HOA Laws in Alabama

Laws for Homeowner and Condominium Associations in Alabama

Homeowner associations in Alabama are not regulated. HOAs formed prior to 2016 are not required to file documentation with the Secretary of State. All associations formed after January 1, 2016 are required to file annual disclosures. 

Condominiums created after January 1, 1991 are regulated by the Alabama Uniform Condominium Act of 1991.

Nonprofit Corporation statutes generally apply to homeowner associations. The Code of Alabama 1975 Chapter 3 Title 10A, Alabama Nonprofit Corporation Act.

Legality and Formation of HOAs and Condominiums

In Alabama, HOAs and COAs are legal entities that can be formed to manage residential communities. They are governed by their own bylaws and the declaration of covenants, conditions, and restrictions (CC&Rs).

Applicable Laws in Alabama

The primary laws that apply to HOAs and COAs in Alabama are the Alabama Homeowners' Association Act and the Alabama Uniform Condominium Act. The former applies to all HOAs that are real estate cooperatives, time-share developments, or campgrounds, while the latter governs condominiums created after January 1, 1991.

Solar Restrictions in HOAs

While some states have laws preventing HOAs from restricting the installation of solar panels, Alabama does not have such laws. However, there are still limits on how much an HOA can restrict homeowners.

HOA Liens

In Alabama, an HOA can place a lien on a property for unpaid assessments or fines. The HOA must provide the homeowner with a notice listing any unpaid assessments 30 days before a lien can be claimed with the local county court.

HOA Foreclosures

If a homeowner fails to pay the assessments, the HOA can foreclose its lien. The foreclosure process involves the sale of the property to pay off the unpaid assessments.

HOA Fines

HOAs in Alabama can impose fines on homeowners for the repair of common areas or violation of any rules. The homeowner must have an opportunity to be heard before the board. The HOA's governing documents will include the type of fine, amount, and notice requirements for homeowners.

HOA Financial Reporting and Records Management

HOAs are required to maintain detailed financial records, which encompass the annual budget, and schedule of fees and assessments. Associations must make these records available to homeowners upon request, as transparency in financial dealings is a legal requirement under the Alabama Secretary of State HOA FAQ.

This article provides a general overview and does not constitute legal advice. For specific issues or concerns, please consult with an attorney.