Fighting an HOA Fine in Alabama: What Governs the Power

A fine from an Alabama association can feel non-negotiable, but the fine power isn't unlimited and isn't the same for every community. Alabama HOAs created on or after January 1, 2016 fall under the Alabama Homeowners' Association Act, Ala. Code §§ 35-20-1 to 35-20-14; older HOAs are governed primarily by their declaration and the Alabama Nonprofit Corporation Law. For your specific situation, a licensed Alabama attorney is the right resource. This is general information, not legal advice.

Powers of the board under § 35-20-11

For post-2016 HOAs, the Act gives the board enumerated powers, including the authority to suspend member-use rights and impose fines — but the fines must be reasonable, and the owner is entitled to a hearing before the penalty is assessed. Alabama's statute is notable for spelling out a right that many states leave out: the member may have a lawyer at that hearing. Section 35-20-11 lets the board assess a penalty only after the process the statute describes:

"after the member is afforded the opportunity to be heard and represented by counsel before the board of directors" — Ala. Code § 35-20-11

So the statutory floor is not just notice and a chance to respond — it includes the opportunity to be heard and represented by counsel before the board. The same section adds that a penalty assessed under it "shall be considered an assessment for purposes of Section 35-20-12," which ties an unpaid fine into the assessment-lien framework.

The reasonableness limit matters too. A penalty wildly out of proportion to the alleged violation, or one not traceable to a provision in the governing documents, raises a reasonableness question worth putting to a licensed attorney. So does a fine imposed with no notice or no hearing.

The bylaws and rules still matter

The Act sets a floor; the declaration, bylaws, and any duly adopted rules fill in the detail — including any fine schedule and the hearing procedure. An association that ignores its own stated process has a separate problem beyond the statute. People challenging a fine commonly request the adopted rule and fine schedule in writing.

Older HOAs: no statutory cap, declaration controls

If your HOA was created before 2016, the HOA Act generally does not apply. The fine power — and any limit on it — comes from the declaration and bylaws and any general fiduciary duties the board owes under the Nonprofit Corporation Law (§§ 10A-3-1.01 et seq.). The leverage points shift to whether the fine is actually authorized by the documents and whether the board followed its own procedure.

See Condo vs. HOA in Alabama: Which Law Applies? for why the threshold question is so important.

Selective enforcement

Even a valid rule can fail in the way it's applied. When an association enforces a restriction against one owner while ignoring identical conduct elsewhere, that uneven enforcement can raise a selective enforcement problem. Owners commonly document neighbors with the same condition who were never cited — photos, dates, and addresses.

Records help build the picture

For post-2016 HOAs, § 35-20-13 gives owners access to association records within 30 days of a written request (see Getting Your HOA's Records in Alabama). For older HOAs, member inspection rights come from the bylaws and the Nonprofit Corporation Law. Either way, the governing documents and any adopted fine schedule are the starting point.

Where this can go

If a fine cannot be resolved with the board, the avenues include the association's records, the courts (which under § 35-20 enforce the Act for newer HOAs), and a licensed Alabama attorney to evaluate whether a particular fine is authorized, reasonable, and properly imposed.

Sources

• Ala. Code § 35-20-11 — Powers of board
• Ala. Code § 35-20-13 — Records
• Ala. Code Title 10A Chapter 3 — Alabama Nonprofit Corporation Law