Alabama HOA fine rules

Alabama conditions a penalty against a member on a hearing rather than on advance written notice of the violation. The board of directors, "to the extent authorized by the declaration and governing documents," may "Assess reasonable penalties against a member for any violation of the declaration or rules adopted by the board of directors after the member is afforded the opportunity to be heard and represented by counsel before the board of directors" (Ala. Code § 35-20-11(a)(2)). The chapter states an express notice requirement only where the violator is a tenant rather than the member: the board may "Assess a penalty authorized in subdivision (2) of subsection (a) directly against a tenant after giving notice to the tenant and member and an opportunity to be heard before the board of directors" (§ 35-20-11(b)(2)). Because the statute does not in terms require notice to a member before a penalty, this entry records the pre-fine notice question as unsettled rather than answering it either way. A separate notice duty attaches later in the process: a penalty "shall be considered an assessment for purposes of Section 35-20-12" (§ 35-20-11(c)), and § 35-20-12(d) then provides that "At least 30 days prior to recording a statement of lien, the association shall give written notice by certified mail to the owner of the lot or other person obligated for the lien, as shown on the books and records of the association, that the statement will be recorded in the office of the judge of probate."

The Alabama Homeowners' Association Act sets no cure period before a penalty. Section 35-20-11(a)(2) conditions a penalty on the member being "afforded the opportunity to be heard and represented by counsel before the board of directors" rather than on any period in which to correct the violation, and the chapter states no number of days for curing a violation. A fixed day count does appear later in the process, in collection: a penalty "shall be considered an assessment for purposes of Section 35-20-12" (Ala. Code § 35-20-11(c)), and § 35-20-12(d) provides that "At least 30 days prior to recording a statement of lien, the association shall give written notice by certified mail to the owner of the lot or other person obligated for the lien, as shown on the books and records of the association, that the statement will be recorded in the office of the judge of probate."

Ala. Code § 35-20-11(a)(2) — the board of directors, "to the extent authorized by the declaration and governing documents," may "Assess reasonable penalties against a member for any violation of the declaration or rules adopted by the board of directors after the member is afforded the opportunity to be heard and represented by counsel before the board of directors." The chapter sets no number of days within which an owner must request that hearing and no deadline by which the board must hold it, and it prescribes no procedure for the hearing beyond the right to be heard and to be represented by counsel before the board. For a tenant of a member, § 35-20-11(b)(2) adds an express notice step before the same penalty may be assessed.

Alabama sets no statutory dollar cap on an association penalty. The statutory limits on a penalty are that it be reasonable and that the association's own documents authorize it: the board of directors, "to the extent authorized by the declaration and governing documents," may "Assess reasonable penalties against a member for any violation of the declaration or rules adopted by the board of directors after the member is afforded the opportunity to be heard and represented by counsel before the board of directors" (Ala. Code § 35-20-11(a)(2)). A penalty, once assessed, "shall be considered an assessment for purposes of Section 35-20-12" (§ 35-20-11(c)), so it can be collected through the association's assessment lien; "At least 30 days prior to recording a statement of lien, the association shall give written notice by certified mail to the owner of the lot or other person obligated for the lien, as shown on the books and records of the association, that the statement will be recorded in the office of the judge of probate" (§ 35-20-12(d)).

"A homeowners' association subject to this chapter shall maintain records and information to be made available to each member or potential purchaser, upon written request, within a reasonable time not to exceed 30 days from the date of the request, and upon the payment of reasonable associated costs. Any homeowners' association may provide the records and information in paper or electronic form or direct the member or potential purchaser to the location of any public record containing the records or information" (Ala. Code § 35-20-13(a)). Section 35-20-13(b) then lists the items the association must provide or direct the requester to, including current and pending assessments and mandatory dues with amounts and due dates, the current operating budget and reserve information and the prior fiscal year's financial statement, insurance and fidelity bond documentation, loans against the association and any collateral, the current covenants, conditions and restrictions with amendments and architectural regulations, initiation or transfer fees due at closing, a list of common areas, and identifying information for pending lawsuits, judgments, liens, arbitrations or disputes involving the association.