HB78 Summary

• Establishes the Alabama Cooperative Housing Corporation Act of 2016 to regulate cooperative housing, a form of property ownership where legal title is held by a corporation and occupants receive exclusive possession rights to their units.

• Requires all cooperative housing corporations formed after January 1, 2017 to organize as nonprofit corporations under Alabama law and file their master declaration with the Secretary of State.

• Mandates the Secretary of State create and maintain a public searchable electronic database of cooperative filings organized by cooperative name.

• Authorizes cooperative associations to place liens on units for unpaid assessments, suspend owners' use of common facilities for nonpayment, and assess penalties for rule violations after providing notice and hearing.

• Allows cooperatives to exercise right of first refusal on unit sales per bylaws and permits homestead tax exemptions on owner-occupied units, with tax reductions apportioned per unit.