SB 255 Summary

• Extends Alabama Homeowners' Association Act to all homeowners' associations statewide, including those formed before January 1, 2016, effective January 1, 2022.

• Requires homeowners' associations to conduct financial audits at least every two years and maintain records available to members within 10 business days of request.

• Mandates written notice of violations and reasonable opportunity to cure before penalties are assessed, with appeal rights to circuit court within 30 days.

• Limits association lien foreclosure authority to unpaid assessments of $25,000 or less, or 10 percent of property value, whichever is less.

• Authorizes members to display noncommercial signs up to 9 square feet and flags/banners up to 15 square feet, prohibits unreasonable marketing restrictions, requires 30-day notice of rule changes, and permits members to sue for violations with potential recovery of attorney's fees and up to $500 per violation penalty.