SB418 Alabama 2015 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2015

Title

Homeowners' Associations, formation as a nonprofit corporation, required, election of board of directors, notice requirements, adoption and enforcement of rules relating to common areas, liens, Alabama Homeowners' Association Act

Summary

SB418 creates a formal framework for Alabama homeowners' associations to govern common areas, enforce dues as liens, and require associations formed after 2016 to organize as nonprofit corporations with public record filings.

What This Bill Does

It creates the Alabama Homeowners' Association Act to govern HOAs responsible for common areas and the collection of assessments that can become liens. It requires associations formed after January 1, 2016 to organize under the Alabama Nonprofit Corporation Act and to file specified documents with the Secretary of State. The Secretary of State would maintain a public, searchable electronic database of association filings. It also allows HOAs to adopt and enforce reasonable rules for common areas and sets out how liens for unpaid assessments would work, including notice and recording requirements and board governance/transition rules.

Who It Affects

• Homeowners and lot owners in developments with HOAs: would pay assessments, be subject to HOA rules, risk a lien on their lot for unpaid amounts, and gain access to requested financial and governing documents.
• Developers, declarants, and HOA boards: must organize post-2016 associations as nonprofit corporations, file required documents, manage the transition of board control, and deliver association records to the new board.

Key Provisions

• Establishes the Alabama Homeowners' Association Act to govern HOAs and common-area maintenance.
• Requires new HOAs after Jan 1, 2016 to organize under the Alabama Nonprofit Corporation Act and file articles, bylaws, and covenants with the Secretary of State.
• Creates a public electronic database of HOA filings searchable by association name.
• Allows HOAs to adopt and enforce reasonable rules for the use of common areas.
• Provides a lien on each lot for unpaid assessments, with recording, notice, and foreclosure processes.
• Outlines governance-related requirements, including board elections, notice of meetings, and the transfer of records from declarants to the new board, plus required organizational documents (budgets, financial records, insurance, etc.).
• Includes provisions for dissolution of the association and liquidation of assets if the declaration ends.

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