Monday October 12, 2026
What is the Alabama Homeowners Association Act?
The Alabama Homeowners Association Act is Alabama’s main state law for certain residential homeowners associations (HOAs). It covers how an HOA is formed, what board members can do, what owners can request, and how collections work. It also requires newer HOAs to be organized as nonprofit corporations, which adds another layer of rules through Alabama’s nonprofit corporate law.When the Act applies
The Act generally applies to residential HOA communities created under a declaration recorded on or after January 1, 2016. Older HOAs can opt in, but only if a majority of the members elect to be governed by the Act.The Act does not apply to commercial-only developments, condominiums covered by Alabama’s condo statutes, or certain other arrangements like co-ops, timeshares, or campgrounds.
Public filings with the Secretary of State
Ala. Code § 35-20-5 requires covered HOAs to file key governing documents with the Alabama Secretary of State, including the association’s bylaws and the original covenants, conditions, or restrictions (CC&Rs).The Act also directs the Secretary of State to maintain a public, searchable database where those filings can be found by association name. This is meant to make core HOA documents easier for the public to access.
Annual budgets and financial records
Ala. Code § 35-20-5 requires an HOA’s organizational documents to provide for preparing and submitting annual budgets to the members. The same statute also requires your documents to provide for “full and complete” financial records that are available to members at a reasonable time and place, with reasonable associated costs.Information the HOA must provide
Ala. Code § 35-20-13 requires an HOA to provide records to a member or potential purchaser within a reasonable time, not to exceed 30 days after a written request, with reasonable costs.The law specifically calls out items like current and pending assessments, what common area dues support, the current operating budget and reserve funds (if any), the last fiscal year’s financial condition, insurance coverage, loans, and current officer/agent contact info.
Resale documents
Ala. Code § 35-20-5 requires an HOA’s organizational documents to provide for issuing statements about dues and assessments to “any person having an interest,” with reasonable associated costs.This is the statutory foundation for common resale/closing requests, lender questions, and payoff-style inquiries. If your HOA community struggles with consistent answers at resale, this is a good place to tighten internal procedures.
Recording an assessment lien
Ala. Code § 35-20-12 requires the association to record a verified statement of lien within 12 months after an assessment becomes due. The statute also requires at least 30 days’ written notice by certified mail before recording the lien.The recorded lien statement must include the lot description, association name, owner name, unpaid assessment amounts and dates, and any other interests/costs claimed.
Lien priority
Ala. Code § 35-20-12 gives the HOA lien priority over later liens in many cases, but it also lists major exceptions, including mortgages and deeds of trust (and certain taxes and assessments). If the lien is enforced in court, the HOA files a verified complaint with the lien attached. If the court orders a sale, notice is published once a week for three consecutive weeks in the county where the lot is located.Nonprofit corporations and required filings
Ala. Code § 35-20-5 says HOAs created “pursuant to a declaration” on or after January 1, 2016 must be organized as nonprofit corporations under Alabama HOA law. It also requires the HOA to file key documents with the Alabama Secretary of State, including the bylaws (or other governing documents) and the original covenants/conditions/restrictions.The law also directs the Secretary of State to maintain a searchable public database of those filings (consistent with the other § 35-20-5 topics summarized above).
Fines and suspensions
Ala. Code § 35-20-11 allows boards, if authorized by the declaration and governing documents, to suspend a member’s right to use association-provided facilities or services for nonpayment (as long as it does not deny access to the member’s lot).It also allows “reasonable penalties” for violations, but only after the member gets an opportunity to be heard, with the option to be represented by counsel.
Violations by tenants
The Act lets boards address tenant violations, not just owner violations, when the governing documents authorize enforcement. Under Ala. Code § 35-20-11, the board may take certain actions directly against a tenant, including assessing a penalty, but only after giving notice to both the tenant and the owner and providing an opportunity to be heard before the board.Learn more in our article on HOA rental restrictions.
Developer turnover documents
Ala. Code § 35-20-10 requires the developer (the “declarant”) to turn over key association materials after owners elect the board. Within 90 days of the board’s selection, the declarant must deliver:- governing documents
- books and records
- lists of members
- unpaid assessment records
- contracts
- insurance policies
- unexpired warranties tied to common areas or common-area improvements. This handoff is a major moment for operational continuity.
Ending the declaration
Ala. Code § 35-20-14 says that when a declaration terminates (or when required by law), the board must take steps for the “immediate dissolution and liquidation” of the association and any remaining assets.This is not an everyday issue, but it is a reminder that HOAs are legal entities with life-cycle steps, and the closeout process should be handled deliberately and with professional guidance.
Compliance tips for boards
Boards that focus on clear processes and consistent communication tend to avoid many of the disputes that lead to complaints or legal questions. The following practices support smoother daily operations and help homeowners understand how decisions are made:- Create predictable procedures: Establish steady routines for board meetings and owner communication. A consistent schedule helps homeowners know when business is handled and reduces confusion.
- Confirm document access: Make governing documents, meeting minutes, and policies easy for owners to request. Readily available materials help reduce misunderstandings and build confidence in how the HOA operates.
- Use organized recordkeeping: Keep digital and physical records in one organized system so board members can quickly find past decisions and adopted rules. Strong records also help new board members get up to speed.
- Adopt clear communication practices: When the board makes a decision, share it in straightforward language and explain when the change takes effect. Many disputes arise from uncertainty.
- Review policies regularly: Set aside time during the year to review rules and procedures for clarity and consistency with governing documents. Small adjustments can prevent larger issues later.
- Work closely with your manager and attorney: Ask your management team to help prepare notices, track administrative deadlines, organize files, and support meetings. When legal questions arise, reach out to the association attorney for guidance.
- Stay accessible to homeowners: Provide a reliable way for owners to submit questions or concerns. Timely responses help residents feel heard and give the board early visibility into potential issues.
About FirstService Residential
FirstService Residential supports Alabama HOA communities with local expertise backed by national resources. Our teams help boards stay organized with governance support, recordkeeping, financial management, vendor coordination, resident communication, and 24/7 customer care.We help boards apply consistent processes that align with their governing documents and Alabama law, so board members can stay focused on long-term HOA community goals instead of day-to-day administration.
Contact a member of our team today to learn more.
This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.