Alabama Homeowners' Association Act
The Alabama Homeowners' Association Act is the state's law for residential HOAs — the associations that run planned communities and subdivisions, as opposed to condominiums. It requires an HOA to organize as a nonprofit corporation and file its governing documents with the Secretary of State, and it covers the board's powers, the assessment lien, and owners' access to records. The full statutory text, hosted for reference, with a plain-language guide for homeowners.
The Alabama Homeowners' Association Act (Ala. Code § 35-20-1 et seq.) is Alabama's statute for residential homeowners' associations — the associations that govern planned communities and subdivisions (as distinct from condominiums). It applies to a development whose declaration providing for an HOA is recorded on or after January 1, 2016, and to an older association that elects, by a majority of its members, to be governed by the act (§ 35-20-3).
What it doesn't cover. The act expressly does not apply to a condominium association (those fall under the Condominium Ownership Act or the Uniform Condominium Act of 1991), or to a commercial or other non-residential development, a real-estate cooperative, a time-share, or a campground (§ 35-20-3). An older residential HOA that has not opted in runs on its recorded declaration and general corporate law rather than this act.
Nonprofit corporation — and a public filing with the Secretary of State
An HOA created on or after January 1, 2016 must be organized as a nonprofit corporation under the Alabama Nonprofit Corporation Law (Title 10A, Chapter 3) and is governed in all respects as a nonprofit corporation (§ 35-20-5). That matters because much of the day-to-day governance — members, meetings, voting, and the board — comes from that corporate law, which this act layers on top of. On top of the usual corporate filings, the HOA must also file its bylaws (or other governing documents) and its original covenants, conditions, and restrictions with the Alabama Secretary of State, which maintains a public, searchable online database of those documents by association name (§ 35-20-5) — a useful place for a buyer to look up a community's rules.
The board and its powers
Owners elect a board of directors (§ 35-20-7). To the extent the declaration authorizes it, the board may suspend a member's right to use association facilities or services for nonpayment of assessments — but it may not deny the member access to their own lot — and it may assess reasonable penalties for violating the declaration or rules, but only after the member has an opportunity to be heard and to be represented by counsel before the board (§ 35-20-11). Where a member's tenant violates the rules, the board may act directly against the tenant as well (§ 35-20-11).
The assessment lien
Unless the governing documents provide otherwise, the association has a lien on every lot for unpaid assessments from the date the assessment is due (§ 35-20-12). Note an important difference from Alabama's condominium acts: this HOA lien is subordinate to mortgages — it has priority over later liens except state and county ad valorem taxes, municipal improvement assessments, UCC fixture filings, and mortgages and deeds of trust (§ 35-20-12), so there is no six-month “super-priority” over a first mortgage of the kind the condominium act provides. To preserve the lien, the association must record a statement of lien within 12 months of the assessment becoming due (§ 35-20-12).
Access to records
An HOA must make key records available to a member or a potential purchaser on written request, within a reasonable time not exceeding 30 days and for a reasonable cost (§ 35-20-13). Those records include the current and pending assessments, the common areas, the operating budget, reserves, and financial condition, the association's insurance, and any loans against the association (§ 35-20-13).
How it fits with Alabama's other community laws
This act governs residential HOAs created since 2016 (or older ones that opt in) — not condominiums, which fall under the Condominium Ownership Act (Ch. 8) or the Uniform Condominium Act of 1991 (Ch. 8A). Because the act requires HOA to organize as nonprofit corporations, it runs hand-in-hand with the Alabama Nonprofit Corporation Law (Title 10A, Ch. 3). Housing-discrimination questions fall under the Alabama Fair Housing Law and the federal Fair Housing Act. Return to the Alabama HOA laws hub for the full set.
Contents · 14 sections ▾
- 35-20-1 Short Title.
- 35-20-2 Definitions.
- 35-20-3 Applicablity of Chapter.
- 35-20-4 Construction and Administration of Chapter.
- 35-20-5 Organization of Associations; Filing Requirements; Rulemaking Authority; Organizational Documents.
- 35-20-6 Formation of Association.
- 35-20-7 Election of a Board of Directors and Officers; Modification of Declaration.
- 35-20-8 Priority of Declaration.
- 35-20-9 Notice of Election.
- 35-20-10 Delivery of Certain Information to the Board Upon Election.
- 35-20-11 Powers of Board.
- 35-20-12 Liens for Unpaid Assessments.
- 35-20-13 Records.
- 35-20-14 Dissolution and Liquidation of Assets Upon Termination of Declaration.
This chapter shall be known and may be cited as the Alabama Homeowners’ Association Act.
History: (Act 2015-292, §1.)
For the purposes of this chapter, the following terms shall have the following meanings:
(1) ASSOCIATION. A homeowners’ association.
(2) BOARD OF DIRECTORS. The group of persons vested with the management of the association irrespective of the name by which the group is designated.
(3) COMMON AREA. Property within a development which is owned, leased, or required by the declaration to be maintained or operated by a homeowners’ association for the use of its members and designated as common area in the declaration or on a recorded subdivision map or plat.
(4) DECLARANT. The person or entity who submits property to a declaration.
(5) DECLARATION. Any instrument, however denominated, including any amendment, modification, restatement, or supplement, recorded in the office of the judge of probate in the county in which the development or any part thereof is located which satisfies the following:
a. Imposes on the association maintenance or operational responsibilities for the common areas.
b. Creates the authority in the association to levy an assessment on lots, the owners or occupants of the lots, or other entities to provide for maintenance or services for the benefit of some or all of the lots in the development, the owners or occupants of the lots, or the common area.
c. Is a covenant running with the land enforceable by and against successors and assigns.
(6) DEVELOPMENT. Real property subject to a declaration that contains lots for residential use and common areas in which any owner is a member of an association and the owner’s lot is subject to assessments pursuant to a declaration.
(7) DIRECTOR. A duly elected or appointed member of the board of directors of an association.
(8) HOMEOWNER’S ASSOCIATION. An entity incorporated as a nonprofit corporation pursuant to Chapter 3 of Title 10A, and provided for in a declaration.
(9) LOT. Any parcel of land within a development designated for separate ownership and shown on a recorded subdivision map or plat, other than a common area.
(10) MEMBER. An owner or occupant of a lot in a development subject to a declaration having membership rights as defined in the declaration or other governing documents of the association.
(11) POTENTIAL PURCHASER. A person having a contractual right or option to acquire a lot or a person or entity who intends to execute a mortgage to secure an indebtedness.
History: (Act 2015-292, §2.)
(a) This chapter applies to all developments subject to a declaration providing for a homeowners’ association recorded in the office of the judge of probate in the county in which the development, or any part thereof, is located on or after January 1, 2016, and any association formed prior to that time, provided the association, by a majority of its members, elects to be governed by this chapter.
(b) This chapter does not apply to any of the following:
(1) A development for commercial, industrial, or other nonresidential use.
(2) Any association that is subject to regulation under Chapters 8 or 8A of this title.
(3) A real estate cooperative, time-share development, or campground.
History: (Act 2015-292, §3.)
(a) The principles of law and equity, including, but not limited to, the law of nonprofit corporations in Chapter 3 of Title 10A, the law of real estate, and the law relative to the capacity to contract, principal and agent, eminent domain, estoppel, negligence, fraud, misrepresentation, duress, coercion, mistake, receivership, substantial performance, or other validating or invalidating cause supplement this chapter, except to the extent inconsistent with this chapter.
(b) Every duty governed by this chapter imposes an obligation of good faith in its performance or enforcement.
(c) The remedies provided in this chapter shall be liberally administered so that the aggrieved party is put in as good as a position as if the other party had fully performed.
History: (Act 2015-292, §4.)
(a) On or after January 1, 2016, a homeowners’ association created pursuant to a declaration shall be organized as a nonprofit corporation pursuant to Chapter 3 of Title 10A, and shall be governed in all respects as a nonprofit corporation.
(b)(1) A homeowners’ association, its members, and directors shall be subject to all of the obligations, duties, and responsibilities of and shall have all of the rights and benefits provided in Chapter 3 of Title 10A.
(2) In addition or supplemental to any other filing required in Chapter 3 of Title 10A, a homeowners’ association shall file the following documents with the Secretary of State:
a. Bylaws or other governing documents of the association.
b. The original covenants, conditions, or restrictions adopted by the association.
(3) The Secretary of State shall implement and maintain an electronic database, organized by association name, accessible by the public through the Secretary of State’s website which provides the capability to search and retrieve the documents listed in subdivision
(2). Any documents filed with the Secretary of State shall be filed in accordance with Division 4 of Article 3 of Chapter 4, provided such documents filed with the Secretary of State pursuant to this chapter shall not be deemed to provide notice pursuant to Chapter 4.
(4) The Secretary of State may adopt rules necessary for the implementation of this section, including reasonable fees for the filing of documents.
(c) The organizational documents of a homeowners’ association shall provide for all of the following:
(1) Methods of efficient communications with the members of the association unless a different method is required by Chapter 3 of Title 10A.
(2) Rules and regulations for the conduct of any meetings of the association.
(3) The compilation, organization, and maintenance of full and complete financial records of the association available to any member at a reasonable time and place upon the payment of reasonable associated costs.
(4) Reasonable rules and regulations for the use, maintenance, repair, replacement, or modification of any common areas, if any, including penalties for violations.
(5) Power to grant easements, leases, licenses, and concessions through or over the common areas, if any.
(6) Statements regarding the payment of dues and assessments to be provided to any person having an interest, upon the payment of reasonable associated costs.
(7) Preparation and submission of the annual budgets of the association to the members.
(8) Any other act a nonprofit corporation is required to do under law.
(d) In addition to the requirements set forth in subsection (c), the organizational documents of a homeowners’ association may provide for the following:
(1) Indemnification and insurance for the association, its officers, and directors.
(2) Fidelity bonds for any person or entity having custody or control of any funds of the association.
(3) Periodic audits of the financial records of the association.
(4) Power to acquire real and personal property for the benefit of the association and its members.
(5) Power to hire and discharge managing agents and other employees, agents, and independent contractors.
History: (Act 2015-292, p. 904, §5; Act 2023-177, §1.)
A homeowners’ association provided for in a declaration and subject to this chapter shall be formed prior to the conveyance of any lot in the development by the declarant.
History: (Act 2015-292, §6.)
A declaration or the governing documents of a homeowners’ association may provide for a period in which the declarant will maintain control of the election of directors and officers of the association and a right to reasonably alter, amend, or modify the declaration.
History: (Act 2015-292, §7.)
If a conflict exists between the declaration and the governing documents of a homeowners’ association, the declaration prevails, except to the extent that the declaration is inconsistent with this chapter.
History: (Act 2015-292, §8.)
(a) Within 120 days of the date the members have the right to elect a board of directors pursuant to the declaration or other governing documents of the association to elect a board of directors, the declarant shall give written notice pursuant to Section 10A-3-2.03 of a special meeting of the membership for the purpose of electing a board of directors.
(b) In addition to the notice required under Section 10A-3-2.03, the notice under subsection (a) shall also satisfy the following:
(1) State that the purpose of the meeting is the election of a board of directors pursuant to the declaration and the governing documents of the association.
(2) Provide for nominations of candidates for election to the board of directors at the meeting on the written consent of at least 10 percent of the membership, unless otherwise provided in the governing documents.
(3) State the names of all existing directors and the names of the directors who may continue to serve as directors.
History: (Act 2015-292, §9.)
Within 90 days of the selection of the board of directors of the association as provided in Section 35-20-9, the declarant, or his or her designee, shall deliver to the board of directors all of the following:
(1) All books, records, and governing documents of the association in the possession of the declarant, or any person or entity under the declarant’s control.
(2) All records of any outstanding and unpaid assessments.
(3) Any contracts of the association with any third parties respecting the operation of the association or the maintenance and upkeep of any property of the association.
(4) Any insurance policies currently in force.
(5) A list of the names and addresses of the members of the association as shown on its records.
(6) Any written unexpired warranties of any contractor or subcontractors, suppliers, or manufacturers relative to the common area or any improvements to the common area.
History: (Act 2015-292, §10.)
(a) The board of directors, to the extent authorized by the declaration and governing documents, may do the following:
(1) Suspend a member’s right to use facilities or services provided directly through the association for nonpayment of assessments under subdivision (2), to the extent that access to the member’s lot is not denied.
(2) Assess reasonable penalties against a member for any violation of the declaration or rules adopted by the board of directors after the member is afforded the opportunity to be heard and represented by counsel before the board of directors.
(b) If a tenant of a member violates the declaration or rules adopted by the board of directors, in addition to exercising any of its powers and rights against the member, the board of directors may do any of the following:
(1) Exercise any of the actions authorized in subdivision (1) of subsection (a) directly against a tenant of a member.
(2) Assess a penalty authorized in subdivision (2) of subsection (a) directly against a tenant after giving notice to the tenant and member and an opportunity to be heard before the board of directors.
(3) Enforce any other rights against the tenant for the violation which the member as landlord could lawfully have exercised under the lease or which the board of directors could have exercised against the unit owner.
(c) The amount of any penalty assessed under this section shall be considered an assessment for purposes of Section 35-20-12.
History: (Act 2015-292, §11.)
(a) Except as may be otherwise provided in the declaration or the governing documents of an association, an association shall have, and there is declared, a lien on every lot for unpaid assessments levied against that lot arising on and from the date the assessment is due as fixed and determined by the board of directors at an annual meeting after giving notice as provided in Chapter 3 of Title 10A. The lien may be enforced or foreclosed as provided in the declaration or governing documents or as provided in this section. Written notice of the assessment and lien shall be given to the owner of any lot on which the assessment and lien is claimed by personal delivery or first class United States mail, postage prepaid.
(b) A lien declared by this section shall have priority, except as may be otherwise provided in Chapters 4 and 11, over all other subsequent liens and encumbrances except state and county ad valorem taxes, municipal improvement assessments, UCC fixture filings, mortgages, and deeds of trust securing an indebtedness.
(c) The association, within 12 months from the date any assessment becomes due, shall record a statement of lien verified by an officer or director of the association having personal knowledge of the facts in the office of the judge of probate of the county in which a lot subject to the assessment is located, which shall contain all of the following:
(1) A description of the lot on which the lien is claimed.
(2) The name of the association claiming the lien.
(3) The name of the owner or owners of the lot on which the lien is claimed.
(4) The amount of any unpaid assessments together with the date of the assessments.
(5) The amount of any other interests and costs claimed by the association.
(d) At least 30 days prior to recording a statement of lien, the association shall give written notice by certified mail to the owner of the lot or other person obligated for the lien, as shown on the books and records of the association, that the statement will be recorded in the office of the judge of probate.
(e) An association may bring an action in a court having jurisdiction to enforce a lien declared in this section in the county where the lot is located by filing a verified complaint, attaching a copy of the statement of the lien, alleging those facts showing it is entitled to a lien for the claimed unpaid assessment in accordance with the Alabama Rules of Civil Procedure.
(f) The court in which the action is pending may enforce the lien by a sale of the property after the giving of notice. Notice of a sale shall be given in the county where the lot is located. Notice of all sales under this subsection shall be given by publication once a week for three successive weeks in a newspaper published in the county or counties in which the lot is located. If the lot is located in more than one county, publication shall be made in all counties where the lot is located. The notice of sale must give the time, place, and terms of the sale, together with the description of the lot. If no newspaper is published in the county where the lot is located, the notice must be placed in a newspaper published in an adjoining county for three successive weeks.
History: (Act 2015-292, §12.)
(a) A homeowners’ association subject to this chapter shall maintain records and information to be made available to each member or potential purchaser, upon written request, within a reasonable time not to exceed 30 days from the date of the request, and upon the payment of reasonable associated costs. Any homeowners’ association may provide the records and information in paper or electronic form or direct the member or potential purchaser to the location of any public record containing the records or information.
(b) Upon written request by a member or potential purchaser and upon payment of reasonable costs, the homeowners’ association, as specified in subsection (a), shall provide or direct the member or potential purchaser to the location of the public record containing the following:
(1) Documents reflecting the most recent assessments, any pending homeowners’ association assessments approved by the board but not yet in effect, or any mandatory dues and charges with the amounts, including dates due and payable.
(2) Common areas owned by the association and those common areas not owned by the association but which HOA dues go to pay.
(3) A copy of the current operating budget and reserve funds, if any, and a statement of financial condition for the last fiscal year.
(4) Documents evidencing any insurance coverage provided for all lot owners by the association, including any fidelity bond.
(5) Documents evidencing any loans against the association and any collateral provided by the association for the loans.
(6) The official name of the association with current contact information of the current officers and agent, if any.
(7) A copy of the current covenants, conditions, and restrictions adopted by the association along with any amendments, modifications, restatement, or supplement and current architectural control regulations.
(8) Any association initiation or transfer fees which may be due at the time of the real estate closing.
(9) A list of all existing common areas.
(10) The case number or other identifying information of any pending lawsuits, judgments, liens, arbitration, or any other dispute resolution process to which the association is a party and contained in a public record.
History: (Act 2015-292, §14.)
Upon the termination of a declaration, or at such other time as required by law, the board of directors shall take those steps necessary for the immediate dissolution and liquidation of the association and any remaining assets.
History: (Act 2015-292, §15.)
General information, not legal advice. Statutory text is reproduced from the official Alabama source and may not reflect the most recent amendments.