Alabama HOA Compliance
1. Introduction
Think of Alabama's approach to homeowners' associations as a tale of two distinct frameworks. The primary rulebook is the Alabama Homeowners' Association Act, which covers communities established after January 1, 2016—though older associations can choose to opt in if their members vote for it.1 For those newer groups, the law requires them to organize as nonprofit corporations and keep their governing documents on file with the Secretary of State.2 If you live in a condominium, however, you're looking at a different set of rules entirely: the Alabama Uniform Condominium Act of 1991.3 Now, if a dispute arises that can't be settled at the board table, the path usually leads to a circuit court. From there, appeals move through the state's appellate system depending on the specific type of case.4,5 One thing you won't find in Montgomery is a dedicated HOA ombudsman. Instead, the state relies on the Real Estate Commission for licensing questions and the Attorney General's Consumer Interest Division for deceptive practice complaints.6,7 It is a system where the law provides the skeleton, but the day-to-day muscles are still found in an association's own bylaws and recorded covenants.8
2. Primary statute and key resources
- Alabama Homeowners' Association Act, Ala. Code §§ 35-20-1 to 35-20-14. This is the foundational Act for post-2016 HOAs and any older associations that have formally elected to be covered by it.9
- Alabama Uniform Condominium Act of 1991, Ala. Code § 35-8A-101 et seq. This serves as the specific statutory scheme for condominium governance in the state.10
- Alabama appellate courts, Ala. Code §§ 12-3-10 and 12-2-7. These statutes determine whether a civil association appeal lands before the Court of Civil Appeals or the Supreme Court.11,12
- Alabama Real Estate Commission, Ala. Code § 34-27-30. The AREC is responsible for the oversight of real-estate licensing and the rules governing those professional activities.13
- Alabama Attorney General Consumer Complaint. While the Attorney General's office accepts complaints regarding consumer interests, it does not act as a private attorney for homeowners.14
3. Compliance topics grid
4. Alabama's recent regulatory landscape
Recent Legislation
In Alabama, we aren't seeing the massive rewrites of HOA codes that some other states are experiencing. Instead, the legislative focus is more surgical, centering on condominium procedures and the professional standards of real estate.
HB 260 · 2026 Regular Session
This bill would change the way condominium associations get permission to alter their declarations. It aims to stop the use of "informal" devices like general powers of attorney to gain owner authorization. It also gives associations more room to step into mediations or arbitrations and expands the remedies available in court when these documents are disputed.[15]
| Property managers | You'll need to keep much tighter records of how owners authorize changes to the rules. |
| HOA board members | Boards would have to move away from informal waivers when it's time to update a declaration. |
| Community association attorneys | Your court or mediation strategy needs to account for new intervention rights. |
| Homeowners | Condo owners get a clearer legal footing to object if rules change without proper consent. |
SB 246 · 2026 Regular Session
This proposal would have added layers of protection for homeowners receiving unsolicited offers to buy their property. While it didn't pass this time, it shows that lawmakers are paying attention to how outside investors interact with residents.[16]
| Property managers | Watch how you handle resale inquiries from outside investors. |
| HOA board members | It signaled a growing focus on protecting owners from aggressive solicitations. |
| Community association attorneys | Future versions could affect how deceptive trade laws apply to property sales. |
| Homeowners | This was aimed at those "we want to buy your house" letters, not regular HOA assessments. |
HB 382 · Act 2025-380 · 2025 Regular Session
Now a part of state law, this act tightened the rules for real estate licenses, team operations, and how brokerage agreements are handled. It also included a specific exception for on-site condominium managers, which went into effect in late 2025.[17]
| Property managers | Firms need to double-check which on-site tasks now require a professional license. |
| HOA board members | It's worth reviewing your management contracts to see exactly what services are being provided. |
| Community association attorneys | Ensure management agreements align with these updated brokerage disclosure rules. |
| Homeowners | When you sell or lease, expect new types of paperwork from the personnel handling the deal. |
Recent Court Rulings
In Alabama, the courts aren't reshaping HOA law from the bench. What they're doing is more practical: holding associations to their own procedures, and to a sense of proportion. Two recent rulings show how — one on whether a foreclosure can stand when the owner wasn't properly named or noticed, and one on whether tearing down a finished house is the right answer to a setback violation.
Howard Ross v. West Wind Condominium Association
In this case, the court reminded associations that foreclosure is more than just a clerical process. Mr. Ross alleged that his association moved to foreclose on his unit without actually naming him or giving him notice, despite knowing he was the owner. The court ruled that if a foreclosure judgment is void because of these issues, it can be challenged at any time. The takeaway here: associations must be meticulous about identifying and notifying every owner before taking a unit to foreclosure.[18]
| Property managers | Always verify the title and notice logs before a file goes to the lawyers. |
| HOA board members | Foreclosure shouldn't be treated as "business as usual" if there's any confusion over who actually owns the home. |
| Community association attorneys | Your review process must ensure that every interested party is properly joined to the action. |
| Homeowners | This ruling suggests that if a foreclosure was done improperly, it doesn't just disappear with time. |
Rodney G. Englund et al. v. Dauphin Island Property Owners Association
This is a significant look at what happens when a rule is broken, but the fix is arguably worse than the breach. The owners built a house that violated a setback rule and lacked association approval. While the court agreed the rules were broken, it applied the "relative-hardship test." It found that the harm of forcing the owners to tear down and rebuild was way out of proportion to the benefit the association would get. It serves as a reminder that in Alabama, the court might find a middle ground if the requested remedy is too extreme.[19]
| Property managers | Keep detailed records of every step in the approval process to show exactly where things went wrong. |
| HOA board members | Before asking for a demolition, consider if the court will see the request as fair or excessive. |
| Community association attorneys | Your evidence needs to address the "hardship" factor right from the start of a covenant case. |
| Homeowners | Even if you've breached a covenant, there are equitable limits on how an association can punish you. |
Regulatory Developments
Alabama's regulatory action right now is mostly about catching up. The Real Estate Commission has been working through how the 2025 license law applies to community-management firms — who needs which credential, which on-site tasks now require licensing, and where the new condominium-manager exception kicks in. For property managers, that guidance is doing more practical work than any single court ruling.
Alabama Real Estate Commission
The Real Estate Commission is keeping a running list of how the 2025 license law updates change the landscape. This is essential reading for management firms that handle everything from leasing to on-site condo management.[20]
| Property managers | Update staff-role matrices and brokerage disclosures for any work that crosses into licensed real-estate activity. |
| HOA board members | It's a good time to ask your vendors which of their staff members hold the necessary licenses. |
| Community association attorneys | You might need to update your contract templates to clearly separate management from brokerage services. |
| Homeowners | You may see new disclosures that look a bit different from the standard neighborhood covenants. |
Active Policy Debates
What we're seeing in Alabama right now isn't a push for a brand-new HOA code, but rather a focus on the finer points of how these communities operate.21,22 The real debate is happening around how rules are amended, what information owners are entitled to, and how the courts should balance strict enforcement with common sense.
5. Closing note
Our look at Alabama is ongoing. We'll be here as new bills move through the legislature and as the courts weigh in on new disputes. Beyond Montgomery, there's also the intersection of federal law—the Fair Housing Act, the ADA, and even FCC rules on antennas—that every Alabama association has to navigate. We'll cover those federal frameworks in more detail as we build out our upcoming sections.23,24,25,26,27
Footnotes
- Alabama Legislature, Code of Alabama § 35-20-3, Applicability of chapter ↩
- Alabama Secretary of State, Homeowners' Associations ↩
- Alabama Legislature, Code of Alabama § 35-8A-101, Short title ↩
- Alabama Legislature, Code of Alabama § 12-3-10, Court of Civil Appeals jurisdiction ↩
- Alabama Legislature, Code of Alabama § 12-2-7, Supreme Court jurisdiction and powers ↩
- Alabama Real Estate Commission, License Law § 34-27-30 ↩
- Alabama Attorney General, Consumer Complaint ↩
- Alabama Secretary of State, Homeowners' Associations filing guidance ↩
- Alabama Legislature, Code of Alabama § 35-20-3 ↩
- Alabama Legislature, Code of Alabama § 35-8A-101 ↩
- Alabama Legislature, Code of Alabama § 12-3-10 ↩
- Alabama Legislature, Code of Alabama § 12-2-7 ↩
- Alabama Real Estate Commission, License Law § 34-27-30 ↩
- Alabama Attorney General, Consumer Complaint ↩
- Alabama Legislature, HB260, 2026 Regular Session, Introduced ↩
- Alabama Legislature, SB246, 2026 Regular Session, Introduced ↩
- Alabama Legislature, HB382, Act 2025-380, 2025 Regular Session, Enrolled ↩
- Alabama Appellate Courts Public Portal, Howard Ross v. West Wind Condominium Association, CL-2025-0064 ↩
- Alabama Appellate Courts Public Portal, Englund v. Dauphin Island Property Owners Association, SC-2024-0414 and SC-2024-0437 ↩
- Alabama Real Estate Commission, Statutory Changes ↩
- Alabama Legislature, HB260, 2026 Regular Session, Introduced ↩
- Alabama Legislature, SB246, 2026 Regular Session, Introduced ↩
- U.S. Department of Housing and Urban Development, Fair Housing Act overview ↩
- U.S. Department of Justice, ADA Title III regulations ↩
- Consumer Financial Protection Bureau, Regulation F, Fair Debt Collection Practices Act ↩
- U.S. Department of Justice, Servicemembers Civil Relief Act summary ↩
- Federal Communications Commission, Over-the-Air Reception Devices Rule ↩