Alabama • Special assessment notice
Special assessment from your Alabama condo — what can the board do, and is it a storm bill?
Alabama special assessments split sharply by geography: inland they're ordinary capital bills, but on the Gulf Coast they're usually insurance — premiums tripling and storm deductibles landing on owners.
The short answer
In Alabama the board can levy a special assessment unless your declaration requires a vote, and there's no statutory cap (§ 35-8A-315). On the Gulf Coast, $5K–$50K insurance and deductible specials are routine, and Alabama mandates no reserves. CondoSignal reads your notice against the Condominium Act. Free.Alabama at a glance
Owner vote
Per declaration
Board may levy; budget passes by negative veto.
Assessment cap
None
No statutory cap (§ 35-8A-315).
Reserves required
No
Coastal boards run pay-as-you-go.
Super-lien
GSE-capped
Carve-out weakens it (§ 35-8A-316).
Who can levy it
Under § 35-8A-315 the board levies assessments as common expenses with no statutory cap, and no owner-vote requirement unless your declaration imposes one. The budget passes unless a majority of all owners reject it. Past-due assessments can carry interest up to 18%.
No reserves, big coastal deductibles
Alabama mandates no reserve study or funding, so boards often run pay-as-you-go. On the coast (Gulf Shores, Orange Beach), master premiums have tripled and named-storm deductibles run $25K–$50K or more — and those deductibles routinely become $5K–$50K per-unit special assessments after a storm.
Lien and financing
Alabama's six-month super-lien is weakened by a carve-out for Fannie/Freddie/Ginnie-backed mortgages (§ 35-8A-316), so collection is harder than the headline suggests. And roughly 70 coastal condo projects are reportedly on Fannie Mae's ineligible list over insurance and reserves — which blocks conventional financing and depresses resale.
Your rights in Alabama
Alabama condo owners get a resale certificate disclosing assessments and insurance, with a 5-day cancellation right (§ 35-8A-409); HOAs have no statutory certificate. None of this is legal advice — confirm against Title 35 and Alabama counsel.
What to check
- Read the declaration for any owner-vote requirement on specials.
- Determine whether the assessment funds reserves, repairs, or insurance.
- On the coast, check the named-storm deductible and how it's allocated.
- Ask whether the association funds reserves at all.
- Check whether the project is on Fannie Mae's ineligible list.
- Get the resale certificate and confirm assessments.
Sources
- Ala. Code § 35-8A-315 — assessments for common expenses(High)
- Ala. Code § 35-8A-316 — lien (GSE carve-out)(High)
- Ala. Code § 35-8A-409 — resales of units(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Alabama-licensed professional.
Related guide
Alabama special assessments — the full guide →This page answers what to do right now. For how special assessments works in Alabama — the law, the process, and what to check before you buy or sell — read the full state guide.
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