HB72 Alabama 2017 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2017

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

HB72 creates a new Alabama Cooperative Housing Corporation Act to regulate cooperatives, require post-2018 cooperatives to organize as nonprofit corporations, and allow homestead exemptions with per-unit tax sharing.

What This Bill Does

If enacted, the bill would establish a formal framework for cooperative housing in Alabama. It requires cooperatives formed after January 1, 2018 to organize under the Alabama Nonprofit Corporation Act and file the master declaration, bylaws, and a master register with the Secretary of State, who would maintain a public online database of cooperative filings. The bill sets rules for governing documents, transfer of shares, and penalties or liens for unpaid assessments, and it allows a right of first refusal. It also authorizes cooperatives to claim a homestead exemption on cooperative property, with the tax savings allocated to owners per unit.

Who It Affects

• Cooperative housing corporations formed after January 1, 2018 would be required to organize as nonprofit corporations and file the master declaration, bylaws, and master register with the Secretary of State, and would be governed by the new act.
• Owners or shareholders in cooperative housing units would be subject to assessments and potential liens for unpaid assessments, may be affected by transfer procedures and the right of first refusal, and could benefit from a per-unit homestead tax exemption.

Key Provisions

• Adds Chapter 8C to Title 35, creating the Alabama Cooperative Housing Corporation Act of 2017 and defining key terms.
• Requires cooperative housing corporations formed after January 1, 2018 to organize under the Alabama Nonprofit Corporation Act and file the master declaration with the Secretary of State; the Secretary must maintain a public, searchable electronic database of cooperative filings.
• Defines terms such as association, unit, master declaration, master register, common elements, common expenses, proprietary lease, and others to govern cooperatives.
• The master declaration must include legal description, dedication of land to the cooperative form, the cooperative name, a copy of the deed, bylaws, master register, architectural plans, description of financing and liens, restrictions, and a method to amend the declaration.
• Bylaws may address voting methods, meetings, delegated representation, redemption/recall of stock, eligibility for ownership, and a right of first refusal by the association.
• The master register must list each unit, ownership interests, and the name and address of owners and occupants.
• Transfers of cooperative shares require a detailed transfer document filed with the Secretary of State and must include consent of the cooperative board and related transfer information.
• The cooperative may exercise a right of first refusal under bylaws for unit transfers.
• Cooperative property may be exempted from this chapter by a deed of revocation by all unit lessees and mortgage holders, with the possibility of future reapplication to the chapter.
• Adds Section 40-9-19.2 allowing a cooperative housing corporation to apply for a homestead exemption against property occupied by owners, with annual owner lists and per-unit tax reductions allocated to owners; supplemental assessments for ineligibility are likewise allocated per unit.
• Effective January 1, 2018.

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