama Secretary of State: HOA Filings: Provides organizational filing information and access to association documents.
Other HOA Laws in Alabama
Federal protections can limit association restrictions even when the governing documents authorize them.
Fair Housing
- 42 U.S.C. § 3604: Fair Housing Act: Prohibits covered housing discrimination and requires qualifying disability accommodations and modifications.
Flags and Antennas
- Freedom to Display the American Flag Act: Protects qualifying U.S. flag displays while allowing reasonable restrictions.
- 47 C.F.R. § 1.4000: OTARD Rule: Limits restrictions on qualifying antennas in areas under a resident’s exclusive use or control.
Debt Collection
- Fair Debt Collection Practices Act: Regulates qualifying third-party debt collectors; it does not automatically cover an HOA collecting its own assessments.
Formation and Filing Requirements
- § 35-20-5: Organization and Filings: Requires covered HOAs to incorporate as nonprofits and file specified governing documents.
- Alabama Administrative Code Chapter 820-5-1: Implements HOA filing requirements, including filings by older associations opting into the Act.
Frequently Asked Questions About Alabama HOA Laws
Is HOA membership mandatory in Alabama?
Membership generally follows ownership when a property is subject to a valid declaration requiring membership and assessments. Owners cannot simply opt out while their property remains subject to those obligations. See § 35-20-2.
Can an Alabama HOA be dissolved?
Yes. Under § 35-20-14, the board must take the necessary steps to dissolve and liquidate when the declaration terminates or when the law requires it.
Can an older HOA choose to follow the HOA act?
Yes. Section 35-20-3 allows an association formed before January 1, 2016, to opt in through a majority vote of its members.
Does condominium termination require unanimous approval?
Generally, no. Section 35-8A-218 generally requires agreement from owners holding at least 80% of allocated votes, or a higher percentage specified in the declaration.
