SB98 Alabama 2023 Session

Summary

Primary Sponsor

Sam GivhanSenator

Republican

Session

Regular Session 2023

Title

Relating to nonprofit homeowners' associations; amending Section 35-20-5, Code of Alabama 1975, to remove the requirement that certain duplicative filings shall be submitted to the Secretary of State.

Summary

SB98 streamlines nonprofit homeowners' associations by removing duplicative filings and establishing a single framework for organizing and reporting to the Secretary of State.

What This Bill Does

The bill requires a homeowners' association created by a declaration to be organized as a nonprofit corporation under Title 10A, Chapter 3, and to be governed accordingly. It removes the separate, duplicative filing (certificate of formation) and requires filing of certain documents with the Secretary of State: articles of incorporation, bylaws/resolutions, and the original covenants. The Secretary of State must create an online, searchable database of these documents that the public can access, and filings under this act are not notice under Chapter 4. It also specifies what organizational documents must cover (communication methods, meeting rules, financial records, and rules for any common areas, among others) and allows optional provisions like indemnification, bonds, audits, and authority to manage property or hire staff. The act includes provisions for possible rules and fees set by the Secretary of State and takes effect August 1, 2023.

Who It Affects

• Homeowners' associations and their members/directors: will be organized as nonprofit corporations under Chapter 3, must file specified documents with the Secretary of State, and must follow governance, financial, and meeting-related requirements.
• Secretary of State and the general public: the Secretary will maintain an online database of HOA documents for public search access, may set filing rules and fees, and filings under this act do not count as notice under Chapter 4.

Key Provisions

• HOAs must be organized as nonprofit corporations under Title 10A Chapter 3 and governed accordingly.
• In addition to existing Chapter 3 filings, HOAs must file with the Secretary of State: articles of incorporation, bylaws/resolutions, and the original covenants.
• The Secretary of State must create an electronic, public database searchable by association name for these documents; filings under this act are not notice under Chapter 4.
• Organizational documents must include methods of member communications, meeting rules, full financial record maintenance, and rules for common areas, among other items; the documents may also include optional provisions such as indemnification/insurance, fidelity bonds, audits, and authority to acquire property or hire staff.
• The Secretary of State may adopt rules and set filing fees.
• Effective date: August 1, 2023.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.