Section 1: Overview — How assessment authority and limits work in Alabama

Alabama sets no statutory percentage cap on assessment increases for any community type. The operative limit on a regular or special assessment lives in the recorded governing documents — and for condominiums, the procedural rules of the 1991 Condominium Act apply as well.¹ For condominiums created after January 1, 1991, the Alabama Uniform Condominium Act of 1991, Ala. Code § 35-8A-101 et seq., governs assessment authority; for condominiums created before that date, the predecessor Alabama Condominium Ownership Act, Ala. Code § 35-8-1 et seq., still applies.^2,3 Planned-community associations draw their authority to levy assessments from the recorded declaration. The Alabama Homeowners' Association Act, Ala. Code § 35-20-1 et seq., and the nonprofit-corporation provisions of Title 10A add corporate mechanics, lien rights, and disclosure duties — but they impose no assessment cap.⁴ Special assessments draw their authority and limits from those same sources: the 1991 Act and the declaration for condominiums, and the declaration alone for planned communities.⁵

On the national map, Alabama belongs to the contract-primary group — distinct from statutory-cap states like California and from the budget-ratification states that have adopted the Uniform Common Interest Ownership Act (UCIOA), which Alabama has not adopted.⁶ The sections below trace the authority to levy, the limits on increases, special-assessment procedure, and recent legislative and judicial activity.

1. Alabama Legislature, Code of Alabama § 35-8A-315, Assessments for common expenses — text contains no percentage cap on increases ↩
2. Alabama Legislature, Code of Alabama § 35-8A-101, Short title — Alabama Uniform Condominium Act of 1991 ↩
3. Alabama Legislature, Code of Alabama § 35-8A-102, Applicability (post-1991 condominiums); Code of Alabama § 35-8-1 et seq., Alabama Condominium Ownership Act (pre-1991 condominiums) ↩
4. Alabama Legislature, Code of Alabama § 35-20-1 et seq., Alabama Homeowners' Association Act; § 35-20-5, Organization as nonprofit corporation under Title 10A, Chapter 3 ↩
5. Alabama Legislature, Code of Alabama § 35-8A-316(a), Lien for assessments — lien expressly secures special assessments; planned-community assessments governed by declaration under § 35-20-1 et seq. ↩
6. Community Associations Institute, Uniform Common Interest Ownership Act — adoption summary ↩
7. Alabama Legislature, Code of Alabama § 35-8A-302(a)(2), Powers of unit owners' association — adopt budgets and impose and collect assessments for common expenses ↩
8. Alabama Legislature, Code of Alabama § 35-8A-315, Assessments for common expenses — assessments at least annually based on a budget adopted at least annually; allocation per § 35-8A-207; interest not exceeding 18 percent per year ↩
9. Alabama Legislature, Code of Alabama § 35-8A-316, Lien for assessments — lien from time assessment becomes due; recording of declaration constitutes record notice and perfection; lien secures special assessments ↩
10. Alabama Legislature, Code of Alabama § 35-8-9, Duties and responsibilities of association for administration and management — assess and collect funds; pay common expenses; § 35-8-17, Liens in favor of association ↩
11. Alabama Legislature, Code of Alabama § 35-8A-102, Applicability — listing § 35-8A-316 among sections applying to pre-1991 condominiums for events occurring after January 1, 1991 ↩
12. Alabama Legislature, Code of Alabama § 35-8A-303(c), Board members and officers — budget delivery within 30 days; ratification meeting 14–30 days after delivery; budget ratified unless rejected by a majority of all unit owners ↩
13. Alabama Legislature, Code of Alabama § 35-20-5(c)(7), Organizational documents — preparation and submission of annual budgets to members ↩
14. Alabama Legislature, Code of Alabama § 35-20-12, Liens for unpaid assessments — lien arising from date assessment due; penalties treated as assessments collectible thereunder ↩
15. Alabama Legislature, Code of Alabama § 35-8A-316(h), Statement of assessments on request — fee not exceeding $25; release of lien if statement not furnished within 10 business days; Act 2018-403, § 1 ↩
16. Alabama Legislature, Code of Alabama § 35-20-13, Records — most recent assessments, board-approved assessments not yet in effect, current operating budget ↩
17. Howard Ross v. West Wind Condominium Association, Nos. CL-2023-0829, CL-2024-0323, CL-2024-0339 (Ala. Civ. App. Feb. 7, 2025) (appeal from Madison Circuit Court CV-22-146; originally released Nov. 8, 2024) ↩
18. Howard Ross v. West Wind Condominium Association, No. CL-2025-0064 (Ala. Civ. App. Jul. 25, 2025) (appeal from Madison Circuit Court CV-24-143; reversed and remanded) ↩
19. Alabama Legislature, SB 344, 2024 Regular Session (by Senator Hovey) — amending Ala. Code §§ 35-20-3, 35-20-5, and 35-20-7, declarant control period and lot-owner board representation ↩
20. California Civil Code § 5605(b), Regular and special assessment increase limits; Community Associations Institute, UCIOA adopting states ↩