2026 Alabama End of Legislative Session Report

Community Associations Institute (CAI) and the Alabama Legislative Action Committee (AL LAC) spent the 2026 legislative session advocating on behalf of approximately 249,000 Alabamians who live in 100,000 homes in more than 3,000 community associations.

Legislative Overview

The 2026 Alabama legislative session convened on January 13 and adjourned on April 9. The Alabama Legislature meets annually during a regular session. Sessions are limited to 30 working legislative days over 105 calendar days. Although the dates change, a regular session usually starts in January and lasts for about 15 weeks. In Alabama, legislation does not automatically carry over from one regular session to the next. Because the Alabama Legislature meets annually and adheres to strict session rules, bills that are not enacted by the end of a session die and must be reintroduced in a subsequent session. Learn more about how laws are created in Alabama.

CAI Legislative Action Committees (LACs) support legislation that aligns with CAI’s public policy positions and opposes legislation that does not. If a LAC believes it may need to consider or adopt any legislative or regulatory position that would be in conflict with these official positions, it must submit a request for a deviation to be considered by CAI’s Government & Public Affairs Committee and/or Board of Trustees.

At the start of the legislative session, AL LAC developed and distributed a letter addressed to each Alabama legislator. This outreach served as a reintroduction of the LAC to legislators and highlighted its presence and role within the Alabama State Capitol. CAI tracked 25 pieces of legislation in Alabama this session with the potential to impact community associations across the state. Below are the highlights:

MONITORING

CAI LACs monitor legislation with the potential to impact those living and working in community associations across their state, as well as legislation that may indirectly or unintentionally impact community associations.

HB 248/SB 187 – Alabama Business and Nonprofit Entities Code. revisions made to clarify procedures, make technical corrections, and codify common law

AL LAC sought amendments to this legislation. As most homeowners and condominium associations in Alabama are nonprofit corporations, this bill directly applies to our industry. AL LAC had several concerns regarding this legislation, which are outlined below.

Unfortunately, SB 187 did not differentiate condominium associations from other nonprofits. Grouping condominium associations with all other nonprofits and regulating them unilaterally can cause harm and is unfair. Unlike commercial entities, condominiums are owner-funded, volunteer-governed, and budget-sensitive. Small procedural changes can materially increase assessments, litigation, and insurance costs for residents. What’s more, condominium law already exists in Alabama statute under Title 35, and creating overlapping statutes create confusion and increase risk of litigation.

SB187 would have expanded an association’s risk regarding records-requests and allowed expedited court review. Community association boards across Alabama and beyond already face frequent and sometimes abusive records requests. Additionally, the expedited access proposed could lead to a high likelihood of utilization as a time-saving measure rather than a last resort as intended. This change could have a financial impact on an association and its members. AL LAC suggested an amendment to allow reasonable response periods, require exhaustion of internal remedies, and permit limits on duplicative or bad-faith requests before utilizing the proposed system.

Under this legislation, courts could have taxed costs and fees against an association in expedited proceedings. Homeowners in community associations already pay assessments, in part to cover legal costs for their association. AL LAC supported an amendment to require courts to consider the nonprofit, owner-funded nature of condominium associations when allocating costs.

This bill also attempts to codify fiduciary duties and safe-harbor procedures. CAI has outlined rights and responsibilities for better communities. While CAI agrees that community association board members are bound to uphold their fiduciary duties, the language outlined in this legislation could have unintentionally raised liability risk for those who volunteer to serve on their community’s board of directors.

An amendment was proposed which the LAC analyzed and supported. The amendment would have provided clearer rules and stronger legal protections for boards and governing members. It would have enhanced an association’s ability to manage records requests, protect sensitive information, and resolve disputes more efficiently, while also offering liability protections in conflict-of-interest situations. Unfortunately, the amendment was not adopted by lawmakers.

Status: Bill died and Indefinitely Postponed.

HB 260 / SB 121 – Condominiums; consents and waivers, arbitration and mediation

AL LAC monitored this legislation, which sought to reform the governance of condominiums in Alabama, specifically around the amendment of condominium declarations and the legal recourse available to associations and unit owners. Impacts of this bill would have included:

• Prohibiting use of consents, waivers, or powers of attorney to amend condominium declarations.
• Permitting condominium associations to participate in arbitration and mediation, not just litigation, and granting courts broader authority to impose equitable remedies like injunctions, reformation, and declaratory actions.
• Mandating accurate and timely disclosures by associations.

Per CAI’s public policy on alternative dispute resolution, CAI recognizes the need for and supports the use of fair alternative dispute resolution mechanisms to resolve disputes arising in community associations, particularly in appropriate cases where such measures can facilitate efficient and equitable resolution.

Status: Bill died in Committee.

HB 483 / SB 277 – Unincorporated nonprofit associations; decentralized associations provided for

AL LAC monitored this legislation, which sought to address the formation and governance of decentralized unincorporated nonprofit associations in Alabama, allowing such associations to use distributed ledger technology and smart contracts. The bill did not specifically mention or target community associations, but CAI monitored it throughout the session for any potential impact on our industry. If a community association in Alabama were structured as an unincorporated nonprofit association and wished to reorganize as a decentralized association under this law, it could have been impacted by this legislation.

Status: Bill died in Committee.

Get Involved in CAI’s Alabama Advocacy Work through Your Local Chapter!

In addition to strong and effective advocacy work in Montgomery, CAI has established a chapter in Alabama to provide information, resources, education programs and best practices designed to help you and your communities throughout Alabama thrive.

Not a member yet? Join a growing global network of more than 51,000 community managers, management company executives, homeowner leaders, and business partners, and open up a world of opportunities for professional growth, networking and industry knowledge.

Learn more and join today at https://cai-al.com/