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Alabama Law for You

  • Writer's pictureGregory Stanley

Alabama HOA Powers of Board AL Code § 35-20-11 (2022)

Updated: Apr 21

The Board of Directors of a Home Owners Association (not COA) are given and limited by the CC&Rs, Bylaws, and Articles of Incorporation as a non profit in Alabama. Its important to remember that HOAs and COAs since 2016 must be incorporated as nonprofits. If they are not incorporated, there is a strong argument the board cannot enforce rules or collections.

Owners Associations in Alabama must be Incorporated as Non Profit Entities

The requirement that associations must be registered with the secretary or state as a nonprofit is important because that status levies all the corporate formalities of any other nonprofit corporation in Alabama. The most important requirements are corporate formality in making rules and assessments, and due process. The requirement of near transparent operation of the board includes notice of required annual meetings, signed minutes, Roberts Rules of Order, and maintaining a registered agent with the Secretary of State and in some cases with the county as well.

The Board can levy various Penalties including Fines and Restricting use of Common Amenities

The board of directors must act only on powers given them by the CCRs and the Bylaws to enforce assessments and rules, and if those powers are given, the Board can:

  • Suspend a member's right to use facilities or services, but in no way interfere with access or use of the owner’s home, to include cutting off association-provided utilities without notice and opportunity to appeal

  • Assess reasonable penalties against an owner.  Reasonable is contextual.  A gated community on the water with a pool can levy much higher fines than a condo in a small town with no amenities and a pay-per-use laundry

Renters in Associations are Personally Liable as well as the Owner

Everything above can be levied against a tenant in violation or living in a property that is in violation, plus more. The same notice and opportunity to be heard requirements apply to the renters; they have due process rights too. The Board can actually enforce provisions of the lease that the owner is not enforcing if it benefits the association.

Penalties assessed against owners are to be paid like regular dues or assessments and can be the basis of a lien on the property.

Always use a reputable Alabama Lawyer when you are dealing with real property, whether it has a association or not.

 (205) 451-4196

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