SB326 Alabama 2017 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2017

Title

Homeowners' Associations, formation as a nonprofit corporation, required, certain documents to be filed with Secretary of State, Secretary of State to implement a database of such filings, Secs. 35-20-1 to 35-20-14, inclusive, repealed

Summary

SB326 creates a statewide Homeowners' Association Act that governs HOAs, requires post-2018 associations to organize as nonprofit corporations, file key documents with the Secretary of State, and makes HOA filings publicly searchable, while authorizing rules for common areas and liens on lots.

What This Bill Does

It establishes the Alabama Homeowners' Association Act and defines key terms. It requires associations formed after January 1, 2018 to organize under the Alabama Nonprofit Corporation Act and file Articles of Incorporation, bylaws/resolutions, and the original covenants with the Secretary of State. The Secretary of State would implement a public, searchable online database of these filings. The act also allows HOAs to adopt rules for common areas and to place liens on lots for unpaid assessments, with notice and legal procedures for recording and enforcement.

Who It Affects

• Homeowners' associations and declarants/board members: new HOAs must become nonprofit corporations, file required documents, maintain records, adopt rules for common areas, manage budgets, and enforce assessments and liens; declarants must deliver records to the board when control shifts.
• Homeowners, tenants, and potential purchasers: they gain access to HOA filings and records, receive notice and opportunities to be heard regarding penalties, and are affected by liens on their lots for unpaid assessments and by the rules governing use of common areas.

Key Provisions

• Creates the Alabama Homeowners' Association Act with defined terms and applies to developments with declarations, excluding certain nonresidential uses and other regulated entities.
• On/after January 1, 2018, requires HOAs to organize as nonprofit corporations under Title 10A and file articles of incorporation, bylaws/resolutions, and original covenants with the Secretary of State; SOS to maintain a public searchable database of these filings and may set filing rules and fees.
• Organizational documents must provide for member communications, meeting rules, complete financial records, rules for common areas, easements, dues statements, and annual budgets; may include indemnification, audits, and asset acquisition provisions.
• Authorizes HOAs to adopt reasonable rules for common areas and to suspend members’ use of facilities for nonpayment, with penalties after a hearing; also allows enforcement actions against tenants for violations.
• Gives HOAs a lien on each lot for unpaid assessments, with priority over most other liens and a process for recording the lien and foreclosing by court with notice and public sale procedures.
• Requires the declarant to deliver specified records to the board within 90 days after elections and provides for board notices and special meetings to elect directors.
• Requires public access to records and imposes disclosure duties to members and potential purchasers, including budgets, common areas, insurance, loans, covenants, and pending disputes; dissolution and asset liquidation procedures are outlined.

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