Alabama HOA Law Changes 2021–2025: What Every Board Needs to Know

Overview of Alabama HOA Law Changes 2021–2025

Alabama does not have as extensive a statutory framework for homeowners associations as many other states. The core statute — the Alabama Homeowners' Association Act, codified at Title 35, Chapter 20 of the Code of Alabama — applies to associations created on or after January 1, 2016, or to older associations that formally opt in by amending their declaration. Most of the recent activity affecting Alabama community associations has come through real estate licensing law and condominium-specific proposals rather than a broad HOA overhaul.

2025 Legislative Session

Real Estate Licensing Act Update

Alabama's real estate licensing law was tightened in 2025, revising rules around real estate licenses, team operations, and how brokerage agreements are structured. The revision included a specific carve-out for on-site condominium managers, distinguishing certain day-to-day condominium management functions from activity that requires a real estate license. Community management firms operating in Alabama — including firms handling both HOA and condominium accounts — should confirm which staff roles now fall inside or outside the licensing requirement, since the Alabama Real Estate Commission has been actively clarifying how the update applies to management-firm operations.

Condominium Declaration Amendment Proposal

Alabama lawmakers have also considered legislation addressing how condominium associations obtain owner authorization to amend their declarations, aimed at closing a gap that allowed some declaration amendments to proceed on the basis of informal powers of attorney rather than a proper vote of the ownership. Boards should track the status of this proposal, since a change here would affect the documentation required before any future declaration amendment.

What Hasn't Changed

Outside of the licensing update above, Alabama has not enacted the kind of broad HOA reforms seen in many other states during this period — there is no new statewide statute governing electronic meetings, assessment lien priority, solar rights, or financial record inspection specific to homeowners associations. Associations governed by the Alabama Homeowners' Association Act should continue to rely on their declaration and bylaws for these procedures, since the statute leaves much of this to the governing documents rather than dictating it by law.

Board Action Checklist

• Confirm whether your association is governed by the Alabama Homeowners' Association Act (created after January 1, 2016) or has opted in by declaration amendment
• Review staff roles at your management company against the 2025 real estate licensing update, particularly for on-site condominium management functions
• Track the status of the condominium declaration amendment proposal if your association may need to amend its declaration
• Continue to rely on your declaration and bylaws — not statute — for meeting notice, quorum, and assessment collection procedures
• Consult Alabama counsel before assuming any statutory right or restriction not found in Title 35, Chapter 20 or your governing documents

How APM Helps Alabama HOA Boards Stay Compliant

APM's remote HOA management service monitors Alabama HOA and condominium law updates and provides client boards with compliance guidance and updated policy templates as the law changes. Learn about our Alabama remote management services. Contact us at billing@apmhoa.com or call 810-777-7060.

Legal disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Alabama attorney for guidance specific to your community.