SB 106 Summary

• Creates the Alabama Homeowners' Association Act to govern homeowners' associations in residential developments with authority to levy assessments enforceable as liens against real property.

• Requires declarants to disclose financial information, books, records, insurance policies, warranties, contracts, and development details to association boards within 60 days of the first board election.

• Mandates associations maintain detailed financial records accessible to members for inspection during business hours with 5 days' written notice, subject to specified exemptions for personnel, pending litigation, and legal communications.

• Requires annual meetings with at least 14 days' notice to members, open board meetings with member recording rights, and establishment of reasonable communication methods between lot owners and the board.

• Authorizes associations to assess penalties up to $50 per single offense or $10 daily for continuing violations (capped at 90 days), file liens on lots for unpaid assessments, and pursue court enforcement with recovery of attorney's fees and costs.

• Requires annual registration with the Alabama Real Estate Commission effective January 1, 2015, with authority to develop alternative dispute resolution programs for association disputes.