HB33 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

First Special Session 2016

Title

Cooperatives, formation of registration as nonprofit corp. required, governing documents, assessments, liens, homestead exemption, Cooperative Housing Corporation Act of 2016, Secs. 35-8C-1 to 35-8C-11, inclusive, 40-9-19.2 added

Summary

HB33 creates the Alabama Cooperative Housing Corporation Act to regulate cooperatives, require new ones to organize as nonprofit corporations, and establish governance and tax rules.

What This Bill Does

It establishes a new Chapter 8C governing cooperatives, defines key terms, and requires cooperative housing corporations formed after 1/1/2017 to organize under the Alabama Nonprofit Corporation Act and file specific documents with the Secretary of State. The Secretary must maintain a public, searchable online database of cooperative filings. It sets requirements for governing documents (master declaration, bylaws, master list), describes transfer of shares with a possible right of first refusal, and authorizes a homestead exemption on cooperative property with the tax reduction allocated to owners per unit.

Who It Affects

• Cooperative housing corporations formed after January 1, 2017: must organize as nonprofit corporations under the state nonprofit law, file the master declaration and related documents, and be listed in a public Secretary of State database.
• Unit owners/shareholders in cooperative housing corporations: subject to liens for unpaid assessments, potential right of first refusal on transfers, and, if applicable, homestead exemption rules that allocate tax reductions per unit (with annual eligibility updates).

Key Provisions

• Creates Alabama Cooperative Housing Corporation Act (Chapter 8C) and defines related terms.
• Requires cooperatives formed after 1/1/2017 to organize under the Alabama Nonprofit Corporation Act and file master declaration with the Secretary of State; Secretary to maintain a public electronic searchable database of filings.
• Mandates governing documents (master declaration, bylaws, master list) and details for transfer/sale of shares, including a right of first refusal by the association.
• Governing documents must include information about common elements, unit descriptions, financing, restrictions, and amendment procedures; master register details unit identification and ownership interests.
• Authorizes liens for unpaid assessments, with priority over most other liens (except certain taxes and mortgages) and a process to record and enforce the lien.
• Allows transfer of cooperative shares to be recorded with the Secretary of State, including board consent and required transfer details.
• Provides for a right of first refusal by the cooperative under certain conditions as outlined in the bylaws.
• Allows property to be exempted from this act by a deed of revocation by all affected parties, with potential re-subjection later.
• Adds Section 40-9-19.2 allowing cooperatives to apply for a homestead exemption for units occupied by owners; annual updates required and tax reductions apportioned per unit; supplemental assessments handled per unit.
• Effective date: January 1, 2017.

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