Alabama HOA records play a huge role in maintaining transparency and accountability. These records serve as an audit trail, allowing members to refer to previous transactions, meetings, amendments, and other relevant information. When a homeowner asks to review these records, does an HOA have to comply? What does the law say?
Can Homeowners Access Alabama HOA Records?
In a word, yes. Homeowners associations in Alabama are required to make books and records available for examination. That means homeowners can access these records. The idea behind this is to ensure transparency and accountability for the HOA and its board. When homeowners have access to these documents, they can review decisions and financial transactions.
There are three statutes that apply to HOA records inspection in Alabama. These are found under the Alabama Homeowners’ Association Act, the Alabama Uniform Condominium Act of 1991, and the Alabama Nonprofit Corporation Law.
Alabama Homeowners Association Act
According to Section 35-20-13, homeowners associations must allow members to inspect the records upon written request. The HOA board has 30 days to comply with this request and may also charge reasonable fees associated with producing the records.
Alabama Uniform Condominium Act of 1991
According to Section 35-8A-318, a condo association must make all financial and other records reasonably available to members for inspection. The association may also charge a reasonable fee or an hourly charge for the service.
Alabama Nonprofit Corporation Law
According to Section10A-3-2.32, any member may inspect all books and records of a nonprofit corporation for any purpose. This includes all members, directors, officers, and their agents or attorneys. If an HOA is organized as a nonprofit corporation, this statute applies to it.
Alabama Homeowners Association Records Inspection Requirements
According to Section 35-20-13 of the Alabama HOA Act, both homeowners and potential buyers can ask to view HOA records upon written request. The HOA has 30 days to respond to the request. Homeowners may also be asked to pay a reasonable fee for the copies. The HOA can give the documents on paper, via email, or let the owner know where they can find them online.
The same section specifies what types of Alabama HOA records an owner may request to inspect. These include the following:
- Assessment Information. These include how much the current dues are, due dates, and payment details, and any new fees that the HOA has approved.
- Common Area Information. This is a list of areas that the HOA owns and any common areas that the HOA doesn’t own but pays to maintain.
- Financial Details. These include the current operating budget, how much is in reserve funds (if any), and a summary of the HOA’s finances from last year.
- Insurance Information. These include copies of any insurance policies that protect homeowners and any fidelity bonds.
- Loans. This is information about any loans the HOA has and what was used as collateral for those loans.
- Contact Information. These include the official name of the HOA and the names and contact details for current board officers and any registered agent.
- Governing Documents. This includes the latest version of the CC&Rs, bylaws, operating rules, and any updates or amendments. This also includes the articles of incorporation and the community plat.
- Closing Fees. These include any fees someone would need to pay when buying or selling a home in the HOA.
- Legal Matters. These include any ongoing lawsuits, judgments, liens, or legal disputes the HOA is involved in (including case numbers) if the information is in public records.
It is important for members to check their HOA’s governing documents as well. The CC&Rs and bylaws could list other books and records that must be available for examination but are not included above.
Can Homeowners Examine HOA Financial Records in Alabama?
Yes, homeowners can review an HOA’s financial records in Alabama. State laws require associations to provide members with reasonable access to these records. Additionally, an HOA’s governing documents may consist of supporting provisions concerning records access and inspection.
The Uniform Condominium Act (Section 35-8A-318) and the Nonprofit Corporation Law (Section10A-3-2.32) are more general. The Condominium Act states that all financial and other records must be available for examination. Meanwhile, the Nonprofit Corporation Law states that all books and records must be available for examination.
Section 35-20-13 of the Homeowners Association Act is more specific. According to this section, the Alabama HOA records available to members include financial records such as the following:
- How much the current dues are
- Due dates and payment details
- Any new fees that the HOA has approved but has yet to execute
- The current operating budget
- How much is in reserve funds (if any)
- A summary of the HOA’s finances from last year
HOA Not Giving Records to Homeowner in Alabama
When a homeowner doesn’t gain access to HOA records, it can cause frustration. If this happens, the homeowner should send a follow-up letter citing the law that requires the HOA to make the records available for inspection. Of course, the homeowner should first make sure that they have complied with the request process.
The homeowner should approach their HOA board and ask for a response. They can do this by contacting them via phone or email. Alternatively, they can also attend a board meeting and raise their concern. Some HOAs have community managers. In this case, the homeowner may approach the manager instead.
How can I file a complaint in Alabama if the HOA doesn’t give me requested documents?
While there is no agency that specifically regulates HOAs in Alabama, homeowners can try to contact their Attorney General by filing a complaint online. Make sure to attach a copy of the written request and any response (or lack thereof) from the HOA.
Homeowners can also attempt dispute resolution, such as mediation and arbitration. As a last resort, homeowners may take legal action in civil court. An attorney can help homeowners get court-ordered access to the records and documents they need.
Alternative Methods to Access Alabama HOA Records
There are other ways homeowners can examine HOA records, but they may not all apply to all communities. These methods include:
- Public Records. Some documents and records are a matter of public record, so homeowners can access them via the county recorder’s office. For the articles of incorporation, homeowners can go through the Alabama Secretary of State.
- HOA Website. Many associations have websites or homeowner portals where members can view HOA documents and records.
- Upon Purchase. In some communities, the HOA automatically provides the buyer with pertinent documents at closing. That said, this does not happen all the time, so buyers may need to ask the HOA in writing.
Final Advice
Homeowners have a right to review Alabama HOA records to know the current condition and financial health of their association. Board members should make sure to comply with record requests according to state laws and their governing documents.
Cedar Management Group can help HOA boards with records management and homeowner communication. Call us today at (877) 252-3327 or email us at help@mycmg.com to get started!
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