SB418 Summary

• Creates the Alabama Homeowners' Association Act to govern homeowners' associations responsible for maintaining common areas in residential developments and levying enforceable assessments.

• Requires associations formed after January 1, 2016, to organize as nonprofit corporations under Alabama law and file articles of incorporation, bylaws, and covenants with the Secretary of State.

• Mandates the Secretary of State maintain a public searchable electronic database organized by association name containing filed documents accessible through the Secretary of State's website.

• Authorizes associations to adopt and enforce reasonable rules for common area use, assess penalties for violations, suspend member facility access for nonpayment, and assess charges for rule violations.

• Grants associations statutory liens on individual lots for unpaid assessments, recordable with the judge of probate, with priority over all subsequent liens except state and county taxes, mortgages, and deeds of trust, and enforceable through court action and property sale.