SB106 Alabama 2014 Session

Summary

Primary Sponsor

Cam Ward

Republican

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

SB106 would create the Alabama Homeowners' Association Act to govern HOAs, set rules for records, meetings, communication, and enforcement, and allow liens on lots for unpaid assessments.

What This Bill Does

If enacted, the act would set up rules for HOAs that maintain common areas and can place liens on homes for unpaid assessments. It would require developers to disclose financial information to the HOA board and require HOAs to keep detailed financial records that members can inspect. It would require open annual meetings (and special or emergency meetings) with notice to members, and a process for owners to communicate with the board. It would also require HOAs to register with the Alabama Real Estate Commission, provide dispute resolution options, enforce rules, and have lien and court-enforcement power for unpaid charges.

Who It Affects

• Lot owners / association members would gain rights to inspect association records, attend open meetings, receive meeting notices, and participate in communication with the board.
• Developers/declarants and HOA boards would face new requirements to disclose information to the board, maintain records, register with the Real Estate Commission, and enforce rules, assess charges, and file liens.

Key Provisions

• Establishes the Alabama Homeowners' Association Act to govern HOAs and to allow liens on lots for unpaid assessments.
• Requires declarants to disclose financial and other information to the HOA board.
• Requires HOAs to maintain detailed books and records and allow member inspection under defined conditions.
• Requires open annual meetings and notice to members, with rules for communications among members and with the board.
• Requires annual registration of HOAs with the Alabama Real Estate Commission and authorizes the commission to develop alternative dispute resolution.
• Gives HOAs authority to adopt and enforce rules about common areas, assess charges for violations, and pursue lawsuits or arbitration as allowed.
• Provides that HOAs have a lien on each lot for unpaid assessments, with specified priority, filing, notice, and enforcement procedures, including costs and attorney's fees.
• Lien priority: liens on lots are prior to most other liens except real estate taxes, prior recorded liens, and mortgages recorded before the lien.
• Specifies penalties and enforcement mechanisms, and the ability to foreclose liens through circuit court.
• Excludes commercial/nonresidential developments and associations regulated under other Alabama law.
• Effective date is January 1, 2015; registration requirements for existing associations commence accordingly.

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