AL Homeowners Act
Alabama Homeowners Act of 2016 - Posted 12/13/2016
The Stagecoach HOA Board of Directors would like to let all of Stagecoach Trace homeowners know about a new, updated law passed by the Alabama legislature and signed into effect by Gov. Bentley. This new law requires all HOA associations formed on or after January 1, 2016 to comply to its regulations. HOA Associations formed prior to 1/1/2016 may elect to be governed by the law if a majority of the homeowners vote to be to do so. As a note, Stagecoach was incorporated in 1999 and is “grandfathered” under the law. Under our current covenants and by-laws, we are already in compliance with the vast majority of the new regulations. For your interest, we have listed below, in paraphrase, some of the most important issues that are in the new law and how your BOD currently addresses them:
  • The HOA shall be incorporated as a non-profit corporation.
    • Stagecoach Trace HOA was incorporated as a non-profit company in 1999.
  • The Articles of Incorporation, By-Laws and covenants have to be on file with the State and County.
    • Stagecoach Trace is in compliance.
  • The HOA shall provide with:
    • Communication to the members.
    • Rules to conduct meetings
    • Financial records
    • Rules for maintaining common areas and penalties for violations
    • Power to grant easements, and concessions over common areas
    • Statements for the paying of dues
    • Preparation and submission of an annual budget
  • SCT is in compliance with all of these.
  • The HOA may provide for:
    • Insurance for the association, its officers and directors
    • Fidelity bonds for anyone controlling any funds
    • Periodic audits of the financials
    • Power to acquire property for the association
    • Power to hire a management agency
  • SCT is in compliance with most of these non-mandatory issues.
  • Notice and a method for an open election of HOA officers during an open meeting
    • SCT is in compliance. Our election meeting is held every Spring and ballots are distributed to all homeowners to participate.
  • The HOA BOD has the power to:
    • Suspend a homeowner’s rights to common areas for non payment of dues
    • Asses reasonable penalties for the violation of SCT rules and regulations.
  • SCT is in compliance with these items.
  • If a member violates the covenants, the BOD may:
    • Exercise actions against the member
    • Assess a penalty against a member after giving the member proper notice and a reasonable time to address the violation
    • Enforce other “rights” against the violating member
  • SCT is in compliance with these items
  • The BOD may place a lien on the properties of members for:
    • Non-payment of dues
    • Violations of covenant regulations
    • Violation of other rules as declared by the HOA BOD
  • SCT is in compliance with these items
  • The BOD shall maintain records of all meetings and make these records available to any member within a reasonable time.
    • SCT is in compliance with these items
  • The HOA BOD shall provide, upon written request, to any member or any new potential member a number of documents pertaining to the association and properties.
    • SCT is in compliance with these items
Again, above, we have attempted to summarize this new Alabama law which regulates homeowner associations. As you can see, the law is extensive; however, your HOA is very much within compliance with all the significant and relative sections. The Board of Directors have looked hard at this new law and are committed to comply with all relative sections and implement the few areas we need to improve in.
If you have any questions, please contact us. 
Thank You,
Stagecoach Trace Board of Directors:
Dennis Bogart, President
Sheila Jeffreys, Vice President
Jessica Butzen, Treasurer
Michelle Mckenzie, Secretary
Amber Pennington, Member at Large