SB255 Alabama 2021 Session

Summary

Primary Sponsor

Will BarfootSenator

Republican

Session

Regular Session 2021

Title

Homeowners' Association Act, further provided to include all homeowners' associations, certain audit, notice, and procedural requirements added, Secs. 30-20-15 to 30-20-22, inclusive, added; Secs. 35-20-2, 35-20-3, 35-20-5, 35-20-11, 35-20-12, 35-20-13 am'd.

Summary

SB255 would apply the Alabama Homeowners' Association Act to all HOAs, require audits and clearer notices, limit certain HOA powers, allow noncommercial signs, and improve access to records and dispute resolution.

What This Bill Does

Extends the Alabama Homeowners' Association Act to every homeowners' association operating in Alabama, including those formed before 2016. Requires periodic financial audits of HOA books and records (at least every two years) and establishes record-keeping and transparency requirements for associations. Creates protected process for violations by requiring written notice and an opportunity to cure before penalties, imposes limits on foreclosure liens, and authorizes civil actions to enforce the Act. Authorizes noncommercial signs, banners, and flags within developments with size limits, and prohibits unreasonable restrictions on marketing or selling a member's interest; adds general notice and meeting-rule-change requirements.

Who It Affects

• Homeowners who are members of any homeowners' association in Alabama, who would gain greater access to records, clearer rights to challenge penalties, and more freedom to display noncommercial signs within limits.
• Homeowners associations and their boards/directors, which would be required to comply with the Act, conduct regular audits, provide notices and records, manage liens under new limits, and follow new meeting, rule-change, and enforcement procedures.

Key Provisions

• Applies the Alabama Homeowners' Association Act to all HOAs operating in the state, including those formed before 2016.
• Requires periodic audits of the HOA’s financial records at least every two years.
• Requires written notice of violations and an opportunity to cure before penalties; allows penalties to be appealed.
• Limits foreclosure on liens: unpaid assessments plus interest must be the lesser of $25,000 or 10% of the property value; requires lien filing within 12 months and provides notice prior to recording.
• Enables the display of noncommercial signs, posters, flags, and banners by members within specified size limits (signs up to 9 sq ft, flags/banners up to 15 sq ft).
• Prohibits unreasonable restrictions on marketing or selling a member’s interest and bans mandatory exclusive broker relationships; prohibits certain assessment or fee practices beyond actual costs.
• Establishes general notice requirements for proposed rule changes (at least 30 days) and for board meetings; requires dissemination to members or posting in common areas, with exceptions for imminent health/safety threats.
• Requires board meeting openness with member rights to attend and speak; minutes and records to be available to members within 30 days; allows civil action for violations with attorney’s fees to prevailing party and up to $500 penalty per violation.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal