Homeowners associations in Alabama must stay informed and comply with state laws to avoid legal trouble. Here is your guide to the Alabama HOA laws that come the most frequently.
How to Establish an HOA in Alabama
Living in an HOA community comes with plenty of benefits, including increased curb appeal and enhanced property values. As such, it is not surprising that many neighborhoods wish to form HOAs as well.
According to the HOA laws of Alabama, community associations must be established and run as non-profit organizations. You must also submit important HOA documents to the Secretary of State. Some of these documents are:
- Articles of Incorporation
- Community Bylaws
- Original Declaration of Covenants, Conditions, and Restrictions
These documents should tackle topics such as mandatory dues payments, board member responsibilities, meeting guidelines, property use restrictions, maintenance requirements, common area use, and accepted communication methods with residents.
It is important to be as detailed as possible when creating these documents. Remember that these are your association’s governing documents — the documents that outline the HOA’s obligation and rights to its members and vice versa, what homeowners can and can’t do, and the guidelines for governance.
For Homeowners Associations
Alabama only recently enacted laws to regulate homeowners associations. The Alabama Homeowners Association Act (Alabama Code § 35-20-1 through 35-20-14) governs homeowners associations created on or after January 1, 2016. This chapter controls the creation, management, abilities, and operation of these associations.
The act does not apply to homeowners associations created before January 1, 2016. But, HOAs created before that date can choose to follow the Alabama Homeowners Association Act.
Composed of 14 sections, the Alabama Homeowners Association Act covers a variety of topics, including filing requirements, rulemaking authority, and the formation of the association. It also defines the powers of the board as written in the governing documents of the HOA.
The Act gives the board the ability to suspend the rights of members to use community facilities and impose reasonable fines. Moreover, the Act covers the association’s capacity to place liens for unpaid dues and outlines election notice requirements.
Below, you will find the 14 sections of the Alabama Homeowners Association Act.
- Short title.
- Definitions.
- Applicability of chapter.
- Construction and administration of chapter.
- Organization of associations; filing requirements; rulemaking authority; organizational documents.
- Formation of association.
- Election of a board of directors and officers; modification of declaration.
- Priority of declaration.
- Notice of election.
- Delivery of certain information to the board upon election.
- Powers of board.
- Liens for unpaid assessments.
- Records.
- Dissolution and liquidation of assets upon termination of declaration.
For Condominiums
There are two acts that cover Alabama HOA laws for condominiums: The Alabama Condominium Ownership Act and the Alabama Uniform Condominium Act of 1991.
Alabama Condominium Ownership Act
The Alabama Condominium Ownership Act (Ala. Code §§ 35-8-1 through 35-8-22) governs condominium associations created before January 1, 1991. This chapter controls the creation, management, abilities, and operation of these associations.
Below, you will find the 22 sections of the Alabama Condominium Ownership Act.
- Short title.
- Definitions.
- Applicability of chapter.
- Units to constitute real property.
- Unit ownership, possession, and enjoyment.
- Common and limited common elements.
- Establishment of condominium property; contents of declaration.
- Unit deeds and other instruments.
- Duties and responsibilities of association for administration and management of property.
- Bylaws of association.
- Recordation of documents and instruments.
- Liability, actions, and service of process.
- Common expenses and limited common expenses.
- Prohibited work.
- Taxes, special assessments, etc.
- Liens against condominium property generally.
- Liens in favor of association.
- Blanket mortgage on condominium property.
- Mortgage investments on condominium property.
- Termination of condominium.
- Construction and application of building or zoning laws, ordinances, and regulations.
- Chapter to be liberally construed.
Alabama Uniform Condominium Act of 1991
The Alabama Uniform Condominium Act of 1991 (Ala. Code §§ 35-8A-101 through 35-8A-417) governs condominiums created after January 1, 1991. This chapter controls the creation, management, abilities, and operation of these associations. It is worth noting, though, that parts of this act may also relate to condominiums formed prior to January 1, 1991.
Below, you will find the articles and sections of the Alabama Uniform Condominium Act of 1991.
Article 1 – General Provisions
- Short title.
- Applicability.
- Definitions.
- Variation by agreement.
- Separate titles and taxation.
- Applicability of local ordinances, regulations, and building codes.
- Eminent domain.
- Supplemental general principles of law applicable.
- Construction against implicit repeal.
- Chapter to be liberally construed; remedies liberally administered.
Article 2 – Creation, Alteration, and Termination of Condominiums
- Creation of condominium.
- Unit boundaries.
- Construction and validity of declaration and bylaws.
- Description of units.
- Contents of declaration.
- Leasehold condominiums.
- Allocation of common element interests, votes, and common expense liabilities.
- Limited common elements.
- Plats and plans.
- Exercise of development rights.
- Alterations of units.
- Relocation of boundaries between adjoining units.
- Subdivision of units.
- Monuments as boundaries.
- Use for sales purposes.
- Easement rights.
- Amendment of declaration.
- Termination of condominium.
- Rights of secured lenders.
- Master associations.
- Merger or consolidation of condominiums.
Article 3 – Management of Condominiums
- Organization of unit owners’ association.
- Powers of unit owners’ association.
- Board members and officers.
- Transfer of special declarant rights.
- Termination of contracts and leases of declarant.
- Bylaws.
- Upkeep of condominiums.
- Meetings.
- Quorums.
- Voting; proxies.
- Tort and contract liability.
- Conveyance or encumbrance of common elements.
- Insurance.
- Surplus funds.
- Assessments for common expenses.
- Lien for assessments.
- Other liens affecting the condominium.
- Association records.
- Association as trustee.
Article 4 – Protection of Condominium Purchasers
- Applicability; waiver.
- Liability for offering statement requirements.
- Offering statement – General provisions.
- Offering statement – Condominiums subject to development rights.
- Offering statement – Time shares.
- Offering statement – Condominiums containing conversion buildings.
- Offering statement – Condominium securities.
- Purchaser’s right to cancel.
- Resales of units.
- Escrow of deposits.
- Release of liens.
- Conversion buildings.
- Express warranties.
- Effect of violations on rights of action; attorney’s fees.
- Labeling of promotional material.
- Declarant’s obligation to complete and restore.
- Substantial completion of units.
Corporate Governance
The Alabama Nonprofit Corporation Law (Ala. Code §§ 10A-3-1.01 — 10A-3-8.02) addresses the corporate procedure and structure of non-profit corporations, which homeowners associations formed after January 1, 2016 fall under. Condominiums, on the other hand, can either be non-profit or for-profit corporations.
Below, you will find the articles and sections of the Alabama Nonprofit Corporation Law.
Article 1 – General Provisions
Article 2 – Substantive Provisions
- Division A – Members and Directors
- Members.
- Meetings of members, generally.
- Notice of members’ meetings.
- Waiver of notice.
- Voting of members.
- Quorum of members.
- Greater voting requirements.
- Governing authority; board of directors.
- Number and election of directors; terms; removal from office.
- Board of directors; vacancies.
- Quorum of directors.
- Board of directors; committees.
- Place and notice of directors’ meetings; committee meetings.
- Action by members or directors without meeting.
- Division B – Officers
- Division C – Bylaws, Books, and Records
- Division D – Entity Specific Powers; Limitations
Article 3 – Formation of Nonprofit Corporations
- Generally; incorporators.
- Supplemental provisions required in the certificate of formation.
- Commencement of corporate existence.
- Organizational meeting of directors – First meeting of members.
Article 4 – Amendments
- Procedure to amend certificate of formation of a nonprofit corporation.
- Certificate of amendment; execution and required supplemental provisions.
- Effect of amendment on existing causes of actions and suits.
- Restated certificate of formation.
Article 5 – Merger and Consolidation
- Procedure for merger.
- Procedure for consolidation.
- Approval of merger or consolidation.
- Articles of merger or consolidation.
- Effect of merger or consolidation.
- Merger or consolidation of domestic and foreign nonprofit corporations.
- Nonexclusive.
Article 6 – Sale of Assets
Article 7 – Dissolution
- Voluntary dissolution – Procedure.
- Voluntary dissolution – Distribution of assets generally.
- Voluntary dissolution – Plan of distribution of assets.
- Voluntary dissolution – Revocation of voluntary dissolution proceedings.
- Voluntary dissolution – Articles of dissolution.
- Voluntary dissolution – Filing of articles of dissolution.
- Involuntary dissolution – Grounds.
- Involuntary dissolution – Procedure; notification to Attorney General.
- Involuntary dissolution – Venue and service of process.
- Liquidation – Jurisdiction of court to liquidate assets and affairs of corporation.
- Procedure in liquidation of corporation by court.
- Liquidation – Qualification of receivers.
- Liquidation – Filing of claims in liquidation proceedings.
- Liquidation – Discontinuance of liquidation proceedings.
- Liquidation – Entry of order of involuntary dissolution.
- Filing of order of dissolution.
- Deposits with State Treasurer.
- Survival of remedy after dissolution.
Article 8 – Miscellaneous Provisions
Fair Housing
The Alabama HOA laws on Fair Housing (Ala. Code §§ 24-8-1, et. seq.) protects homeowners and potential homeowners from discrimination. Homeowners associations must not discriminate against members based on their race, color, sex, religion, familial status, national origin, or handicap. Alabama’s Fair Housing laws operate similarly to the federal Fair Housing Act.
Anyone who feels that they have been discriminated against can file a complaint with the ADECA. They can also file a complaint with the U.S. Department of Housing and Urban Development. Keep in mind that victims must file within 1 year from the date when the discriminatory act took place.
Alternatively, victims can choose to take private legal action against the discriminatory party in the federal district court. In that case, victims must file within 2 years from the date when the discriminatory act took place.
Disabilities Act
The Alabama Rights of Blind and Otherwise Physically Disabled Persons protects residents with disabilities against discrimination. It is similar to the Americans with Disabilities Act. This Act only extends to public accommodations, though, such as the common areas of a homeowners association.
Under Alabama HOA laws, associations must allow a disabled person’s specially trained dog into any common facility or space. Homeowners associations also cannot charge extra fees to accommodate a disabled person’s service animal. That said, the owner will shoulder responsibility and liability for any damage or injury inflicted by their service animal.
