Alabama HOA Laws: A Comprehensive Guide

Homeowners associations (HOAs) in Alabama are governed by the Alabama Homeowners Association Act and the organization's own governing documents. Having a good understanding of this act and other legislation designed to regulate these organizations is important for managers, executives, and board members.

In this article, we will provide an overview of some of the most important laws to help you ensure that your HOA is compliant.

What Is a Homeowners Association?

Homeowners associations, also known as property owners or community associations, are non-government entities that are responsible for the maintenance and upkeep of common areas in a neighborhood or community.

These associations are created for the good of the entire neighborhood and enforce their own rules and regulations to maintain a certain standard. The purpose of this is to maintain property values and ensure that the aesthetic qualities of the entire community are upheld.

HOAs are governed by federal, state, and local laws. They are also regulated by their own governing documents, which typically comprise the following:

• Articles of Incorporation
• Declaration of Covenants, Conditions, and Restrictions (CC&R)
• Bylaws

Alabama HOA Laws You Need to Know About

Now that you know what a community is, let's take a look at the Alabama HOA laws that these organizations must comply with.

Alabama Homeowners Association Act

HOAs in Alabama are regulated by the Alabama Homeowners Association Act.

Alabama homeowners' associations formed after the first of January 2016, as well as any organizations created before this date that choose to be regulated by this act in their governing documents, are subject to the law's rules for the development, administration, authority, and operation of HOAs.

Alabama Uniform Condominium Act

All condominiums established after the first of January 1991 are subject to the Alabama Uniform Condominium Act. Some of the law's provisions, however, might also be applicable to condominiums built before that time.

Alabama Condominium Act

This act, on the other hand, controls the creation, administration, authority, and management of condominium associations established prior to the first of January 1991.

Alabama Nonprofit Corporation Law

HOAs are considered non-profit organizations and are governed by the Alabama Nonprofit Corporation Act. This legislation describes the corporate structure and processes that these entities are to follow.

According to Ala. Code § 35-20-5(a), homeowners' associations formed after the first of January 2016 must be set up as non-profit organizations. The corporations that makeup condominium associations might be for-profit or nonprofit.

Alabama Fair Housing Law

This law safeguards people's constitutional right to equal access to housing options regardless of their religion, sex, race, familial status, color, or country of origin. It offers state-level protection comparable to those found in the federal Fair Housing Act (FHA).

Fines That May Be Imposed on Community Members

Homeowners in Alabama who fail to maintain common areas or break any of the association's rules may be subject to fines. However, HOAs must provide the member with a chance to be heard. The association's governing documents will contain more information on the reason and the amount that will be charged.

Community associations in Alabama may not prohibit or ban the display of the US national flag in accordance with federal legislation. These organizations are also not allowed to ban the installation of satellite dishes and the use of antennas.

Foreclosure

In Alabama, a homeowners association has the right to seize a property owner's home for delinquent dues. The HOA has the right to place a lien on the property, which could ultimately lead to a foreclosure.

However, before a lien is placed on the home, a notice must be given to the homeowner first. Once a lien is placed on the property, the HOA may file a lawsuit to enforce it, which could lead to the sale of the home to cover the outstanding assessments.

How to Join or Leave an HOA in Alabama

Joining and leaving a homeowners association may not be mandatory in some areas of the state. However, in others, homeowners are obligated to join the association and may only leave by selling their homes or requesting to have their property removed from the association.

Dissolving Alabama HOAs

The HOA's governing documents should explain the dissolution process. If not, however, the dissolution must be approved by a vote of at least two-thirds of the association's members.

An HOA board must draft a declaration of intent and obtain the written consent of all HOA members who have the right to vote if dissolution is approved. The association will then have to file the statement of intent with the Alabama Secretary of State. Thereafter, it will need to settle its debts and dispose of its assets.  

A homeowners' association in Alabama will have to file Articles of Dissolution with the Alabama Secretary of State once its debts and assets have been settled, after which it is considered dissolved.

About DoorLoop's HOA Tools

If you are looking for a smart set of tools to help streamline your management tasks, then you need to try DoorLoop! Our property management software is designed to automate mundane tasks and put everything you need on one innovative platform.

With powerful features like accounting tools, a communication portal, file storage, and so much more, you can ensure that your HOA complies with the relevant federal and state laws. DoorLoop has been specially designed so that it's easy to use. That means that you can find and use the tools that you need in no time.

Get in touch with us today to learn more about our HOA software, or book your free demo!

Final Thoughts

It's important to stay up to date on the laws, rules, and regulations that govern homeowners and condominium associations in Alabama. Fortunately, you can use DoorLoop to make your life easier and ensure that you meet the standards set out by legislation.

With DoorLoop, meeting guidelines has never been easier! Contact us today to try our HOA software for yourself.

Frequently Asked Questions

1. Can Alabama HOAs evict a homeowner or tenant?

Homeowners in Alabama cannot be evicted by HOAs. There may be cases where an association might be able to evict a tenant, though, if the homeowner has leased the premises to a tenant.

2. What powers do HOAs in Alabama have?

Homeowners associations in Alabama have the authority to access and maintain shared areas, such as swimming pools and clubhouses. A homeowners association is also a rulemaking authority and is allowed to implement its own rules and regulations to maintain certain standards in the community.

It can also collect regular payments, known as assessments or dues, to fund maintenance practices and is also permitted to impose reasonable fines and late charges when homeowners fail to comply with its bylaws.

3. Are HOA governing documents public records in Alabama?

Yes. Governing documents are considered public records in Alabama. These documents are filed with the Alabama Secretary of State, and users can conduct a search on the Alabama Secretary of State's website to find these records.

4. Is it mandatory to join an Alabama homeowners association?

There are two types of HOAs in Alabama: mandatory and voluntary HOAs. If an individual moves to an area governed by a mandatory homeowners association, they are obligated to join, while voluntary HOAs do not make membership mandatory.