HB137 Alabama 2014 Session

Summary

Primary Sponsor

Mac McCutcheon

Republican

Co-Sponsors

Terri CollinsMike Ball

Session

Regular Session 2014

Title

Homeowners' Associations, disclosure of certain financial information to association board by declarant required, maintenance of association records, inspection by members, meeting requirements, enforcement of rules, assessment of charges for violations, liens, Alabama Homeowners' Association Act

Summary

HB137 creates the Alabama Homeowners' Association Act to regulate residential HOAs, require disclosures and records, open meetings, and a lien and dispute-resolution framework for unpaid assessments.

What This Bill Does

HB137 would establish the Alabama Homeowners' Association Act with defined terms and apply it to developments with declarations and common areas. It would require declarants to disclose financial information to the HOA board and mandate detailed record-keeping with member inspection rights. It would require annual open meetings, notices to members, and a communication method between lot owners and the board, plus annual registration with the Alabama Real Estate Commission and an available alternative dispute resolution program. It would authorize HOAs to adopt and enforce rules for common areas, impose penalties and charges for violations, pursue disputes in court or arbitration, and place a lien on lots for unpaid assessments with defined filing, notice, and foreclosure procedures, including recoverable costs and attorney's fees.

Who It Affects

• Homeowners in developments with HOAs, who would gain access to association records and participate in open meetings, while being subject to rules, penalties, and potential liens for unpaid assessments.
• Developers/declarants and HOA boards, who would be required to disclose information, maintain records, register with the Real Estate Commission, and enforce rules, collect assessments, and manage lien enforcement.

Key Provisions

• Establishes the Alabama Homeowners' Association Act with defined terms for association, board, common area, declarant, declaration, development, and lot.
• Requires declarants to disclose financial and related information to the HOA board within 60 days after board selection.
• Requires HOAs to keep detailed financial records and allow member inspection under specified conditions and notice.
• Requires annual open meetings with notice to members, recording of minutes, and a mechanism for members to communicate with the board.
• Requires annual registration of HOAs with the Alabama Real Estate Commission, allows a fee, and makes non-registration affect the HOA's lien and enforcement rights; registration lasts one year.
• Authorizes HOAs to adopt and enforce rules for common areas, impose penalties for violations (up to $5,000 per offense), and pursue enforcement through courts or arbitration.
• Gives HOAs the power to place a lien on a lot for unpaid assessments, with notice requirements, foreclosure in circuit court, and recovery of costs and attorney's fees; satisfaction of lien upon payment.
• Authorizes the Real Estate Commission to provide educational materials, track complaints, and develop an alternative dispute resolution program for HOA disputes.
• Provides exemptions for certain non-residential associations and pre-existing associations; becomes effective January 1, 2015.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal