title-24•Title 24 — Housing
Any housing authority created by or pursuant to this title may agree to make such payments to the city or county, the state or any political subdivision thereof, which payments such bodies are hereby authorized to accept, as such authority finds consistent with the maintenance of the low rent character of housing projects or the achievement of the purposes of this title.
(Acts 1949, No. 490, p. 711, §1.)
In addition to all its other powers, any housing authority created by or pursuant to this title may, within its area of operation, undertake and carry out studies and analyses of the housing needs, and of the meeting of such needs, including data with respect to population and family groups and the distribution thereof according to income groups, the amount and quality of available housing and its distribution according to rentals and sales prices, employment, wages and other factors affecting the local housing needs and the meeting thereof, and make the results of such studies and analyses available to the public and the building, housing, and supply industries. Any such housing authority may also engage in research and disseminate information on the subject of housing.
(Acts 1949, No. 490, p. 711, §2.)
(a) Until a purchaser makes full payment for a dwelling which is constructed by a county or regional housing authority in a rural area, such dwellings shall continue to be the property of such authority, regardless of the title to the land on which it is constructed, and such dwelling shall be exempt from taxation in the same manner as other property of such authority. Any document making land available for use by such authority shall be admitted to record, and accordingly constitute notice, in the same manner as a deed or other instrument relating to real estate.
(b) When a county or regional housing authority provides a dwelling in a rural area under this title, the owner of the land living in the dwelling under a lease or purchase agreement shall be entitled to receive the same homestead exemption as if he had title to the dwelling.
(c) No dwelling shall be provided on a farm by a county or regional housing authority unless it has determined that, by reason of the character of the farm with respect to which the dwelling is to be constructed and the manner of its operation, the farmer is likely successfully to carry out the undertakings required of him under his purchase agreement or lease.
(Acts 1949, No. 490, p. 711, §3.)
In addition to the powers conferred upon a housing authority created for a city or county or a regional housing authority by other provisions of law, such authority, in any contract for annual contributions with the federal government, may obligate itself, which obligation shall be specifically enforceable and shall not constitute a mortgage, notwithstanding any other laws, to convey to the federal government the project to which such contract relates, upon the occurrence of a substantial default with respect to the covenants or conditions to which such authority is subject. Such contract may further provide that in case of such conveyance, the federal government may complete, operate, manage, lease, convey or otherwise deal with the project in accordance with the terms of such contract. Any such contract shall require that, as soon as practicable after the federal government is satisfied that all defaults by reason of which it shall have acquired the project have been cured and that the project will thereafter be operated in accordance with the terms of the contract, the federal government shall reconvey to such authority the project as then constituted.
(Acts 1949, No. 490, p. 711, §4.)
The powers conferred by Sections 24-1-1 through 24-1-4 shall be in addition and supplemental to the powers conferred by any other law, and nothing contained therein shall be construed as limiting any other powers of a housing authority.
(Acts 1949, No. 490, p. 711, §5.)
(a) It is declared to be the policy of this state that each housing authority shall manage and operate its low rent housing projects in an efficient manner so as to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe, and sanitary dwelling accommodations for persons of low income, and that no housing authority shall construct or operate any such project for profit, or as a source of revenue of the city or town. To this end a housing authority shall fix the rentals for such dwellings in its low rent housing projects at no higher rates than it shall find to be necessary in order to produce revenues which, together with all other available moneys, revenues, income, and receipts of such authority from whatever sources derived, including federal financial assistance necessary to maintain the low rent character of the projects, will be sufficient:
(1) To pay, as the same become due, the principal and interest on the bonds or other obligations of such authority;
(2) To meet the cost of, and to provide for, maintaining and operating the projects, including the cost of any insurance, and the administrative expenses of such authority;
(3) To meet the cost of discharging all lawful obligations assumed by or imposed upon the authority or its property; and
(4) To create, during not less than the six years immediately succeeding its issuance of any bonds or other obligations, a reserve sufficient to meet the largest principal and interest payments which will be due on such bonds or other obligations in any one year thereafter and to maintain such reserve.
(b) Rentals or payments for such dwellings shall be established and the low rent housing projects administered, insofar as possible, so as to assure that any federal financial assistance required shall be strictly limited to amounts and periods necessary to maintain the low rent character of the projects.
(c) In the operation or management of such low rent housing projects, a housing authority shall at all times observe the following duties with respect to rentals and tenant selection:
(1) It may rent or lease the dwelling accommodations therein only to persons who lack the amount of income which is necessary, as determined by the housing authority undertaking the housing project, to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings, without overcrowding;
(2) It may rent or lease the dwelling accommodations only at rentals within the financial reach of such persons;
(3) It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding; and
(4) It shall not accept any person as a tenant in any such low rent housing project if the person or persons who would occupy the dwelling accommodations have, at the time of admission, an aggregate annual net income, less an exemption of $100.00 for each minor member of the family other than the head of the family and his spouse, in excess of five times the annual rental of the quarters to be furnished such person or persons.
In computing the rental for this purpose of selecting tenants, there shall be included in the rental the average annual cost, as determined by the housing authority, to occupants of heat, water, electricity, gas, a cooking range and other necessary services or facilities, whether or not the charge for such services and facilities is in fact included in the rental; provided, that an authority may agree to conditions as to tenant eligibility or preference required by the federal government pursuant to federal law in any contract for financial assistance with the authority.
(d) Nothing contained in this section shall be construed as limiting the power of an authority to vest in an obligee the right, in the event of a default by the housing authority, to take possession of a housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by this section with respect to rental rates and tenant selection.
(Acts 1939, No. 614, p. 981, §1; Code 1940, T. 25, §87; Acts 1955, No. 554, p. 1215.)
(a) The creation, establishment and organization of housing authorities that have issued bonds under the provisions of this title, together with all proceedings, acts and things undertaken or done with reference thereto, prior to July 7, 1943, are hereby validated and declared legal in all respects.
(b) The creation and establishment of housing authorities pursuant to, or purporting to be pursuant to, the provisions of this title and laws amendatory thereto, together with all proceedings, acts and things undertaken, performed or done with reference thereto (including the appointment of commissioners, officers, and employees), prior to September 9, 1955, are hereby validated, ratified, confirmed, approved, and declared legal in all respects, notwithstanding any want of statutory authority or defect or irregularity in such acts or proceedings. Said housing authorities are hereby declared to have been and to be legally constituted and to be bodies corporate and politic with all the powers, rights, and duties set forth in the Housing Authorities Law.
(Acts 1943, No. 465, p. 428, §1; Acts 1955, No. 555, p. 1216, §1.)
(a) All agreements and undertakings of housing authorities created or established under this title prior to July 7, 1943, entered into relating to financing, or aiding in the development or operation of any housing projects, including (without limiting the generality of the foregoing) loan and annual contributions, contracts, agency contracts, leases, agreements with municipalities or other public bodies (including those which are pledged or authorized to be pledged for the protection of the holders of any notes or bonds issued by such housing authorities or which are otherwise made a part of the contract with such holders of notes or bonds) relating to cooperation in aid of housing projects, payments to public bodies in the state, furnishing of municipal services and facilities and the elimination of unsafe and unsanitary dwellings, and contracts for the construction of housing projects, together with all proceedings, acts and things heretofore undertaken or done with reference thereto prior to July 7, 1943, are hereby validated and declared legal in all respects.
(b) All contracts, agreements, obligations, and undertakings of housing authorities entered into relating to financing or aiding in the planning, surveying, development, construction, maintenance, or operation of any housing or redevelopment project or projects or to obtaining aid therefor from the federal government, including (without limiting the generality of the foregoing) loan and annual contributions, contracts and leases with the federal government, agreements with municipalities or other public bodies (including agreements which are pledged or authorized to be pledged for the protection of the holders of any notes or bonds issued by housing authorities or which are otherwise made a part of the contracts with such holders of notes or bonds) relating to cooperation, contributions, grants, or other local participation in aid of housing or redevelopment projects, payments (if any) in lieu of taxes, furnishing of municipal services and facilities, the elimination of unsafe and unsanitary dwellings and contracts for the construction or operation of housing projects, together with all proceedings, acts and things undertaken, performed or done with reference thereto, prior to September 9, 1955, are hereby validated, ratified, confirmed, approved, and declared legal in all respects, notwithstanding any defect or irregularity therein or any want of statutory authority.
(Acts 1943, No. 465, p. 428, §2; Acts 1955, No. 555, p. 1216, §2.)
(a) All proceedings, acts and things undertaken or done prior to July 7, 1943, in or for the authorization, issuance, execution, and delivery of notes and bonds by housing authorities for the purpose of financing or aiding in the development or construction of a housing project or projects, and all notes and bonds issued by housing authorities prior to July 7, 1943, are hereby validated and declared legal in all respects.
(b) All proceedings, acts and things undertaken, performed or done prior to September 9, 1955, in or for the authorization, issuance, sale, execution, and delivery of notes and bonds by housing authorities for the purpose of financing or aiding in the undertaking of a housing or redevelopment project or projects, and all notes and bonds issued by housing authorities prior to September 9, 1955, are hereby validated, ratified, confirmed, approved, and declared legal in all respects, notwithstanding any defect or irregularity therein or any want of statutory authority.
(Acts 1943, No. 465, p. 428, §3; Acts 1955, No. 555, p. 1216, §3.)
(a) “Public housing” as used in this section shall mean housing which is constructed, operated, or maintained by the state, a county, a municipal corporation, a housing authority or by any other political subdivision or public corporation of the state or its subdivisions.
(b) Any person who obtains or attempts to obtain, or who establishes or attempts to establish, eligibility for and any person who knowingly or intentionally aids or abets such person in obtaining or attempting to obtain, or in establishing or attempting to establish eligibility for, any public housing, or a reduction in public housing rental charges, or any rent subsidy, to which such person would not otherwise be entitled, by means of a false statement, failure to disclose information, impersonation or other fraudulent scheme or device shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than $300.00 nor more than $500.00 or be punished at hard labor for the county not to exceed 60 days, or may be both fined and imprisoned, at the discretion of the court.
(c) Notice of this section shall be printed on the application form for public housing and shall be displayed in the office where such application is made.
(Acts 1980, No. 80-627, p. 1084.)
This article may be referred to as the Housing Authorities Law.
(Acts 1935, No. 56, p. 126.)
It is hereby declared that unsanitary or unsafe dwelling and public school accommodations exist in various cities of the state and that such unsafe or unsanitary conditions arise from overcrowding and concentration of population, the obsolete and poor condition of the buildings, improper planning, excessive land coverage, lack of proper light, air and space, unsanitary design and arrangement, lack of proper facilities, and the existence of conditions which endanger life or property by fire and other causes; that in all such cities persons of low income are forced to reside in unsanitary or unsafe dwelling accommodations; that in various cities of the state there is a lack of safe or sanitary dwelling and public school accommodations available to all the inhabitants thereof and that consequently persons of low income are forced to occupy overcrowded and congested dwelling accommodations; that these conditions cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals, and welfare of the citizens of the state and impair economic values; that the aforesaid conditions also exist in certain areas surrounding such cities; that these conditions cannot be remedied by the ordinary operations of private enterprises; that the clearance, replanning, and reconstruction of the areas in which unsanitary or unsafe housing conditions exist and the provision of safe, sanitary, and uncongested dwelling accommodations at such rentals that persons who now live in unsafe or unsanitary or congested dwelling accommodations can afford to live in safe, sanitary, and uncongested dwelling accommodations, are public uses and purposes for which public money may be spent and private property acquired; and that it is in the public interest that work on such projects be instituted as soon as possible in order to relieve unemployment which constitutes an emergency. The necessity in the public interest for this article is hereby declared as a matter of legislative determination.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §5.)
For the purposes of this article, the following terms have the following meanings:
(1) AUTHORITY or HOUSING AUTHORITY. A public body organized as a body corporate and politic in accordance with the provisions of this article for the purposes, with the powers, and subject to the restrictions set forth in this article.
(2) BONDS. Any bonds, interim certificates, notes, debentures, warrants, or other obligations of the authority issued pursuant to this article.
(3) CITY. Any municipality in this state.
(4) CITY CLERK and MAYOR. The clerk, and the mayor or president of the board of commissioners, respectively, of the city, or the officers charged with the duties customarily imposed on the clerk and mayor, respectively.
(5) COMMISSIONER. One of the members of an authority appointed in accordance with the provisions of this article.
(6) COMMUNITY FACILITIES. Real and personal property and buildings and equipment for recreational or social assemblies; for educational, health, or welfare purposes; and for necessary utilities, when designed primarily for the benefit and use of the occupants of the dwelling accommodations.
(7) CONTRACT. Any agreement of an authority with or for the benefit of an obligee whether contained in a resolution, trust indenture, mortgage, lease, bond, or other instrument.
(8) COUNCIL. The legislative body, council, board of commissioners, or other body charged with governing a municipality.
(9) FEDERAL GOVERNMENT. The United States of America, the United States Department of Housing and Urban Development, or any agency, instrumentality, corporate or otherwise, of the United States of America.
(10) GOVERNMENT. The state and federal governments and any subdivision, agency, or instrumentality, corporate or otherwise, of either of them.
(11) HOUSING PROJECT. All real and personal property, buildings and improvements, stores, offices, public school buildings, lands for farming and gardening, and community facilities acquired or constructed or to be acquired or constructed pursuant to a single plan of undertaking to demolish, clear, remove, alter or repair unsanitary or unsafe housing, or to provide dwelling accommodations at rentals within the means of persons of low income. The term may also be applied to the planning of the buildings and improvements; the acquisition of property; the demolition of existing structures; the construction, reconstruction, alteration and repair of the improvements; and all other work in connection therewith.
(12) MIXED-USE PROJECT. Any development project that provides more than one use or purpose within a shared building or development and that may include any combination of housing, lodging, office, retail, medical, recreational, commercial, governmental, industrial, or other components.
(13) MORTGAGES. Deeds of trust, mortgages, building and loan contracts, or other instruments conveying real or personal property as security for bonds and conferring a right to foreclose and cause a sale thereof.
(14) OBLIGEE OF THE AUTHORITY or OBLIGEE. Any bondholder, trustee or trustees for any bondholders, any lessor demising property to the authority used in connection with a housing project or any assignee or assignees of such lessor’s interest, or any part thereof, and the United States of America, when it is a party to any contract with the authority.
(15) PERSONS OF LOW INCOME. Individuals receiving less than the income determined by the authority as the amount individuals must receive to enable them to pay the rent necessary to secure safe, sanitary, and uncongested dwelling accommodations, other than dwelling accommodations provided by the authority or any cities, within the boundaries of the authority. Such determinations by the authority shall be binding and conclusive for all purposes of this article.
(16) REAL PROPERTY. Lands, lands under water, structures and any and all easements, franchises and incorporeal hereditaments and every estate and right therein, legal and equitable, including terms for years and liens by way of judgment, mortgage, or otherwise.
(17) STATE. The State of Alabama.
(18) TRUST INDENTURE. Instruments pledging the revenues of real or personal properties but not conveying such properties conferring a right to foreclose and cause a sale thereof.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §6; Act 2025-339, §1.)
Any 25 residents of a city or of the area within 10 miles from the territorial boundaries thereof may file a petition with the city clerk setting forth that there is a need for an authority to function in the city and the surrounding area. Upon the filing of such a petition the city clerk shall give notice of the time, place and purpose of a public hearing at which the council will determine the need for an authority in the city and surrounding area. Such notice shall be given at the city’s expense by publishing a notice, at least 10 days preceding the day on which the hearing is to be held, in a newspaper having a general circulation in the city and said surrounding area or, if there be no such newspaper, by posting such a notice in at least three public places within the city, at least 10 days preceding the day on which the hearing is to be held. Upon the date fixed for said hearing, held upon notice as provided in this section, an opportunity to be heard shall be granted to all residents and taxpayers of the city and surrounding area and to all other interested persons. After such a hearing, the council shall determine whether unsanitary or unsafe inhabited dwelling accommodations exist in the city and said surrounding area or whether there is a lack of safe or sanitary dwelling accommodations in the city and said surrounding area available for the inhabitants thereof. In determining whether dwelling accommodations are unsafe or unsanitary, the council shall take into consideration the following: The physical condition and age of the buildings; the degree of overcrowding; the percentage of land coverage; the light and air available to the inhabitants of such dwelling accommodations; the size and arrangement of the rooms; the sanitary facilities; and the extent to which conditions exist in such buildings which endanger life or property by fire or other causes. If it shall determine that either or both of the above enumerated conditions exist, the council shall adopt a resolution so finding, which need not go into any detail other than the mere finding. Such resolution may be adopted at the meeting at which it is introduced by a vote of a majority of the members of the council present at such meeting. Such resolution shall take effect immediately and shall not be laid over or published or posted. The council shall promptly notify the mayor who shall thereupon appoint, as provided in this article, five commissioners to act as an authority. Said commission shall be a public body and a body corporate and politic upon the completion of the following proceedings: The commissioners shall present to the Secretary of the State of Alabama, an application signed by them, which shall set forth, without any detail other than the mere recital, that a notice has been given and public hearing has been held as aforesaid, that the council made the aforesaid determination after such hearing and that the mayor has appointed them as commissioners; the name and official residence of each of the commissioners, together with a certified copy of the appointment evidencing their right to office, the date and place of their induction into and taking of the oath of office and their desire that the housing authority become a public body and a body corporate and politic under this article; the term of office of each of the commissioners and the place where, if any, the official appointment of each of said members is kept of record; the name which is proposed for the corporation; the location of the principal office of the proposed corporation; and any other matter relating to the incorporation which the commissioners might choose to insert not inconsistent with the Constitution and laws of the State of Alabama. The application shall be subscribed and sworn to by each of said commissioners before an officer authorized by the laws of the State of Alabama to take and certify oaths, who shall certify upon the application that he personally knows the commissioners and knows them to be the officers as asserted in the application, and that each subscribed and swore thereto in the officer’s presence. The Secretary of State shall examine the application and if he finds that the name proposed for the corporation is not identical with that of a person or of any other corporation of the state or so nearly similar as to lead to confusion and uncertainty, he shall receive and file it and shall record it in an appropriate book of record in his office. When the application has been made, filed and recorded, as provided in this section, the authority shall constitute a public body and a body corporate and politic under the name proposed in the application. The Secretary of State shall make and issue to the said commissioners a certificate of incorporation pursuant to this article, under the seal of the state, and shall record the same with the application. The boundaries of such authority shall include said city and the area within 10 miles from the territorial boundaries of said city, but in no event shall it include the whole or a part of any other city nor any area included within the boundaries of another authority. In case an area lies within 10 miles of the boundaries of more than one city, such area shall be deemed to be within the boundaries of the authority embracing such area which was first established, all priorities to be determined on the basis of the time of the issuance of the aforesaid certificates by the Secretary of State. If the council, after a hearing as provided in this section, shall determine that neither of the above enumerated conditions exist, it shall adopt a resolution denying the petition. After three months shall have expired from the date of the denial of any such petition, subsequent petitions may be filed, as provided in this section, and new hearings and determinations made thereon. In any civil action or proceeding involving the validity or enforcement of, or relating to any contract of the authority, the authority shall be conclusively deemed to have been established in accordance with the provisions of this article upon proof of the issuance of the aforesaid certificate by the Secretary of State. A copy of such certificate, duly certified by the Secretary of State, shall be admissible in evidence in any such civil action or proceeding, and shall be conclusive proof of the filing and contents thereof. Nothing contained in this section shall be construed as affecting the boundaries heretofore established for any housing authority.
(Acts 1935, No. 56, p. 126; Acts 1935, No. 445, p. 947; Code 1940, T. 25, §7.)
(a) Except as provided in subsection (b), an authority shall consist of five commissioners appointed by the mayor, who shall designate the first chair. None of the commissioners may be city officials. The commissioners who are first appointed shall be designated by the mayor to serve for terms of one, two, three, four, and five years, respectively, from the date of their appointment. Thereafter, the term of office shall be five years. A commissioner shall hold office until his or her successor has been appointed and has qualified. Vacancies shall be filled for the unexpired term. Three commissioners shall constitute a quorum. The mayor shall file with the city clerk a certificate of the appointment or reappointment of any commissioner and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner. A commissioner shall receive no compensation for his or her services but he or she shall be entitled to the necessary expenses including traveling expenses incurred in the discharge of his or her duties. However, commissioners serving on the authority board located in any Class 7 municipality, as defined in Section 11-40-12, may receive such compensation as set by the council. This compensation is not mandatory and the amount and whether or not such compensation is to be paid is within the discretion of the council. The authority may, in its discretion, refuse to pay any compensation authorized by the council in such Class 7 municipalities. When the office of the first chair of the authority becomes vacant, the authority shall select a chair from among its members. An authority shall select from among its members a vice-chair, and it may employ a secretary, who shall be executive director, technical experts, attorneys and such other officers, agents, and employees, permanent and temporary, as it may require and shall determine their qualifications, duties, and compensation. An authority may delegate to one or more of its agents or employees such power or duties as it may deem proper.
(b) Notwithstanding subsection (a), a housing authority of a Class 5 municipality having the mayor/commission/city manager form of government organized under Chapter 44E of Title 11, shall consist of seven members appointed by the mayor. The terms of office of the two additional members shall be staggered with one member appointed for five years. Thereafter, the term of all members shall be five years. Four members shall constitute a quorum.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §8; Acts 1981, No. 81-807, p. 1433; Act 2018-557, §1.)
To the extent required by federal law, one member of a municipal housing authority shall be a resident of public housing or a recipient of housing assistance in a Section 8 tenant-based program of the housing authority. If the commissioner ceases to reside in public housing or ceases to receive housing assistance as required by federal law, the commissioner shall be deemed to have resigned from the authority and the appointing authority shall appoint a new member meeting the requirements of this section for the remainder of the term of the former member.
(Act 2010-714, p. 1763, §1.)
No commissioner or employee of an authority shall acquire any interest, direct or indirect, in any housing project or in any property included or planned to be included in any project, nor shall he have any interest, direct or indirect, in any contract or proposed contract for materials or services to be furnished or used in connection with any housing project. If any commissioner or employee of an authority owns or controls an interest, direct or indirect, in any property included or planned to be included in any housing project, he shall immediately disclose the same in writing to the authority, and such disclosure shall be entered upon the minutes of the authority. Failure to so disclose such interest shall constitute misconduct in office. However, no provision of this section shall be deemed to prohibit any bank, otherwise qualified, an officer, stockholder or employee of which is a commissioner of a local housing authority, from serving such housing authority as a depository bank or fiscal agent. Nothing contained in this section shall prevent commissioners of housing authorities of cities or towns of less than 2,500 population, according to the last or any subsequent decennial census of the United States, from entering into contracts to supply materials or services to be furnished or used in connection with said housing project, provided such contract is entered into as the result of a competitive bid submitted on an invitation advertised for not less than three days.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §10; Acts 1951, No. 776, p. 1372.)
(a) An authority shall constitute a public body and a body corporate and politic exercising public powers having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this article, including the following powers in addition to others granted in this article:
(1) To investigate living, dwelling, or housing conditions and the means and methods of improving the conditions.
(2) To determine where unsafe or unsanitary dwelling, public school, or housing conditions exist.
(3) To study and make recommendations concerning the plan of any city located within its boundaries related to the problem of clearing, replanning, and reconstruction of areas in which unsafe or unsanitary dwelling, public school, or housing conditions exist; the provision of dwelling accommodations for persons of low income; or cooperation with any city or regional planning agency.
(4) To prepare, carry out, or operate housing projects.
(5) To provide for the construction, reconstruction, improvement, alteration, or repair of any housing project or any part of a housing project.
(6) To take over by purchase, lease, or otherwise any housing project undertaken by any government or by any city located within its boundaries.
(7) To manage, as agent of any city located within its boundaries, any housing project constructed or owned by a city.
(8) To act as agent for the federal government in connection with the acquisition, construction, operation, or management of a housing project or any part of a housing project.
(9) To arrange with any city located within its boundaries or with any other government for: (i) the furnishing, planning, replanning, or opening or closing of streets, roads, roadways, alleys, places, or facilities; (ii) the acquisition by a city or other government of property, options, or property rights; or (iii) the furnishing of property or services in connection with a project.
(10) To lease or rent any of the dwellings, other accommodations, lands, buildings, structures, or facilities embraced in any housing project or community facility and to establish or revise rents or charges.
(11) To enter any building or property in order to conduct investigations or to make surveys or soundings.
(12) To purchase, lease, obtain options upon, acquire by eminent domain, gift, grant, bequest, or devise any property, real or personal, or any interest in property from any entity.
(13) To sell, exchange, transfer, assign, or pledge any property, real or personal, or any interest in property to any entity.
(14) To own, hold, clear, or improve property.
(15) To pay over to the city in which the authority is organized all or any part of the proceeds received from the sale of any real or personal property; provided, however, that an authority may pay over the proceeds to the city in which it is organized only in the manner and to the extent that the payment will not violate the terms of any then existing contract to which the authority is a party; and, provided further, that an authority shall have no power to pay over any part of the proceeds derived from the sale of any real or personal property acquired in connection with a redevelopment project pursuant to Chapter 2.
(16) To insure or provide for the insurance of the property or operations of the authority against risks as the authority may deem advisable.
(17) To procure insurance or guarantees from the federal government of the payment of any debts, or parts of debts, secured by mortgages made or held by the authority on any property included in any housing project.
(18) To borrow money upon its bonds, notes, warrants, debentures, or other evidences of indebtedness, and to secure the same by pledges of its revenues, and, subject to the limitations imposed by this article, by mortgages upon property held or to be held by it, or in any other manner.
(19) In connection with any loan, to agree to limitations upon its right to dispose of any housing project or part of a housing project or to undertake additional housing projects.
(20) In connection with any loan by a government, to agree to limitations upon the exercise of any powers conferred upon the authority by this article.
(21) To invest any funds held in reserves, sinking funds, or any funds not required for immediate disbursement in property or securities in which savings banks may legally invest funds subject to their control.
(22) To sue and be sued.
(23) To have a seal and to alter the seal.
(24) To have perpetual succession.
(25) To make and execute contracts or other instruments necessary or convenient to the exercise of the powers of the authority.
(26) To make, amend, or repeal bylaws, rules, or regulations not inconsistent with this article, to carry into effect the powers or purposes of the authority.
(27) To conduct examinations or investigations, to hear testimony, or to take proof under oath, at public or private hearings, on any matter material for its information.
(28) To issue subpoenas requiring the attendance of witnesses or the production of books or papers, or to issue commissions for the examination of witnesses who are out of the state or unable to attend before the authority or excused from attendance.
(29) To make available to any agencies, boards, or commissions charged with the duty of abating nuisances or demolishing unsafe or unsanitary structures within the authority’s territorial limits its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety, or welfare.
(30) To operate, lease, convey, or otherwise manage any housing project or community facility upon terms the authority deems appropriate, useful, or expedient, regardless of who owns or who will own or acquire the project or facility.
(31) To participate in any lawful form of business organization that is involved in the development or operational activities of any buildings, structures, facilities, or other improvements constituting a housing project, community facility, or mixed-use project which the board of directors of the authority determines are appropriate, useful, or expedient to the authority’s purposes. An authority may appoint an individual to a governing body or to enter into a contract or other agreement with another party for the development, operation, design, marketing, maintenance, financing, leasing, or use of any housing project, community facility, or mixed-use project upon terms the authority’s board of directors determines are appropriate, useful, or expedient to the authority’s purposes. Any determination by the board of directors shall be conclusive.
(32) To make or arrange for loans, contributions to capital, or other debt or equity financing for the activities of any lawful business organization of which the authority is a member; to guarantee loans, issue bonds, or incur other forms of indebtedness on behalf of any lawful business organization of which the authority is a member; or to loan funds to other entities upon terms the authority determines are appropriate, useful, or expedient for the authority’s purposes. Any determination by the board of directors shall be conclusive. A business organization, affiliate, or subsidiary not wholly owned by the authority, or a partnership entered into or created by the authority with a private business entity, shall not have the power of eminent domain.
(33) To create, establish, acquire, operate, or support for-profit or nonprofit subsidiaries or affiliates to assist the authority in fulfilling its purposes.
(34) To create, establish, or support other nonaffiliated lawful business organizations that further the authority’s purposes.
(35) To accomplish or facilitate the creation, establishment, acquisition, development, operation, or support of any subsidiary, affiliate, or other nonaffiliated lawful business organization by means of loans of funds, leases of real or personal property, gifts or grants of funds, or guarantees of indebtedness or contractual performance of subsidiaries, affiliates, or nonaffiliated public or private parties.
(36) To enter contracts, agreements, or understandings with any other party, including, but not limited to, any of the following:
a. Design-build, design-build-operate, design-build-own-operate, design-build-own-operate-maintain, design-build-finance-operate-maintain, or other similar arrangements or agreements pursuant to which the design, right-of-way acquisition, relocation of structures or utilities, construction, financing, ownership, management, maintenance, or operation of a housing project or community facility is accomplished by or on behalf of the authority. To the extent that an authority is using any state or local public funds to pay for goods or services in connection with this paragraph, the authority shall comply with the provisions of Title 39, as applicable.
b. Leases, licenses, franchises, concessions, or other agreements for the development, operation, management, financing, or undertaking of all or any part of a housing project or community facility of or on behalf of the authority.
(37) To do all things necessary or convenient to carry out the powers given in this article.
(b) Any of the investigations or examinations provided for in this article may be conducted by the authority; by a committee appointed by the authority consisting of one or more commissioners; by counsel; or by an officer or employee specifically authorized by the authority. Any commissioner, counsel, or other person designated by the authority to conduct an investigation or examination shall have the power to administer oaths, take affidavits, or issue subpoenas or commissions.
(c)(1) An authority may exercise all of the powers conferred upon it in this article either generally, or with respect to any specific housing project or community facility, through or by an agent or agents which it may designate, including any lawful form of business organization that is or may be formed under the laws of this state, and for such purposes an authority may cause any lawful form of business organization to be formed under the laws of this state or may acquire equity interest in any lawful form of business organization.
(2) Any corporate agent that is solely owned by the authority or its nominee or nominees, to the extent permitted by law, may exercise any of the powers conferred upon the authority in this article.
(3) Any corporate agent established under this section that satisfies each of the following criteria shall constitute a governmental entity under Chapter 93 of Title 11, and any suits in tort against the agent shall be subject to the limitations and provisions of Chapter 93 of Title 11, as applicable to each corporate agent whose assets, operations, and management are legally and effectively controlled by the housing authority and through which the housing authority’s functions or policies are implemented:
a. The housing authority’s board of commissioners constitutes all of the board of directors of the corporate agent.
b. The housing authority’s executive director serves as the president of the corporate agent.
c. The organizational documents of the corporate agent contain provisions that in the event of a change in the controlling interest of the corporate agent, all public housing assets of the corporate agent are returned to the housing authority.
d. The sole purpose for which the corporate agent is formed and authorized is to develop, own, manage, operate, or maintain the housing authority’s real property that serves as dwelling accommodations for persons of low income or as a community facility, including any real property the housing authority transfers to the corporate agent for the aforementioned purpose.
(d) In addition to all of the other powers conferred upon it in this section, an authority may do all things necessary and convenient to carry out the power expressly given in this article. No provisions with respect to the acquisition, operation, or disposition of property by other public bodies shall be applicable to an authority, unless specifically provided by law.
(e) Any previous creation, establishment, incorporation, or formation by any authority of any business entity wholly-owned by the authority, together with all proceedings, acts, or other things undertaken, performed, or done by the entity prior to June 1, 2025, are validated, ratified, confirmed, approved, and declared legal in all respects.
(f) To the extent that an authority is using any state or local funds, evaluation criteria for a contract procured pursuant to this section shall be made in compliance with Title 39.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §12; Acts 1953, No. 590, p. 835; Act 2017-315, p. 552, §1; Act 2025-339, §1.)
(a) The authority may acquire by eminent domain any property, real or personal, which it may deem necessary to carry out the purposes of this article, after the adoption by it of a resolution declaring that the acquisition of the property described therein is in the public interest and necessary for public use. The authority may exercise the power of eminent domain pursuant to the provisions of Title 18. Property already devoted to a public use may be acquired; provided, that no property belonging to any city within the boundaries of the authority, or to any government, may be acquired without its consent, and that no property belonging to a public utility corporation may be acquired without the approval of the Public Service Commission or other body having regulatory power over such corporation.
(b) Notwithstanding subsection (a), a public housing authority in a Class 3 municipality, except a Class 3 municipality organized under Act 618 of the 1973 Regular Session, shall not exercise the power of eminent domain except with approval of the governing body of the municipality. The authority may purchase real property only after notice of intent to purchase the property is given to surrounding property owners as provided herein. Notice of the proposed purchase in the Class 3 municipalities, except a Class 3 municipality organized under Act 618 of the 1973 Regular Session, shall be published in a newspaper of general circulation in the municipality for a period of three consecutive weeks prior to execution of any binding agreement to purchase the property.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §15; Act 2012-411, p. 1121, §1.)
The authority may acquire by purchase, or by the exercise of its power of eminent domain as provided in Section 24-1-28, any property, real or personal, which it may deem necessary for any housing project being constructed or operated by a government. The authority upon such terms and conditions, and for such consideration as it shall determine, may convey title or deliver possession of such property, so acquired or purchased, to such government for use in connection with such housing project.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §16.)
All housing projects of an authority shall be subject to the planning, zoning, sanitary and building laws, ordinances and regulations applicable to the locality in which the housing project is situated.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §17.)
An authority shall have power to issue bonds, from time to time, in its discretion, for any of its corporate purposes. An authority shall also have power to issue or exchange refunding bonds for the purpose of paying, retiring, extending or renewing bonds previously issued by it. An authority may issue such types of bonds as it may determine, including, without limiting the generality of the foregoing, bonds on which the principal and interest are payable from income and revenues of the authority and from grants or contributions from the federal government or some other source. Such income and revenues securing the bonds may be:
Any such bonds may be additionally secured by a pledge of any income or revenues of the authority, or a mortgage of any housing project, projects or other property of the authority. Neither the commissioners of an authority nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance thereof. The bonds and other obligations of an authority (and such bonds and obligations shall so state on their face) shall not be a debt of the city, the state or any political subdivision thereof, and neither the city, nor the state or any political subdivision thereof, shall be liable thereon, nor in any event shall such bonds or obligations be payable out of any funds or properties other than those of said authority. The bonds shall not constitute an indebtedness within the meaning of any constitutional, statutory or charter debt limitation or restriction.
(Acts 1935, No. 56, p. 126; Acts 1939, No. 148, p. 219; Code 1940, T. 25, §18.)
The bonds of the authority shall be authorized by its resolution and shall be issued in one or more series and shall bear such date or dates, mature at such time or times, not exceeding 60 years from their respective dates, bear interest at such rate or rates, per annum payable at the time or times, be in such denominations, which may be made interchangeable, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, as such resolution or its trust indenture or mortgage may provide. The bonds shall be sold by public or private sale as determined by the authority. Any public sale of bonds shall be conducted after notice published, at least 10 days prior to the sale in a newspaper published in the city in which the authority was incorporated to serve and in a financial newspaper published in the City of New York, New York, or posted electronically on a website or other electronic or Internet service reasonably expected to be available to potential purchasers of the bonds. The bonds may be sold at such price or prices as the authority shall determine. Pending the authorization, preparation, execution or delivery of definitive bonds the authority may issue interim certificates, or other temporary obligations to the purchaser of such bonds. Such interim certificates, or other temporary obligations, shall be in such form, contain such terms, conditions and provisions, bear such date or dates and evidence such agreements relating to their discharge or payment or the delivery of definitive bonds as the authority may by resolution, trust indenture or mortgage determine. In case any of the officers whose signatures appear on any bonds or coupons shall cease to be such officers before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if they had remained in office until such delivery. The authority shall have power, out of any funds available therefor, to purchase any bonds issued by it at a price not more than the principal amount thereof and the accrued interest. All bonds so purchased shall be cancelled. This section shall not apply to the redemption of bonds. Any provision of any law to the contrary notwithstanding, any bonds, interim certificates or other obligations issued pursuant to this article are hereby declared to be negotiable instruments.
(Acts 1935, No. 56, p. 126; Acts 1939, No. 148, p. 219; Code 1940, T. 25, §19; Acts 1970, Ex. Sess., No. 2, p. 2602; Act 2006-188, p. 265, §1; Act 2013-332, p. 1163, §1.)
In connection with the issuance of bonds or the incurring of any obligation under a lease and in order to secure the payment of such bonds or obligations, the authority shall have power:
(1) To pledge by resolution, trust indenture, mortgage, subject to the limitations hereinafter imposed, or other contract all or any part of its rents, fees or revenues.
(2) To covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired, or against permitting or suffering any lien thereon.
(3) To covenant with respect to limitations on its right to sell, lease or otherwise dispose of any housing project, or any part thereof, or with respect to limitations on its right to undertake additional housing projects.
(4) To covenant against pledging all or any part of its rents, fees and revenues to which its right then exists, or the right to which may thereafter come into existence, or against permitting or suffering any lien thereon.
(5) To provide for the release of property, rents, fees and revenues from any pledge or mortgage, and to reserve rights and powers in, or the right to dispose of, property which is subject to a pledge or mortgage.
(6) To covenant as to the bonds to be issued pursuant to any resolution, trust indenture, mortgage or other instrument and as to the issuance of such bonds in escrow, or otherwise, and as to the use and disposition of the proceeds thereof.
(7) To covenant as to what other, or additional, debt may be incurred by it.
(8) To provide for the terms, form, registration, exchange, execution and authentication of bonds.
(9) To provide for the replacement of lost, destroyed or mutilated bonds.
(10) To covenant that the authority warrants the title to the premises.
(11) To covenant as to the rents and fees to be charged, the amount, calculated as may be determined, to be raised each year or other period of time by rents, fees and other revenues and as to the use and disposition to be made thereof.
(12) To covenant as to the use of any or all of its property, real or personal.
(13) To create or to authorize the creation of special funds in which there shall be segregated the proceeds of any loan or grant; all of the rents, fees and revenues of any housing project or projects or parts thereof; any moneys held for the payment of the costs of operation and maintenance of any such housing projects or as a reserve for the meeting of contingencies in the operation and maintenance thereof; any moneys held for the payment of the principal and interest on its bonds or the sums due under its leases or as a reserve for such payments; and any moneys held for any other reserves or contingencies, and to covenant as to the use and disposal of the moneys held in such funds.
(14) To redeem the bonds, to covenant for their redemption and to provide the terms and conditions thereof.
(15) To covenant against extending the time for the payment of its bonds or interest thereon, directly or indirectly, by any means or in any manner.
(16) To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given.
(17) To covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys.
(18) To vest in an obligee of the authority the right, in the event of the failure of the authority to observe or perform any covenant on its part to be kept or performed, to cure any such default and to advance any moneys necessary for such purpose, and the moneys so advanced may be made an additional obligation of the authority with such interest, security and priority as may be provided in any trust indenture, mortgage, lease or contract of the authority with reference thereto.
(19) To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.
(20) To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation.
(21) To covenant to surrender possession of all or any part of any housing project or projects upon the happening of an event of default, as defined in the contract, and to vest in an obligee the right, without judicial proceedings, to take possession and to use, operate, manage and control such housing projects, or any part thereof, and to collect and receive all rents, fees and revenues arising therefrom in the same manner as the authority itself might do and to dispose of the moneys collected in accordance with the agreement of the authority with such obligee.
(22) To vest in a trustee or trustees the right to enforce any covenant made to secure, to pay or, in relation to the bonds, to provide for the powers and duties of such trustee or trustees, to limit liabilities thereof and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant.
(23) To make covenants, other than in addition to the covenants expressly authorized in this section of like or different character.
(24) To execute all instruments necessary or convenient in the exercise of the powers granted in this section or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified, as the government or any purchaser of the bonds of the authority may reasonably require.
(25) To make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or, in the absolute discretion of the authority, tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated in this section, it being the intent in this section to give the authority power to do all things in the issuance of bonds, in the provisions for their security, that are not inconsistent with the Constitution of the State of Alabama and no consent or approval of any judge or court shall be required thereof; provided, however, that the authority shall have no power to mortgage all or any part of its property, real or personal, except as provided in this article.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §20.)
In addition to the powers conferred upon the authority by other provisions of this article, the authority is empowered to borrow money or accept grants from the federal government for or in aid of the construction of any housing project which such authority is authorized by this article to undertake, to take over any land acquired by the federal government for the construction of a housing project, to take over or lease or manage any housing project constructed or owned by the federal government and, to this end, to enter into such contracts, mortgages, trust indentures, leases, or other agreements as the federal government may require, including agreements that the federal government shall have the right to supervise and approve the construction, maintenance, and operation of such housing project. It is the purpose and intent of this article to authorize every authority to do any and all things necessary to secure the financial aid and the cooperation of the federal government in the construction, maintenance, and operation of any housing project which the authority is empowered by this article to undertake.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §27.)
In connection with any project financed in whole or in part by a government, the authority shall also have power to mortgage all or any part of its property, real or personal, then owned or thereafter acquired, and thereby:
(1) To vest in a government the right, upon the happening of an event of default, as defined in such mortgage, to foreclose such mortgage through judicial proceedings or through the exercise of a power of sale without judicial proceedings, so long as a government shall be the holder of any of the bonds secured by such mortgage.
(2) To vest in a trustee or trustees the right, upon the happening of an event of default, as defined in such mortgage, to foreclose such mortgage through judicial proceedings or through the exercise of a power of sale without judicial proceedings, but only with the consent of the government which aided in financing the housing project involved.
(3) To vest in other obligees the right to foreclose such mortgage by judicial proceedings, but only with the consent of the government which aided in financing the project involved.
(4) To vest in an obligee, including a government, the right, in foreclosing any mortgage as provided in this section, to foreclose such mortgage as to all or such part or parts of the property covered thereby as such obligee, in its absolute discretion, shall elect. The institution, prosecution, and conclusion of any such foreclosure proceedings or the sale of any such parts of the mortgaged property shall not affect in any manner or to any extent the lien of the mortgage on the parts of the mortgaged property not included in such proceedings or not sold as provided in this section.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §21.)
Notwithstanding any restrictions on investments contained in any laws of this state, the state and all public officers, municipal corporations, political subdivisions other than county and public bodies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds or other obligations issued by a housing authority pursuant to this article or issued by any public housing authority or agency in the United States, when such bonds or other obligations are secured by a pledge of annual contributions to be paid by the United States government, or any agency thereof, and the amount of such actual contribution contracted to be paid shall be sufficient to assure the payment by such public housing authority or agency, of both principal and interest on such bonds as the same shall mature, and such bonds and other obligations shall be authorized security for all public deposits, it being the purpose of this section to authorize any persons, firms, corporations, associations, political subdivisions, bodies and officers, public or private, to use any funds owned or controlled by them, including, but not limited to, sinking, insurance, investment, retirement, compensation, pension, and trust funds, held on deposit, for the purchase of any such bonds and funds or other obligations; provided, however, that nothing contained in this section shall be construed as relieving any person, firm, or corporation from any duty of exercising reasonable care in selecting securities.
(Acts 1939, No. 570, p. 900; Code 1940, T. 25, §30.)
An obligee of the authority shall have the right, in addition to all other rights which may be conferred on such obligee, subject only to any contractual restrictions binding upon such obligee:
(1) By mandamus, or civil action, both of which may be joined in one action, to compel the authority, and the commissioners, officers, agents, or employees thereof, to perform each and every term, provision, and covenant contained in any contract of the authority, and to require the carrying out of any or all covenants and agreements of the authority and the fulfillment of all duties imposed upon the authority by this article.
(2) By civil action to enjoin any acts or things which may be unlawful or the violation of any of the rights of such obligee of the authority.
(3) By civil action in any court of competent jurisdiction to cause possession of any housing project, or any part thereof, to be surrendered to any obligee having the right to such possession pursuant to any contract of the authority.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §22.)
Any authority shall have power by its trust indenture, mortgage, lease, or other contract to confer upon any obligee holding, or representing, a specified amount in bonds, lease, or other obligations, the right upon the happening of an “event of default” as defined in such instrument:
(1) By civil action in any court of competent jurisdiction to obtain the appointment of a receiver of any housing project of the authority, or any part or parts thereof. If such receiver be appointed, he may enter and take possession of such housing project or any part or parts thereof, and operate and maintain same, and collect and receive all fees, rents, revenues, or other charges thereafter arising therefrom in the same manner as the authority itself might do and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligations of the authority as the court shall direct.
(2) By civil action in any court of competent jurisdiction to require the authority and the commissioners thereof to account as if it and they were the trustees of an express trust.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §23.)
All the rights and remedies conferred by this article shall be cumulative and in addition to all other rights and remedies that may be conferred upon such obligee of the authority by law or by any contract with the authority.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §24.)
No interest of the authority in any property, real or personal, shall be subject to sale by the foreclosure of a mortgage thereon, either through judicial proceedings or the exercise of a power of sale contained in such mortgage, except in the case of the mortgages provided for in Section 24-1-35. All property of the authority shall be exempt from levy and sale by virtue of an execution, or other process, to the same extent as now enjoyed by the properties of towns, cities, and counties of Alabama. No judgment against the authority shall be a charge or lien upon its property, real or personal. The provisions of this section shall not apply to or limit the right of obligees to foreclose any mortgage of the authority provided for in Section 24-1-35 and, in case of a foreclosure sale thereunder, to obtain a judgment for any deficiency due on the indebtedness secured thereby and issued on the full faith and credit of the authority. Such deficiency judgment shall be a lien and charge upon the property of the authority which may be levied on and sold by virtue of an execution or other judicial process for the purpose of satisfying such deficiency judgment.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §25.)
(a) All of the following shall be exempt from all state taxes:
(1) A municipal housing authority and the authority’s property and income.
(2) Bonds issued by the authority.
(3) Income from bonds issued by the authority.
(4) Conveyances to or from the authority.
(5) Leases, mortgages, or deeds of trust to or from the authority.
(b) An authority may be exempted from the taxes levied by a county, municipality, or other political subdivision of the state, including, but not limited to, deed taxes, mortgage taxes, license taxes, or excise taxes. The county exemption provided by this subsection shall only apply if approved by a resolution pertaining to county taxes adopted by the county commission. The municipal exemption provided by this subsection shall only apply if approved by an ordinance pertaining to municipal taxes adopted by the city council.
(c) A municipal housing authority shall be exempt from all fees, taxes, or other costs imposed by a judge of probate; provided, that with respect to any fees, taxes, or other costs otherwise payable to a county, an authority shall only be exempt if approved by a resolution adopted by the county commission.
(Act 2025-339, §2.)
Notwithstanding anything in this article to the contrary, any purchaser or purchasers at a sale of real or personal property of the authority, whether pursuant to any foreclosure of a mortgage, pursuant to judicial process or otherwise, shall obtain title subject to any contract between the authority and a government relating to the supervision by a government of the operation and maintenance of such property and the construction of improvements thereon.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §26.)
The authority may by resolution provide that all moneys deposited by it shall be secured by obligations of the United States or of the State of Alabama of a market value equal at all times to the amount of such deposits, by any securities in which savings banks may legally invest funds within their control or by an undertaking with such sureties as shall be approved by the authority faithfully to keep and pay over upon the order of the authority any such deposits and agreed interest thereon. All banks and trust companies are authorized to give any such security for such deposits.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §28.)
The authority shall at least once a year file with the mayor of the city a report of its activities for the preceding year, and shall make any recommendations with reference to any additional legislation or other action that may be necessary in order to carry out the purposes of this article.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §29.)
The authority and its commissioners shall be under a statutory duty to comply or to cause compliance strictly with all provisions of this article and the laws of the State of Alabama and, in addition thereto, with each and every term, provision, and covenant in any contract of the authority on its part to be kept or performed.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §9.)
Insofar as the provisions of this article are inconsistent with the provisions of any other law, the provisions of this article shall be controlling.
(Acts 1935, No. 56, p. 126; Code 1940, T. 25, §29.)
It is hereby declared that unsanitary or unsafe dwelling and public school accommodations exist in various counties of the state and that such unsafe or unsanitary conditions arise from overcrowding and concentration of population, the obsolete and poor condition of the buildings, improper planning, excessive land coverage, lack of proper light, air and space, unsanitary design and arrangement, lack of proper facilities, and the existence of conditions which endanger life or property by fire and other causes; that in all such counties persons of low income are forced to reside in unsanitary or unsafe dwelling accommodations; that in various counties of the state there is a lack of safe or sanitary dwelling and public school accommodations available to all the inhabitants thereof and that consequently persons of low income are forced to occupy overcrowded and congested dwelling accommodations; that these conditions cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals, and welfare of the citizens of the state and impair economic values; that these conditions cannot be remedied by the ordinary operations of private enterprises; that the clearance, replanning, and reconstruction of the areas in counties in which unsanitary or unsafe housing conditions exist and the provision of safe, sanitary, and uncongested dwelling accommodations at such rentals that persons who now live in unsafe or unsanitary or congested dwelling accommodations can afford to live in safe, sanitary, and uncongested dwelling accommodations, are public uses and purposes for which public money may be spent and private property acquired; that it is in the public interest that work on such projects be instituted as soon as possible in order to relieve unemployment which now constitutes an emergency. The necessity in the public interest for this article is hereby declared as a matter of legislative determination.
(Code 1940, T. 25, §31.)
For the purposes of this article, the following terms have the following meanings:
(1) AUTHORITY or HOUSING AUTHORITY. A public body organized as a body corporate and politic in accordance with the provisions of this article for the purposes, with the powers, and subject to the restrictions set forth in this article.
(2) BONDS. Any bonds, interim certificates, notes, debentures, warrants, or other obligations of the authority issued pursuant to this article.
(3) COMMUNITY FACILITIES. Real and personal property and buildings and equipment for recreational or social assemblies or for educational, health, or welfare purposes; and necessary utilities, when designed primarily for the benefit and use of the occupants of the dwelling accommodations.
(4) CONTRACT. Any agreement of an authority with or for the benefit of an obligee, whether contained in a resolution, trust indenture, mortgage, lease, bond, or other instrument.
(5) COUNTY. All of the county except any portion that lies within the territorial boundaries of any municipality.
(6) COUNTY COMMISSION. The governing body of any county.
(7) FEDERAL GOVERNMENT. The United States of America, the United States Department of Housing and Urban Development, or any agency or instrumentality, corporate or otherwise, of the United States of America.
(8) GOVERNMENT. The state or federal government or any subdivision, agency, or instrumentality, corporate or otherwise, of either.
(9) HOUSING COMMISSIONER. One of the members of an authority appointed in accordance with the provisions of this article.
(10) HOUSING PROJECT. All real and personal property, buildings and improvements, stores, offices, public school buildings, lands for farming and gardening, and community facilities acquired or constructed, or to be acquired or constructed, pursuant to a single plan of undertaking to demolish, clear, remove, alter, or repair unsanitary or unsafe housing or to provide urban or rural dwelling accommodations at rentals within the means of persons of low income. The term may also be applied to the planning of the buildings and improvements; the acquisition of property; the demolition of existing structures; the construction, reconstruction, alteration, and repair of the improvements; and all other work in connection therewith.
(11) MIXED-USE PROJECT. Any development project that provides more than one use or purpose within a shared building or development and that may include any combination of housing, lodging, office, retail, medical, recreational, commercial, governmental, industrial, or other components.
(12) MORTGAGE. Deeds of trust, mortgages, building and loan contracts, or other instruments conveying real or personal property as security for bonds and conferring a right to foreclose and cause a sale thereof.
(13) OBLIGEE OF THE AUTHORITY or OBLIGEE. Any bondholder, trustee, or trustees for any bondholders, any lessor demising property to the authority used in connection with a housing project or any assignee or assignees of such lessor’s interest, or any part thereof, and the United States of America, when it is a party to any contract with the authority.
(14) PERSONS OF LOW INCOME. Individuals receiving less than the incomes determined by the authority as the amount individuals must receive to enable them to pay the rent necessary to secure safe, sanitary, and uncongested dwelling accommodations, other than dwelling accommodations provided by a public housing agency or authority of the county, within the boundaries of the authority. Such determinations by the authority shall be binding and conclusive for all purposes of this article.
(15) REAL PROPERTY. Lands, lands under water, structures, and any and all easements, franchises, and incorporeal hereditaments and every estate and right therein, legal and equitable, including terms for years and liens by way of judgment, mortgage, or otherwise, but only so far as such may, from time to time, be treated as real property by the laws of Alabama applicable to other persons.
(16) STATE. The State of Alabama.
(17) TRUST INDENTURE. Instruments pledging the revenues of real or personal properties, but not conveying such properties or conferring a right to foreclose and cause a sale thereof.
(Code 1940, T. 25, §32; Act 2025-430, §1.)
Any 25 residents of a county may file a petition with the county commission setting forth that there is a need for an authority to function in the county. Upon the filing of such a petition, the county commission shall give notice of the time, place, and purpose of a public hearing at which the county commission will determine the need for an authority in the county. Such notice by the county commission shall be given at the county’s expense by publishing a notice, at least 10 days preceding the day on which the hearing is to be held, in a newspaper having a general circulation in the county or, if there be no such newspaper, by posting such a notice in at least three public places within the county at least 10 days preceding the day on which the hearing is to be held. Upon the date fixed for said hearing, held upon notice as provided in this section, an opportunity to be heard shall be granted to all residents and taxpayers of the county, and to all other interested persons. After such a hearing, the county commission shall determine whether unsanitary or unsafe inhabited dwelling accommodations exist in the county or whether there is a lack of safe or sanitary dwelling accommodations in such county available for the inhabitants thereof. In determining whether dwelling accommodations are unsafe or unsanitary, the county commission shall take into consideration the following: The physical condition and age of the buildings; the degree of overcrowding; the percentage of land coverage; the light and air available to the inhabitants of such dwelling accommodations; the size and arrangement of the rooms; the sanitary facilities; and the extent to which conditions exist in such buildings which endanger life or property by fire or other causes. If it shall determine that either or both of the above enumerated conditions exist, the county commission shall adopt a resolution so finding, which need not go into any detail other than the mere finding. Such resolution may be adopted at the meeting at which it is introduced by a vote of a majority of the members of the county commission present at such meeting. Such resolution shall take effect immediately and shall not be laid over or published or posted. After the county commission has adopted such resolution, it shall thereupon appoint, as provided in this article, five housing commissioners to act as an authority. Said county housing commission shall be a public body and a body corporate and politic upon the completion of the following proceedings: The housing commissioners shall present to the Secretary of the State of Alabama, an application signed by them, which shall set forth, without any detail other than the mere recital, that a notice has been given and public hearing has been held as aforesaid, that the county commission made the aforesaid determination after such hearing and that the county commission has appointed them as housing commissioners of the authority; the name and official residence of each of the housing commissioners, together with a certified copy of the appointment evidencing their right to office, the date and place of their induction into and taking of the oath of office and their desire that the housing authority become a public body and a body corporate and politic under this article; the term of office of each of the housing commissioners and the place where, if any, the official appointment of each of said members is kept of record; the name which is proposed for the corporation; the location of the principal office of the proposed corporation; and any other matter relating to the incorporation which the housing commissioners might choose to insert not inconsistent with the Constitution and laws of the State of Alabama. The application shall be subscribed and sworn to by each of said housing commissioners before an officer authorized by the laws of the State of Alabama to take and certify oaths, who shall certify upon the application that he personally knows the housing commissioners and knows them to be the officers as asserted in the application, and that each subscribed and swore thereto in the officer’s presence. The Secretary of State shall examine the application and if he finds that the name proposed for the corporation is not identical with that of a person or of any other corporation of the state or so nearly similar as to lead to confusion and uncertainty, he shall receive and file it and shall record it in an appropriate book of record in his office. When the application has been made, filed, and recorded, as provided in this section, the authority shall constitute a public body and a body corporate and politic under the name proposed in the application. The Secretary of State shall make and issue to the said housing commissioners, a certificate of incorporation pursuant to this article, under the seal of the state, and shall record the same with the application. The boundaries of such authority shall include all of said county, except that portion which lies within the territorial boundaries of any city or incorporated town. If the county commission, after a hearing as provided in this section, shall determine that neither of the above enumerated conditions exist, it shall adopt a resolution denying the petition. After three months shall have expired from the date of the denial of any such petition, subsequent petitions may be filed as provided in this section and new hearings and determinations made thereon. In any civil action or proceeding involving the validity or enforcement of, or relating to any contract of the authority, the authority shall be conclusively deemed to have been established in accordance with the provisions of this article upon proof of the issuance of the aforesaid certificate by the Secretary of State. A copy of such certificate, duly certified by the Secretary of State, shall be admissible in evidence in any such civil action or proceeding, and shall be conclusive proof of the filing and contents thereof. Nothing contained in this article shall be construed as affecting the boundaries previously established for any housing authority of a city or town, nor shall this article affect any provisions of law defining the boundaries of any housing authority of a city or town.
(Code 1940, T. 25, §33.)
An authority shall consist of five housing commissioners appointed by the county commission, and the county commission shall designate the first chairman. None of the housing commissioners may be county officials or county employees. The housing commissioners who are first appointed shall be designated by the county commission to serve for terms of one, two, three, four, and five years, respectively, from the date of their appointment. Thereafter, the term of office shall be five years. A housing commissioner shall hold office until his successor has been appointed and has qualified. Vacancies shall be filled for the unexpired term. Three housing commissioners shall constitute a quorum. The county commission shall record a certificate of the appointment or reappointment of any housing commissioner and such certificate shall be conclusive evidence of the due and proper appointment of such housing commissioner. A housing commissioner shall receive no compensation for his services, but he shall be entitled to the necessary expenses including traveling expenses incurred in the discharge of his duties. When the office of the first chairman of the authority becomes vacant, the authority shall select a chairman from among its members. An authority shall select from among its members a vice-chairman, and it may employ a secretary, who shall be executive director, technical experts, attorneys, and such other officers, agents and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties, and compensation; except, that none of them shall be a county, state, or municipal officer or employee, nor a partner of such, and none of them shall be, or have been for three years last past, a housing commissioner, nor the partner of a housing commissioner. An authority may delegate to one or more of its agents or employees such power or duties as it may deem proper.
(Code 1940, T. 25, §34.)
The county commission may remove a housing commissioner for inefficiency or neglect of duty or misconduct in office, but only after the housing commissioner shall have been given a copy of the charges against him, which may be made by any citizen of the county or by the county commission, at least 10 days previous to the hearing thereon, and shall have had an opportunity to be heard in person or by counsel. Any obligee of the authority may file with the county commission written charges that the authority is violating wilfully any law of the state or any term, provision, or covenant in any contract to which the authority is a party. The county commission shall give each of the housing commissioners a copy of such charges, at least 10 days previous to the hearing thereon, and an opportunity to be heard in person or by counsel and shall, within 30 days after receipt of such charges, remove any housing commissioners of the authority who shall have been found to have acquiesced in any such wilful violation. A housing commissioner shall be deemed to have acquiesced in a wilful violation by the authority of a law of this state or of any term, provision, or covenant contained in a contract to which the authority is a party, if he shall not have filed a written statement with the authority of his objections to such violation prior to the aforesaid filing or making of such charges. In the event of the removal of any housing commissioners, the county commission shall record the proceedings, together with the charges made against the housing commissioners and the findings thereon.
(Code 1940, T. 25, §37.)
(a) An authority shall constitute a public body and a body corporate and politic exercising public powers and shall have all the powers necessary or convenient to carry out and effectuate the purposes of this article, including the following powers in addition to others granted in this article:
(1) To investigate living, dwelling, or housing conditions and the means and methods of improving conditions.
(2) To determine where unsafe or unsanitary dwelling, public school, or housing conditions exist.
(3) To study and make recommendations concerning the plan of the county related to the problem of clearing, replanning, and reconstruction of areas in which unsafe or unsanitary dwelling, public school, or housing conditions exist; the provision of dwelling accommodations for persons of low income; or cooperation with the county or any regional planning agency.
(4) To prepare, carry out, or operate housing projects.
(5) To provide for the construction, reconstruction, improvement, alteration, or repair of any housing project or any part of a housing project.
(6) To take over by purchase, lease, or otherwise any housing project undertaken by any government or by the county.
(7) To manage as agent of the county any housing project constructed or owned by the county; however, an authority shall not be deemed to be acting as an agent of the county when managing a housing project not constructed or owned by the county or when managing any community facility or mixed-use project.
(8) To act as agent for the federal government in connection with the acquisition, construction, operation, or management of a housing project or any part of a housing project.
(9) To arrange with any municipality or the county or with any other government for: (i) the furnishing, planning, replanning, or opening, or closing of streets, roads, roadways, alleys, places, or facilities; (ii) the acquisition by the county or another government of property, options or property rights; or (iii) the furnishing of property or services in connection with a project.
(10) To lease or rent any of the dwellings, other accommodations, lands, buildings, structures, or facilities embraced in any housing project or community facility and to establish or revise rents or charges.
(11) To enter any building or property in order to conduct investigations or to make surveys or soundings.
(12) To purchase, lease, obtain options upon, acquire by eminent domain, gift, grant, bequest, or devise any property, real or personal, or any interest in property from any entity.
(13) To sell, exchange, transfer, assign, or pledge any property, real or personal, or any interest in property to any entity.
(14) To own, hold, clear, or improve property.
(15) To insure or provide for the insurance of the property or operations of the authority against risks as the authority may deem advisable.
(16) To procure insurance or guarantees from the federal government of the payment of any debts, or parts of debts secured by mortgages made or held by the authority on any property included in any housing project.
(17) To borrow money upon its bonds, notes, warrants, debentures, or other evidences of indebtedness and to secure the same by pledges of its revenues, and, subject to the limitations imposed by this article, by mortgages upon property held or to be held by it, or in any other manner.
(18) In connection with any loan, to agree to limitations upon its right to dispose of any housing project, or part of a housing project, or to undertake additional housing projects.
(19) In connection with any loan by a government, to agree to limitations upon the exercise of any powers conferred upon the authority by this article.
(20) To invest any funds held in reserves, sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control.
(21) To sue and be sued.
(22) To have a seal and to alter the seal.
(23) To have perpetual succession.
(24) To make and execute contracts or other instruments necessary or convenient to the exercise of the powers of the authority.
(25) To make, amend, or repeal bylaws, rules, or regulations not inconsistent with this article to carry into effect the powers or purposes of the authority.
(26) To conduct examinations or investigations, to hear testimony, or to take proof under oath, at public or private hearings, on any matter material for its information.
(27) To issue subpoenas requiring the attendance of witnesses or the production of books or papers, and to issue commissions for the examination of witnesses who are out of the state or unable to attend before the authority or excused from attendance.
(28) To make available to any agencies, boards, or commissions charged with the duty of abating nuisances or demolishing unsafe or unsanitary structures within the authority’s territorial limits its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety, or welfare.
(29) To operate, lease, convey, or otherwise manage any housing project, community facility, or mixed-use project upon terms the authority deems appropriate, useful, or expedient, regardless of who owns or will own or acquire the project or facility.
(30) To participate in any lawful form of business organization that is involved in the development or operational activities of any buildings, structures, facilities, or other improvements constituting a housing project, community facility, or mixed-use project that the board of directors of the authority determines are appropriate, useful, or expedient to the authority’s purposes. An authority may appoint an individual to a governing body or to enter into a contract or other agreement with another party for the development, operation, design, marketing, maintenance, financing, leasing, or use of any housing project, community facility, or mixed-use project upon terms the authority’s board of directors determines are appropriate, useful, or expedient to the authority’s purposes. Any determination by the board of directors shall be conclusive. A business organization, affiliate, or subsidiary not wholly owned by the authority or a partnership entered into or created by the authority with a private business entity shall not have the power of eminent domain.
(31) To make or arrange for loans, contributions to capital, or other debt or equity financing for the activities of any lawful business organization of which the authority is a member; to guarantee loans, issue bonds, or incur other forms of indebtedness on behalf of any lawful business organization of which the authority is a member; or to loan funds to other entities upon terms the authority determines are appropriate, useful, or expedient for the authority’s purposes. Any determination by the board of directors shall be conclusive. Any agreements or contracts entered into by an authority shall be subject to Section 24-1-40.
(32) To create, establish, acquire, operate, or support for profit or nonprofit subsidiaries or affiliates to assist the authority in fulfilling its purposes.
(33) To create, establish, or support other nonaffiliated lawful business organizations that further the authority’s purposes.
(34) To accomplish or facilitate the creation, establishment, acquisition, development, operation, or support of any subsidiary, affiliate, or other nonaffiliated lawful business organization by means of loans of funds, leases of real or personal property, gifts or grants of funds, or guarantees of indebtedness, or contractual performance of subsidiaries, affiliates, or nonaffiliated public or private parties.
(35) To enter contracts, agreements, or understandings with any other party, including, but not limited to, any of the following:
a. Design-build, design-build-operate, design-build-own-operate, design-build-own-operate-maintain, design-build-finance-operate-maintain, or other similar arrangements or agreements pursuant to which the design, right-of-way acquisition, relocation of structures or utilities, construction, financing, ownership, management, maintenance, or operation of a housing project or community facility is accomplished by or on behalf of the authority. To the extent that an authority is using any state or local public funds to pay for goods or services in connection with this paragraph, the authority shall comply with Title 39 as applicable.
b. Leases, licenses, franchises, concessions, or other agreements for the development, operation, management, financing, or undertaking of all or any part of a housing project or community facility on or on behalf of the authority.
(36) To do all things necessary or convenient to carry out the powers given in this article.
(b) Any of the investigations or examinations provided for in this article may be conducted by the authority; by a committee appointed by the authority consisting of one or more housing commissioners; by counsel; or by an officer or employee specifically authorized by the authority. Any housing commissioner, counsel, or other person designated by the authority to conduct an investigation or examination may administer oaths, take affidavits, or issue subpoenas or commissions.
(c)(1) An authority may exercise all of the powers conferred upon it in this article, either generally or with respect to any specific housing project or community facility, through or by an agent or agents which it may designate, including any lawful form of business organization that is or may be formed under the laws of this state, and for such purposes an authority may cause any lawful form of business organization to be formed under the laws of this state or may acquire equity interest in any lawful form of business organization.
(2) Any corporate agent that is solely owned by the authority or its nominee or nominees, to the extent permitted by law, may exercise any of the powers conferred upon the authority in this article.
(3) Any corporate agent established under this section which satisfies each of the following criteria shall constitute a governmental entity under Chapter 93 of Title 11, and any suits in torts against the agent shall be subject to the limitations and provisions of Chapter 93 of Title 11, as applicable to each corporate agent whose assets, operations, and management are legally and effectively controlled by the housing authority and through which the housing authority’s functions or policies are implemented:
a. The housing authority’s board of commissioners constitutes all of the board of directors of the corporate agent.
b. The housing authority’s executive director serves as the president of the corporate agent.
c. The organizational documents of the corporate agent contain provisions that in the event of a change in the controlling interests of the corporate agent, all public housing assets of the corporate agent are returned to the housing authority.
d. The sole purpose for which the corporate agent is formed and authorized is to develop, own, manage, operate, or maintain the housing authority’s real property that serves as dwelling accommodations for persons of low income or as a community facility, including any real property the housing authority transfers to the corporate agent for the aforementioned purpose.
(d) In addition to all of the other powers conferred upon it in this section, an authority may do all things necessary and convenient to carry out the powers expressly given in this article. No provisions with respect to the acquisition, operation, or disposition of property by other public bodies shall be applicable to an authority, unless specifically provided by law.
(e) Any previous creation, establishment, incorporation, or formation by any authority of any business entity wholly owned by the authority, together with all proceedings, acts, or other things undertaken, performed, or done by the entity prior to June 1, 2025, are validated, ratified, confirmed, approved, and declared legal in all respects.
(f) To the extent that an authority is using any state or local funds, evaluation criteria for a contract procured pursuant to this section shall be made in compliance with Title 39 as applicable.
(g) All financial obligations assumed, incurred, or issued by an authority, or by a lawful business organization of which the authority is a member, shall be solely and exclusively an obligation of the authority or the lawful business organization and shall not create a direct, indirect, or contingent obligation or pecuniary liability or general obligation, or charge against the general assets, credit, funds, property, revenues, or taxing power of the county that authorized the formation of the authority.
(h) Neither a county commission that authorized the formation of a county housing authority nor the county commission’s members or employees shall be liable in their official capacity or in a private capacity for the actions or inactions of the authority, its members, officers, employees, agents, or representatives, or for the actions or inactions of any lawful business organization of which the authority is a member.
(Code 1940, T. 25, §38; Act 2025-430, §1.)
The authority shall have the right to acquire by eminent domain any property, real or personal, which is necessary to carry out the purposes of this article, after the adoption by it of a resolution declaring that the acquisition of the property described therein is in the public interest and necessary for public use. The authority may exercise the power of eminent domain pursuant to the provisions of Title 18, and any amendments thereto, or pursuant to the provisions of any other applicable eminent domain laws of the state. Property already devoted to a public use may be acquired; provided, that no property belonging to the county or to any government may be acquired without its consent and that no property belonging to a public utility corporation may be acquired without the approval of the Public Service Commission or other body having regulatory power over such corporation.
(Code 1940, T. 25, §41.)
The authority may acquire by purchase or by the exercise of its power of eminent domain as provided in Section 24-1-67, any property, real or personal, which is necessary for any housing project being constructed or operated by a government. The authority upon such terms and conditions, and for such consideration as it shall determine, may convey title or deliver possession of such property, so acquired or purchased, to such government for use in connection with such housing project.
(Code 1940, T. 25, §42.)
All housing projects of an authority shall be subject to the planning, zoning, sanitary, and building laws, ordinances, and regulations applicable to the locality in which the housing project is situated.
(Code 1940, T. 25, §43.)
An authority shall have power to issue bonds from time to time, in its discretion, for any of its corporate purposes. An authority shall also have power to issue or exchange refunding bonds for the purpose of paying, retiring, extending, or renewing bonds previously issued by it. An authority may issue such types of bonds as it may determine, including, without limiting the generality of the foregoing, bonds on which the principal and interest are payable from income and revenues of the authority and from grants or contributions from the federal government or some other source. Such income and revenues securing the bonds may be:
Any such bonds may be additionally secured by a pledge of any income or revenues of the authority, or a mortgage of any housing project, projects, or other property of the authority. Neither the housing commissioners of an authority nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance thereof. The bonds and other obligations of an authority (and such bonds and obligations shall so state on their face) shall not be a debt of the state or any political subdivision thereof, and neither the county, nor the state, or any political subdivision thereof, shall be liable thereon, nor in any event shall such bonds or obligations be payable out of any funds or properties other than those of said authority. The bonds shall not constitute an indebtedness within the meaning of any constitutional, statutory, or charter debt limitation or restriction.
(Code 1940, T. 25, §44.)
(a) The bonds of the authority shall be authorized by its resolution and shall be issued in one or more series and shall bear such date or dates, mature at such time or times, not exceeding 60 years from their respective dates, bear interest at such rate or rates, payable semiannually, be in such denominations, which may be made interchangeable, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, as such resolution or its trust indenture or mortgage may provide. The bonds may be sold at public sale held after both of the following:
(1) A notice shall be published once at least 10 days prior to the sale in a newspaper circulating in the county.
(2) In addition, a notice shall be published at least 10 days prior to the sale in a financial newspaper published in the City of New York, New York, or in the City of New Orleans, Louisiana, or posted electronically at least 10 days prior to the sale on a website or other electronic or Internet service reasonably expected to be available to potential purchasers of the bonds.
(b) Notwithstanding the foregoing, the bonds may be sold to the federal government or to a government sponsored enterprise at private sale without any public advertisement. The bonds may be sold at such price or prices as the authority shall determine. Pending the authorization, preparation, execution, or delivery of definitive bonds, the authority may issue interim certificates or other temporary obligations to the purchaser of such bonds. Such interim certificates, or other temporary obligations, shall be in such form, contain such terms, conditions, and provisions, bear such date or dates and evidence such agreements relating to their discharge or payment or delivery of definitive bonds as the authority may by resolution, trust indenture, or mortgage determine. In case any of the officers whose signatures appear on any bonds or coupons shall cease to be such officers before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if they had remained in office until such delivery. The authority shall have power, out of any funds available therefor, to purchase any bonds issued by it at a price not more than the principal amount thereof and the accrued interest. All bonds so purchased shall be cancelled. This section shall not apply to the redemption of bonds. Any provision of any law to the contrary notwithstanding, any bonds, interim certificates, or other obligations issued pursuant to this article are hereby declared to be negotiable instruments.
(Code 1940, T. 25, §45; Acts 1971, No. 2231, p. 3589; Act 2006-188, p. 265, §1; Act 2019-105, §1.)
In connection with the issuance of bonds or the incurring of any obligation under a lease and in order to secure the payment of such bonds or obligations, the authority shall have power:
(1) To pledge by resolution, trust indenture, mortgage, subject to the limitations hereinafter imposed, or other contract all or any part of its rents, fees, or revenues.
(2) To covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired, or against permitting or suffering any lien thereon.
(3) To covenant with respect to limitations on its right to sell, lease, or otherwise dispose of any housing project, or any part thereof, or with respect to limitations on its right to undertake additional housing projects.
(4) To covenant against pledging all or any part of its rents, fees, and revenues to which its right then exists, or the right to which may thereafter come into existence, or against permitting or suffering any lien thereon.
(5) To provide for the release of property, rents, fees, and revenues from any pledge or mortgage, and to reserve right and powers in, or the right to dispose of, property which is subject to a pledge or mortgage.
(6) To covenant as to the bonds to be issued pursuant to any resolution, trust indenture, mortgage, or other instrument and as to the issuance of such bonds in escrow, or otherwise, and as to the use and disposition of the proceeds thereof.
(7) To covenant as to what other, or additional, debt may be incurred by it.
(8) To provide for the terms, form, registration, exchange, execution, and authentication of bonds.
(9) To provide for the replacement of lost, destroyed, or mutilated bonds.
(10) To covenant that the authority warrants the title to the premises.
(11) To covenant as to the rents and fees to be charged, the amount, calculated as may be determined, to be raised each year or other period of time by rents, fees, and other revenues and as to the use and disposition to be made thereof.
(12) To covenant as to the use of any or all of its property, real or personal.
(13) To create, or to authorize the creation of, special funds in which there shall be segregated the proceeds of any loan or grant; all of the rents, fees, and revenues of any housing project or projects or parts thereof; any moneys held for the payment of the costs of operation and maintenance of any such housing projects or as a reserve for the meeting of contingencies in the operation and maintenance thereof; any moneys held for the payment of the principal and interest on its bonds or the sum due under its leases or as a reserve for such payments; and any moneys held for any other reserves or contingencies, and to covenant as to the use and disposal of the moneys held in such funds.
(14) To redeem the bonds, to covenant for their redemption and to provide the terms and conditions thereof.
(15) To covenant against extending the time for the payment of its bonds, or interest thereon, directly or indirectly, by any means or in any manner.
(16) To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given.
(17) To covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys.
(18) To vest in an obligee of the authority the right, in the event of the failure of the authority to observe or perform any covenant on its part to be kept or performed, to cure any such default and to advance any moneys necessary for such purpose, and the moneys so advanced may be made an additional obligation of the authority with such interest, security and priority as may be provided in any trust indenture, mortgage, lease, or contract of the authority with reference thereto.
(19) To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.
(20) To covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation.
(21) To covenant to surrender possession of all or any part of any housing project or projects upon the happening of an event of default, as defined in the contract, and to vest in an obligee the right, without judicial proceedings, to take possession and to use, operate, manage, and control such housing projects, or any part thereof, and to collect and receive all rents, fees, and revenues arising therefrom in the same manner as the authority itself might do and to dispose of the moneys collected in accordance with the agreement of the authority with such obligee.
(22) To vest in a trustee or trustees the right to enforce any covenant made to secure, to pay or, in relation to the bonds, to provide for the powers and duties of such trustee or trustees, to limit liabilities thereof and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant.
(23) To make covenants other than and in addition to the covenants expressly authorized in this section, of like or different character.
(24) To execute all instruments necessary or convenient in the exercise of the powers granted in this section or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified, as the government or any purchaser of the bonds of the authority may reasonably require.
(25) To make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or, in the absolute discretion of the authority, tend to make the bonds more marketable, notwithstanding that such covenants, acts, or things may not be enumerated in this section, it being the intent in this section to give the authority power to do all things in the issuance of bonds, in the provisions for their security, that are not inconsistent with the Constitution of the State of Alabama and no consent or approval of any judge or court shall be required thereof; provided, however, that the authority shall have no power to mortgage all or any part of its property, real or personal, except as provided in Section 24-1-74.
(Code 1940, T. 25, §46.)
In addition to the powers conferred upon the authority by other provisions of this article, the authority is empowered to borrow money or accept grants from the federal government for or in aid of the construction of any housing project which such authority is authorized by this article to undertake, to take over any land acquired by the federal government for the construction of a housing project, to take over or lease or manage any housing project constructed or owned by the federal government and, to this end, to enter into such contracts, mortgages, trust indentures, leases, or other agreements as the federal government may require, including agreements that the federal government shall have the right to supervise and approve the construction, maintenance, and operation of such housing project. It is the purpose and intent of this article to authorize every authority to do any and all things necessary to secure the financial aid and the cooperation of the federal government in the construction, maintenance, and operation of any housing project which the authority is empowered by this article to undertake.
(Code 1940, T. 25, §53.)
In connection with any project financed in whole or in part by a government, the authority shall also have power to mortgage all or any part of its property, real or personal, then owned or thereafter acquired, and thereby:
(1) To vest in a government the right, upon the happening of an event of default, as defined in such mortgage, to foreclose such mortgage through judicial proceedings or through the exercise of a power of sale without judicial proceedings, so long as a government shall be the holder of any of the bonds secured by such mortgage.
(2) To vest in a trustee or trustees the right, upon the happening of an event of default, as defined in such mortgage, to foreclose such mortgage through judicial proceedings or through the exercise of a power of sale without judicial proceedings, but only with the consent of the government which aided in financing the housing project involved.
(3) To vest in other obligees the right to foreclose such mortgage by judicial proceedings, but only with the consent of the government which aided in financing the project involved.
(4) To vest in an obligee, including a government, the right in foreclosing any mortgage as provided in this section to foreclose such mortgage as to all or such part or parts of the property covered thereby as such obligee, in its absolute discretion, shall elect. The institution, prosecution, and conclusion of any such foreclosure proceedings or the sale of any such parts of the mortgaged property shall not affect in any manner or to any extent the lien of the mortgage on the parts of the mortgaged property not included in such proceedings or not sold as provided in this section.
(Code 1940, T. 25, §47.)
An obligee of the authority shall have the right, in addition to all other rights which may be conferred on such obligee, subject only to any contractual restrictions binding upon such obligee:
(1) By mandamus or civil action, both of which may be joined in one action, to compel the authority, and the housing commissioners, officers, agents or employees thereof, to perform each and every term, provision and covenant contained in any contract of the authority, and to require the carrying out of any or all covenants and agreements of the authority and the fulfillment of all duties imposed upon the authority by this article.
(2) By civil action to enjoin any acts or things which may be unlawful, or the violation of any of the rights of such obligee of the authority.
(3) By civil action in any court of competent jurisdiction to cause possession of any housing project, or any part thereof, to be surrendered to any obligee having the right to such possession pursuant to any contract of the authority.
(Code 1940, T. 25, §48.)
Any authority shall have power by its trust indenture, mortgage, lease, or other contract to confer upon any obligee holding or representing, a specified amount in bonds, lease, or other obligations, the right upon the happening of an “event of default,” as defined in such instrument:
(1) By civil action in any court of competent jurisdiction to obtain the appointment of a receiver of any housing project of the authority, or any part or parts thereof. If such receiver be appointed, he may enter and take possession of such housing project, or any part or parts thereof, and operate and maintain same, and collect and receive all fees, rents, revenues, or other charges thereafter arising therefrom in the same manner as the authority itself might do and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligations of the authority as the court shall direct.
(2) By civil action in any court of competent jurisdiction to require the authority and the housing commissioners thereof to account as if it and they were the trustees of an express trust.
(Code 1940, T. 25, §49.)
All the rights and remedies conferred by this article shall be cumulative and in addition to all other rights and remedies that may be conferred upon such obligee of the authority by law or by any contract with the authority.
(Code 1940, T. 25, §50.)
No interest of the authority in any property, real or personal, shall be subject to sale by the foreclosure of a mortgage thereon, either through judicial proceedings or the exercise of a power of sale contained in such mortgage, except in the case of the mortgages provided for in Section 24-1-74. All property of the authority shall be exempt from levy and sale by virtue of an execution, or other process, to the same extent as now enjoyed by the properties of towns, cities, and counties of Alabama. No judgment against the authority shall be a charge or lien upon its property, real or personal. The provisions of this section shall not apply to or limit the right of obligees to foreclose any mortgage of the authority provided for in Section 24-1-74 and, in case of a foreclosure sale thereunder, to obtain a judgment for any deficiency due on the indebtedness secured thereby and issued on the full faith and credit of the authority. Such deficiency judgment shall be a lien and charge upon the property of the authority which may be levied on and sold by virtue of an execution or other judicial process for the purpose of satisfying such deficiency judgment.
(Code 1940, T. 25, §51.)
(a) All of the following shall be exempt from all state taxes, including, but not limited to, deed taxes or mortgage taxes:
(1) A county housing authority and the authority’s property and income.
(2) Bonds issued by the authority.
(3) Income from bonds issued by the authority.
(4) Conveyances to or from the authority.
(5) Leases, mortgages, or deeds of trust to or from the authority.
(b) An authority may be exempted from the taxes levied by a county, municipality, or other political subdivision of the state, including, but not limited to, deed taxes, mortgage taxes, license taxes, or excise taxes. The exemption provided by this subsection shall only apply if approved by a resolution or ordinance adopted by the local governing body of the county, municipality, or other political subdivision of the state.
(c) The exemptions from state taxes created by subsection (b) shall apply to any wholly owned subsidiary of an authority.
(d) A county housing authority may be exempt from all fees, taxes, or other costs imposed by a judge of probate, if approved by a resolution adopted by the local governing body of the county.
(Act 2025-430, §2.)
Notwithstanding anything in this article to the contrary, any purchaser or purchasers at a sale of real or personal property of the authority, whether pursuant to any foreclosure of a mortgage, pursuant to judicial process, or otherwise, shall obtain title subject to any contract made prior to the accrual of the purchaser’s right between the authority and a government relating to the supervision by a government of the operation and maintenance of such property and the construction of improvements thereon.
(Code 1940, T. 25, §52.)
The authority may by resolution provide that all moneys deposited by it shall be secured by obligations of the United States or of the State of Alabama of a market value equal at all times to the amount of such deposits, by any securities in which savings banks may legally invest funds within their control or by an undertaking with such sureties, as shall be approved by the authority, faithfully to keep and pay over upon the order of the authority any such deposits and agreed interest thereon, and all banks and trust companies are authorized to give any such security for such deposits.
(Code 1940, T. 25, §54.)
Without limiting the generality of other provisions of this article, a county housing authority is empowered to borrow money, accept grants, and exercise its other powers under this article to provide housing for persons of low income in rural areas. The undertaking of the construction of any dwelling or dwellings under this section shall constitute a “housing project” within the meaning of this article. To these ends, the county housing authority is authorized to enter into such long-term leases or purchase agreements or otherwise to rent or sell housing to persons of low income in rural areas as such county authority deems necessary in order to assure the achievement of the objectives of this article. Such leases or agreements may include such covenants as the county authority deems appropriate regarding the dwelling or dwellings, and the tracts contiguous thereto, which covenants, notwithstanding any rule of law to the contrary, may be made to run with the land where the county authority deems it necessary. The owner of any land on which an unsanitary and unsafe dwelling or dwellings are located may file an application with the county authority requesting that it provide for the construction of a safe and sanitary dwelling or dwellings for persons of low income to be located on said land, or that portion thereof, to be conveyed by said owner to the county housing authority.
(Code 1940, T. 25, §55.)
The county housing authority shall, at least once a year, file with the county commission a report of its activities for the preceding year, and shall make any recommendations with reference to any additional legislation or other action that may be necessary in order to carry out the purposes of this article.
(Code 1940, T. 25, §56.)
“The authority and its housing commissioners shall be under a statutory duty to comply or to cause compliance strictly with all provisions of this article and the laws of the State of Alabama and in addition thereto, with each and every term, provision, and covenant in any contract of the authority on its part to be kept or performed.
(Code 1940, T. 25, §35,; Act 2019-105, §1.)
Insofar as the provisions of this article are inconsistent with other provisions of this Code, the provisions of this article shall be controlling.
(Code 1940, T. 25, §57.)
This article may be referred to as the “Supplemental Housing Authorities Law.”
(Acts 1943, No. 541, p. 512, §17.)
The following terms, wherever used in this article, shall have the following respective meanings, unless a different meaning clearly appears from the context:
(1) AUTHORITY or HOUSING AUTHORITY. Any corporate body created pursuant to this article or this chapter.
(2) MUNICIPALITY. Any city or incorporated town in the state.
(3) FEDERAL GOVERNMENT. The United States of America or any agency or instrumentality thereof.
(4) GOVERNING BODY. The legislative body, council, board of commissioners, county commission, or other body charged with governing the city, town, or county, as the case may be.
(Acts 1943, No. 541, p. 512, §16.)
If the governing body of each of two or more contiguous counties by resolution declares that there is a need for one housing authority to be created for all of such counties to exercise in such counties powers and other functions prescribed for a regional housing authority, a public body corporate and politic to be known as a regional housing authority shall, after the commissioners thereof file an application with the Secretary of State as provided in this section, exist for all of such counties and exercise its powers and other functions in such counties; and, thereupon, any county housing authority created for any of such counties shall cease to exist, except for the purpose of winding up its affairs and executing a deed to the regional housing authority as provided in this section; provided, that the governing body of a county shall not adopt a resolution as aforesaid if there is a county housing authority created for such county which has any bonds or notes outstanding unless, first, all holders of such bonds and notes consent in writing to the substitution of such regional housing authority in lieu of such county housing authority on all such bonds and notes and, second, the commissioners of such county housing authority adopt a resolution consenting to the transfer of all the rights, contracts, obligations, and property, real and personal, of such county housing authority to such regional housing authority as provided in this section; and provided further, that when the above two conditions are complied with and such regional housing authority is created and authorized to exercise its powers and other functions, all rights, contracts, agreements, obligations, and property, real and personal, of such county housing authority shall be in the name of and vest in such regional housing authority, and all obligations of such county housing authority shall be the obligations of such regional housing authority, and all rights and remedies of any person against such county housing authority may be asserted, enforced, and prosecuted against such regional housing authority to the same extent as they might have been asserted, enforced, and prosecuted against such county housing authority. When any real property of a county housing authority vests in a regional housing authority as provided in this section, the county housing authority shall execute a deed of such property to the regional housing authority, which, thereupon, shall file such deed in the office provided for the filing of deeds; provided, that nothing contained in this sentence shall affect the vesting of property in the regional housing authority as provided in this section. The governing body of each of two or more contiguous counties shall by resolution declare that there is a need for one regional housing authority to be created for all of such counties to exercise in such counties the powers and other functions prescribed for a regional housing authority only if such governing body finds that unsanitary or unsafe inhabited dwelling accommodations exist in such county or there is a shortage of safe or sanitary dwelling accommodations in such county available to persons of low income at rentals they can afford and that a regional housing authority would be a more efficient or economical administrative unit than the housing authority of such county to undertake housing projects for persons of low income in such county.
(Acts 1943, No. 541, p. 512, §1.)
The area of operation or boundaries of a regional housing authority shall include, except as otherwise provided elsewhere in this article, all of the counties for which such regional housing authority is created and established; provided, that a regional housing authority shall not undertake any housing project or projects within the boundaries of any municipality or housing authority unless a resolution shall have been adopted by the governing body of such municipality and also by any housing authority which shall have been previously established and authorized to exercise its powers in such municipality, declaring that there is a need for the regional housing authority to exercise its powers within such municipality.
(Acts 1943, No. 541, p. 512, §2.)
The area of operation or boundaries of a regional housing authority shall be increased from time to time to include one or more additional contiguous counties not already within a regional housing authority, if the governing body of each of the counties then included in the area of operation of such regional housing authority, the commissioners of the regional housing authority and the governing body of each such additional county or counties each adopt a resolution declaring that there is a need for the inclusion of such additional county or counties in the area of operation of such regional housing authority. Upon the adoption of such resolutions, any county housing authority created for any such additional county shall cease to exist, except for the purpose of winding up its affairs and executing a deed to the regional housing authority as provided in this section; provided, however, that such resolution shall not be adopted if there is a county housing authority created for any such additional county which has any bonds or notes outstanding unless, first, all holders of such bonds and notes consent in writing to the substitution of such regional housing authority in lieu of such county housing authority as the obligor thereon and, second, the commissioners of such county housing authority adopt a resolution consenting to the transfer of all the rights, contracts, obligations, and property, real and personal, of such county housing authority to such regional housing authority as provided in this section; and provided further, that when the above two conditions are complied with and the area of operation of such regional housing authority is increased to include such additional county, as provided in this section, all rights, contracts, agreements, obligations, and property, real and personal, of such county housing authority shall be in the name of and vest in such regional housing authority, all obligations of such county housing authority shall be the obligations of such regional housing authority and all rights and remedies of any person against such county housing authority may be asserted, enforced, and prosecuted against such regional housing authority to the same extent as they might have been asserted, enforced, and prosecuted against such county housing authority. When any real property of a county housing authority vests in a regional housing authority as provided in this section, the county housing authority shall execute a deed of such property to the regional housing authority, which thereupon shall file such deed in the office provided for the filing of deeds, provided that nothing contained in this sentence shall affect the vesting of property in the regional housing authority as provided in this section. The governing body of each of the counties in the regional housing authority, the commissioners of the regional housing authority, and the governing body of each such additional county or counties shall by resolution declare that there is a need for the inclusion of such county or counties in the area of operation of the regional housing authority only if the governing body of each such additional county or counties finds that unsanitary or unsafe inhabited dwelling accommodations exist in such county or there is a shortage of safe or sanitary dwelling accommodations in such county available to persons of low income at rentals they can afford and the governing body of each of the counties then included in the area of operation of the regional housing authority, the commissioners of the regional housing authority and the governing body of each such additional county or counties find that the regional housing authority would be a more efficient or economical administrative unit if the area of operation of the regional housing authority was increased to include such additional county or counties.
(Acts 1943, No. 541, p. 512, §3.)
The area of operation or boundaries of a regional housing authority shall be decreased from time to time to exclude one or more counties from such area if the governing body of each of the counties in such area and the commissioners of the regional housing authority each adopt a resolution declaring that there is a need for excluding such county or counties from such area; provided, that no action may be taken pursuant to this section if the regional housing authority has outstanding any bonds or notes, unless all holders of such bonds and notes consent in writing to such action; and provided further, that if such action decreases the area of operation of the regional housing authority to only one county, such authority shall thereupon constitute and become a housing authority for such county, in the same manner and effect and with the same boundaries, functions, rights, powers, duties, privileges, immunities, and limitations as though such authority were created and constituted a public and corporate body for such county pursuant to this chapter, and the commissioners of such authority shall be thereupon appointed as provided in this chapter for the appointment of commissioners of a housing authority created for a county. The governing body of each of the counties in the area of operation of the regional housing authority and the commissioners of the regional housing authority shall adopt a resolution declaring that there is a need for excluding a county or counties from such area only if: Each such governing body of the counties to remain in the area of operation of the regional housing authority and the commissioners of the regional housing authority find that, because of facts arising or determined subsequent to the time when such area first included the county or counties to be excluded, the regional housing authority would be a more efficient or economical administrative unit if such county or counties were excluded from such area; and, the governing body of each such county or counties to be excluded and the commissioners of the regional housing authority each also find that, because of the aforesaid changed facts, another housing authority for such county or counties would be a more efficient or economical administrative unit to function in such county or counties. Nothing contained in this section shall be construed as preventing a county or counties excluded from the area of operation of a regional housing authority, as provided in this section, from thereafter being included within the area of operation or boundaries of any housing authority in accordance with this article or this chapter. Any property held by a regional housing authority within a county or counties excluded from the area of operation of such authority, as provided in this section, shall, as soon as practicable after the exclusion of said county or counties, respectively, be disposed of by such authority in the public interest.
(Acts 1943, No. 541, p. 512, §4.)
The governing body of a county shall not adopt any resolution authorized by Sections 24-1-102, 24-1-104, or 24-1-105 unless a public hearing has first been held which shall conform, except as otherwise provided in this article, to the requirements of this chapter for hearings to determine the need for a housing authority of a county; provided, that such hearings may be held by the governing body without a petition therefor. No housing authority shall constitute a body corporate and politic under this article until the commissioners of such authority have filed and recorded an application therefor with the Secretary of State, which shall conform, insofar as may be applicable, to the provisions of this chapter for the making, filing, and recording of an application with the Secretary of State by the commissioners of a housing authority created for a county; provided, that any such application filed and recorded under this article shall set forth that the public hearing or hearings, as required by this article, have been held. In connection with the issuance of bonds or the incurring of other obligations, a regional housing authority may covenant as to limitations on its right to adopt resolutions relating to the increase or decrease of its area of operation.
(Acts 1943, No. 541, p. 512, §5.)
The governing body of each county included in a regional housing authority shall appoint one person as a commissioner of such authority, and each such commissioner to be first appointed by the governing body of a county may be appointed at or after the time of the adoption of the resolution declaring the need for such regional housing authority or declaring the need for the inclusion of such county in the area of operation of such regional housing authority. When the area of operation of a regional housing authority is increased to include an additional county or counties as provided in this article, the governing body of each such county shall thereupon appoint one additional person as a commissioner of the regional housing authority. The governing body of each county shall appoint the successor of the commissioner appointed by it. If any county is excluded from the area of operation of a regional housing authority, the office of the commissioner of such regional housing authority appointed by the governing body of such county shall be thereupon abolished. If the area of operation of a regional housing authority consists at any time of an even number of counties, the commissioners of the regional housing authority appointed by the governing bodies of such counties shall appoint one additional commissioner whose term of office shall be as provided in this section for a commissioner of a regional housing authority, except that such term shall end at any earlier time that the area of operation of the regional housing authority shall be changed to consist of an odd number of counties. The commissioners of such authority appointed by the governing bodies of such counties shall likewise appoint each person to succeed such additional commissioner; provided, that the term of office of such person begins during the terms of office of the commissioners appointing him. A certificate of the appointment of any commissioner of a regional housing authority shall be signed by the appointing officer or officers and filed with the other records of the regional housing authority and shall be conclusive evidence of the due and proper appointment of such commissioner. The commissioners of a regional housing authority shall be appointed for terms of five years, except that all vacancies shall be filled for the unexpired terms. Each commissioner shall hold office until his successor has been appointed and has qualified, except as otherwise provided in this section. For inefficiency or neglect of duty or misconduct in office, a commissioner of a regional housing authority may be removed by the officer or officers, or their successors, appointing such commissioner, but he shall be removed only after he has been given a copy of the charges at least 10 days prior to the hearing thereon and has had an opportunity to be heard in person or by counsel. In the event of the removal of such commissioner, a record of the proceedings, together with the charges and findings thereon, shall be filed with the other records of the regional housing authority. The commissioners shall constitute the regional housing authority, and the powers of such authority shall be vested in such commissioners in office from time to time. The commissioners of a regional housing authority shall elect a chairman from among the commissioners and shall have power to select or employ such other officers and employees as the regional housing authority may require. A majority of the commissioners of a regional housing authority shall constitute a quorum of such authority for the purpose of conducting its business and exercising its powers and for all other purposes.
(Acts 1943, No. 541, p. 512, §6.)
Nothing contained in this article or in other acts shall prevent meetings of the commissioners of a housing authority anywhere within the perimeter boundaries of the area of operation or boundaries of the authority or within any additional area where the housing authority is authorized to undertake a housing project, nor to prevent the appointment of any person as a commissioner of the authority who resides within such boundaries of such additional area and who is otherwise eligible for such appointment under this article or this chapter.
(Acts 1943, No. 541, p. 512, §11.)
Except as otherwise provided in this article, a regional housing authority and the commissioners thereof shall, within the area of operation of such regional housing authority, have the same functions, rights, powers, duties, privileges, immunities, and limitations provided for housing authorities created for counties and the commissioners of such housing authorities, and all the provisions of law applicable to housing authorities created for counties and the commissioners of such authorities shall be applicable to regional housing authorities and the commissioners thereof; provided, that a regional housing authority or a county housing authority shall not be subject to the limitations provided in Section 24-1-6 with respect to housing projects for persons of low income in rural areas.
(Acts 1943, No. 541, p. 512, §7.)
If the governing body of each of two or more municipalities by resolution declares that there is a need for one housing authority for all of such municipalities to exercise in such municipalities the powers and other functions prescribed for a housing authority, a public body corporate and politic, to be known as a consolidated housing authority, with such corporate name as it selects, shall thereupon exist for all of such municipalities and exercise its powers and other functions within its area of operation, as defined in this section, including the power to undertake projects therein; and, thereupon, any housing authority created for any of such municipalities shall cease to exist except for the purpose of winding up its affairs and executing a deed of its real property to the consolidated housing authority. The creation of a consolidated housing authority and the finding of need therefor shall be subject to the same provisions and limitations of this article as are applicable to the creation of a regional housing authority and that all of the provisions of this article applicable to regional housing authorities and the commissioners thereof shall be applicable to consolidated housing authorities and the commissioners thereof. The area of operation or boundaries of a consolidated housing authority shall include all of the territory within the boundaries of each municipality joining in the creation of such authority, together with any additional territory included within the boundaries of a housing authority that has been created for such municipality; except, that such area of operation may be changed to include or exclude any municipality or municipalities, with its aforesaid additional territory, in the same manner and under the same provisions as provided in this article for changing the area of operation of a regional housing authority by including or excluding a contiguous county or counties. For all such purposes, the term “county” shall be construed as meaning “municipality,” the term “governing body” in Section 24-1-107 shall be construed as meaning “mayor or other executive head of the municipality,” and the terms “county housing authority” and “regional housing authority” shall be construed as meaning “housing authority of the city” and “consolidated housing authority,” respectively, unless a different meaning clearly appears from the context. Except as otherwise provided in this article, a consolidated housing authority and the commissioners thereof shall, within the area of operation of such consolidated housing authority, have the same functions, rights, powers, duties, privileges, immunities, and limitations as those provided for housing authorities created for municipalities, counties, or groups of counties and the commissioners of such housing authorities, in the same manner as though all the provisions of law applicable to housing authorities created for municipalities, counties, or groups of counties were applicable to consolidated housing authorities.
(Acts 1943, No. 541, p. 512, §8.)
In addition to its other powers, any housing authority may exercise any or all of its powers within the territorial boundaries of any municipality not included in the area of operation of such housing authority, for the purpose of planning, undertaking, financing, constructing, and operating a housing project or projects within such municipality; provided, that a resolution shall have been adopted by the governing body of such municipality in which the authority is to exercise its powers and by any housing authority previously established by such municipality and authorized to exercise its powers therein declaring that there is a need for the aforesaid housing authority to exercise its powers within such municipality.
(Acts 1943, No. 541, p. 512, §9.)
No governing body of a municipality shall adopt a resolution as provided in Sections 24-1-103 or 24-1-111 declaring that there is a need for a housing authority, other than a housing authority established by such municipality, to exercise its powers within such municipality, unless a public hearing has first been held by such governing body and unless such governing body shall have found, in substantially the following terms: That unsanitary or unsafe inhabited dwelling accommodations exist in such municipality or that there is a shortage of safe or sanitary dwelling accommodations in such municipality available to persons of low income at rentals they can afford and that these conditions can be best remedied through the exercise of the aforesaid housing authority’s powers within the territorial boundaries of such municipality; provided, that such findings shall not have the effect of thereafter preventing such municipality from establishing a housing authority or joining in the creation of a consolidated housing authority or the increase of the area of operation of a consolidated housing authority. The clerk, or the officer with similar duties, of the municipality shall give notice of the public hearing, and such hearing shall be held in the manner provided in Section 24-1-23 for a public hearing by a council to determine the need for a housing authority in the municipality. During the time that, pursuant to these findings, a housing authority has outstanding, or is under contract to issue, any evidences of indebtedness for a project within the municipality, no other housing authority may undertake a project within such municipality without the consent of said housing authority which has such outstanding indebtedness or obligation.
(Acts 1943, No. 541, p. 512, §10.)
In any contract or amendatory or superseding contract for a loan and annual contributions heretofore or hereafter entered into between a housing authority and the federal government with respect to any housing project undertaken by said housing authority, any such housing authority is authorized to make such covenants, including covenants with holders of obligations of said authority issued for purposes of the project involved, and to confer upon the federal government such rights and remedies as said housing authority deems necessary to assure the fulfillment of the purposes for which the housing project was undertaken. In any such contract, the housing authority may, notwithstanding any other provisions of law, agree to sell and convey the project, including all lands appertaining thereto, to which such contract relates to the federal government upon the occurrence of such conditions or upon such defaults on obligations for which any of the annual contributions provided in said contract are pledged, as may be prescribed in such contract, and at a price, which may include the assumption by the federal government of the payment, when due, of the principal of and interest on outstanding obligations of the housing authority issued for purposes of the housing project involved, determined as prescribed in such contract and upon such other terms and conditions as are therein provided. Any such housing authority is hereby authorized to enter into such supplementary contracts and to execute such conveyances as may be necessary to carry out the provisions of this section. Notwithstanding any other provisions of law, any contracts or supplementary contracts or conveyances made or executed pursuant to the provisions of this section shall not be or constitute a mortgage within the meaning or for the purposes of any of the laws of this state.
(Acts 1943, No. 541, p. 512, §12.)
The bonds and other obligations issued by any housing authority pursuant to this article or this chapter shall be security for public deposits and legal investments to the same extent and for the same persons, institutions, associations, corporations, public and private bodies, including all public bodies except counties, and officers as are bonds or other obligations issued pursuant to this chapter.
(Acts 1943, No. 541, p. 512, §13.)
Any municipality, county, or other public body shall have the same rights and powers to aid and cooperate in the development or administration of any housing project pursuant to this article or this chapter as such public body has under any provision of law relating to its aiding or cooperating in the development or administration of housing projects by a housing authority organized pursuant to Article 2 of this chapter or other laws of this state.
(Acts 1943, No. 541, p. 512, §14.)
Any two or more authorities may join or cooperate with one another in the exercise, either jointly or otherwise, of any or all of their powers for the purpose of financing (including the issuance of bonds, notes, or other obligations and giving security therefor), planning, undertaking, owning, constructing, operating, or contracting with respect to a housing project or projects located within the boundaries of any one or more of said authorities. For such purpose an authority may by resolution prescribe and authorize any other housing authority or authorities so joining or cooperating with it to act on its behalf with respect to any or all of such powers. Any authorities joining or cooperating with one another may by resolutions appoint from among the commissioners of such authorities an executive committee with full power to act on behalf of such authorities with respect to any or all of their powers, as prescribed by resolutions of such authorities.
(Acts 1943, No. 541, p. 512, §15.)
The powers conferred by this article shall be in addition and supplemental to the powers conferred by any other law, and nothing contained in this article shall be construed as limiting any other powers of a housing authority.
(Acts 1943, No. 541, p. 512, §18.)
It is hereby declared that unsanitary or unsafe dwelling and public school accommodations exist in various cities of the state and in the area surrounding such cities; that consequently persons of low income are forced to reside in and use such dwelling and public school accommodations; that these conditions cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals, and welfare of the citizens of the state and impair economic values; that the clearance, replanning, and reconstruction of the areas in which unsanitary or unsafe housing conditions exist and the provision of safe and sanitary dwelling and public school accommodations at such rentals that persons who now live in unsafe or unsanitary or congested dwelling accommodations or in overcrowded and congested dwelling accommodations can afford to live in safe or sanitary or uncongested dwelling accommodations, are public uses and purposes for which private property may be acquired; and that it is in the public interest that work on such projects be instituted as soon as possible in order to relieve unemployment which constitutes an emergency. The necessity in the public interest for this article is hereby declared as a matter of legislative determination.
(Acts 1935, No. 41, p. 85; Code 1940, T. 25, §1.)
The following terms whenever used or referred to in this article, shall have the following respective meanings, unless a different meaning clearly appears from the context:
(1) HOUSING AUTHORITY. Any housing authority organized pursuant to this title.
(2) CITY. Any city or incorporated town in the State of Alabama.
(3) HOUSING PROJECT. Any undertaking to demolish, clear, remove, alter, or repair unsafe or unsanitary housing or to provide dwelling or public school accommodations for persons who live in or use unsafe, unsanitary, or congested dwelling or public school accommodations. Such term may also include such recreational or social assemblies for educational, health, or welfare purposes and such necessary utilities as are designed primarily for the benefit and use of the occupants of such dwelling accommodations.
(Acts 1935, No. 41, p. 85; Code 1940, T. 25, §2.)
(a) For the purpose of aiding and cooperating in the planning, undertaking, construction, or operation by housing authorities of housing projects located within the area in which it is authorized to act, any city, county, municipal corporation, district, or other subdivision or public body or agency of the state may, upon such terms, with or without consideration, as it may determine:
(1) Dedicate, release, sell, convey, or lease any of its interest in any property or grant easements, licenses, or any other rights or privileges therein to a housing authority or the United States of America or any agency thereof;
(2) Cause parks, playgrounds, recreational, community, educational, water, sewer, drainage facilities, or any other works which it is otherwise empowered to undertake to be furnished adjacent to or in connection with housing projects;
(3) Furnish, dedicate, close, pave, install, grade, regrade, plan, or replan streets, roads, roadways, alleys, sidewalks, or other places which it is otherwise empowered to undertake;
(4) Plan or replan, zone or rezone;
(5) Cause services to be furnished to the housing authority of the character which it is otherwise empowered to furnish;
(6) Enter into agreements with respect to the exercise by it of its powers relating to the repair, elimination, or closing of unsafe, unsanitary, or unfit dwellings;
(7) Do any and all things necessary or convenient to aid and cooperate in its planning, undertaking, construction, or operation of such housing projects;
(8) Incur the entire expense of any public improvements made by it in exercising the powers granted in this article; and
(9) Enter into agreements, which may extend over any period, notwithstanding any provision or rule of law to the contrary, with a housing authority respecting action to be taken pursuant to any of the powers granted by this article.
(b) Any law or statute to the contrary notwithstanding, any sale, conveyance, lease, or agreement provided for in this section may be made by a city, county, municipal corporation, district, or other subdivision or public body or agency of the state without appraisal, public notice, advertisement, or public bidding.
(Acts 1935, No. 41, p. 85; Acts 1939, No. 616, p. 984, §2; Code 1940, T. 25, §3.)
The exercise by any city, county, municipal corporation, district, or other subdivision or public body or agency of the state of the powers granted in this article may be authorized by resolution of its governing body adopted by a majority of the members of such governing body present at a meeting of such governing body, which resolution may be adopted at the meeting at which such resolution is introduced. Such a resolution or resolutions shall take effect immediately and need not be laid over or published or posted.
(Acts 1939, No. 616, p. 984, §4; Code 1940, T. 25, §3(1).)
Any city or town creating a housing authority shall have the power from time to time to lend or donate money to such authority or to agree to take such action. A housing authority, when it has money available therefor, shall make reimbursements for all such loans made to it.
(Acts 1939, No. 617, p. 986, §1; Code 1940, T. 25, §4(1).)
This chapter shall be known and may be cited as the Alabama Community Land Trust Act of 2026.
(Act 2026-545, §1.)
This chapter applies only to Class 1 municipalities.
(Act 2026-545, §2.)
When used in this chapter, the following words have the following meanings:
(1) AFFORDABLE HOUSING. Any residential dwelling unit that is part of a project subject to a legally enforceable restriction limiting occupancy between one and four family housing units or to households comprising at least 40 percent of the units in a multifamily project, either based on an income threshold or rent and housing cost limitation. For purposes of this definition, a unit need not be restricted in perpetuity. Any unit subject to a qualifying restriction for any portion of its compliance or regulatory period shall constitute affordable housing during that period, and a ground lease may have a term longer than such period. These restrictions are applicable under any of the following programs or through lease or land use covenants that are substantially similar:
a. Low Income Housing Tax Credits (LIHTC) Units. Any unit qualifying for low income housing tax credits under 26 U.S.C. § 42, including units qualifying under the income averaging election, regardless of the applicable income limit or any other percentage of area median income designated for the unit under the averaging set-aside requirements under that section.
b. Project-Based Section 8 Units. Any unit covered by a Housing Assistance Payments (HAP) contract under 42 U.S.C. § 1437f, including Housing Choice Vouchers, project-based rental assistance (PBRA) or project-based vouchers (PBV).
c. Other federally assisted units. Any unit receiving rental assistance, financing, or use restrictions under any federal affordable housing program, including, but not limited to, HOME Investment Partnerships authorized under 42 U.S.C. Chapter 130, USDA Rural Development Section 515 or 538 programs authorized under 42 U.S.C. § 1485, HUD Section 202 or 811 programs authorized under 12 U.S.C. § 1701q and 42 U.S.C. § 8013, and public housing under the United States Housing Act of 1937, 42 U.S.C. §§ 1437 et seq.
d. State and Local Program Units. Any unit subject to a deed restriction, regulatory agreement, or other legally enforceable instrument imposed by or in connection with a state, county, or municipal affordable housing program, inclusionary zoning requirement, or housing finance agency financing.
e. Other Income or Rent-Restricted Units. Any unit subject to an income restriction at or below 120 percent of area median income (AMI) or a rent restriction requiring that gross rent, including utilities, not exceed an affordable level as determined by reference to AMI, HUD-published fair market rents, or an equivalent benchmark established by a governmental or quasi-governmental authority, provided that if relying upon this restriction, at least 90 percent of the units in the project must be subject to this restriction.
(2) BOARD OF DIRECTORS. The governing body of a community land trust elected and formed in accordance with the bylaws of such entity, subject to the requirements of this chapter.
(3) COMMUNITY LAND TRUST. An entity that:
a. Provides affordable housing to low-income and moderate-income families through ground leases; and
b. Is organized by a Class 1 municipality.
(4) GROUND LEASE. A lease between a community land trust and a tenant of real property owned by a community land trust, that is designed to ensure that the property remains affordable housing.
(5) LIMITED EQUITY PRICE. A price for the sale of any improvement located on community land trust-owned land which is determined by means of a resale-restricted formula.
(6) LOW-INCOME FAMILY. A family household with an aggregate income at or below 80 percent of the metro statistical area median income adjusted for family size, as determined by the Department of Housing and Urban Development (HUD).
(7) MODERATE-INCOME FAMILY. A family household with an aggregate income at or below 120 percent of the metro statistical area income adjusted for family size, as determined by HUD.
(8) ORGANIZING MUNICIPALITY. The Class 1 municipality creating the community land trust pursuant to this chapter.
(9) PREEMPTIVE PURCHASE OPTION. The right of a community land trust or the organizing municipality to purchase the improvements constructed on the community land trust-owned real property pursuant to a ground lease prior to any other party.
(10) PROCEED-SHARING PROVISIONS. The resale formula provisions in the ground lease which establish the maximum resale price and determine the allocation of sale proceeds between the seller and the preservation of affordability for future buyers.
(11) PUBLIC RECORDS. Shall have the same meaning set forth in Section 41-13-1, as if the community land trust was a subdivision of government and the community land trust’s transactions constituted public business. Public records shall include any document that reflects the community land trust ownership, acquisition or leasing of real property, contracts with and records of vendors, and correspondence with any person or entity.
(12) QUALIFYING LESSEE. An individual or family that meets the criteria of low-income family or moderate-income family on the effective date of the lease.
(13) REAL PROPERTY. Both land and improvements, including a leasehold interest in real property.
(14) RESALE-RESTRICTED FORMULA. A formula designed to keep community land trust-owned real property affordable, or the requirements included as part of the program which determined the property as affordable housing.
(15) SPECIFIED INTEREST. The leasehold interest in the real property and associated structural improvements as distinct from the fee simple interest in the land retained by the community land trust.
(Act 2026-545, §3.)
The governing body of a Class 1 municipality within the State of Alabama may create, by ordinance, one or more community land trusts to operate within its jurisdiction. A community land trust shall be organized as an Alabama nonprofit corporation.
(Act 2026-545, §4.)
(a) The purpose of a community land trust is to:
(1) Promote long-term affordable housing for low-income and moderate-income families;
(2) Promote productive use of land through ground leases; and
(3) Promote investment in affordable housing for long-term community benefit.
(b) The bylaws of a community land trust shall provide all of the following:
(1) The organization is membership-based.
(2) Corporate membership is open to the general public.
(3) Membership meetings are open to the general public, including nonmembers.
(c) The board of directors shall consist of seven directors serving four-year terms. No director shall be a municipal, county, or state elected official, and no immediate family member or member of the official’s household shall be a director. If an existing director or other individual becomes an elected official, thereby disqualifying that individual or another from serving as a director, that existing director shall promptly tender his or her resignation.
(1) Three directors shall be appointed by the governing body of the organizing municipality and shall have expertise and experience in careers or activities involving real estate, property management, finance, real estate law, transit planning, residential contracting, banking, architecture, or city planning.
(2) Three directors shall be appointed by the mayor of the organizing municipality. One director shall be a professional in the finance or banking industry with experience in affordable and low-income housing, lending, finance, or tax credits for residential and commercial properties. One director shall be a registered architect, landscape architect, or city planner with experience in long-range planning and neighborhood or community master planning. One director shall be a specialist in housing-related activities with experience in developing affordable housing for low-income families and moderate-income families.
(3) One director who meets the requirements of subdivision (1) shall be appointed by the Board of Directors of the Alabama Housing Finance Authority. The appointed director may be a member of that board.
(4) The board of directors shall reflect the diversity of the community served by the community land trust to the extent practicable. No board member shall be an employee or independent contractor of the community land trust or have any immediate family member or household member who is an employee or independent contractor of the community land trust, except that the executive director shall be an ex officio member of the board of directors. A director may be removed by the appointing authority in the same manner as the original appointment. The board of directors shall adopt, review annually, and revise if necessary, a conflict of interest policy binding upon the board and staff of the community land trust.
(d)(1) The board of directors may establish, through resolutions or bylaws, provisions for director compensation, including salary, per diem, and travel expenses.
(2) The board of directors may employ staff through resolutions adopted by the board. Employees of the community land trust shall not be subject to the state Merit System. The community land trust shall not employ an elected municipal, county, or state official or any immediate family member or member of an official’s household as an employee or independent contractor.
(3) Meetings of the board of directors, including quorum requirements and participation by electronic means, shall be governed by Sections 10A-3-2.11 and 10A-3-2.13.
(4) Directors shall be immune from civil liability for reasonable acts or omissions made within the scope of their official duties, except for acts or omissions involving willful misconduct, negligence, or fraud.
(5) The community land trust shall not: (i) engage in political activity, lobbying, political consultation, or public advocacy relating to the operation, financing, or organization of the community land trust; or (ii) employ any person or engage any vendor to engage in any material part in political activity, lobbying, political consultation, or public advocacy relating to the operation, financing, or organization of the community land trust.
(6) The community land trust shall be audited annually by the Department of Examiners of Public Accounts, with the cost paid by either the sponsoring municipality or the community land trust. The audits shall be made publicly available on the sponsoring municipality’s website and promptly provided to the public upon request.
(Act 2026-545, §5.)
(a) Subject to the restrictions of this chapter, a community land trust shall have all the powers permitted to a nonprofit corporation under Chapter 3 of Title 10A.
(b) Notwithstanding subsection (a), the powers and purposes of the community land trust include, but are not limited to:
(1) Acquiring real property with the intention that the property will be used for residential purposes;
(2) Leasing affordable housing;
(3) Constructing or providing for the construction of improvements to real property to constitute affordable housing;
(4) Entering into ground leases with qualified lessees and any other agreements or real property transactions related to the purposes of the community land trust;
(5) Engaging in other activities related to the sale, leasing, management, maintenance, and preservation of properties owned by the community land trust. This includes mortgaging the trust’s interest in real property, or entering into or subordinating its rights to third parties through land use restrictive covenants or similar instruments concerning affordable housing;
(6) Accepting funding from the organizing municipality and any other source authorized under Chapter 3 of Title 10A;
(7) Subordinating the community land trust’s interest in ground leases to parties financing affordable housing on the related property, by entering into lease addendum with or agreements with financing parties, agreeing not to terminate a ground lease except as mutually agreed with such parties;
(8) Performing any other act or exercising any other power that is consistent with or incidental to this chapter, or the operation or administration of the community land trust;
(9) Providing pre-purchase counseling and homeownership education to prospective tenants and qualifying owners related to the community land trust’s housing programs, in accordance with HUD-approved housing counseling standards;
(10) Conducting outreach, distributing public information, and facilitating communications about the community land trust’s housing programs, eligibility criteria, and application procedures; and
(11) Working with and providing technical support to lenders, nonprofit organizations, and other housing entities to promote the community land trust’s affordable housing goals.
(c) In conducting its activities, the community land trust shall use good faith efforts to:
(1) Use competitive, transparent processes to offer for lease real property or improvements on real property; and
(2) No later than May 1 of each year, publish a report that includes: (i) activities for that year; (ii) the status of any real property owned by the trust during the year; (iii) details of contracts worth fifty thousand dollars ($50,000) or more related to real property interests; (iv) sources of funding for the trust; (v) a list of employees, board members, and independent contractors along with their compensation; and (vi) any other material matters requested by the Alabama Housing Finance Authority. This report shall be posted on the sponsoring municipality’s website and sent to the Alabama Housing Finance Authority.
(d) The community land trust shall promptly post selection criteria, scoring methods, and eligibility requirements when using competitive processes for affordable housing eligibility. When merit-based decisions are not suitable or when there is over-subscription due to high demand, the trust shall adopt lottery or wait-list processes as appropriate, ensuring the processes prohibit discrimination and favoritism. Sole-source awards or other noncompetitive contracts or grants awarded to a single developer, contractor, or entity should be avoided, and if used, must be documented, justified in writing, and approved by the board of directors.
(Act 2026-545, §6.)
(a) A community land trust may lease real property only for the primary purpose of affordable housing.
(b) For multifamily projects or individual housing units on a tract of real property owned by the community land trust, multiple tracts that are contiguous, located close together in a geographic area, or within the same platted subdivision are considered a single tract.
(c) An individual or family tenant who is qualified to live in affordable housing at the effective time of the lease may renew the lease without redetermining the tenant’s qualifying status. When a qualifying lessee is an entity rather than an individual or family, the real property subject to the ground lease shall be occupied by individuals or families who meet the income requirements of the applicable affordable housing program, as defined in Section 24-1B-3.
(Act 2026-545, §7.)
(a) Each ground lease shall grant the community land trust and the organizing municipality the right to purchase all improvements to the real property, subject to any rights held by or granted to a mortgagee or other holder of an interest in the real property, including under land use restrictive covenants or other restrictive agreements.
(b)(1) The community land trust shall have 90 days to exercise its purchase option from the date when notice of the event that triggers the purchase option is received.
(2) If the community land trust fails to exercise its option within those 90 days or declines the option subject to any superior rights, the organizing municipality shall have an additional 90 days to exercise the purchase option from the date when notice is received that the community land trust has not performed or declined its purchase option.
(3) The community land trust shall act in an expeditious manner in all matters related to negotiating purchase agreements under this subsection.
(c)(1) Subject to any superior rights, the community land trust may assign its purchase option to a third party that agrees to operate the improvements as affordable housing regardless of any other criteria established in the ground lease for the transfer of an interest in residential real property. Any sale pursuant to the assignment must be completed in the same time frame applicable to the community land trust.
(2) Subject to any superior rights, the organizing municipality may assign its purchase option to a qualifying owner regardless of any additional criteria established in the ground lease for the transfer of an interest in residential real property. Any sale pursuant to the assignment must be completed in the same time frame applicable to the organizing municipality.
(3) The community land trust shall act in an expeditious manner in all matters related to the assignment of its purchase agreements under this subsection.
(d)(1) Subject to any superior rights, including the payment in full of any mortgages, the failure of a community land trust to exercise the preemptive purchase option does not prohibit the community land trust from exercising any other right established in the ground lease, including the right to share in the proceeds of the first sale to a purchaser following the failure of the community land trust to exercise its right to repurchase.
(2) If the community land trust and organizing municipality both fail to exercise or decline their purchase option within the specified time period, the qualifying owner shall be allowed to sell the improvements to any buyer at a negotiated price, provided that a sale does not violate any other restriction, mortgage, or interest affecting the real property.
(3) Only the initial arm’s-length, third-party transaction of the specified interest in real property, occurring after the community land trust and organizing municipality either fail to exercise or decline their purchase option, is subject to the purchase option and pro-rata sharing provisions of the ground lease.
(4) A second or later purchaser who acquires the specified interest in an arm’s-length, third-party transaction at fair market value receives title free of any rights established in the ground lease or deed of conveyance that would otherwise be enforceable by the community land trust.
(5) Notwithstanding subdivision (4), if real property is subject to a ground lease at the time a subsequent purchaser acquires the specified interest after the community land trust and organizing municipality have not exercised their preemptive purchase options, the purchaser shall remain obligated concerning any applicable ground lease payment for the remaining lease term unless otherwise agreed to by the subsequent purchaser and the community land trust or their respective successors in interest.
(6) The community land trust, or its successor in interest, shall not have the right to eject a mortgagee, its purchaser at foreclosure, or a leaseholder by an assignment in lieu of foreclosure, or the subsequent purchaser for any reason other than failure to pay regularly scheduled rent payments, not including any fees or other amounts resulting from a default in payments.
(Act 2026-545, §8.)
(a) A ground lease shall have a maximum term of 99 years and may be renewed under conditions set forth in the ground lease.
(b) A ground lease shall include, but is not limited to, the following provisions:
(1) The term and, if applicable, renewability of the ground lease.
(2) The resale-restricted formula.
(3) A community land trust’s preemptive purchase option right.
(4) An organizing municipality’s preemptive purchase option right.
(5) Any term that, if violated, becomes grounds for cancelling the ground lease, subject to any superior rights of a mortgagee or other holder of an interest in the real property, and in accordance with the provisions of Section 24-1B-8(d).
(6) Occupancy requirements consistent with the basis used to determine whether the specified interest is affordable housing.
(7) The amount of the ground lease fee and the conditions under which the fee may be increased.
(c) A community land trust shall record any ground lease in its entirety.
(Act 2026-545, §9.)
(a) For real property acquired for residential purposes which is owned by a community land trust and not subject to a ground lease, the real property shall be exempted from all ad valorem taxation for a period of three years if the community land trust intends the real property to be used as affordable housing and the community land trust is either:
(1) Conducting or causing the construction on the real property, including, but not limited to, construction of a new residential property, rehabilitation of an existing property, and related tasks; or
(2) Attempting to transfer or lease the real property or specified interest in accordance with Section 24-1B-6.
(b) Real property subject to a ground lease used as affordable housing included in any leasehold interest shall be exempt from 20 percent of all property taxes for 20 years, as long as it remains affordable housing.
(Act 2026-545, §10.)
(a) A nonprofit organization that loses its nonprofit corporation status may no longer operate as a community land trust.
(b) After losing its nonprofit corporation status, the organization must transfer, within 120 days and without financial compensation other than incidental associated costs, its interest in any ground leases, in order of priority, to either:
(1) The organizing municipality; or
(2) A municipal entity or a nonprofit affordable housing organization designated by the organizing municipality which shares the purposes of the community land trust and has received a determination under 26 U.S.C. § 501(c)(3).
(c) If the entity or organization that gives up or loses its nonprofit corporation status fails to begin the transfer of its interest in any ground leases or deeds of conveyance within 120 days as provided in subsection (b), all interests shall be transferred to the organizing municipality effective immediately by operation of law and shall be reflected by the organizing municipality by recording notices of transfer in the real property records where the leases are recorded.
(Act 2026-545, §11.)
The provisions of this chapter shall control where inconsistent with the provisions of another law.
(Act 2026-545, §12.)
(a) It is hereby found and declared that from time to time there has existed and at the present time there exists an inadequate supply of funds at interest rates sufficiently low to enable the financing of safe and sanitary multi-family dwelling units for citizens of this state and single family dwelling units for citizens of this state with low and moderate income; that the inability to finance such single and multi-family dwelling units results in an inability of builders to construct such housing causing unemployment or underemployment in the housing construction and related businesses and causes a lack of safe and sanitary housing to be available to the citizens of this state; that such unemployment or underemployment in the housing construction and related businesses and an inadequate supply of safe and sanitary housing wastes human resources, increases the public assistance burden of the state, impairs the security of family life, impedes the economic and physical development of the state, adversely affects the welfare and prosperity of all of the people of the state and accordingly creates and fosters conditions adverse to the general health and welfare of the citizens of the state, that the making available in the manner provided in this chapter of a more adequate supply of funds at interest rates sufficiently low to enable the financing of safe and sanitary multi-family dwelling units for citizens of this state and single family dwelling units for citizens of low and moderate income will result in the alleviation or reduction of the adverse consequences which have resulted and may result from continued unemployment and underemployment in the housing construction and related businesses and the inadequate supply of such housing for such persons.
(b) It is hereby further found and determined that the conditions adverse to the general health and welfare of the citizens of the state as noted in subsection (a) of this section can best be solved by a cooperative effort as provided in this chapter between the authority acting on behalf of the state and those engaged in the business of making mortgage loans and such is the purpose of this chapter and it is not the intent of the Legislature that the authority have the power to make direct loans to individuals or to acquire or construct housing units for lease or sale or that the authority have urban development or slum clearance functions, although its functions under this chapter are expected to be complementary to and supportive of those functions.
(Acts 1980, No. 80-585, p. 899, §1; Acts 1987, No. 87-556, p. 862, §1.)
The following words and phrases used in this chapter, and others evidently intended as the equivalent thereof, shall, in the absence of clear implication otherwise, have the following respective meanings:
(1) AUTHORITY. The public corporation and instrumentality of the state organized pursuant to the provisions of this chapter.
(2) AUTHORIZED INVESTMENTS. Bonds or other obligations of, or guaranteed by, the United States of America or the state; interest bearing bank and savings and loan association deposits; obligations of any agency of the United States of America; any obligations in which a state chartered savings and loan association may invest its funds; any agreement to repurchase any of the foregoing; or any combination thereof.
(3) BOARD OF DIRECTORS. The board of directors of the authority.
(4) BONDS. Bonds or other securities representing an obligation to pay money.
(5) ELIGIBLE HOUSING UNIT. Real and personal properties located in the state constituting a single family dwelling unit for occupancy by low and moderate income families or a multi-family dwelling unit for occupancy by any persons and families without restriction as to the income of such persons or families other than any applicable federal restrictions imposed upon multi-family dwelling units financed from the proceeds of bonds the interest on which is exempt from federal income taxes.
(6) LOW AND MODERATE INCOME FAMILIES. Persons and families of one or more persons, irrespective of race, creed, national origin or sex, determined by the authority to require such assistance as is made available by this chapter on account of insufficient personal or family income taking into consideration, without limitation, such factors as follows:
a. The amount of the total income of such persons and families available for housing needs;
b. The size of the family;
c. The cost and condition of housing facilities available;
d. The ability of such persons and families to compete successfully in the normal private housing market and to pay the amounts at which private enterprise is providing sanitary, decent and safe housing; and
e. If appropriate, standards established for various federal programs with respect to housing determining eligibility based on income of such persons and families.
(7) MORTGAGE LENDERS. National banking associations, banks chartered under the laws of the state, savings or building and loan associations chartered under the laws of the state or of the United States of America, Federal National Mortgage Association approved mortgage bankers and federal or state credit unions. The terms shall also include other financial institutions or governmental agencies which customarily originate or service mortgage loans and mortgages.
(8) MORTGAGE LOANS. Notes and other evidences of indebtedness secured by mortgages.
(9) MORTGAGE PROPERTY. All properties, real, personal and mixed, and all interests therein including grants or subsidies with respect thereto, mortgaged, pledged or otherwise provided in any manner as security for (i) mortgage loans or (ii) loans to mortgage lenders.
(10) MORTGAGES. Mortgages, deeds of trust and other instruments granting security interests in real and personal properties constituting eligible housing units.
(11) MULTI-FAMILY MORTGAGE LOANS. Mortgages on eligible housing units constituting residential dwelling units leased to or occupied by more than one family unit.
(12) SERVICING QUALIFIED MORTGAGE LOANS. Notes and other evidences of indebtedness secured by servicing qualified mortgages.
(13) SERVICING QUALIFIED MORTGAGED PROPERTY. All properties, real, personal, or mixed, and all interests therein, mortgaged, pledged, or otherwise provided in any manner as security for servicing qualified mortgage loans.
(14) SERVICING QUALIFIED MORTGAGES. Mortgages, deeds of trust, and other instruments granting security interests in real and personal property of any kind.
(15) SINGLE FAMILY MORTGAGE LOANS. Mortgages on eligible housing units constituting residential dwelling units occupied as the principal residence of the owner-mortgagor by a single-family unit, including, without limitation, detached single family houses, attached single family houses or townhouses and condominium units within larger structures.
(16) STATE. The State of Alabama.
(Acts 1980, No. 80-585, p. 899, §2; Acts 1987, No. 87-556, p. 862, §2; Act 2010-183, p. 257, §1.)
(a) The nine persons initially designated as members of the authority may become a corporation with the power and authority provided in this chapter by proceeding according to the provisions of this chapter. To become a corporation, the persons so designated shall present to the Secretary of State an application signed by them which shall state:
(1) That the applicants propose to incorporate the authority pursuant to this chapter;
(2) The name and official residence of each of the applicants;
(3) The date on which each applicant was appointed as a member by the Governor and the expiration date of the term for which he was appointed;
(4) The name of the proposed corporation, which shall be “Alabama Housing Finance Authority”;
(5) The location of the principal office of the proposed corporation, which shall be in the City of Montgomery; and
(6) Any other matter relating to the authority which the applicants may choose to insert and which is not inconsistent with this chapter or the laws of the state.
(b) The application shall be subscribed and sworn to by each of the applicants before an officer authorized by the laws of the state to take acknowledgments to deeds. The Secretary of State shall examine the application, and if the Secretary of State finds that it substantially complies with the requirements of this section, he shall receive, file and record it in an appropriate book of records in his office.
(c) When the application has been made, filed and recorded as provided in subsection (b) of this section, the applicants shall constitute a corporation under the name stated in the application, and the Secretary of State shall make and issue to the applicants a certificate of incorporation pursuant to this chapter, under the Great Seal of the State, and shall record the certificate with the application. There shall be no fees paid to the Secretary of State for any work done in connection with the incorporation or dissolution of the authority.
(Acts 1980, No. 80-585, p. 899, §4.)
(a) The applicants named in the application, being the seven initial appointees of the Governor by congressional districts, the Director of Finance ex officio and the Superintendent of Banks ex officio, and their respective successors in office, together with the State Treasurer ex officio, an appointee of the Governor from the state at large and the appointees of the Speaker of the House and the Lieutenant Governor, and their respective successors in office, shall constitute the members of the authority. The Governor shall, as soon as convenient after the passage of this chapter, appoint one person from each of the now existing seven congressional districts as members of the authority, and at the expiration of the terms for which they are appointed or the existence of a vacancy, their successors. At the time of their appointment, two of such seven members shall be engaged in the business of home building, two shall be licensed real estate brokers, who are not in the business of home building; one shall be engaged in the business of lending money on the security of mortgages on residential property or the officer, director or employee of a mortgage lender; one shall be an elected commissioner of a county in the state; and one shall be an elected mayor of a municipality. The seven such members first appointed shall be appointed for terms of one, two, three, four, five, six, and seven years respectively, and the Governor in the appointment shall designate the expiration date of the term of the member. In addition to the members appointed by the Governor from each of the seven congressional districts, the Governor shall appoint one additional member from the state at large, such appointment to be for a term ending on June 1, 1990. The Speaker of the House shall appoint two members and the Lieutenant Governor shall appoint two members. The members appointed by the Speaker of the House shall be appointed for three- and five-year terms and the members appointed by the Lieutenant Governor shall be for four- and six-year terms, each commencing January 1, 1982. All successor appointees shall be appointed for the remainder of any unexpired term or, if appointed at the expiration of a term, for terms of seven years. Every member of the authority shall be a citizen of the state and a person of good reputation; and shall hold office for the term of his appointment and until his successor shall have been appointed and qualified. A member, director or officer of the authority may be impeached or removed from office in the same manner and on the same grounds as provided in Section 175 of the Constitution of Alabama and the general laws of the state relating to the impeachment and removal of public officers. At least one member shall be a member of the minority race. The Director of Finance, the State Treasurer and the Superintendent of Banks shall serve as ex officio members of the authority.
(b) The members of the authority shall constitute all the members of the board of directors of the authority, in which all powers of the authority shall be vested, and a majority of the members of the board of directors shall constitute a quorum for the transaction of business.
(c) The board of directors shall elect from among its members, a chairman, a vice-chairman, a secretary, a treasurer and such other officers as it may determine. The board of directors may also elect an assistant secretary and an assistant treasurer, who need not be members of the board of directors.
(d) Regular meetings of the board of directors shall be held at such time and place as shall be fixed by resolution of the board of directors and special meetings of the board of directors shall be held at the call of the chairman or whenever three members of the board of directors so request; provided, that no meeting shall be held unless five days’ prior written notice of the time, place and purpose of such meeting shall have been given to each member of the oversight committee and five days’ public notice has been given in at least three daily newspapers in diverse parts of the state outlining the time, place and purpose of the meeting. Public notice shall not be waived. Any action taken by the authority under the provisions of this chapter may be authorized by resolution approved by a majority of a quorum present and voting at any regular or special meeting. No member, officer or director of the authority shall receive any salary therefor, but he may be reimbursed for necessary travel and the reasonable expenses of performing the duties of office. All proceedings had and done by the board of directors shall be reduced to writing by the secretary or assistant secretary of the authority, shall be signed by at least three directors and shall be recorded in a substantially bound book and filed in the office of the authority. All proceedings of the board shall be open to the public and all records of the board shall be subject to public inspection during business hours. Copies of such proceedings, when certified by the secretary or assistant secretary of the authority under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified. The official records of the authority shall be permanently maintained in the office of the Finance Director.
(e) No member, officer, director or employee shall be personally liable for the obligations or acts of the authority.
(f) There shall be established a legislative oversight committee to provide recommendations to the board concerning efficient operation of the authority. The committee shall consist of seven members of the House of Representatives, one from each congressional district appointed by the Speaker of the House and seven members of the Senate, one from each congressional district appointed by the Lieutenant Governor. The Governor, Lieutenant Governor and Speaker of the House or their designated representative shall serve as ex officio members. The legislative members, after their initial appointment, shall be named at each organizational session and all members shall serve until their successors are properly qualified.
(g) Each appointed member, officer or director of the authority shall be paid actual expenses incurred in the performance of his duties pursuant to the provisions of this chapter, whether incurred within or without the State of Alabama; provided, however, each legislative member of the oversight committee shall be paid his regular legislative compensation for each day’s attendance at meetings when not in legislative session plus actual expenses incurred in the performance of his duties pursuant to the provisions of this chapter when traveling outside the State of Alabama; and the Finance Director, State Treasurer and Superintendent of Banks shall serve without pay but shall be entitled to their actual expenses incurred in the performance of their duties pursuant to the provisions of this chapter. Any payment for compensation or reimbursement for expenses shall be made from any funds of the Alabama Housing Finance Authority.
(Acts 1980, No. 80-585, p. 899, §5; Acts 1981, 3rd Ex. Sess., No. 81-1132, p. 397, §1; Acts 1983, No. 83-499, p. 700, §1.)
The authority shall have the following powers:
(1) To have succession by its corporate name until the principal of and interest on the bonds shall have been fully paid and until it shall have been dissolved as provided in this chapter;
(2) To sue and be sued and to prosecute and defend in any court having jurisdiction of the subject matter and of the parties thereto;
(3) To adopt and use a corporate seal and to alter the seal at pleasure;
(4) To establish a fiscal year;
(5) To maintain an office in the City of Montgomery;
(6) To adopt, and from time to time amend and repeal, bylaws and rules and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of the authority in the conduct of its business;
(7) To purchase mortgage loans from mortgage lenders;
(8) To contract with mortgage lenders for the origination of, or the servicing, of mortgage loans to be made by such mortgage lenders and the servicing of the mortgages securing such mortgage loans;
(9) To make loans to mortgage lenders, provided that (i) the proceeds of such loans shall be required to be used by such mortgage lenders for the making of mortgage loans, and (ii) the mortgages in connection with the mortgage loans so made, together with any additional security required by the authority, shall be mortgaged, pledged, assigned or otherwise provided as security for such loans to mortgage lenders;
(10) To exercise any and all rights accorded to the owner and holder of a mortgage under and in accordance with the terms of said instruments and the applicable laws of the state with respect to the mortgaged property, directly or through mortgage lenders or others acting on behalf of the authority or on behalf of the holders of its bonds, including, but without limitation, the power to foreclose, to sell the equity of redemption, to purchase the equity of redemption and otherwise to sell and dispose of the mortgaged property, all as shall seem in the best interests of the authority and the holders of its bonds;
(11) To sell and issue bonds in order to provide funds for any corporate function, use or purpose;
(12) To mortgage, pledge, assign or grant security interests in any or all of its mortgage loans, mortgages and its interests created thereby in the underlying real and personal properties covered by such mortgages as security for the payment of the principal of, and interest on, any bonds issued by the authority, or as security for any agreements made in connection therewith, whether then owned or thereafter acquired, and to pledge the revenues from which said bonds are payable as security for the payment of the principal of, and interest on, said bonds and any agreements made in connection therewith;
(13) To establish such reserves from the proceeds of any issue of bonds or from revenues of the authority as the board of directors shall determine to be necessary and desirable in connection with the payment and retirement of the bonds of the authority or in connection with any other purpose, power or function of the authority;
(14) To execute and deliver, in accordance with the provisions of this section and of Section 24-1A-6, mortgages and deeds of trust and trust indentures, or either;
(15) To appoint, employ, contract with and provide for the compensation of, such employees, attorneys, fiscal advisers and agents as the business of the authority may require;
(16) To provide for such insurance as the board of directors may deem advisable, including, but without limitation, casualty insurance, mortgage payment guarantee insurance and bond insurance;
(17) To invest in authorized investments any funds of the authority that the board of directors may determine are not presently needed for other uses, purposes or functions of the authority;
(18) To enter into a management agreement or agreements with any person, firm or corporation for the performance by said person, firm or corporation for the authority of any of its functions or powers upon such terms and conditions as may be mutually agreeable;
(19) To sell, exchange and convey any or all of its properties whenever its board of directors shall find any such action to be in furtherance of the purposes for which the authority was organized;
(20) To make, enter into and execute such contracts, agreements, leases and other instruments and to take such other actions as may be necessary or desirable to accomplish any purpose for which the authority is organized or to exercise any power granted by this chapter;
(21) To issue mortgage credit certificates to those persons and families who have received financing from any mortgage lender for the purpose of acquiring, rehabilitating, or improving single-family residential housing in Alabama. The authority shall have the power and the authority to take all steps, make all conditions, and do all things necessary in order to issue the certificates and implement and enforce the mortgage credit certificate program within the parameters and following the procedures specified by federal law and federal regulations governing the mortgage credit certificate program, notwithstanding any contrary provision in this chapter. The authority shall be the sole and exclusive issuer of mortgage credit certificates in and for the state;
(22) To administer other federal programs, present or future, which assist in the provision and financing of housing, including, but not limited to, allocation and issuance of low income housing tax credits under federal law and regulations including Section 42 of the Internal Revenue Code of 1986, as amended, and to take all other actions necessary or convenient to the implementation and administration of such programs;
(23) To acquire, hold and dispose of real and personal property;
(24) To contract with such entities as the authority shall deem reasonable and appropriate for the acquisition, servicing, and disposition of servicing qualified mortgage loans made or to be made by other entities; and
(25) To exercise any and all rights accorded to the owner and holder of a servicing qualified mortgage under and in accordance with the terms of such instruments and the applicable laws with respect to the servicing qualified mortgaged property, directly or through others acting on behalf of the authority or the owners of the servicing qualified mortgage loans, as the case may be, including, but without limitation, the power to foreclose, to sell the equity of redemption, to purchase the equity of redemption, and otherwise to sell and dispose of servicing qualified mortgaged property, all as the authority shall deem reasonable and appropriate in light of contractual or legal requirements.
(Acts 1980, No. 80-585, p. 899, §6; Acts 1989, No. 89-694, p. 1367, §1; Act 2010-183, p. 257, §1.)
(a) General. The authority may from time to time issue its negotiable bonds in such principal amounts as, in the opinion of the authority, shall be necessary to provide sufficient funds for achieving the corporate purposes thereof, the payment of interest on bonds of the authority, establishment of reserves to secure such bonds and all other expenditures of the authority incident to, and necessary or convenient to, carrying out its corporate purposes and powers.
(b) Sources of Payment. Bonds issued by the authority shall be payable solely out of revenues or property of the authority specified in the resolutions authorizing the issuance of such bonds. To the extent permitted by any contracts with the holders of outstanding bonds and any other contractual obligations or requirements, the authority may pledge any, or all, of its revenues or mortgages or assign any, or all, of its assets (whether real or personal and whether tangible or intangible) to secure the payment of any of its bonds.
Revenues and property out of which bonds may be payable shall include, without limitation:
(1) Payments of principal, interest, premiums and penalties in respect to mortgage loans, loans to mortgage lenders, mortgages and mortgaged property;
(2) Proceeds referable to the foreclosure of mortgages or otherwise realized, by any and all means, upon any mortgaged property;
(3) Payments made in redemption of the equity of such mortgages or similar payments with respect to any redemption of mortgaged property;
(4) Proceeds from the leasing or sale of property which was formerly mortgaged property and which was acquired in the process of enforcing mortgage loans or loans to mortgage lenders;
(5) Proceeds from the sale of mortgage loans, loans to mortgage lenders, mortgages and mortgaged property;
(6) Insurance proceeds referable to mortgage loans, loans to mortgage lenders, mortgages and mortgaged property including, but without limitation, proceeds from casualty insurance and mortgage payment guarantee insurance;
(7) Proceeds from bond insurance;
(8) Grants or subsidies available in connection with any of the foregoing;
(9) Any of the foregoing sources of revenues as may be designated in the proceedings of the board pursuant to which the bonds shall be authorized to be issued.
(c) Pledge of Revenues and Other Security. The principal of and interest on any bonds issued by the authority may be secured by a pledge of the revenues out of which the same are payable and may be secured by a trust indenture evidencing such pledge or by a foreclosable mortgage and deed of trust conveying as security for such bonds all, or any part, of the property of the authority from which the revenues so pledged may be derived. The resolution under which the bonds are authorized to be issued or any such trust indenture or mortgage may contain any agreements and provisions respecting the maintenance and insurance of the property covered by such trust indenture or mortgage, the use of the revenues subject to such trust indenture or mortgage, the creation and maintenance of special funds from such revenues, the rights, duties and remedies of the parties to any such instrument and the parties for the benefit of whom such instrument is made and the rights and remedies available in the event of default as the authority shall deem advisable and which are not in conflict with the provisions of this chapter.
(d) Execution. All bonds issued by the authority shall be signed by the chairman or vice-chairman of its board of directors and attested by its secretary or assistant secretary and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds of the authority shall be signed by the chairman or vice-chairman of its board of directors; provided, however, that a facsimile of the signature of either the signing or the attesting officer, but not both, may be printed or otherwise reproduced on any such bonds in lieu of his manually signing the same, a facsimile of the seal of the authority may be printed or otherwise reproduced on any such bonds in lieu of being manually affixed thereto and a facsimile of the signature of the chairman or vice-chairman of the board of directors may be printed or otherwise reproduced on any such interest coupons in lieu of his manually signing the same.
(e) General Provisions Respecting Form; Interest Rate; Maturities; Sale and Negotiability of Bonds. Any such bonds may be executed and delivered by the authority at any time and, from time to time, shall be in such form and denomination or denominations and of such tenor and maturity or maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, payable at such place or places, either within or without the state, and evidenced in such manner, as may be provided by resolution of the board of directors. Bonds of the authority may be sold at public sale, including without limitations the rejection of all bids, at such price or prices and at such times as determined by the board of directors to be advantageous. In addition, if bids are rejected or upon a finding by the Director of Finance of the state that a public sale of the authority’s bonds is, under the circumstances, either impractical or undesirable, bonds may be sold at private sale in such manner and at such price or prices and at such time or times as may be determined by the board of directors to be most advantageous. The authority may pay all expenses, premiums and commissions in connection with any financing done by it. All bonds of the authority (including refunding bonds), except bonds registered as to principal or as to both principal and interest, and any interest coupons applicable thereto issued by the authority shall be construed to be negotiable instruments although payable solely from a specified source.
(f) No State Debt or Obligation. All obligations created and all bonds issued by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of the state.
(Acts 1980, No. 80-585, p. 899, §8.)
(a) All moneys derived from the sale of any bonds issued by the authority shall be used solely for the purpose or purposes for which the same are authorized, including costs and expenses of issue. Such costs and expenses may include but shall not be limited to:
(1) The fiscal, legal and other expenses incurred in connection with the issuance of the bonds; and
(2) Except in the case of refunding bonds, interest to accrue on such bonds for a period ending not later than two years from their date.
(b) Bonds shall be issued in series, each of which shall be separately designated in the proceedings authorizing their issuance. The board of directors in the proceedings authorizing a series of bonds (other than refunding bonds) shall specify the purposes for which the proceeds of such series shall be used. The proceeds of a series of bonds shall be used either for making, directly or indirectly, single family mortgage loans or for making, directly or indirectly, multi-family mortgage loans or for making, directly or indirectly, home improvement loans for eligible existing single family housing units, and the proceeds of a single series of bonds shall not be used for any combination of single family mortgage loans, multi-family mortgage loans and home improvement loans. Separate series of bonds may be issued at the same time. No series of bonds, the proceeds which are to be used for multi-family mortgage loans, shall be actually issued prior to January 1, 1981, although the authority may enter into agreements or commitments with regard to the issuance of such bonds prior to January 1, 1981.
(c) In the proceedings authorizing any bonds (other than refunding bonds) the proceeds of which are to be applied, directly or indirectly, to the making of single family mortgage loans, the board of directors shall specify the portion of the proceeds thereof which the board of directors has determined are to be used for the purpose of providing funds with respect to the making, directly or indirectly, of such mortgage loans, and of such portion shall allocate (1) a minimum of 70 percent of such proceeds to the making of mortgage loans with respect to new and previously unoccupied eligible housing units, and (2) not exceeding 30 percent of such proceeds to the making of mortgage loans for existing eligible housing units and for the purchase of existing mortgage loans with respect to eligible housing units; provided, however, that if the authority determines, after 60 days from the date of issuance of any series of bonds issued for the purpose of financing single family mortgage loans, that the proceeds of such series have not been expended or committed to be expended for mortgage loans with respect to new and previously unoccupied eligible housing units, then such proceeds may be used to finance any single family mortgage loans.
(d) If, for any series of bonds the proceeds of which are to be used for making, directly or indirectly, single family mortgage loans, the total requests for mortgage funds by mortgage lenders at the interest rate nearest to the mortgage interest rate actually obtained by the bond issue are less than or equal to an amount equal to the maximum principal amount of mortgage revenue bonds which may be issued under federal law during the then-current calendar year, then the authority shall allocate the net proceeds available for mortgage loans in such manner as it shall determine in its sole discretion.
(e) If, for any series of bonds the proceeds of which are to be used for making, directly or indirectly, single family mortgage loans, the total requests for mortgage funds by mortgage lenders at the interest rate nearest to the mortgage interest rate actually obtained by the bond issue exceed an amount equal to the maximum principal amount of mortgage revenue bonds which may be issued under federal law during the then-current calendar year, then 35 percent of the net proceeds available for mortgage loans shall be allocated equally among the 67 counties of the state for a period of 60 days commencing on the date of issuance of such series of bonds. The authority, in its sole discretion, shall have the option to extend such 60-day period for an additional 30 days, and the further option to extend such period for an additional 30 days. At the expiration of such period, including any extension thereof, the authority may reallocate in the manner provided in subsection (d) of this section any portion of any county’s original allocation which is not the subject of a written commitment for mortgage loans by mortgage lenders. The remaining 65 percent of such net proceeds shall be allocated by the authority in the manner provided in subsection (d) of this section.
(Acts 1980, No. 80-585, p. 899, §9; Acts 1981, 3rd Ex. Sess., No. 81-1132, p. 397, §2.)
(a) Any bonds issued by the authority may from time to time be refunded by the issuance, by sale or exchange, of refunding bonds payable from the same or different sources for the purpose of paying:
provided, however, that unless duly called for redemption pursuant to provisions contained therein, the holders of any such bonds then outstanding and proposed to be refunded shall not be compelled without their consent to surrender their outstanding bonds for such refunding.
(b) Any refunding bonds may be sold by the authority at public or private sale at such price or prices as may be determined by its board of directors to be most advantageous, or may be exchanged for the bonds to be refunded. Any such refunding bonds may be executed and delivered by the authority at any time and, from time to time, shall be in such form and denomination or denominations and of such tenor and maturity or maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, payable at such place or places, either within or without the state, and evidenced in such manner, as may be provided by resolution of the board of directors.
(c) Any refunding bonds issued by the authority shall be issued and may be secured in accordance with the provisions of Section 24-1A-6.
(Acts 1980, No. 80-585, p. 899, §10.)
The State Treasurer may invest any idle or surplus moneys of the state in bonds of the authority. The governing body of any county or municipality is authorized in its discretion to invest any idle or surplus money held in its treasury in bonds of the authority. Such bonds shall be legal investments for executors, administrators, trustees and other fiduciaries, unless otherwise directed by the court having jurisdiction of the fiduciary relation or by the document that is the source of the fiduciary’s authority, and for savings banks and insurance companies organized under the laws of the state.
(Acts 1980, No. 80-585, p. 899, §12.)
The provisions of subsection (d)(14) of Section 7-9A-109, to the contrary notwithstanding, the provisions of Article 9A of Title 7 shall apply with full force and effect to any security interest (whether denominated a pledge, assignment or otherwise) in any tangible or intangible personal property of the authority created or made in connection with any issue of bonds of the authority.
(Acts 1980, No. 80-585, p. 899, § 13; Act 2001-481, p. 647, § 2.)
The property and income of the authority, all bonds issued by the authority, the interest payable on and the income derived from such bonds, conveyances by or to the authority and leases, mortgages and deeds of trust or trust indentures by or to the authority shall be exempt from all taxation in the state. The authority shall be exempt from all taxes levied by any county, municipality or other political subdivision of the state, including, but without limitation, license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which the authority may engage. Nothing in this section shall be construed to exempt any private person, firm or corporation from payment of any ad valorem, mortgage or deed taxes or recording fees notwithstanding the fact that the authority shall have acquired an interest in the property or instrument subject to such taxes or fees.
(Acts 1980, No. 80-585, p. 899, §14.)
The state shall not in any event be liable for the payment of the principal of, or interest on, any bonds of the authority or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the authority, and none of the bonds of the authority or any of its agreements or obligations shall be construed to constitute an indebtedness of the state within the meaning of any constitutional or statutory provision whatsoever.
(Acts 1980, No. 80-585, p. 899, §15.)
All securities issued by the authority shall be exempt from the laws of the state governing usury or prescribing or limiting interest rates, including, but without limitation, the provisions of Chapter 8 of Title 8.
(Acts 1980, No. 80-585, p. 899, §16.)
This chapter is intended to aid the state through the furtherance of the purposes of the chapter by providing an appropriate and independent instrumentality of the state with full and adequate powers to fulfill its functions. Except as expressly provided in this chapter, no proceeding, notice or approval shall be required for the incorporation of the authority, the purchase of any mortgage loans or the making of any loan to a mortgage lender, the acquisition of any mortgage, the acquisition of, or any dealing with respect to, any mortgaged property, the issuance of any bonds, the execution of any mortgage and deed of trust or trust indenture or the exercise of any other of its powers by the authority.
(Acts 1980, No. 80-585, p. 899, §17.)
The authority shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm or corporation, except that in the event its board of directors shall determine that sufficient provision has been made for the full payment of the expenses, bonds and other obligations of the authority, then any net earnings of the authority thereafter accruing shall be paid to the state.
(Acts 1980, No. 80-585, p. 899, §18.)
At any time when an authority has no bonds or other obligations outstanding, its board of directors may by the unanimous vote of all directors present adopt a resolution declaring that the authority shall be dissolved. Upon filing for record of a certified copy of the said resolution in the office of the Secretary of State, the authority shall thereupon stand dissolved and in the event it shall own any property at the time of its dissolution, the title of all its properties shall thereupon pass to the state.
(Acts 1980, No. 80-585, p. 899, §19.)
The authority shall utilize all administrative services which may be provided by the Department of Finance.
(Acts 1980, No. 80-585, p. 899, §20.)
The entire board of directors, the officers and employees of the authority are hereby subject to the provisions of Chapter 25 of Title 36 and to the rules and promulgations of the State Ethics Commission.
(Acts 1980, No. 80-585, P. 899, §21.)
This chapter shall not be used to assist any present owner for refinancing purposes.
(Acts 1980, No. 80-585, p. 899, §22.)
This chapter being remedial in nature, the provisions of this chapter shall be liberally construed to effect its purpose.
(Acts 1980, No. 80-585, p. 899, §23.)
This article shall be known and may be cited as “The Alabama Home Buyers Initiative Act.”
(Act 2009-284, p. 487, §1.)
The Legislature finds that the effects of the global and national recession are now affecting Alabama’s housing industry and adversely affecting the state’s economic development activity. The large number of homes on the market is causing a reduction in housing starts, resulting in fewer construction jobs and lower tax collections from the sale of building materials. In addition, the large number of existing homes on the market is adversely affecting the state’s economic recovery. The Legislature desires to provide a stimulus to provide a boost to the housing industry and to facilitate economic development and industrial recruitment by creating a guarantee fund that would encourage investments in new thirty-year, fixed-rate conventional mortgage loans through a program administered by the Alabama Housing Finance Authority. The guarantee fund will reduce the investor’s potential for losses.
(Act 2009-284, p. 487,§2.)
(a) In order to offset the adverse effects of the global and national recession on Alabama’s housing industry and its economic development activity and to provide a boost to the state’s housing industry and its economic development and industrial recruitment, the Legislature adopted the Alabama Home Buyers Initiative Act, codified as Sections 24-1A-40 to 24-1A-43, inclusive, which established a mortgage guarantee fund to reimburse investors for a portion of any foreclosure losses suffered as a result of purchasing qualified mortgage loans on eligible properties located within the State of Alabama.
(b) Pursuant to the act, six million dollars ($6,000,000) was appropriated and irrevocably deposited in the mortgage guarantee fund. The fund is held by the State Treasurer and administered by the Alabama Housing Finance Authority, a public corporation and instrumentality of the State of Alabama.
(c) It is hereby found and determined that, due to dramatic changes in the mortgage industry during the recent economic crisis, no qualified mortgage loans have been purchased by investors under the act, and no such loans are reasonably expected to be purchased in the future, and as a result, none of the money appropriated by the act and deposited in the mortgage guarantee fund has been deployed for its initial purposes.
(d) Therefore, in accordance with the original intent of Section 24-1A-43, the Legislature intends to make the funds on deposit in the mortgage guarantee fund available for alternative housing programs.
(Act 2014-88, p. 141, §1.)
As used in this article, the following terms shall have the following meanings:
(1) ALABAMA HOME BUYERS INITIATIVE. A program that includes a conventional mortgage program not to exceed one billion dollars ($1,000,000,000) in aggregate loan amount to be administered by the program administrator, under which single family mortgage loans, as defined in Section 24-1A-2, are purchased by the program administrator and sold to the initial holder, and one or more alternative housing programs. No mortgage loan shall be made to any person who is not a citizen of the United States or is not legally present in the United States with appropriate documentation from the federal government.
(2) ALTERNATIVE HOUSING PROGRAM. Any program or other activity that is certified to the State Treasurer by the program administrator under Section 24-1A-44(c)(2), that will be administered by the program administrator, and that will promote home ownership in Alabama, including, without limitation, the establishment of reserve funds for housing initiatives, the payment of mortgage insurance premiums, and the establishment and administration of homeowner education programs. The program administrator may certify one or more alternative housing programs in order to utilize all funds on deposit in the mortgage guarantee fund.
(3) CERTIFIED AMOUNT. The dollar amount of funds on deposit in the mortgage guarantee fund that is certified to the State Treasurer by the program administrator under Section 24-1A-44(c)(1) as available for an alternative housing program.
(4) ELIGIBLE PROPERTIES. Both newly constructed residences and existing homes.
(5) FORECLOSURE BALANCE. The sum of (a) the unpaid principal balance of a qualified mortgage loan, (b) any interest accrued thereon through the date of foreclosure, and (c) foreclosure expenses, which shall include attorney fees, title work, recording or filing fees, escrow advances, and other actual expenses associated with a foreclosure sale.
(6) FORECLOSURE LOSS. The foreclosure balance for a qualified mortgage loan less its resale proceeds.
(7) HOLDER. Any person that owns a qualified mortgage loan.
(8) INVESTOR. The holder of a qualified mortgage loan on the date on which a foreclosure loss occurs with respect to such loan.
(9) MORTGAGE GUARANTEE FUND. The fund established under Section 24-1A-43.
(10) MORTGAGE GUARANTEE FUND FEE. A fee equal to one percent (1%) of the sales price of each home financed with a qualified mortgage loan under the Alabama Home Buyers Initiative.
(11) PERSON. Any individual, trust, estate, corporation, association, partnership, limited liability company, or other entity of any kind.
(12) PROGRAM ADMINISTRATOR. The Alabama Housing Finance Authority.
(13) QUALIFIED MORTGAGE LOAN. A mortgage loan secured by an eligible property originated under the Alabama Home Buyers Initiative.
(14) RESALE PROCEEDS. The net sales proceeds from the remarketing or resale of a residence following a foreclosure sale conducted under a qualified mortgage loan, which shall be equal to the sales price received in an arm’s length sale less closing costs, commissions, property preservation, and reasonable and customary expenses associated with the sale of a residential property.
(Act 2009-284, p. 487,§3; Act 2014-88, p. 141, §2.)
(a) There is hereby established a mortgage guarantee fund to be held in the State Treasury and to be administered by the Alabama Housing Finance Authority that will be available to reimburse foreclosure losses, if any, that arise with respect to a qualified mortgage loan under the Alabama Home Buyers Initiative. There is appropriated from the Alabama Capital Improvement Trust Fund to the guarantee fund a total of six million dollars ($6,000,000) for the fiscal year ending September 30, 2009. This appropriation shall be irrevocably deposited in the guarantee fund within 10 days after Act 2009-284 becomes effective. Pursuant to Section VII of Section 219.04 of the Constitution of Alabama of 2022, the Legislature finds that it is advisable and necessary to make this appropriation to the mortgage guarantee fund which is in excess of the amount contained in the Governor’s certification of the amount of funds needed for capital improvements.
(b) A mortgage guarantee fund fee shall be paid at closing from the proceeds of each qualified mortgage loan and shall be deposited in the fund. All interest or investment income on funds deposited in the fund shall be credited to, and shall remain part of, the fund.
(c) The state Comptroller shall issue payment warrants from the mortgage guarantee fund only after receipt of a certification from the program administrator that identifies each qualified mortgage loan that has suffered a foreclosure loss, contains a calculation of the amount of the foreclosure loss, and provides payment instructions for each investor that suffered the foreclosure loss. Payments from the fund shall be deemed made first from the six million dollars ($6,000,000) appropriated to the fund in subsection (a), until exhausted, thereafter from interest or investment income on the fund, and finally from fees deposited in the fund.
(d) The amount of reimbursement available from the mortgage guarantee fund for each qualified mortgage loan shall not exceed 40 percent of the loan’s foreclosure balance.
(e) Reimbursements to investors from the mortgage guarantee fund shall be paid in the order in which certifications of foreclosure loss are received.
(f) The mortgage guarantee fund shall remain available until it is depleted. If the program administrator certifies to the State Treasurer that: (i) all qualified mortgage loans have been paid in full before the fund is depleted; or (ii) the existing balance in the fund exceeds the maximum amount that is available to be withdrawn to reimburse foreclosure losses under this article, the remaining balance or excess amount in the fund and all future mortgage guarantee fund fees, if any, shall be made available for other housing programs identified and administered by the program administrator, including without limitation funds for other housing initiatives, and homeowner education.
(g) Upon the depletion of the funds appropriated from the Alabama Capital Improvement Trust Fund described in subsection (a), any additional funds that are appropriated to the mortgage guarantee fund shall be made available for other housing programs identified and administered by the program administrator as provided in this article, including alternative housing programs as provided in Section 24-1A-44.
(Act 2009-284, p. 489,§4; Act 2024-336, §1.)
(a) Mortgage guarantee fund. In addition to the uses provided in Section 24-1A-43, commencing on March 3, 2014, the mortgage guarantee fund established by the Alabama Home Buyers Initiative Act, including all funds appropriated for the mortgage guarantee fund and all interest or investment earnings thereon, shall be made available to fund alternative housing programs in accordance with this section, and Sections 24-1A-41.1 and 24-1A-42.
(b) Investment income on mortgage guarantee fund. All interest or investment income, if any, on funds deposited in the mortgage guarantee fund shall be credited to, and shall remain part of, the mortgage guarantee fund.
(c) Establishment of alternative housing programs. In order to establish an alternative housing program, the program administrator shall certify in writing to the State Treasurer that: (1) There is a specific dollar amount of funds on deposit in the mortgage guarantee fund, up to and including the full amount then on deposit in the mortgage guarantee fund, that is available to be used for an alternative housing program, the certified amount; (2) There is an alternative housing program for which the certified amount can be used; and (3) The designation assigned by the program administrator to the alternative housing program in order to differentiate it from other alternative housing programs. The State Treasurer’s receipt of a written certification from the program administrator containing the above statements, without further detail, shall be sufficient for purposes of this section and Sections 24-1A-41.1 and 24-1A-42 to establish an alternative housing program and to make the certified amount available to fund such program, and the State Treasurer shall have no obligation to review or approve any alternative housing program so certified. The State Treasurer, in his or her discretion, may establish a separate account within the mortgage guarantee fund for each alternative housing program established under this subsection, which account shall be funded solely from existing money on deposit in the mortgage guarantee fund in an amount equal to the certified amount for the alternative housing program for which such account is established.
(d) Funding of alternative housing programs. If the program administrator provides a written certification to the Comptroller that: (1) requests a specific amount of funding from the mortgage guarantee fund; (2) identifies by assigned designation the alternative housing program for which the funding is requested; (3) specifies the name and address of the payee to whom such amount shall be paid; and (4) certifies that the amount of funding being requested for the alternative housing program, together with the aggregate amount of all prior funding requested for such program, does not exceed the certified amount with respect to the alternative housing program being funded, then the Comptroller shall issue a warrant in the amount requested payable to the payee specified by the program administrator.
(e) Modification of certified amounts. The program administrator, at any time, may deliver a written certification to the Comptroller that increases, decreases, or terminates the certified amount with respect to any alternative housing program; provided, however, that the certified amount for any alternative housing program may not be reduced under any circumstances to an amount less than the aggregate amount payable under the then outstanding warrants issued by the Comptroller, including any warrants that have been requested but not yet issued, with respect to such alternative housing program.
(f) Modification of alternative housing programs. The program administrator, in his or her sole discretion, may modify, amend, expand, reduce, or otherwise alter any alternative housing program being funded under this section and Sections 24-1A-41.1 and 24-1A-42 without notice to, consent from, or any other action by the State Treasurer or Comptroller so long as the alternative housing program, as modified, constitutes an alternative housing program within the meaning of this section and Sections 24-1A-41.1 and 24-1A-42.
(g) Availability of mortgage guarantee fund. The mortgage guarantee fund shall remain available until it is depleted through the funding of alternative housing programs.
(Act 2014-88, p. 141, §3.)
(a) It is hereby found and declared:
(1) That there exist in many communities within this state blighted areas, as defined herein, or areas in the process of becoming blighted;
(2) That such areas impair economic values and tax revenues, cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals, and welfare of the residents of the state, and that these conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health and safety, fire and accident protection, and other public services and facilities;
(3) That the clearance, replanning, and preparation for rebuilding of these areas and the prevention or the reduction of blight and its causes are public uses and purposes for which public money may be spent and private property acquired and are governmental functions of state concern;
(4) That redevelopment activities will stimulate residential construction which is closely correlated with general economic activity and that the undertakings authorized by this chapter will aid the production of better housing and more desirable neighborhood and community development at lower costs and will make possible a more stable and larger volume of residential construction, which will assist materially in achieving and maintaining full employment; and
(5) That it is in the public interest that advance preparation for such projects and activities be made now.
(b) The necessity in the public interest for this chapter is hereby declared as a matter of legislative determination.
(Acts 1949, No. 491, p. 713, §1.)
(a) Any housing authority now or hereafter established pursuant to this title, or any incorporated city or town may carry out any work or undertaking, hereafter called a “redevelopment project”:
(1) To acquire blighted property as defined in subsection (c).
(2) To acquire other real property for the purpose of removing, preventing, or reducing blight, blighting factors, or the causes of blight, but this authority to acquire such other property shall not be construed to grant the power of eminent domain to acquire property that is not blighted without the consent of the owner.
(3) To clear any areas acquired and install, construct, or reconstruct streets, utilities, and site improvements essential to the preparation of sites for uses in accordance with the redevelopment plan.
(4) To sell or lease land so acquired for uses in accordance with the redevelopment plan.
(5) To accomplish a combination of the foregoing to carry out a redevelopment plan.
(b) Notwithstanding any other provisions of this chapter, a redevelopment project may include property that is not blighted, but the power of eminent domain may not be exercised to acquire property that is not blighted without the consent of the owner.
(c) For the purposes of this section and Section 24-3-2, the term “blighted property” means property that contains any of the following factors:
(1) The presence of structures, buildings, or improvements, which, because of dilapidation, deterioration, or unsanitary or unsafe conditions, vacancy or abandonment, neglect or lack of maintenance, inadequate provision for ventilation, light, air, sanitation, vermin infestation, or lack of necessary facilities and equipment, are unfit for human habitation or occupancy.
(2) The existence of high density of population and overcrowding or the existence of structures which are fire hazards or are otherwise dangerous to the safety of persons or property or any combination of the factors.
(3) The presence of a substantial number of properties having defective or unusual conditions of title which make the free transfer or alienation of the properties unlikely or impossible.
(4) The presence of structures from which the utilities, plumbing, heating, sewerage, or other facilities have been disconnected, destroyed, removed, or rendered ineffective so that the property is unfit for its intended use.
(5) The presence of excessive vacant land on which structures were previously located which, by reason of neglect or lack of maintenance, has become overgrown with noxious weeds, is a place for accumulation of trash and debris, or a haven for mosquitoes, rodents, or other vermin where the owner refuses to remedy the problem after notice by the appropriate governing body.
(6) The presence of property which, because of physical condition, use, or occupancy, constitutes a public nuisance or attractive nuisance where the owner refuses to remedy the problem after notice by the appropriate governing body.
(7) The presence of property with code violations affecting health or safety that has not been substantially rehabilitated within the time periods required by the applicable codes.
(8) The presence of property that has tax delinquencies exceeding the value of the property.
(9) The presence of property which, by reason of environmental contamination, poses a threat to public health or safety in its present condition.
(Acts 1949, No. 491, p. 713, §2; Acts 1967, No. 416, p. 1070, §2; Act 2006-584, p. 1544, §1.)
In undertaking such redevelopment projects a housing authority, or the governing body of any incorporated city or town, shall have all the rights, powers, privileges, and immunities that such authority has under Chapter 1 of this title, and any other provision of law relating to slum clearance and housing projects for persons of low income, including, without limiting the generality of the foregoing, the power to make and execute contracts, to issue bonds and other obligations and give security therefor, to acquire real property by eminent domain or purchase, and to do any and all things necessary to carry out projects in the same manner as though all the provisions of law applicable to slum clearance and housing projects were applicable to redevelopment projects undertaken under this chapter; provided, that nothing contained in Section 24-1-6 shall be construed as limiting the power of an authority or the governing body of any incorporated city or town, in the event of a default by a purchaser or lessee of land in a redevelopment plan, to acquire property and operate it free from the restrictions contained in said section.
(Acts 1949, No. 491, p. 713, §3; Acts 1967, No. 416, p. 1070, §3.)
An authority or the governing body of any city or town shall not initiate any redevelopment project under this chapter until the governing body, or agency designated by it or empowered by law to so act of each city, town, or village, hereinafter called “municipalities,” in which any of the area to be covered by said project is situated has approved a plan, herein called the “redevelopment plan,” which provides an outline for the development or redevelopment of said area and is sufficiently complete:
(1) To indicate its relationship to definite local objectives as to appropriate land uses and improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements;
(2) To indicate proposed land uses and building requirements in the area; and
(3) To indicate the method for the temporary relocation of persons living in such areas and also the method for providing, unless already available, decent, safe, and sanitary dwellings substantially equal in number to the number of substandard dwellings to be cleared from said area, at rents within the financial reach of the income groups displaced from such substandard dwellings.
Such municipalities are hereby authorized to approve redevelopment plans through their governing body or agency designated by it for that purpose. Any city, municipality, county, or other public body shall have the same rights and powers to cooperate with and assist housing authorities with respect to redevelopment projects that such public bodies have pursuant to Article 2 of Chapter 1 of this title, or any other provision of law for the purpose of assisting the development or administration of slum clearance and housing projects in the same manner as though the provisions of such laws were applicable to redevelopment projects undertaken under this chapter.
(Acts 1949, No. 491, p. 713, §4; Acts 1967, No. 416, p. 1070, §4.)
For the purpose of coordinating its activities and undertakings under this chapter with the needs and undertakings of other local organizations and groups, a housing authority or the governing body of any incorporated city or town may establish an advisory board consisting of the chairman of the authority, who shall be chairman of the advisory board, and of sufficient members to represent so far as practicable: The general public and consumers of housing; general business interests; real estate, building and home financing interests; labor; any official planning body in the locality; and church and welfare groups. The members of the advisory board shall be appointed by the chairman of the authority or, if the board is established by the governing body of any incorporated city or town, then the members of the advisory board shall be appointed by the mayor of such city or town, and, in such event, the mayor shall be the chairman of the advisory board.
(Acts 1949, No. 491, p. 713, §9; Acts 1967, No. 416, p. 1070, §9.)
(a) The authority or the governing body of any city or town may make land in a redevelopment project available for use by private enterprise or public agencies in accordance with the redevelopment plan. Such land may be made available at its use value, which represents the value, whether expressed in terms of rental or capital price, at which the authority or the governing body of any incorporated city or town determines such land should be made available in order that it may be developed or redeveloped for the purposes specified in such plan.
(b) To assure that land acquired in a redevelopment project is used in accordance with the redevelopment plan, an authority or the governing body of any incorporated city or town, upon the sale or lease of such land, shall obligate purchasers or lessees:
(1) To use the land for the purpose designated in the redevelopment plan;
(2) To begin the building of their improvements within a period of time which the authority fixes as reasonable; and
(3) To comply with such other conditions as are necessary to carry out the purposes of this chapter.
Any such obligations by the purchaser shall be covenants and conditions running with the land where the authority so stipulates.
(Acts 1949, No. 491, p. 713, §5; Acts 1967, No. 416, p. 1070, §5.)
Any property which the authority or the governing body of any incorporated city or town leases to private individuals or corporations for development under a redevelopment plan shall have the same tax status as if such leased property were owned by such private individuals or corporations.
(Acts 1949, No. 491, p. 713, §6; Acts 1967, No. 416, p. 1070, §6.)
An authority or the governing body of any incorporated city or town may borrow money or accept contributions from the federal government to assist in its undertaking redevelopment projects. An authority or the governing body of any incorporated city or town may do any and all things necessary or desirable to secure such financial aid, including obligating itself in any contract with the federal government for annual contributions to convey to the federal government the project to which said contract relates, upon the occurrence of a substantial default thereunder, in the same manner as they may do to secure such aid in connection with slum clearance and housing projects under the provisions of this title.
(Acts 1949, No. 491, p. 713, §7; Acts 1967, No. 416, p. 1070, §7.)
Bonds or other obligations issued by a housing authority or the governing body of any incorporated city or town, in connection with a redevelopment project pursuant to this chapter, shall be security for public deposits and legal investments to the same extent and for the same persons, institutions, associations, corporations, and other bodies and officers as bonds or other obligations issued pursuant to this title in connection with the development of slum clearance and housing projects.
(Acts 1949, No. 491, p. 713, §8; Acts 1967, No. 416, p. 1070, §8.)
The provisions of this chapter shall be cumulative and supplemental to the powers conferred by any other law and shall be construed in pari materia with other laws relative to redevelopment plans and redevelopment projects. No laws shall be deemed repealed by this chapter unless in specific conflict herewith.
(Acts 1949, No. 491, p. 713, §10; Acts 1967, No. 416, p. 1070, §10.)
(a) It is hereby found and declared:
(1) That there exist in communities of the state slum, blighted, and deteriorated areas which constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state, and the findings and declarations heretofore made in Section 24-2-1 with respect to blighted areas are hereby affirmed and restated;
(2) That certain slum, blighted, or deteriorated areas, or portions thereof, may require acquisition and clearance, since the prevailing condition of decay may make impracticable the reclamation of the area by conservation or rehabilitation, but other areas, or portions thereof, may, through the means provided in this chapter, be susceptible of conservation or rehabilitation in such a manner that the conditions and evils hereinbefore enumerated may be eliminated, remedied, or prevented, and, to the extent feasible, salvable slum and blighted areas should be conserved and rehabilitated through voluntary action and the regulatory process; and
(3) That all powers conferred by this chapter are for public uses and purposes for which public money may be expended and such other powers exercised, and the necessity in the public interest for the provisions of this chapter is hereby declared as a matter of legislative determination.
(b) A city or town, hereinafter called “municipality,” to the greatest extent it determines to be feasible in carrying out the provisions of this chapter, shall afford maximum opportunity, consistent with the sound needs of the municipality as a whole, to the rehabilitation or redevelopment of areas by private enterprise.
(Acts 1955, No. 553, p. 1210, §1.)
(a) In addition to its authority under this title, any housing authority created under this title is hereby authorized to plan and undertake urban renewal projects.
(b) The governing body of any incorporated city or town is likewise hereby authorized to plan and undertake urban renewal projects and shall have and possess the same powers and authority granted to or conferred on any housing authority.
(c) As used in this chapter, an urban renewal project may include undertakings and activities for the elimination and for the prevention of the spread of blighted property as defined in subsection (c) of Section 24-2-2 and may involve any work or undertaking for such purpose constituting a redevelopment project authorized by Chapter 2 of this title, or any rehabilitation or conservation work or any combination of such undertaking or work. For this purpose, “rehabilitation or conservation work” may include:
(1) Carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements;
(2) Acquisition of real property and demolition, removal or rehabilitation of buildings and improvements thereon, where necessary to eliminate unhealthful, unsanitary, or unsafe conditions, lessen density, reduce traffic hazards, eliminate obsolete or other uses detrimental to the public welfare, or to otherwise remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities;
(3) Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out the objectives of the urban renewal project; and
(4) The disposition, for uses in accordance with the objectives of the urban renewal project, of any property or part thereof acquired in the area of such projects; provided that such disposition shall be in the manner prescribed in Chapter 2 of this title for the disposition of property in a redevelopment project area.
(d) Notwithstanding any other provisions of this chapter, an urban renewal project may include property that is not blighted, but the power of eminent domain may not be exercised to acquire property that is not blighted without the consent of the owner.
(Acts 1955, No. 553, p. 1210, §2; Acts 1967, No. 417, p. 1075, §2; Act 2006-584, p. 1544, §1.)
Any urban renewal project undertaken pursuant to Section 24-3-2 shall be undertaken in accordance with an urban renewal plan for the area of the project. As used in this chapter, an “urban renewal plan” means a plan, as it exists from time to time, for an urban renewal project, which plan shall conform to the general plan for the municipality as a whole and shall be sufficiently complete to indicate such land acquisition, demolition and removal of structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the area of the urban renewal project, zoning and planning changes, if any, land uses, maximum densities, building requirements, and the plan’s relationship to definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements. An urban renewal plan shall be prepared and approved pursuant to the same procedure as provided in Chapter 2 of this title, with respect to a redevelopment plan.
(Acts 1955, No. 553, p. 1210, §3.)
An authority shall have all the powers necessary or convenient to undertake and carry out urban renewal plans and urban renewal projects, including the authority to acquire and dispose of property, to make payments to persons and businesses displaced by the acquisition and disposal of any property, to issue bonds and other obligations, to borrow and accept grants from the federal government or other source, and to exercise the other powers which Chapter 2 of this title confers on an authority with respect to redevelopment projects. In connection with the planning and undertaking of any urban renewal plan or urban renewal project, the authority, the municipality, and all public and private officers, agencies, and bodies shall have all the rights, powers, privileges, and immunities which they have with respect to a redevelopment plan or redevelopment project, in the same manner as though all of the provisions of Chapter 2 of this title applicable to a redevelopment plan or redevelopment project, were applicable to an urban renewal plan or urban renewal project; provided, that for such purpose the word “redevelopment,” as used in Chapter 2 of this title, shall mean “urban renewal,” and the word “slum” and the word “blighted,” as used in Chapter 2 of this title, shall mean “blighted, deteriorated, or deteriorating”; and provided further, that this section shall not change the corporate name of the authority or amend any section of Chapter 2 of this title. In addition to the surveys and plans which an authority is otherwise authorized to make, an authority is hereby specifically authorized to make plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements and plans for the enforcement of laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements, and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements. The authority is authorized to develop, test, and report methods and techniques and carry out demonstrations and other activities for the prevention and the elimination of slums and urban blight. This section shall in no way preclude any municipality or housing authority from acquiring planning funds from any agency of the federal government for the purpose of investigating and planning any urban renewal project to be submitted to the electors of the city or town or housing authority affected under this chapter, and the acquisition of said planning funds shall not require a vote of the duly qualified electors of the city or town or housing authority affected under this chapter.
(Acts 1955, No. 553, p. 1210, §4; Acts 1965, 2nd Ex. Sess., No. 25, p. 38; Acts 1966, Ex. Sess., No. 181, p. 214; Acts 1967, No. 417, p. 1075, §3; Acts 1969, No. 913, p. 1644; Acts 1971, No. 1359, p. 2301.)
Any municipality or other public body is hereby authorized, without limiting any provision in Section 24-3-4, to do any and all things necessary to aid and cooperate in the planning and undertaking of an urban renewal project in the area in which such municipality or public body is authorized to act, including the furnishing of such financial and other assistance as the municipality or public body is authorized by Chapter 2 of this title to furnish for or in connection with a redevelopment plan or redevelopment project. An authority is hereby authorized to delegate to a municipality or other public body any of the powers or functions of the authority with respect to the planning or undertaking of an urban renewal project in the area in which such municipality or public body is authorized to act, and such municipality or public body is hereby authorized to carry out or perform such powers or functions for the authority. Any public body, including the governing body of an incorporated city or town, is hereby authorized to enter into agreements which may extend over any period, notwithstanding any provision or rule of law to the contrary, with any other public body or bodies respecting action to be taken pursuant to any of the powers granted by this chapter, including the furnishing of funds or other assistance in connection with an urban renewal plan or urban renewal project.
(Acts 1955, No. 553, p. 1210, §5; Acts 1967, No. 417, p. 1075, §4.)
The governing body of the municipality, or such public officer or public body as it may designate, is hereby authorized to prepare a workable program (which may include an official plan of action, as it exists from time to time, for effectively dealing with the problem of slums and blighted, deteriorated, or deteriorating areas within the community and for the establishment and preservation of a well-planned community with well organized residential neighborhoods of decent homes and suitable living environment for adequate family life) for utilizing appropriate private and public resources to eliminate and prevent the development or spread of slums and blight and deterioration, to encourage needed rehabilitation, to provide for the redevelopment of blighted, deteriorated, or slum areas or to undertake such of the aforesaid activities or other feasible activities as may be suitably employed to achieve the objectives of such a program.
(Acts 1955, No. 553, p. 1210, §6.)
Notwithstanding any other provision of law, the acquisition, preparation for development, or disposal of undeveloped vacant land shall constitute a redevelopment project, under this title or any other law, which may be undertaken in the same manner provided in this title, or any amendments or provisions supplemental thereto, by any housing authority now or hereafter established pursuant to this title or by any governing body of any incorporated city or town, if such acquisition of undeveloped vacant land is determined, as provided in this section, to be essential to the proper clearance, redevelopment, rehabilitation, or conservation of a slum or blighted area of a community or to its general slum clearance or urban renewal program. Such determination shall be made by the housing authority of such community or the governing body of any incorporated city or town adopting a resolution to that effect, which shall include a finding that the conditions affecting the land to be acquired (by reason of the predominance of defective or inadequate street layout; faulty lot layout in relation to size or adequacy; lack of accessibility or usefulness; diversity of ownership, tax, or special assessment delinquency; defective or unusual conditions of title, improper subdivisions, or obsolete plattings; or any one or combination of such factors) substantially impair or arrest the sound growth of the community, retard the provision of needed housing accommodations and constitute an economic or social liability, and that the need for housing accommodations has been or will be increased as a result of the clearance, rehabilitation, or conservation of slum or blighted areas in the community.
(Acts 1955, No. 553, p. 1210, §7; Acts 1967, No. 417, p. 1075, §5.)
The powers conferred by this chapter shall be in addition and supplemental to the powers conferred by any other law, and nothing contained herein shall be construed as limiting any other powers of a housing authority.
(Acts 1955, No. 553, p. 1210, §9.)
The provisions of this chapter shall be cumulative and supplemental and shall be construed in pari materia with other laws relative to urban renewal plans and urban renewal projects. No law shall be deemed repealed by this chapter unless in specific conflict with this chapter.
(Acts 1967, No. 417, p. 1075, §6.)
The Legislature hereby finds that in an effort to meet the housing needs within the state, the private housing and construction industry has developed mass production techniques which can substantially reduce a housing and building cost, and that the mass production of housing and buildings consisting primarily of factory manufacture presents unique problems with respect to the establishment of uniform health and safety standards and inspection procedures. The Legislature further finds that by minimizing the problems of standards and inspection procedures, it is demonstrating its intention to encourage the reduction of manufactured building construction costs, and to make housing and home ownership more feasible for all residents of the state.
(Acts 1981, No. 81-706, p. 1183, §1.)
As used in this chapter, the following terms shall have the meanings ascribed to them by this section:
(1) COMMISSION. The Alabama Manufactured Housing Commission.
(2) APPROVED. Conforming to the recognized codes and regulatory requirements adopted by the commission.
(3) APPROVED INSPECTION AGENCY. An organization meeting the commission’s requirements to provide inspection of manufactured buildings and to insure compliance with national recognized codes, and rules and regulations adopted by the commission pursuant to this chapter.
(4) LOCAL GOVERNMENT. A city or county government.
(5) MANUFACTURE. The process of making, fabricating, constructing, forming or assembling a product from raw, unfinished or semifinished materials.
(6) INSTALL. The assembly of a manufactured building, components of manufactured building on site and the process of affixing a manufactured building to land, a foundation, footings or an existing building and service connections which are a part thereof.
(7) SITE. The entire tract, subdivision, or parcel of land on which a manufactured building is installed.
(8) INSIGNIA. A label, seal, or data plate issued by the commission to indicate compliance with the codes and requirements established by the commission pursuant to this chapter.
(9) MOBILE HOME or MANUFACTURED HOME. Any residential dwelling unit constructed to standards and codes as promulgated by the United States Department of Housing and Urban Development.
(10) DWELLING UNIT. One or more habitable rooms which are occupied, intended, or designed to be occupied by one or more families with facilities for living, sleeping, cooking, and eating.
(11) EQUIPMENT. All materials, appliances, devices, fixtures, fittings, or accessories installed in or used in the manufacture and assembly of a manufactured building.
(12) SYSTEM. Structural, plumbing, mechanical, heating, electrical, or ventilating elements, materials or components combined for use in a manufactured building.
(13) MANUFACTURED BUILDING. A closed structure, building assembly or systems of subassemblies, which may include structural, electrical, plumbing, heating, ventilating, utility service lines, footings, foundations, porches, or other service systems manufactured in manufacturing facilities, for installation or erection, with or without other specified components, as a finished building or as a part of a finished building, which shall include, but not be limited to, residential dwelling units, commercial, institutional, storage, and industrial structures. “Mobile homes” or “manufactured homes” are excluded. “Manufactured building” may also mean, at the option of the manufacturer, any building of open construction made or assembled in manufacturing facilities away from the building site, for installation, or assembly and installation, on the building site. Excluded from the definition of “manufactured building” shall be any temporarily placed building, trailer, or structure maintained by a licensed general contractor or subcontractor for purposes of storage, office space, or any other construction related function at a project site.
(14) CLOSED CONSTRUCTION. That condition when any building, component, assembly, subassembly, or system is manufactured in such a manner that all portions cannot be readily inspected at the site without disassembly or destruction thereof.
(15) OPEN CONSTRUCTION. Any building, building component, assembly or systems manufactured in such a manner that all portions can be readily inspected at the site without disassembly, damage to or destruction thereof.
(16) FEES. Moneys to be paid to the commission from any and all persons, firms, companies, corporations, and manufacturers engaged in the manufacture or installation of manufactured buildings.
(17) COMPONENT. Any assembly, subassembly, or combination of parts for use as a part of a building, which may include structural, electrical, mechanical, and fire protection systems, and other systems affecting health and safety.
(18) MODEL. A specific design of manufactured building which is based on size, room arrangement, method of construction, location arrangement, or size of plumbing, heating, or electrical equipment systems.
(19) MODULAR HOME. A manufactured building built and inspected in accordance with a national building code and in compliance with the provisions of this chapter.
(Acts 1981, No. 81-706, p. 1183, §2; Act 2001-426, p. 543, §4.)
(a) The commission is authorized to promulgate rules, and enter into contracts, and do such things as may be necessary and incidental to the administration of its authority pursuant to this chapter.
(b) After the effective date of the rules adopted pursuant to this chapter, no manufactured building shall be sold, or offered for sale, or installed, in this state unless it is approved and bears the insignia of approval of the commission.
(c) The Factory-Built Housing Act of 1971 and the rules promulgated under that act shall continue until the effective date of subsection (b) of this section, and thereafter shall be repealed. All personnel of the Modular Housing Division of the Alabama Development Office shall be transferred without impairment of their Merit System status to the commission, and all funds, appropriations, papers, documents, files, materials, equipment, supplies, and other effects employed and used for the administration and enforcement of the previous act shall become the property of the commission. All approvals issued by the commission under the provisions of the prior act shall be deemed to comply with the requirements of this chapter.
(d) All manufactured buildings issued and bearing insignia of approval pursuant to subsections (b) and (c) of this section shall be deemed to comply with the requirements of all ordinances or regulations enacted by any local government which are applicable to the construction of manufactured buildings. The determination by the commission of the scope of such approval is final.
(e) No manufactured building bearing commission insignia of approval pursuant to subsection (b) of this section shall be in any way modified prior to or during installation unless approval is first obtained from the commission.
(f) Manufactured buildings which have been issued and bear the insignia of approval pursuant to this chapter upon manufacture or first sale shall not require an additional approval or insignia by a local government in which they are subsequently sold or installed, except a residential dwelling unit that is resold, whether by a manufacturer, manufacturer’s representative or dealer; these units must bear an additional seal of approval issued by the commission.
(g) The commission by rule shall establish a schedule of fees to give cost relief to the commission for the work related to the administration and enforcement of this chapter. All fees collected under the provisions of this chapter, or otherwise inuring to the credit of the commission, shall be deposited in the State Treasury in a fund to be designated as the “State Fire Marshals Fund.”
(h) If the commission determines that standards for construction and inspection of manufactured buildings prescribed by statute or rule of another state are at least equal to standards prescribed by the commission under this chapter and such standards are actually enforced by such other state, the commission may provide by rule that a manufactured building, which has been inspected and approved by such other state or its delegated inspection agency, shall be deemed to have been approved by the commission, and shall authorize the affixing of the appropriate insignia of approval.
(i) The use of the word “modular,” singular or in combination with any other word to describe a mobile home or manufactured home, is hereby prohibited, and said use shall constitute a violation of the provisions of this chapter.
(j) Any city or county official who violates the provisions of this chapter by refusing to accept a manufactured building approved by the commission shall personally be liable and not be immune from prosecution if suit is brought by a party to said transaction.
(k) This section shall not apply to factory-built housing which is inspected and approved by a local government agency at the place of, and during the time of manufacture in accordance with local building requirements if the requirements are reasonably consistent with standards established by the Southern Building Codes Congress, the National Fire Protection Association and the United States Department of Housing and Urban Development. The cost of the inspection shall be borne by the manufacturer.
(l) All factory-built housing bearing an insignia of approval issued by the commission pursuant to this chapter shall be deemed to comply with the requirements of all ordinances or regulations enacted by any local government which are applicable to the manufacturer of such housing. The determination by the commission of the scope of such approval is final.
(m) No factory-built housing bearing a commission insignia of approval pursuant to this chapter shall be in any way modified prior to or during installation unless approval is first obtained from the commission.
(n) Factory-built housing which has been inspected and approved by a local government agency shall not be modified prior to or during installation unless approval for the modification is first obtained from the local government agency.
(o) The commission by rule shall establish a schedule of fees to pay the costs incurred by it for the work related to administration and enforcement of this section.
(Acts 1981, No. 81-706, p. 1183, §3.)
(a) The commission shall enforce the provisions of this chapter and the regulations adopted pursuant hereto; except, that the commission may delegate its enforcement authority to a local government agency, an approved inspection agency or an agency of another state, provided the inspection agencies’ inspection requirements conform with the requirements of the commission.
(b) The commission shall promulgate rules and regulations to interpret and make specific the provisions of this chapter. These rules shall include provisions imposing requirements reasonably consistent with recognized and accepted standards adopted by the Southern Building Codes Congress, International, the National Fire Protection Association, or any other nationally recognized building standards.
(Acts 1981, No. 81-706, p. 1183, §4.)
The commission may obtain injunctive relief from the proper circuit court to enjoin the sale, delivery, or installation of manufactured building upon an affidavit specifying the manner in which the building does not conform to the requirements of this chapter or to rules issued pursuant hereto.
(Acts 1981, No. 81-706, p. 1183, §5.)
A person who violates any of the provisions of this chapter or any rule adopted pursuant hereto is guilty of a misdemeanor, punishable by a fine of $500.00, or by imprisonment for 30 days, or both. A separate violation shall be deemed to have occurred with respect to each building unit (building component) involved.
(Acts 1981, No. 81-706, p. 1183, §6.)
The provisions of this chapter omit pre-engineered metal buildings.
(Acts 1981, No. 81-706, p. 1183, §7.)
This article shall be known and may be cited as the “Uniform Standards Code for Manufactured Homes Act.”
(Acts 1971, No. 1938, p. 3129, §1; Act 2009-37, p. 130, §3.)
Unless clearly indicated otherwise by the context, the following words when used in this article, for purposes of this article, shall have the meanings respectively ascribed to them in this section:
(1) ALABAMA MANUFACTURED HOUSING COMMISSION FUND. The fund established to provide necessary revenue for the enforcement of this article.
(2) COMMISSION. The Alabama Manufactured Housing Commission.
(3) DEALER. Any person, other than a manufacturer, who is duly licensed to sell manufactured homes in this state.
(4) LABEL. The approved form of certification by the manufacturer under the Uniform Standards Code that is permanently affixed to each manufactured home or transportable section thereof, and which serves as the certification by the manufacturer of conformance with the applicable federal manufactured home construction and safety standards in effect the date of manufacture.
(5) MANUFACTURED HOME. A structure, transportable in one or more sections, which when erected on site measures eight body feet or more in width and 32 body feet or more in length, built on a permanent chassis and designed to be used as a dwelling, with or without a permanent foundation, when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein. A manufactured home can be new. A new manufactured home is a manufactured home which is still in the possession of the manufacturer, dealer, or first purchaser of the manufactured home.
(6) MANUFACTURED HOME CONSTRUCTION. All activities relating to the assembly and manufacture of a manufactured home including, but not limited to, those relating to durability, quality, and safety.
(7) MANUFACTURER. Any person who manufactures manufactured homes and shall include the manufacturer, factory branch, or factory representative.
(8) PERSON. A person, firm, partnership, company, corporation, or association engaged in manufacturing or selling manufactured homes.
(9) UNIFORM STANDARDS CODE. The federal manufactured home construction or safety standards promulgated pursuant to Section 604 of the National Mobile Home Construction and Safety Standards Act of 1974, published in Public Law 93-383, 42 U.S.C. § 5401 et seq., or the Manufactured Housing Improvement Act of 2000, or both, as amended from time to time.
(Acts 1971, No. 1938, p. 3129, §2; Acts 1980, No. 80-599, p. 1014, §1; Act 2009-37, p. 130, §3.)
All construction of manufactured homes manufactured after May 28, 1980, in this state shall meet the standards of the Uniform Standards Code.
(Acts 1971, No. 1938, p. 3129, §3; Acts 1980, No. 80-599, p. 1014, §2; Act 2009-37, p. 130, §3.)
No person may sell or offer to sell in the state any new manufactured home for use in this state manufactured after May 28, 1980, unless each of the following requirements are satisfied:
(1) A label of approval has been permanently affixed to the manufactured home.
(2) The label bears a certification by the manufacturer that the new manufactured home to which the label is attached meets or exceeds the Uniform Standards Code.
(Acts 1971, No. 1938, p. 3129, §4; Acts 1980, No. 80-599, p. 1014, §3; Act 2009-37, p. 130, §3.)
No person may manufacture in this state any manufactured home after May 28, 1980, unless it bears a label and certification, certifying that the manufactured home meets or exceeds the Uniform Standards Code.
(Acts 1971, No. 1938, p. 3129, §5; Acts 1980, No. 80-599, p. 1014, §4; Act 2009-37, p. 130, §3.)
(a) Any manufacturer or dealer within or without this state shall apply for a license to sell manufactured homes in this state.
(b) Applications shall be obtained from and submitted to the commission. Each applicant shall be a citizen of the United States or, if not a citizen of the United States, a person who is legally present in the United States with appropriate documentation from the federal government.
(c) The original license fee and the renewal fee shall be established by the commission by rule pursuant to Section 24-6-4. Each sales or manufacturing location shall be required to be licensed at the same rate and basis as others. The license shall be valid from January 1 until December 31 of the year in which the license was issued or until revoked as provided in this section.
(d) Any license may be revoked or suspended by the commission for violation of this article, or rules and regulations or standards or codes or specifications adopted pursuant to this article. The commission shall notify the licensee in writing of the reasons why the commission intends to revoke or suspend the license, and the licensee shall be entitled to a hearing before the commission within 10 days after receipt of the notice of intention to revoke or suspend. At the hearing the commission shall consider the circumstances and shall give the licensee reasonable time, but not less than 30 days, to correct the conditions or circumstances that caused the notice of intention to revoke or suspend the license to be given.
(Acts 1971, No. 1938, p. 3129, §6; Acts 1975, No. 1143, p. 2245; Acts 1980, No. 80-599, p. 1014, §5; Act 2001-426, p. 543, §3; Act 2009-37, p. 130, §3.)
A new manufactured home which does not bear the label required by this article may not be offered for sale by any manufacturer or dealer anywhere within the geographical limits of this state.
(Acts 1971, No. 1938, p. 3129, §7; Acts 1980, No. 80-599, p. 1014, §6; Act 2009-37, p. 130, §3.)
(a) The commission shall cause to be inspected, at such times as it may deem proper, any place or establishment within this state where manufactured homes are manufactured, sold, or offered for sale, for the purpose of ascertaining whether the requirements of this article and the regulations of the commission have been met.
(b) The commission, or its duly authorized representatives, may cause products or parts or portions thereof to be analyzed or tested by the state agent, or its duly authorized agency. Such analysis or test records may be preserved by the commission, and when sworn to by the state testing agent, or its duly authorized agency, shall be prima facie evidence of violations of this article or rules and regulations or standards or codes or specifications adopted pursuant to this article.
(Acts 1971, No. 1938, p. 3129, §8; Act 2009-37, p. 130, §3.)
A license to sell to licensed dealers or to the public of this state shall be issued for a fee in an amount as established by the commission by rule pursuant to Section 24-6-4.
(Acts 1971, No. 1938, p. 3129, §9; Acts 1975, No. 1051, p. 2114; Acts 1980, No. 80-599, p. 1014, §8; Act 2001-426, p. 543, §3.)
(a) The commission shall maintain a system by which accurate statistics regarding the disposition of all manufactured homes by licensees may be obtained.
(b) The commission shall require that each licensee in this state maintain adequate records so as to ascertain all of the following information:
(1) The total number of manufactured homes manufactured.
(2) The total number of manufactured homes delivered to dealers within and without the state.
(3) The total number of manufactured homes sold to individuals within and without the state, including name, address, and county.
(4) Specific information about each manufactured home, including serial number, manufacturer’s name, model name or number, or both, and size unit.
(Acts 1971, No. 1938, p. 3129, §10; Act 2009-37, p. 130, §3.)
The commission is hereby charged with the administration of this article. It shall make and amend, alter or repeal general rules and regulations of procedure for carrying into effect all provisions of this article and prescribe means, methods, and practices to make effective such provisions.
(Acts 1971, No. 1938, p. 3129, §11.)
(a) No person may interfere, obstruct, or hinder an authorized representative of the commission who displays proper commission credentials in the performance of his or her duties as set forth in this article.
(b) In the performance of its duties, the commission, or any of its duly authorized representatives , may enter and inspect, at any reasonable time, any place or establishment where manufactured homes are manufactured, sold, or offered for sale, for the purpose of ascertaining whether the requirements of this article and the regulations of the commission have been met.
(c) Nothing in this article shall prevent the governing authority of any county or municipal corporation from adopting ordinances or resolutions providing for the inspection of manufactured homes sold or placed within its limits and to provide penalties for violations thereof, but no such ordinance or resolution shall conflict with any power or authority of the commission, or its duly authorized representatives. Any manufactured home which has been inspected and approved in accordance with this article is not required to comply with any local ordinances in conflict with this article.
(Acts 1971, No. 1938, p. 3129, §12; Act 2009-37, p. 130, §3.)
The commission shall be authorized to enter into contracts with any private or public agency which is under contract with the United States Department of Housing and Urban Development to provide services in the enforcement of the Uniform Standards Code.
(Acts 1980, No. 80-599, p. 1014, §10.)
(a) Whoever violates this article or any regulation or order issued under this article shall be liable for a civil penalty of not to exceed one thousand dollars ($1,000) for each such violation. Each violation of any section of this article or regulation or order shall constitute a separate violation with respect to each manufactured home or with respect to each failure or refusal to allow or perform an act required thereby, except that the maximum civil penalty may not exceed one million dollars ($1,000,000) for any related series of violations occurring within one year from the date of the first violation. Before the commission shall impose a civil penalty it shall first advise the violator of its intention to do so and hold a hearing on the violation no sooner than two weeks after notification to the person of the commission’s intent to impose civil penalties and the indicated violations.
(b) Any individual or a director, officer, or agent of a corporation who knowingly and willfully violates subsection (a) , in a manner which threatens the health or safety of any purchaser, shall be fined not more than one thousand dollars ($1,000) or sentenced to the county jail for not more than one year, or both.
(c) Any fines collected under subsections (a) and (b) shall be paid into the Alabama Manufactured Housing Commission Fund.
(Acts 1971, No. 1938, p. 3129, §13; Acts 1980, No. 80-599, p. 1014, §9; Act 2009-37, p. 130, §3.)
This article shall be known and may be cited as the “Uniform Code for the Anchoring of Mobile Homes Act.”
(Acts 1975, No. 1144, p. 2247, §1.)
When used in this article, unless the context plainly indicates otherwise, the following words and phrases shall have the meanings respectively ascribed to them in this section:
(1) ANSI. The American National Standards Institute or its successor.
(2) GROUND ANCHOR. Any device at the mobile home stand designed for the purpose of securing a mobile home to the ground.
(3) MARSHAL. The Alabama State Fire Marshal.
(4) NFPA. The National Fire Protection Association or its successor.
(5) TIEDOWN. Any device designed to anchor a mobile home to ground anchors.
(6) COMMISSION. The Alabama Manufactured Housing Commission.
(7) INSTALL or INSTALLATION. Siting, placing, or anchoring a manufactured home or manufactured building, either one or more units, to land, upon footings, piers, or foundations, or connecting the home or building to public or private utilities. Public or private utilities shall not be classified as installers under this section.
(8) INSTALLER. Any person who sites, anchors, places, connects, sets up or installs a manufactured home or manufactured building upon land, footings, piers, or foundations.
(9) MANUFACTURED BUILDING. A closed structure, building assembly or systems of subassemblies which may include structural, electrical, plumbing, heating, ventilating, utility service lines, footings, foundations, porches, or other service systems manufactured in manufacturing facilities, for installation or erection, with or without other specified components, as a finished building or as a part of a finished building, which shall include, but not be limited to, residential dwelling units, commercial, institutional, storage, and industrial structures. “Mobile homes” or “manufactured homes” are excluded. “Manufactured building” may also mean, at the option of the manufacturer, any building of open construction made or assembled in manufacturing facilities away from the building site, for installation, or assembly and installation on the building site. Excluded from the definition of “manufactured building” shall be any temporarily placed building, trailer, or structure maintained by a licensed general contractor or subcontractor for purposes of storage, office space, or any other construction related function at a project site.
(10) MANUFACTURED HOME. As defined by the United States Department of Housing and Urban Development.
(Acts 1975, No. 1144, p. 2247, §2; Acts 1991, No. 91-642, p. 1213, §1; Act 2001-426, p. 543, §4.)
(a) After January 1, 1976, it shall be unlawful for any person to install, allow to be installed, occupy, or allow to be occupied any new or used manufactured home or manufactured building unless the home or building is tied down to properly installed ground anchors so as to be able to resist wind loads as specified in the rules and regulations adopted by the commission. The Counties of Mobile and Baldwin are designated as hurricane wind zones. All installers of manufactured homes and manufactured buildings must be certified by the commission to install such structures.
(b) Any manufactured home or manufactured building sold after January 1, 1976, shall comply with the requirements of subsection (a) immediately upon location on the new site. Any existing manufactured home or manufactured building relocated to a new site after January 1, 1976, shall comply with the code requirements of subsection (a) immediately upon location on the new site.
(c) The commission shall promulgate rules and regulations setting forth uniform standards for the manufacture and installation of ground anchors and blocking to be compatible with ANSI A 119.1/NFPA 501B, in order to accomplish the intent of this section. Local building inspectors shall, when required by local jurisdiction, enforce rules and regulations promulgated by the commission to accomplish the intent of this section.
(d) Prior to adoption of the initial rules and regulations and in the event it becomes necessary to make changes in or additions to the rules and regulations adopted in subsection (a), the commission, at least 30 days prior to adopting or promulgating any such rules and regulations or changes or additions, shall mail to all manufacturers and service organizations doing business in Alabama and to the Alabama Manufactured Housing Institute a notice which shall include a copy of the rules and regulations or additions and changes thereto, and a designation of the time and place that the commission will hear and consider any objections to the proposed rules and regulations or additions and changes thereto. The commission shall afford any interested party an opportunity to be heard orally or in writing with respect to the proposed rules and regulations or additions and changes thereto. Sixty days after date of notice and hearing, any rules and regulations or changes and additions thereto shall become effective.
(e) This section shall not apply to any mobile home which is in transit between sites.
(f) The commission shall establish by rule a schedule of fees to pay for the administration of this article.
(Acts 1975, No. 1144, p. 2247, §3; Acts 1991, No. 91-642, p. 1213, §2.)
(a) It is a misdemeanor for any person to install, allow to be installed, occupy, or allow to be occupied, any manufactured home or manufactured building in this state which is not in accordance with the uniform standards and the rules and regulations adopted and set forth by the commission pursuant to this article.
(b) The commission is authorized to suspend the tag issued under Section 40-12-255 of any person violating either subsection (a) or (b) of Section 24-5-32, and shall be authorized to levy a civil penalty up to $500.00 against any person found in violation of subsection (a) of Section 24-5-32. The commission is moreover authorized to levy a civil penalty up to $500.00 against any installer or installation personnel violating either subsection (a) or (b) of Section 24-5-32 or the rules and regulations adopted and set forth by the commission pursuant to this article. Persons subjected to the operation of this subsection shall be given a hearing by the commission on application therefor, and shall be notified of the availability of a hearing by the commission on imposition of a penalty.
(c) In addition to other penalties provided by law, the commission and district attorneys are authorized to apply to the circuit courts within their respective jurisdictions, and such courts shall have jurisdiction, upon hearing and for cause shown, to grant appropriate additional relief to prevent or restrain violations of this article.
(Acts 1975, No. 1144, p. 2247, §3; Acts 1991, No. 91-642, p. 1213, §3.)
[Repealed]
This article shall not repeal any local act, general law of local application or municipal ordinance where provisions thereof have standards, qualifications and requirements for the anchoring of mobile homes equal to or higher than those provided in this article, and such laws, acts or ordinances shall remain entirely in full force and effect.
(Acts 1975, No. 1144, p. 2247, §4.)
It is the express intent of this chapter to give administrative relief to the Fire Marshal Division of the Insurance Department in the supervision of any current or future federal and state statutes and codes relating to manufactured and modular housing and buildings. For such purposes, the Alabama Manufactured Housing Commission is created to perform such administrative functions.
(Acts 1985, No. 85-691, p. 1109, §1.)
The Alabama Manufactured Housing Commission, hereinafter referred to as “the commission,” is created and shall function as the principal executive branch agency with powers to provide for a comprehensive manufactured and modular housing and building program with respect to construction, transportation, site location, or manufacturing standards for such structures. The commission shall consist of an advisory board of nine members, an administrator, and other staff and personnel. The membership of the commission shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state. Each commission member shall be a citizen of this state. The advisory board members shall serve in an advisory capacity only to the administrator. The administrator shall have the sole and complete authority to formulate, implement, and execute policy, laws, and regulations for the commission, and will consult with the advisory board as necessary during its scheduled meetings. The commission shall have such other powers and duties as are hereinafter provided.
(Acts 1985, No. 85-691, p. 1109, §2; Act 99-355, p. 553, §1; Act 2009-37, p. 130, §3.)
(a) The advisory board of the commission shall be composed of nine advisory only members, each of whom shall have been a resident of Alabama for at least five years prior to appointment.
(b) Six of the members shall be appointed by the Governor, subject to Senate confirmation, as follows:
(1) From a list of nine nominees submitted by the Alabama Manufactured Housing Association (AMHA), the Governor shall appoint three members who shall be from the Alabama manufactured housing industry and of those three members, two members shall represent the manufacturers and one member shall represent the retailers. No employee of AMHA shall serve on the commission. The terms of office of the initial appointees shall be one for one year, one for two years, and one for three years.
(2) There shall be three consumer representatives appointed as follows: The Governor shall appoint from the general public three members who shall serve as consumer representatives and whose initial term of office shall be one for one year, one for two years, and one for three years. The appointees from the general public shall serve as consumer representatives with one appointee living in a manufactured home at the time of appointment. The appointments shall be selected from the current congressional districts as follows: One appointee shall reside in congressional district 4 or 5, one appointee shall reside in congressional district 3 or 6, one appointee shall reside in congressional district 1 or 2 or 7.
(c) There shall be three governmental representatives appointed as follows:
(1) The President Pro Tempore of the Senate shall appoint one member who is a representative from any local government for an initial term of two years.
(2) The Speaker of the House of Representatives shall appoint one member who is a member of the House of Representatives.
(3) The Lieutenant Governor shall appoint one member who is a member of the Senate.
(d) Appointment, reappointment, vacancies, compensation, meetings, and responsibilities shall be as follows:
(1) Appointed members shall be eligible for reappointment.
(2) Any vacancy or new appointment shall be filled by the appointing authority for the unexpired term in the same manner as the original appointment was made, except that the number of nominees for the industry members shall be reduced to three for each vacancy.
(3) The successors to the initial appointees shall serve terms of five years.
(4) The members who are appointed by the Speaker of the House of Representatives, Lieutenant Governor, and the President Pro Tempore of the Senate shall serve for the initial terms of their elected office and may be reappointed by the appointing authority for additional terms.
(5) The administrator, or other persons responsible for handling all matters under the National Manufactured Housing Construction and Safety Standards Act of 1974, shall have no actual or potential conflict of interest nor be under the influence or control of a manufacturer of products or a retailer, supplier, or vendor of products in any manner which may affect his or her capacity to perform the function of the job objectively and without bias. The Alabama Ethics Commission shall investigate any report of a conflict of interest and, upon a finding of a conflict of interest, the Governor shall remove any such person having a conflict of interest. A member of the advisory board of the housing commission who has a direct pecuniary interest in any matter before the advisory board of the housing commission shall disclose that fact before the advisory board takes action at any meeting with respect to the matter, and he or she shall not vote, participate, or be present at any such meeting. Disclosure of such a pecuniary interest shall become a part of the official record of the proceedings of the advisory board of the commission.
(6) A person appointed as a general consumer or government representative shall not have any ownership interest in or income benefit from a manufacturer of manufactured homes, a retail seller of manufactured homes, a community, or a supplier of products or services to the manufactured housing industry. These appointees shall not have any financial contracts or provide or accept any services with anyone in the manufactured housing industry except to the extent the consumer lives in a manufactured home.
(7) Membership of the advisory board shall reflect the geographical, gender, racial, and ethnic diversity of the state without regard to party affiliation.
(8) The members of the advisory board of the commission shall select from its membership a person to serve as chair. The chair shall preside over the advisory board meetings. The chair may not serve for more than two consecutive terms of two years each.
(9) The Governor shall make appointments within 30 days following receipt of the list of nominees from the agencies and if not made within 30 days, nominees are no longer valid and a new list of nominees must be submitted. Appointments requiring Senate approval made at times when the Legislature is not in session shall be effective ad interim. Ad interim appointments shall be made in the same manner as appointments made during a legislative session. An appointment made by the Governor when the Legislature is in session shall be submitted to the Senate not later than the third legislative day following the date of the appointment. An appointment made when the Legislature is not in session shall be submitted to the Senate not later than the third legislative day following the reconvening of the Legislature.
(10) All members of the advisory board of the commission, except legislative members, shall be paid one hundred dollars ($100) for each day the members of the advisory board of the commission meet and shall receive the same per diem and allowance for meetings of the advisory board as is paid to state employees for official state business. Legislative members shall be entitled to receive their regular legislative compensation.
(11) The advisory board shall meet at least two times per year and at such times as called by the chair. Notice of regular meetings shall be given by the chair to advisory board members at least five business days prior to the meeting. Special called meetings shall similarly require five days’ notice in writing. Five members of the advisory board shall constitute a quorum for all purposes. Vacancies on the advisory board shall be filled by nomination and appointment within 30 days by the same procedure as the original appointments. Vacancies may occur through death or resignation of an advisory board member, or other reasons.
(Acts 1985, No. 85-691, p. 1109, §3; Act 99-355, p. 553, §1; Act 2001-344, p. 446, §1; Act 2015-497, §1.)
(a) The commission, in an advisory capacity, shall be the principal staff agency of the executive branch to provide, with the cooperation of other departments of state governmental units, a comprehensive housing program and procedures which include the relevance for housing programs administered by the state and the governmental structures required to put such programs into effect. The commission, through its administrator, shall perform all the duties and exercise all the powers and authority relative to modular housing, manufactured buildings, manufactured housing, and pre-HUD 1976 mobile homes, heretofore vested in the Fire Marshal’s Division within the State Department of Insurance, and other implied powers. All the functions, powers, authority, and duties provided by law, specifically, but not limited to: Sections 24-5-1 through 24-5-14; 24-5-30 through 24-5-34; and 24-4A-1 through 24-4A-7, all books, records, and supplies, pursuant to and under the authority of the aforesaid code sections through legislative budgetary authority and duties provided by law, specifically, but not limited to: Sections 24-5-1 through 24-5-14; 24-5-30 through 24-5-34; and 24-4A-1 through 24-4A-7, and all books, records, supplies, equipment, documents, files, papers, materials, and personnel of the Fire Marshal’s Division subject to and authorized by, or under these various code sections and related thereto are also hereby transferred to the commission.
(b) There is established a revolving fund in the State Treasury to be known as the “Alabama Manufactured Housing Commission Fund” (Fund). Any proceeds remaining at the end of each fiscal year shall not revert to the State General Fund, but shall carry forward to the succeeding fiscal years in the fund for the use of the commission. All proceeds from federal grants, loans, funds, fees, and state or federal appropriations received or collected by the commission heretofore or hereafter are so appropriated and shall be deposited in the fund, and used only for and to the enurement of this commission.
(c) The commission is authorized, through its administrator, to promulgate such rules and regulations not inconsistent with this chapter as are implied or stated as are necessary to carry out the provisions of this chapter, pertaining specifically to the manufacture, transportation, or site location of said manufactured and modular housing and buildings and building programs in the State of Alabama. The commission is further authorized, through its administrator, to promulgate such rules and regulations as it may deem necessary to meet the requirements of the Department of Housing and Urban Development, the National Fire Protection Association, or any other recognized standards.
(d) The advisory board may recommend a schedule of fees to the administrator, who, through commission rules and regulations, will establish the fees to pay the cost incurred by the said commission for the work related to the administration and enforcement of this chapter. All fees, funds, and moneys received or collected by the commission are hereby appropriated to the commission and shall be deposited in the fund to be used only for the enrichment of the commission.
(e) The commission, through its administrator, may enter into any contracts with public or private agencies and said contracts shall be submitted to the Contract Review Permanent Legislative Oversight Committee for approval.
(f) The administrator is authorized to set qualifications for employees of the commission and compensation through the state Merit System for the necessary employees to carry out the provisions of this chapter. The administrator and all other current Merit System employees shall retain their Merit System status under this chapter. The Governor is authorized to set the qualifications and compensation of future administrators. The members of the advisory board shall serve only in an advisory capacity and may make recommendations to the Governor for the hiring or firing of the administrator. The Governor has the sole authority to hire or fire the administrator.
(g) The administrator shall serve as the department head for the purposes of all commission business, including, but not limited to, the hiring and firing of commission employees under the rules of the State Personnel Board for state Merit System employees, as required to perform the duties and responsibilities necessary in order to accomplish the state and federal regulatory functions of the agency including implementation of the state plan on file with the Department of Housing and Urban Development.
(h) The commission, through its administrator, is authorized to: Make comprehensive and detailed plans for combating the shortage of safe and sanitary housing in Alabama; apply for and accept advances, loans, grants, contributions, and any other forms of assistance from the federal government, state or other public body, or from any other source, public or private; enter into and carry out contracts or agreements in connection with programs funded by the aforesaid sources to serve a public purpose and benefit the citizens of the State of Alabama; and prepare proper legislation to administer the programs.
(i) This chapter shall not prevent an agency or department of state government from administering the program for which they are responsible.
(j) The operations of the commission shall be subject to termination October 1, 2001, and every fourth year thereafter unless continued in accordance with the Alabama Sunset Law.
(Acts 1985, No. 85-691, p. 1109, §4; Act 99-355, p. 553, §1.)
As used in this chapter, the following words shall have the following meanings ascribed to them:
(1) PROJECT. Any low-rent housing hereafter developed or acquired by the authority with financial assistance of the United States of America acting through the Secretary of Housing and Urban Development.
(2) TRIBE. The Mowa Band of Choctaw Indians.
(3) RESERVATION. Any land, the title to which is held by the Mowa Band of Choctaw Indians.
(Acts 1986, No. 86-537, §5; Acts 1989, No. 89-697, p. 1377, §1.)
There is created and established an Indian housing authority for the jurisdictions of Mobile and Washington Counties, to be styled the Mowa Choctaw Housing Authority, whose purpose shall be the provision of safe and decent dwelling places for low-income persons and families in Indian areas.
The Mowa Choctaw Housing Authority shall consist of seven members, and shall be appointed by the Mowa Choctaw Tribal Council. No person shall be barred from serving as a member of the authority because he or she is a tenant or home buyer in a tribal housing project.
Members of the Mowa Choctaw Housing Authority, hereinafter styled the authority, shall serve a term of five years from their appointment, and may serve an unlimited number of terms. In the event of a vacancy on the authority, the Mowa Choctaw Tribal Council shall appoint a successor to fill the unexpired term.
The authority shall select from among its members a chair, a vice chair, a secretary, and a treasurer. No member shall hold two offices upon the authority. The chair shall preside at meetings of the authority. The vice chair shall preside in the absence of the chair. In the absence of both the chair and vice chair, the secretary shall preside.
The tribal council may remove any member of the authority for neglect of duty, inefficiency, or misconduct in office, but only after a hearing before the council, and only after the member has been given a written notice of the charges against him or her at least 10 days prior to the hearing. At the hearing, the member shall have the opportunity to be heard in person or by counsel and to present witnesses on his or her behalf.
Four members shall constitute a quorum for the conduct of business of the authority. A member who is unable to attend a meeting in person may present, in writing, a dated and signed voting proxy to a designated representative, who shall attend the meeting and act in his place and stead.
The normal domicile of the authority is Mobile and Washington Counties. Meetings of the authority may be held at other locations within the state upon notification of the members by certified mail, at least 10 days prior to the meeting date.
(Acts 1986, No. 86-537, §1; Acts 1989, No. 89-697, p. 1377, §1; Acts 1991, No. 91-121, p. 142, §1; Acts 1995, No. 95-587, p. 1246, §1.)
The authority is hereby authorized:
(1) To undertake research and studies and analyses of housing needs in Mobile and Washington Counties, and means by which such needs may be met, including data with respect to population and family groups and the distribution thereof according to income groups, the amount and quality of available housing and its distribution according to rental and sales prices, and employment, wages and other factors affecting the local housing needs and the meeting thereof, and make the results and analyses available to the public and the building, housing, and supply industries;
(2) To enter into contracts with cities, towns, counties, and other housing authorities in the state for the purpose of carrying out the provisions of this chapter;
(3) To establish rentals and select tenants in low income rental housing projects under its jurisdiction;
(4) To issue bonds, notes, and other evidence of indebtedness for the purpose of financing the construction of housing for low-income persons;
(5) To obtain, rent, lease, or otherwise obtain from any county, city, or state, properties of such public bodies as are offered for use to the authority for the purpose of providing housing to low-income persons and families in Indian areas;
(6) To enter into contracts and agreements with agents of the United States government for the purpose of purchasing land, acquiring, constructing, renovating, providing streets, utilities, and landscaping grounds for rental and other housing for low-income persons and families in designated Indian areas; and
(7) All powers, rights, and functions specified for municipal housing authorities created pursuant to Sections 24-1-20 through 24-1-45.
All provisions of law applicable to housing authorities created pursuant to Title 24 for municipalities and the commissioner of such authorities shall be applicable to the Mowa Choctaw Housing Authority, unless a different meaning clearly appears from the context.
The tribal chairman and the tribal council of the Mowa Band of Choctaw Indians is hereby authorized to exercise all appointing and other powers with respect to an Indian housing authority that are vested in the chief executive officer and governing body of a municipality pursuant to Title 24 with respect to municipal housing authorities.
(Acts 1986, No. 86-537, §2; Acts 1989, No. 89-697, p. 1377, §1; Acts 1991, No. 91-121, p. 142, §1.)
The area of operation of the authority shall be within Washington and Mobile Counties in areas outside of the corporate boundaries of cities or towns existing at the time of the passage of this amendatory act, and in areas historically considered to be occupied by the Indians of Mobile and Washington Counties; provided, that the authority shall not undertake any housing project or projects within the area of operation of any city, county, or regional housing authority unless a resolution shall have been adopted by such city, county or regional housing authority declaring that there is a need for the Mowa Choctaw Housing Authority to exercise its powers within such city, county or regional housing authority’s area of operation.
(Acts 1986, No. 86-537, §3; Acts 1989, No. 89-697, p. 1377, §1.)
Consistent with the provisions of any state or federal laws or regulations, the authority shall cooperate with municipalities and regional housing authorities for the purpose of assuring the most economic and efficient use of potential resources available for housing in Mobile and Washington Counties.
(Acts 1986, No. 86-537, §4.)
(a) The authority shall endeavor to secure a contract with the government for loans and annual contributions covering one or more projects comprising units of low-rent housing and to develop and administer such projects, each of which shall be located within the operating area of the Mowa Choctaw reservation.
(b) During the period commencing with the date of acquisition of any part of the site or sites of any project and continuing so long as either such project is owned by a public body or governmental agency and is used for low-rent housing purposes, or any contract between the authority and the government for loans or annual contributions, or both, in connection with such projects remain unpaid, whichever period is the longest, the state without cost or charge to the authority or the tenants of such project shall:
(1) Furnish or cause to be furnished to the authority and the tenants of such project public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge by municipalities to their citizens and/or to dwellings located within their jurisdiction;
(2) Accept dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of such projects, after the authority, at its own expense has completed grading, improving, paving, and installation thereof in accordance with specifications acceptable to the state;
(3) Accept necessary dedications of land for, and will grade, improve, pave and provide sidewalks for all streets bounding such project or necessary to provide adequate access thereto;
(4) Without cost or charge to the authority or tenants of such project shall vacate such streets, roads, and alleys within the area of such project as may be necessary in the development thereof, and convey without charge to the authority such interest as the state may have in such vacated areas; and, insofar as it is lawfully able to do so without cost or expense to the authority or to the state, cause to be removed from such vacated areas, insofar as may be necessary, all public or private utility lines and equipment; and
(5) Cooperate with the authority by other lawful action or ways as the state and the authority may find necessary in connection with the development and administration of such project.
(c) The state will, when requested in writing by the authority, assist in the operation and administration of the project by providing or causing to be provided, without cost or expense to the authority, the following additional services:
(1) The services of state employees to assist the authority in developing the necessary site plan for the project; and
(2) The services of state employees in assisting the authority in establishing the necessary administrative capabilities to operate the project.
(Acts 1986, No. 86-537, §6.)
As used in this section, the following words shall have the following meanings ascribed to them:
(1) AUTHORITY. The Alabama Indian Housing Authority.
(2) COMMISSION. The Alabama Indian Affairs Commission created under Sections 41-9-708 to 41-9-717, inclusive.
(3) INDIAN AREAS. Any area within the state which is situated outside the corporate boundaries of cities or towns existing at the time of passage of the legislation, unless those cities and towns are designated by AIAC (Alabama Indian Affairs Commission) as being areas where significant Indian population exists, and which have been determined and designated formally by the AIAC to be areas which both:
a. Are considered historically to be inhabited by Indians.
b. Are areas where Indian families are not presently being served by existing housing authorities.
(4) PROJECT. Any low-rent housing hereafter developed or acquired by the authority with financial assistance of the United States of America acting through the Secretary of Housing and Urban Development.
(Acts 1993, No. 93-351, p. 540, §2(a).)
There is created and established an Indian housing authority for the jurisdiction of the State of Alabama, to be styled the Alabama Indian Housing Authority. Its purpose shall be to provide safe and decent dwelling places for low-income persons and families in Indian areas.
The authority shall consist of five members who shall be appointed by the commission from nominations submitted to the commission from the tribal councils of the following tribal governments:
(1) Cherokees of Southeast Alabama.
(2) Cherokees of Northeast Alabama.
(3) Echota Cherokees.
(4) Machis Creeks.
(5) Star Clan of Muscogee (Creeks).
No person shall be barred from serving as a member of the authority because the person is a tenant or home buyer in a tribal housing project.
Members of the authority shall serve a term of three years from their appointment, and may serve an unlimited number of terms. In the event of a vacancy on the authority, the commission shall appoint a successor to fill the unexpired term.
The authority shall select from among its members a chair, a vice-chair, and a secretary-treasurer. No member shall hold simultaneously two offices within the authority. The chair shall preside at meetings of the authority. The vice-chair shall preside in the absence of the chair. In the absence of both the chair and vice-chair, the secretary-treasurer shall preside.
The commission may remove any member of the authority for neglect of duty, inefficiency, or misconduct in office, but only after a hearing before the authority, and only after the member has been given a written notice of the charges at least 10 days prior to the hearing. At the hearing, the member shall have the opportunity to be heard in person or by counsel and to present witnesses.
Three members shall constitute a quorum for the conduct of business of the authority.
The principal place of business of the authority is Montgomery County, Alabama. Meetings of the authority may be held at other locations within the state upon notification of the members by certified mail, at least 10 days prior to the meeting date.
The authority may hire an executive director and such other personnel as may be necessary to administer the provisions of this section. The executive director shall serve at the pleasure of the authority.
(Acts 1993, No. 93-351, p. 540, §2(b).)
The authority may:
(1) Undertake research and studies and analyses of housing needs in the State of Alabama, and the means by which such needs may be met, including data with respect to population and family groups and the distribution thereof according to income groups, the amount and quality of available housing and its distribution according to rental and sales prices, and employment, wage, and other factors affecting the local housing needs and the meeting thereof, and make the results and analyses available to the public and the building, housing, and supply industries.
(2) Enter into contracts with cities, towns, counties, and other housing authorities in the state for the purpose of carrying out this section.
(3) Establish rentals and select tenants in low-income rental housing projects under its jurisdiction.
(4) Issue bonds, notes, and other evidence of indebtedness for the purpose of financing the construction of housing for low-income persons pursuant to Title 24, Code of Federal Regulations Part 905 Indian Housing: Revised Consolidated Program Regulations; Interim Rule.
(5) Obtain, rent, lease, or otherwise obtain from any county, city, or state, properties of the public bodies as are offered for use to the authority for the purpose of providing housing to low-income persons and families in Indian areas.
(6) Enter into contracts and agreements with agents of the federal government for the purpose of purchasing land, acquiring, constructing, renovating, providing streets, utilities, and landscaping grounds for rental and other housing for low-income persons and families in designated Indian areas.
(7) Exercise any additional powers, rights, and functions specified for municipal housing authorities created under Sections 24-1-20 to 24-1-45, inclusive. All laws applicable to housing authorities created under Title 24, for municipalities and the commissioner of the authorities shall be applicable to the authority, unless a different meaning clearly appears from the context.
The commission may exercise all appointing and other powers with respect to an Indian Housing Authority that are vested in the chief executive officer and governing body of a municipality under this title, with respect to municipal housing authorities.
Rentals and tenant selection associated with projects of the authority shall be in accordance with this title, with respect to municipal housing authorities.
(Acts 1993, No. 93-351, p. 540, §2(c).)
Subject to the limitations of this section, the authority may operate anywhere in the State of Alabama that is an Indian area. The authority shall not undertake any housing project or projects within the area of operation of any city, county, or regional housing authority unless a resolution is adopted by the city, county, or regional housing authority declaring that there is a need for the authority to exercise its powers within the city, county, or regional housing authority’s area of operation.
(Acts 1993, No. 93-351, p. 540, §2(d).)
This chapter shall be known and may be cited as the “Alabama Fair Housing Law.”
(Acts 1991, No. 91-659, p. 1248, §1.)
Within constitutional limitations, it is the policy of this state to provide for fair housing throughout the state.
(Acts 1991, No. 91-659, p. 1248, §2.)
The following words and phrases used in this chapter shall have the following respective meanings:
(1) ADECA. The Alabama Department of Economic and Community Affairs.
(2) COVERED MULTIFAMILY DWELLINGS:
a. Buildings consisting of four or more units if the buildings have one or more elevators; and
b. Ground floor units in other buildings consisting of four or more units.
(3) DISCRIMINATORY HOUSING PRACTICE. An act that is unlawful under this chapter.
(4) DWELLING. Any building or structure, or portion of any building or structure, which is occupied as, or designed or intended for occupancy as, a residence by one or more families, and any vacant land which is offered for sale or lease for the construction or location on it of any such building or structure, or portion of it.
(5) FAMILIAL STATUS. a. One or more individuals who have not attained the age of 18 years and are domiciled with:
A parent or another person having legal custody of the individual; or
The designee of the parent or other person having the custody, with the written permission of parent or other person.
b. The protections afforded against discrimination on the basis of familial status apply to any person who is pregnant or is in the process of securing legal custody of any individual who has not attained the age of 18 years.
(6) HANDICAP. With respect to a person:
a. A physical or mental impairment which substantially limits one or more of the person’s major life activities;
b. A record of having such an impairment; or
c. Being regarded as having an impairment. The term “handicap” excludes current, illegal use of or addiction to a controlled substance as defined by law.
(7) HOUSING FOR OLDER PERSONS. Housing:
a. Provided under any state or federal program that the Attorney General determines is designed specifically and operated to assist elderly persons, as defined in the state or federal program; or
b. Intended for, and solely occupied by persons 62 years of age or older; or
c. Intended and operated for occupancy by at least one person 55 years of age or older for each unit. In determining whether housing qualifies as housing intended and operated for occupancy by at least one person 55 years of age or older, ADECA shall develop regulations which require at least the following factors:
The existence of significant facilities and services specifically designed to meet the physical or social needs of older persons, or if the provision of the facilities and services is not practicable, that the housing is necessary to provide important housing opportunities for older persons;
That at least 80 percent of the dwellings are occupied by at least one person 55 years of age or older for each unit; and
The publication of and adherence to policies and procedures which demonstrate an intent by the owner or manager to provide housing for persons 55 years of age or older.
d. Housing does not fail to meet the requirements for housing for older persons by reason of:
Persons residing in this housing as of September 13, 1988, who do not meet the requirements of paragraph b. or c.; or
Unoccupied units, provided that these units are reserved for occupancy by persons who meet the new requirements of paragraph b. or c.
(8) OFFICE. Office of ADECA.
(9) PERSON. One or more individuals, corporations, partnerships, associations, labor organizations, legal representatives, mutual companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in bankruptcy, receivers, and fiduciaries.
(10) TO RENT. To lease, to sublease, to let, and otherwise to grant for a consideration the right to occupy premises not owned by the occupant.
(Acts 1991, No. 91-659, p. 1248, §3; Acts 1995, No. 95-676, p. 1472, §1.)
It shall be unlawful:
(1) To refuse to sell or rent after the making of a bona fide offer, to refuse to negotiate for the sale or rental of, or otherwise to make unavailable or deny a dwelling to any person because of race, color, religion, sex, familial status, or national origin;
(2) To discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection with it, because of race, color, religion, sex, familial status, or national origin;
(3) To make, print or publish, or cause to be made, printed, or published, any notice, statement, or advertisement with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin or an intention to make the preference, limitation, or discrimination;
(4) To represent to any person because of race, color, religion, sex, handicap, familial status, or national origin that any dwelling is not available to inspection, sale or rental when the dwelling is available;
(5) For profit, to induce or attempt to induce any person to sell or rent any dwelling by representations regarding the entry or prospective entry into the neighborhood of a person or persons of a particular race, color, religion, sex, handicap, familial status, or national origin;
(6) To discriminate in the sale or rental, or to otherwise make unavailable or deny, a dwelling to any buyer or renter because of a handicap of:
a. That buyer or renter;
b. A person residing in or intending to reside in that dwelling after it is sold, rented, or made available; or
c. Any person associated with that buyer or renter;
(7) To discriminate against a person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection with the dwelling, because of a handicap of:
a. That person;
b. A person residing in or intending to reside in that dwelling after it is sold, rented, or made available; or
c. Any person associated with that person.
(Acts 1991, No. 91-659, p. 1248, §4.)
It shall be unlawful to deny any person access to, or membership or participation in, any multiple listing service, real estate brokers’ organization, or other service, organization, or facility relating to the business of selling or renting dwellings or to discriminate against him or her in the terms or conditions of the access, membership, or participation on account of race, color, religion, sex, handicap, familial status, or national origin.
(Acts 1991, No. 91-659, p. 1248, §5; Acts 1995, No. 95-676, p. 1472, §1.)
(a) It shall be unlawful for any person or other entity whose business includes engaging in residential real estate related transactions to discriminate against any person in making available such a transaction, or in the terms or conditions of the transaction, because of race, color, religion, sex, handicap, familial status, or national origin.
(b) As used in this section, “residential real estate related transaction” means any of the following:
(1) The making or purchasing of loans or providing other financial assistance:
a. For purchasing, constructing, improving, repairing, or maintaining a dwelling; or
b. Secured by residential real estate; or
(2) The selling, brokering, or appraising of residential real property.
(c) Nothing in this chapter prohibits a person engaged in the business of furnishing appraisals of real property to take into consideration factors other than race, color, religion, national origin, sex, handicap, or familial status.
(Acts 1991, No. 91-659, p. 1248, §6.)
(a) Except for subdivision (3) of Section 24-8-4, Sections 24-8-4 and 24-8-6 do not apply to rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other, if the owner actually maintains and occupies one of the living quarters as his or her residence.
(b) Sections 24-8-4 and 24-8-6 do not apply to any single-family house sold or rented by an owner when:
(1) The private individual owner does not own more than three single-family houses at any one time; and
(2) In the sale of any single-family house by a private individual owner not residing in the house at the time of the sale or who was not the most recent resident of the house before the sale, the exemption granted by this subsection shall apply only with respect to one sale within a 24-month period; and
(3) A bona fide private individual owner does not own an interest in, nor is there owned or reserved on the owner’s behalf, under any express or voluntary agreement, title to or a right to all or a portion of the proceeds from the sale or rental of more than three single-family houses at any one time.
(c) After August 8, 1991, the sale or rental of a single-family house is excepted from the application of this subsection only if the house is sold or rented without both of the following:
(1) The use in any manner of the sales or rental facilities or the sales or rental services of a real estate broker, agent, or salesperson, or of the facilities or services of a person in the business of selling or renting dwellings, or of an employee or agent of a broker, agent, salesperson, or person.
(2) The publication, posting, or mailing, after notice, of an advertisement or written notice in violation of this chapter. Nothing in this subsection prohibits the use of attorneys, escrow agents, abstractors, title companies, and other professional assistance as necessary to perfect or transfer this title.
(d) For the purposes of this section, a person is considered to be in the business of selling or renting dwellings under any of the following circumstances:
(1) The person has, within the preceding 12 months, participated as principal in three or more transactions involving the sale or rental of any dwelling or any interest in it.
(2) The person has, within the preceding 12 months, participated as agent, other than in the sale of his or her personal residence, in providing sales or rental facilities or services in two or more transactions involving the sale or rental of any dwelling or any interest in it.
(3) The person is the owner of any dwelling designed or intended for occupancy by, or occupied by, five or more families.
(e) This chapter shall not prohibit a religious organization, association, or society, or any nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, association, or society, from limiting the sale, rental, or occupancy of any dwelling which it owns or operates for other than a commercial purpose to persons of the same religion or from giving preference to those persons, unless membership in the religion is restricted because of race, color, or national origin. This chapter shall not prohibit a private club not in fact open to the public, which as an incident to its primary purpose provides lodgings which it owns or operates for other than a commercial purpose, from limiting the rental or occupancy of the lodgings to its members or from giving preference to its members.
(f) This chapter shall not prohibit conduct against a person because the person has been convicted by any court of competent jurisdiction of the illegal manufacture or distribution of a controlled substance as defined by law.
(g) For purposes of subdivision (6) of Section 24-8-4, the term “discrimination” includes any of the following conduct:
(1) A refusal to permit, at the expense of the handicapped person, reasonable modifications of existing premises occupied or to be occupied by the person if the modifications are necessary to afford that person full enjoyment of the premises, except that in the case of a rental, the landlord, where it is reasonable to do so, may condition permission for a modification on the renter agreeing to restore the interior of the premises to the condition that existed before the modification, reasonable wear and tear excepted.
(2) A refusal to make reasonable accommodations in rules, policies, practices, or services when accommodations may be necessary to afford the person equal opportunity to use and enjoy a dwelling.
(3) In connection with the design and construction of covered multifamily dwellings for first occupancy after the date that is 30 months after the date of enactment of the Fair Housing Amendments Act of 1988, a failure to design and construct those dwellings in such a manner that:
a. The public use and common use portions of the dwelling are readily accessible to and usable by handicapped persons;
b. The dwelling has at least one building entrance on an accessible route unless it is impracticable to do so because of the terrain or unusual characteristics of the site;
c. All the doors designed to allow passage into and within all premises within the dwellings are sufficiently wide to allow passage by handicapped persons in wheelchairs; and
d. All premises within these dwellings contain the following features of adaptive design:
An accessible route into and through the dwelling;
Light switches, electrical outlets, thermostats, and other environmental controls in accessible locations;
Reinforcements in the bathroom walls to allow later installation of grab bars; and
Usable kitchens and bathrooms that an individual in a wheelchair can maneuver about the space.
(h) Compliance with the appropriate requirements of the American National Standard for Buildings and Facilities Providing Accessibility and Usability for Physically Handicapped People (commonly cited as “ANSI A117.1″) suffices to satisfy the requirements of subsection (g)(3)d.
(1) If a unit of local government has incorporated into its laws the requirements in subsection (g)(3), compliance with these laws is considered to satisfy the requirements.
(2) A unit of local government may review and approve newly constructed covered multifamily dwellings for the purpose of making determinations as to whether the design and construction requirements of subsection (g)(3) are met.
(3) The office shall encourage, but may not require, units of local government to include in their existing procedures for the review and approval of newly constructed covered multifamily dwellings, determinations as to whether the design and construction of these dwellings are consistent with subsection (g)(3), and shall provide technical assistance to units of local government and other persons to implement the requirements of subsection (g)(3).
(4) Nothing in this chapter shall be construed to require the office to review or approve the plans, designs, or construction of all covered multifamily dwellings, to determine whether the design and construction of these dwellings are consistent with the requirements of subsection (g)(3).
(i)(1) Nothing in subsection (h) shall be construed to affect the authority and responsibility of the Attorney General to receive and process complaints or otherwise engage in enforcement activities under this chapter.
(2) Determinations by the unit of local government under subsection (h) are not conclusive in enforcement proceedings under this chapter.
(j) Nothing in this chapter shall be construed to invalidate or limit any rule, regulation, resolution, or ordinance of a political subdivision of the state that requires dwellings to be designed and constructed in a manner that affords handicapped persons greater access than is required by this chapter.
(k) Nothing in this chapter with respect to discrimination based on handicap requires that a dwelling be made available to an individual whose occupancy would constitute a direct threat to the health or safety of other individuals or whose occupancy would result in substantial physical damage to the property of others.
(l) Nothing in this chapter limits the applicability of any reasonable local, state, or federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling. Owners and managers of dwellings may develop and implement reasonable occupancy and safety standards based on factors such as the number and size of sleeping areas or bedrooms and the overall size of a dwelling unit so long as the standards do not violate local, state, or federal restrictions. The provisions in this chapter regarding familial status shall not apply to housing for older persons. This chapter shall not prohibit the lease application or similar document from requiring information concerning the number, age, sex, and familial relationship of the applicants and the dwellings’ intended occupants. The owner or manager may consider these factors in determining payment of utilities. The application also may require disclosure by the applicant of the conviction of any intended occupant for violating any laws pertaining to the illegal manufacture or distribution of a controlled substance as defined in Title 22.
(m) Section 24-8-4 with respect to discrimination based on sex does not apply to the rental or leasing of dwellings in a single-sex dormitory property.
(Acts 1991, No. 91-659, p. 1248, §7; Acts 1995, No. 95-676, p. 1472, §1; Acts 1996, No. 96-261, p. 307, §1.)
It shall be unlawful to coerce, intimidate, threaten, or interfere with any person in the enjoyment of, exercise of, or the aid or encouragement of any other person in the exercise of any right granted under this chapter.
(Acts 1991, No. 91-659, p. 1248, §8; Acts 1995, No. 95-676, p. 1472, §1.)
(a) The office shall administer the provisions of this chapter.
(b) The office may delegate any of its functions, duties, and powers to its employees including functions, duties, and powers with respect to investigating, conciliating, hearing, determining, ordering, certifying, reporting, or otherwise acting as to any work, business, or matter under this chapter.
(Acts 1991, No. 91-659, p. 1248, §9.)
The office may do any of the following:
(1) Promulgate regulations necessary for the enforcement of this chapter which shall not exceed the requirements of the 1988 Fair Housing Amendments Act (Pub. L. No. 100-430) and any subsequent amendments to it.
(2) Make studies with respect to the nature and extent of discriminatory housing practices in representative urban, suburban, and rural communities throughout the state.
(3) Publish and disseminate reports, recommendations, and information derived from the studies.
(4) Cooperate with and render technical assistance to public or private agencies, organizations, and institutions within the state which are formulating or carrying on programs to prevent or eliminate discriminatory housing practices.
(5) Cooperate with the United States Department of Housing and Urban Development to achieve the purposes of that department and cooperate with other federal, state, and local agencies and departments.
(6) Accept reimbursement for services rendered to the United States Department of Housing and Urban Development.
(7) Accept gifts or bequests, grants, or other donations, public or private.
(8) Institute proceedings in a court of competent jurisdiction, for cause shown, to seek appropriate temporary or preliminary injunctive relief pending final administrative disposition of a complaint.
(9) Contract with persons and organizations to perform services as it may consider reasonably necessary to effectuate the purposes of this chapter and to accept reimbursement for services rendered pursuant to the contract. However, the office shall not delegate its decision making authority to a nongovernmental agency. This decision making authority includes acceptance of complaints, approval of conciliation agreements, dismissal of complaints, final disposition of complaints, or other enforcement powers granted by this chapter.
(10) Make contractual agreements within the scope and authority of this chapter with any agency of the federal government. An agreement with the Department of Housing and Urban Development may include provisions under which the office shall refrain from processing a charge in this state in any class specified in the agreement.
(11) Affirmatively administer the programs and activities to further the policies of this chapter.
(Acts 1991, No. 91-659, p. 1248, §10; Acts 1995, No. 95-676, p. 1472, §1.)
(a) In conducting an investigation, the office shall have access at all reasonable times to premises, records, documents, individuals, and other evidence or possible sources of evidence and may examine, record, and copy the materials and take and record the testimony or statements of persons as are reasonably necessary for the furtherance of the investigation, provided the office first complies with the constitutional provisions relating to unreasonable searches and seizures. The office may issue subpoenas to compel its access to or the production of the materials or the appearance of the persons and may issue interrogatories to a respondent, to the same extent and subject to the same limitations as would apply if the subpoenas or interrogatories were issued or served in aid of a civil action in court. The office may administer oaths. Any examination, recording, copying of materials, and the taking and recording of testimony or statements of persons as reasonably are necessary for the furtherance of the investigation must be solely related to the complaint for which the subpoena was issued.
(b) Upon written application to the office, a respondent is entitled to the issuance of a reasonable number of subpoenas by and in the name of the office to the same extent and subject to the same limitations as subpoenas issued by the office itself. A subpoena issued at the request of a respondent shall show on its face the name and address of the respondent and shall state that it was issued at his request.
(c) Within five days after service of a subpoena upon any person, the person may petition the office to revoke or modify the subpoena. The office shall grant the petition if it finds that the subpoena requires appearance or attendance at an unreasonable time or place, that it requires production of evidence which does not relate to any matter under investigation, that it does not describe with sufficient particularity the evidence to be produced, or that compliance would be unduly onerous or for other good reason.
(d) In case of refusal to obey a subpoena, the office or the person at whose request the subpoena was issued may petition for its enforcement in the circuit court for the county in which the person to whom the subpoena was addressed resides, was served, or transacts business.
(e) Witnesses summoned by a subpoena under this chapter are entitled to the same witness and mileage fees as witnesses in proceedings in court. Fees payable to a witness summoned by a subpoena issued at the request of a party must be paid by that party or, where a party is unable to pay the fees, by the office.
(Acts 1991, No. 91-659, p. 1248, §11.)
(a) A person who claims to have been injured by a discriminatory housing practice, or who believes that he or she may be injured by a discriminatory housing practice that is about to occur, may file a complaint with the office. Complaints shall be in writing and shall contain information and be in a form required by the office. Upon receipt of a complaint, the office shall serve notice upon the aggrieved person of the time limits and choices of forums provided under this chapter and shall furnish a copy of the complaint to the person who allegedly committed the discriminatory housing practice or is about to commit the alleged discriminatory housing practice and serve notice of the procedural rights and obligations under the law. Within 30 days after receiving a complaint, or within 30 days after the expiration of any period of reference under subsection (c), the office shall investigate the complaint and give notice in writing to the person aggrieved whether it intends to resolve it. If the office decides to resolve the complaint, it shall proceed to try to eliminate or correct the alleged discriminatory housing practice by informal methods of conference, conciliation, and persuasion. If practicable, conciliation meetings must be held in the cities or other localities where the discriminatory housing practices allegedly occurred. Nothing said or done in the course of the informal endeavors may be made public or used as evidence in a subsequent proceeding under this chapter without the written consent of the persons concerned. An employee of the office who makes public any information in violation of this provision is guilty of a misdemeanor punishable by a fine of not more than two hundred dollars ($200), or imprisoned for not more than 30 days.
(b) A complaint under subsection (a) must be filed within 180 days after the alleged discriminatory housing practice occurred. The complaint must be in writing and shall state the facts upon which the allegations of a discriminatory housing practice are based. A complaint may be reasonably and fairly amended at any time. A respondent may file an answer to the complaint against him or her, not later than 10 days after receipt of notice, and may be amended reasonably and fairly by the respondent at any time. Both complaint and answer must be verified.
(c) Wherever a local fair housing law has been certified by the Department of Housing and Urban Development as substantially equivalent, the office shall notify the appropriate local agency of any complaint filed under this chapter which appears to constitute a violation of the local fair housing law, and the office shall take no further action with respect to the complaint if the local law enforcement official, within 30 days from the date the alleged offense was brought to his or her attention, has commenced proceedings in the matter. In no event may the office take further action unless it certifies that in its judgment, under the circumstances of the particular case, the protection of the rights of the parties or the interest of justice require the action. Complaints referred to the office by the Department of Housing and Urban Development may not be referred by the office to a local agency.
(d) Any conciliation agreement arising out of conciliation efforts by the office must be an agreement between the respondent and the complainant and is subject to the approval of the office. Each conciliation agreement must be made public unless the complainant and respondent otherwise agree and the office determines that disclosure is not required to further the purposes of this chapter.
(e) The investigation must be completed in no more than 100 days after receipt of the complaint. If the office is unable to complete the investigation within 100 days, it shall notify the complainant and respondent in writing of the reasons for not doing so.
(f) The office shall make final administrative disposition of a complaint within one year of the date of receipt of a complaint unless it is impractical to do so. If the office is unable to do so, it shall notify the complainant and respondent, in writing, of the reasons for not doing so.
(g) In any proceeding brought pursuant to this section, the burden of proof is on the complainant.
(h) Whenever an action filed by an individual in court pursuant to this section or Section 24-8-14 comes to trial, the office shall terminate all efforts to obtain voluntary compliance.
(Acts 1991, No. 91-659, p. 1248, §12; Acts 1995, No. 95-676, p. 1472, §1.)
(a) If not sooner resolved, the investigator, upon completion of his investigation, shall submit to ADECA a statement of the facts disclosed by his investigation and recommend either that the complaint be dismissed or that a panel of office members be designated to hear the complaint. ADECA, after review of the case file and the statement and recommendation of the investigator, shall issue an order either of dismissal or for a hearing, which is not subject to judicial or other further review.
(b) If the order is for dismissal, ADECA shall mail a copy of the order to the complainant and the respondent at their last known addresses. The complainant may bring an action against the respondent in circuit court within 90 days of the date of the dismissal or within one year from the date of the violation alleged, whichever occurs later, to enforce the rights granted or protected by this chapter and to seek relief as provided for in Section 24-8-14.
(c)(1) If the order is for a hearing, ADECA shall attach to it a notice and a copy of the complaint and require the respondent to answer the complaint at a hearing at a time and place specified in the notice and shall serve upon the respondent a copy of the order, the complaint, and the notice.
(2) Either party may elect to have the claims asserted in the complaint decided in a civil action. ADECA notice must be sent to all parties and inform them of their right to take civil action. An election must be made within 20 days after receipt of the notice. A party making this election shall notify ADECA and all other parties. If an election is made for a civil action, ADECA shall, within 30 days from the date of election, commence and maintain a civil action pursuant to Section 24-8-14 on behalf of the aggrieved person.
(d) At any time before a hearing, a complaint may be amended by ADECA upon the request of the investigator or of the complainant or of the respondent. Complaints may be amended during a hearing only upon a majority vote of the panel of office members for the hearing.
(e) Upon request by any party, ADECA shall issue appropriate subpoenas or subpoenas duces tecum to any witnesses or other custodians of documents desired to be present at the hearing, or at prehearing depositions, unless ADECA determines that issuance of the subpoenas or subpoenas duces tecum would be unreasonably or unduly burdensome.
(f) Upon notification by any party that any party or witness has failed to permit access, failed to comply with a subpoena or subpoena duces tecum, refused to have his deposition taken, refused to answer interrogatories, or otherwise refused to allow discovery, the office, upon notice to the party or witness, shall apply to a court of competent jurisdiction for an order requiring discovery and other good faith compliance unless the office determines that the discovery would be unreasonably or unduly burdensome.
(g) ADECA shall designate a panel of three persons to hear the complaint.
(h) At any hearing held pursuant to this section, the case in support of the complaint must be presented before the panel by one or more of the offices’ employees or agents or by legal representatives of the complaining party. Endeavors at conciliation by the investigator may not be received into evidence nor otherwise made known to the members of the panel.
(i) The respondent shall submit a written answer to the complaint and appear at the hearing in person or by counsel and may submit evidence. The respondent may amend his answer reasonably and fairly.
(j) The complainant must be permitted to be present and submit evidence.
(k) Proceedings under this section are subject to the provisions of the Alabama Administrative Procedure Act, and in the case of conflict between the provisions of this chapter and the Alabama Administrative Procedure Act, the provisions of the Alabama Administrative Procedure Act shall govern. A recording of the proceedings must be made, which may be transcribed subsequently upon request and payment of a reasonable fee by the complainant or the respondent. The fee must be set by the office or upon motion of the panel, in which case copies of the transcription must be made available to the complainant or the respondent upon request and payment of a reasonable fee to be set by the office.
(l) If, upon all the evidence at the hearing, the panel shall find that the respondent has engaged in any unlawful discriminatory practice, it shall state its findings of fact and serve upon the complainant and the respondent in the name of the office an opinion and order for appropriate relief which may include that the unlawful discriminatory practice be discontinued, actual damages, civil penalties which may not be greater than civil penalties established by the Federal Fair Housing Act in Section 812 and reasonable attorney’s fees. The office may retain jurisdiction of the case until it is satisfied of compliance by the respondent of its order.
(m) If, upon all the evidence at the hearing, the panel finds that the respondent has not engaged in any unlawful discriminatory practice, the panel shall state its findings of fact and serve upon the complainant and the respondent an opinion and order dismissing the complaint as to the respondent. A prevailing respondent may apply to the office for an award of reasonable attorney’s fees and costs.
(n) A copy of the opinion and order of the office shall be delivered in all cases to such other public officers as the office considers proper. Copies of the opinion and order must be available to the public for inspection upon request, and copies must be made available to any person upon payment of a reasonable fee set by the office.
(o)(1) If an application for review is made to the office within 14 days from the date the order of the office has been given, the office, for good cause shown, shall review the order and evidence, receive further evidence, rehear the parties or their representatives, and if proper, amend the order.
(2) Either party to the dispute, within 30 days after receipt of notice to be sent by registered mail of the order, but not after that time, may appeal from the decision of the office to the circuit court of the county in which the hearing occurred, or in which the respondent resides or has his principal office. In case of an appeal from the decision of the office, the appeal shall operate as a supersedeas for 30 days only, unless otherwise ordered by the court, and after that the respondent is required to comply with the order involved in the appeal or certification until the questions at issue in it have been determined fully in accordance with the provisions of this chapter.
(3) The office may institute a proceeding for enforcement of its order of subsection (l), or its amended order of subdivision (1) after 30 days from the day of the order, by filing a petition in the circuit court of the county in which the hearing occurred, or where any person against whom the order is entered resides or transacts business.
(4) If no appeal under subdivision (2) is initiated, the office may obtain a decree of the court for enforcement of its order upon a showing that a copy of the petition for enforcement was served upon the party subject to the dictates of the office’s order.
(Acts 1991, No. 91-659, p. 1248, §13.)
(a) A civil action must be commenced within one year after the alleged discriminatory housing practice has occurred. However, the court shall continue a civil case brought pursuant to this section, from time to time, before bringing it to trial if the court believes that the conciliation efforts of the office or local agency are likely to result in satisfactory settlement of the discriminatory housing practice complained of in the complaint made to the office or to the local agency and which practice forms the basis for the action in court. Any sale, encumbrance, or rental consummated before the issuance of any court order issued under the authority of this chapter and involving a bona fide purchaser, encumbrances, or tenant without actual notice of the existence of the filing of a complaint or civil action under the provisions of this chapter are not affected. A civil action may be commenced by an aggrieved person whether or not a complaint has been filed with the office.
(b) The court may grant as relief, as it considers appropriate, any permanent or temporary injunction, temporary restraining order, or other order and may award the plaintiff actual damages, and punitive damages, together with court costs and reasonable attorney’s fees in the case of a prevailing party, if the prevailing party in the opinion of the court is not financially able to assume the attorney’s fees.
(Acts 1991, No. 91-659, p. 1248, §14.)
Before accepting any complaint under this chapter, the office shall determine if the complainant has filed a similar complaint with the Federal Home Loan Bank Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation of the Federal Reserve System, the United States Department of Housing and Urban Development, or any other agency with authority to investigate and resolve complaints alleging a violation of this chapter. If a complaint has been filed or is filed, subsequently the office shall coordinate efforts to resolve the complaint with that agency in order to avoid multiple investigations of the respondent.
(Acts 1991, No. 91-659, p. 1248, §15.)
This chapter shall be known and may be cited as the Alabama Assistance and Service Animal Integrity in Housing Act.
(Act 2018-235, §1.)
For the purposes of this chapter, the following terms shall have the following meanings:
(1) ASSISTANCE ANIMAL. An animal, other than a service animal, that qualifies as a reasonable accommodation under the Fair Housing Act, Public Law 90-284, 42 U.S.C. § 3601, et seq., or Section 504 of the Rehabilitation Act of 1973, Public Law 93-112, 29 U.S.C. § 794. This term includes an emotional support animal when the animal qualifies as a reasonable accommodation.
(2) DISABILITY. A physical or mental impairment which substantially limits one or more major life activities.
(3) LANDLORD. A person or company that owns, manages, or enforces pet policies in housing subject to the Fair Housing Act or the Rehabilitation Act of 1973.
(4) RELIABLE DOCUMENTATION. Documentation allowed to be requested upon receipt of a request for reasonable accommodation under the Fair Housing Act or Section 503 of the Rehabilitation Act of 1973. The term only includes documentation from a medical provider of the person in need of the reasonable accommodation.
(5) SERVICE ANIMAL. An animal, other than an assistance animal, that qualifies as a service animal under the Americans with Disabilities Act of 1990. The term includes those animals being trained to be a service animal.
(Act 2018-235, §2.)
(a) A landlord who receives a request from a person to make an exception to a policy of the landlord that prohibits animals on the property of the landlord because the person requires the use of an assistance animal may require the person to produce reliable documentation of the following:
(1) A disability, only if the disability is not readily apparent or known to the landlord.
(2) A disability-related need for the animal, only if the disability-related need is not readily apparent or known to the landlord.
(b) All documentation obtained pursuant to this section must be kept confidential in accordance with the Fair Housing Act and the Rehabilitation Act of 1973.
(Act 2018-235, §3.)
(a) A person commits the offense of misrepresentation of entitlement to an assistance animal or service animal if the person intentionally does either of the following:
(1) Misrepresents to another person that a person has a disability or disability-related need for the use of an assistance animal or service animal in housing.
(2) Makes materially false statements for the purpose of obtaining documentation for the use of an assistance animal or service animal in housing.
(b)(1) Upon a first offense, a violation of subsection (a) shall be subject to a civil penalty of five hundred dollars ($500) or treated as a Class C misdemeanor.
(2) Upon a second or subsequent offense, a violation of subsection (a) shall be a Class B misdemeanor.
(Act 2018-235, §4.)
(a) A person commits the offense of misrepresentation of an animal as an assistance animal or service animal if a person intentionally does any of the following:
(1) Creates a document that misrepresents an animal as an assistance animal or service animal for use in housing.
(2) Provides a document to another person falsely stating that an animal is an assistance animal or service animal for use in housing.
(3) Fits an animal, which is not an assistance animal or service animal, with a harness, collar, vest, or sign that the pet is an assistance animal or service animal for use in housing.
(b)(1) Upon a first offense, a violation of subsection (a) shall be subject to a civil penalty of five hundred dollars ($500) or treated as a Class C misdemeanor.
(2) Upon a second or subsequent offense, a violation of subsection (a) shall be a Class B misdemeanor.
(Act 2018-235, §5.)
This chapter shall be known and may be cited as the Alabama Land Bank Authority Act.
(Act 2009-738, p. 2203, §1.)
The Alabama Land Bank Authority is hereby created for the purpose of acquiring tax delinquent properties in order to foster the public purpose of rehabilitating land which is in a nonrevenue-generating, nontax-producing status to an effective utilization status in order to provide housing, new industry, new commercial and economic development, other productive uses, jobs for the citizens, assemble parcels of real property for redevelopment, stabilize property values, and remove blight.
(Act 2009-738, p. 2203, §2; Act 2010-727, p. 1827, §1.)
The authority does not have the power of eminent domain.
(Act 2009-738, p. 2203, §3.)
When used in the chapter, the following words shall have the following meanings:
(1) AGREEMENT. The intergovernmental cooperation agreement entered into between an authority and a local authority by the parties pursuant to this chapter.
(2) AUTHORITY. The Alabama Land Bank Authority.
(3) BOARD. The Alabama Land Bank Authority Board.
(4) LOCAL AUTHORITY. A local land bank authority created by a county or municipality as provided in Section 24-9-10.
(5) PROPERTY. Real property, including any improvements thereon.
(6) TAX-DELINQUENT PROPERTY. Any property on which the taxes levied and assessed by any party remain in whole or in part unpaid on the date due and payable.
(Act 2009-738, p. 2203, §4; Act 2010-727, p. 1818, §1; Act 2013-249, p. 610, §1.)
(a) There is created the Alabama Land Bank Authority Board which shall govern the authority to administer and enforce this chapter.
(b) The board shall consist of the following members:
(1) Four residents of the state appointed by the Governor.
(2) Two representatives from nonprofit organizations engaged in low-income housing appointed by the Governor.
(3) The Presiding Officer of the Senate or his or her designee.
(4) The Speaker of the House of Representatives or his or her designee.
(5) The Chair of the Senate Finance and Taxation General Fund Committee or his or her designee.
(6) The Chair of the House Ways and Means General Fund Committee or his or her designee.
(7) The State Revenue Commissioner or his or her designee.
(8) The Superintendent of the State Banking Department or his or her designee.
(9) The Director of the Alabama Department of Economic and Community Affairs or his or her designee.
(10) The Secretary of the Alabama Department of Commerce or his or her designee.
(11) The State Finance Director or his or her designee.
(12) The Chair of the Alabama Housing Finance Authority or his or her designee.
(13) The Administrator of the Alabama Credit Union Administration or his or her designee.
(c) The members of the board shall serve four year terms. In appointing the initial members of the board under subdivision (1) of subsection (b), the Governor shall designate two to serve four years, one to serve three years, and one to serve two years.
(d) Members of the board shall receive reimbursement for expenses incurred in the performance of their duties but no other compensation.
(e) The board may employ the necessary personnel for the performance of its functions and fix their compensation.
(f) The board shall elect from its membership a chair, vice chair, and secretary-treasurer. The board shall adopt rules to govern its proceedings. A majority of the membership of the board shall constitute a quorum for all meetings. Approval by a majority of the membership shall be necessary for any action to be taken by the authority. All meetings shall be open to the public, except as otherwise permitted by the Alabama Open Meetings Act, and a written record shall be maintained of all meetings.
(g) The membership of the board shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state.
(h) The board, when acting in its official capacity, its members, and the authority shall be immune from civil liability against the claims of any individual or other entity of any nature whatsoever arising out of its ownership or administration of properties or related to its decisions or actions, which decisions or actions were made in good faith, without malice, and predicated upon information which was then available to the board.
(i) The authority shall be a public body corporate and politic with the power to accept and issue deeds in its name, including, without limitation, the acceptance of real property in accordance with this chapter, and to institute quiet title actions as provided in Section 24-9-8, and shall have any other powers necessary and incidental to carry out the powers and the purpose granted by this chapter.
(j) In addition to the tax-delinquent property acquired by the authority as provided herein, the authority may acquire, by purchase, donation, or exchange, other publicly owned property from local governments, including that which was acquired years earlier as a result of foreclosure proceedings of that property, or property that has become surplus. The authority may also acquire property through voluntary donations and transfers from private owners and may acquire by purchase or lease on the open market property from a private owner to complete an assemblage of property for redevelopment.
(k) No later than October 1, 2018, the State Revenue Commissioner or his or her designee shall convene the first meeting of the authority.
(Act 2009-738, p. 2203, §5; Act 2010-727, p. 1818, §1; Act 2013-249, p. 610, §1; Act 2019-317, §1.)
(a) The authority, at such times as it deems to be appropriate, may submit a written request to the Land Commissioner of the Alabama Department of Revenue for the transfer of the state’s interest in certain properties to the authority. Upon receipt of such request, the Land Commissioner shall issue a tax deed conveying the state’s interest in the property to the authority. The authority shall not be required to pay the amount deemed to have been bid to cover delinquent taxes or any other amount in order to obtain the tax deed.
(b)(1) Delinquent property that may be transferred by the Land Commissioner to the authority shall be limited to parcels that have been bid in for the state pursuant to Chapter 10 of Title 40 for at least three years and the state’s interest in real property acquired pursuant to Chapter 29 of Title 40 for delinquent taxes administered by the state and held for at least three years.
(2) The Land Commissioner or his or her agents or assistants may adopt rules necessary to transfer such properties to the authority.
(c) The authority shall administer properties acquired by it as follows:
(1) All property acquired by the authority shall be inventoried and the inventory shall be maintained as a public record.
(2) The authority shall have the power to manage, maintain, protect, rent, lease, repair, insure, alter, sell, trade, exchange, or otherwise dispose of any property acquired pursuant to subsection (b)(1), on terms and conditions determined in the sole discretion of the authority.
(d) Nothing contained in Act 2013-249 shall be construed to grant any power of eminent domain to the authority or any local authority.
(Act 2009-738, p. 2203, §6; Act 2010-727, p. 1827, §1; Act 2013-249, p. 610, §1; Act 2018-192, §1; Act 2021-345, §1.)
(a) The authority shall adopt rules for the disposition of property in which the authority holds a legal interest, which rules shall address the conditions set forth in this section.
(b) The authority may manage, maintain, protect, rent, repair, insure, alter, convey, sell, transfer, exchange, lease as lessor, or otherwise dispose of property or rights or interests in property in which the authority holds a legal interest to any public or private person for value determined by the authority on terms and conditions, and in a manner and for an amount of consideration the authority considers proper, fair, and valuable, including for no monetary consideration. The transfer and use of property under this section and the exercise by the authority of powers and duties under Act 2013-249 shall be considered a necessary public purpose and for the benefit of the public.
(c) Before the authority may sell, lease, exchange, trade, or otherwise dispose of any property, it shall either:
(1) Establish a purchase price and conditions for sale purposes.
(2) Establish a price and conditions for rent or lease purposes.
(3) Establish the conditions for trade, exchange, or other disposal of the property.
The conditions made pursuant to this subsection may include a requirement that the transferee must provide a development plan or execute a development agreement with the authority specifying the transferee’s commitments regarding the development of the property and the time frame within which the development must occur, the range of permitted uses for the property, and any restrictions on its subsequent resale or transfer.
(d) The disposition of property by the authority shall not be governed by any laws or rules otherwise applicable to the disposition of property by a state or local agency. Provided, however, that, prior to the disposition of property, the authority shall give notice of its intent to dispose of any property for which notice was not previously advertised by the Commissioner of Revenue, or his or her designee, or by a local official in a manner as prescribed by the authority and shall include in the notice the date, time, and place at which persons objecting to the intended action must appear. If no objection is made within 30 days from the date of the notice, the authority may proceed with the disposition of the property as noticed without a public auction.
(e) No property shall be sold, traded, exchanged, or otherwise disposed of by the authority to any entity for investment purposes only and with no intent to use the property other than to transfer the property at a future date for monetary gain.
(f) The authority shall not sell, trade, exchange, or otherwise dispose of any property held by the authority to any party who had an interest in the property at the time it was tax delinquent or to any party who transferred the party’s interest in the property to the authority by sale, trade, exchange, or otherwise, unless the person pays all the taxes, interest, municipal liens, penalties, fees, and any other charges due and owing under Chapter 10 and Chapter 29 of Title 40, including the amount to the Land Commissioner had the property not been transferred to the authority.
(g) Except as otherwise provided in this section, the authority shall have full discretion in determining the sale price of the property. No purchaser from the authority shall be responsible for the proper disposition of the proceeds paid to the authority for the purchase of property.
(Act 2009-738, p. 2203, §7; Act 2010-727, p. 1827, §1; Act 2013-249, p. 610, §1; Act 2018-192, §1; Act 2021-345, §1.)
(a) The authority may initiate a quiet title action under this section to quiet title to real property held by the authority or interests in tax delinquent property held by the authority by undertaking the examination of title as required in subsection (b) and thereafter filing the petition as provided in subsection (c). Following the filing of the petition, the authority shall record with the office of the judge of probate in the county in which the property subject to quiet title action is located a notice of pending quiet title action. The notice shall include the name of the taxpayer whose interest was affected by the tax sale; the name of any other party as revealed by a search and examination of the title to the property who may claim an interest in the property; a legal description of the property; the street address of the property if available; the name, address, and telephone number of the authority; a statement that the property is subject to the quiet title proceedings under Act 2013-249; a statement that any legal interests in the property may be extinguished by a circuit court order vesting title to the property in the authority; and the date, time, and place of the hearing on the petition to quiet title. Notwithstanding anything in this chapter to the contrary, no quiet title action and nothing in this chapter shall affect any right, title, or interest, whether recorded or unrecorded, in the subject property which was held at the time of the tax sale by any person or entity engaged in the generation, transmission, or distribution of electric power, natural gas, or telecommunications.
(b) After the notice required under subsection (a) has been recorded, the record title to the property shall be examined and an opinion of title rendered by an attorney at law, who is licensed to practice law in this state, or a certificate of title shall be prepared by a title agent or title insurer duly licensed under the Alabama Title Insurance Act as set out in Section 27-25-1, et seq., for the benefit of the authority in order to identify all owners of an interest in the property.
(c) Once the authority has identified the owners of interest in the property, the authority shall file a single petition with the clerk of the circuit court for the judicial district in which the property subject to foreclosure under this section is located listing all property subject to foreclosure by the authority and for which the authority seeks to quiet title. No such action shall be subject to the payment of filing fees. The list of properties shall include a legal description of, a tax parcel identification number for, and the street address of each parcel or property. The petition shall seek a judgment in favor of the authority against each property listed and shall include a date, within 90 days, on which the authority requests a hearing on the petition. The petition shall request that a judgment be entered vesting absolute title in the authority, without right of redemption for each parcel of property listed, as provided in this section. At any time during the pendency of this action, the authority may file a motion to release or dismiss a certain parcel or parcels of land from the petition, which release will not affect the remaining parcels of land subject to the petition.
(d) The case shall be docketed in the circuit court by the clerk, and shall be a preferred case therein. The circuit court in which a petition is filed under subsection (c) shall immediately set the date, time, and place for a hearing on the petition for quiet title. In no event may the clerk schedule the hearing later than 90 days after the filing of a petition by the authority under subsection (c). The court, on the request of a party or as needed to allow completion of service of process on all interested persons, and to allow those persons 30 days after service of process to file an answer or other responsive pleadings to the petition, may extend the 90-day period for good cause shown.
(e) The authority shall serve all persons having record title or interest in or lien upon the property with a notice of the hearing on the petition to quiet title. Such service shall be attempted by personal service and by certified mail; provided if service is perfected by either method, the service will be sufficient to provide service of process upon all persons having record title or interest in or lien upon the property. If the persons entitled to service are located outside the county, they may be served by certified mail.
(f) The notice required under subsection (e) shall include:
(1) The date on which the authority recorded, under subsection (a), the notice of the pending quiet title and foreclosure action.
(2) A statement that a person with a property interest in the property may lose such interest, if any, as a result of the quiet title and foreclosure hearing.
(3) A legal description, tax parcel identification number of the property, and the street address of the property.
(4) The date and time of the hearing on the petition for quiet title and a statement that the judgment of the court may result in title to the property vesting in the authority.
(5) An explanation of any rights of redemption and notice that the judgment of the court may extinguish any ownership interest in or right to redeem the property.
(6) The name, address, and telephone number of the authority.
(g) In the event the sheriff is unable to perfect service or certified mail attempts are returned unclaimed, the authority shall conduct a search for the person with an interest in the property conveyed to the authority.
(1) The search, at a minimum, shall include the following:
a. An examination of the addresses given on the face of the instrument vesting interest or the addresses given to the clerk of the probate court by the transfer declaration form.
b. A search of the current telephone directory for the municipality and the county in which the property is located.
c. A letter of inquiry to the person who sold the property to the owner whose interest was sold in the tax sale at the address shown in the transfer tax declaration or in the telephone directory.
d. A letter of inquiry to the attorney handling the closing prior to the tax sale if such information is provided on the deed forms.
(2) A sign being no less than four feet by four feet shall be erected on the property and maintained by the authority for a minimum of 30 days reading as follows:
“THIS PROPERTY HAS BEEN CONVEYED TO THE ________ LAND BANK AUTHORITY AND IS SUBJECT TO A QUIET TITLE ACTION. PERSONS WITH INFORMATION REGARDING THE PRIOR OWNERSHIP OF OR INTEREST IN THE PROPERTY ARE REQUESTED TO CONTACT THE LAND BANK AUTHORITY AT _________.”
(3) Any additional parties who are identified as having an interest in the property shall be provided notice in accordance with this section.
(h) If the interested party is an individual, the authority shall examine voter registration lists, available municipal archives for records of deaths, and the probate court records of estates opened in the county in which the property is located.
(i) If the interested party is a business entity, the authority shall search the records of the Secretary of State for the name and address of a registered agent.
(j) If an interested party appears at the hearing and asserts a right to redeem the property, that party may redeem in accordance with Chapter 10 and Chapter 29 of Title 40.
(k)(1) If the authority has made the search as required by this section and been unable to locate those persons required to be served under subsection (e), and has located additional addresses of those persons through the search and attempted without success to serve those persons in either manner provided by subsection (e), the authority shall provide notice by publication. Prior to the hearing, a notice shall be published once each week for three successive weeks in a newspaper of general circulation in the county in which the property is located. If no paper is published in that county, publication shall be made in a newspaper of general circulation in an adjoining county. This publication shall substitute for notice under this subsection or subsection (g). The published notice shall include the information required in subsection (f). Should the identity of some or all of the persons who may have an interest in the property be unknown, or should such persons be infants or persons of unsound mind, the court shall appoint a guardian ad litem to represent and defend the interests of such unknown, infant, or incompetent parties in the action.
(2) A person claiming an interest in a parcel of property set forth in the quiet title action who desires to contest that petition shall file an answer containing written objections with the clerk of the circuit court and serve those objections on the authority before the date of the hearing. The circuit court may appoint and utilize as the court considers necessary a special master for assistance with the resolution of any objections to the quiet title action or questions regarding the title to property subject thereto. Within 30 days following the hearing, the circuit court shall enter judgment on a petition to quiet title. The circuit court’s judgment shall specify all of the following:
a. The legal description, tax parcel identification number, and, if known, the street address of the subject property.
b. That fee simple title to the property by the judgment is vested absolutely in the authority, except as otherwise provided in paragraph e., without any further rights of redemption.
c. That all liens against the property, including any lien for unpaid taxes or special assessments, are extinguished.
d. That, except as otherwise provided in paragraph e., the authority has good and marketable fee simple title to the property.
e. That all existing recorded and unrecorded interests in the property are extinguished, except a recorded easement or right-of-way, restrictive covenant, prior reservation or severance of all mineral, mining, oil, and gas rights within and underlying the property, such state of facts as shown on recorded plats, or restrictions or covenants imposed under the Alabama Land Recycling and Economic Development Act or any other environmental law in effect in the state, severed oil, gas, and mineral rights and mineral leases and agreements are excepted from Act 2013-249 and any quiet title action authorized herein.
f. A finding that all persons entitled to notice and an opportunity to be heard have been provided that notice and opportunity and that the authority provided notice to all interested parties or that the authority complied with the notice procedures in subdivision (1), which compliance shall create a rebuttable presumption that all interested parties received notice and an opportunity to be heard.
(l) Except as otherwise provided in paragraph (k)(2)e., fee simple title to property set forth in a petition for quiet title filed under subsection (c) shall vest absolutely in the authority upon the effective date of the judgment by the circuit court and the authority shall have absolute title to the property. The authority’s title is not subject to any recorded or unrecorded lien, except as provided in paragraph (k)(2)e. and shall not be stayed except as provided in subsection (m). A judgment entered under this section is a final order with respect to the property affected by the judgment.
(m) The authority or a person claiming to have an interest in property under this section may within 42 days following the effective date of the judgment under subsection (k) appeal the circuit court’s judgment quieting title to the property to the court of appeals. An appeal under this subsection is limited to the record of the proceedings in the circuit court under this section. In the event of a timely appeal, the circuit court’s judgment quieting title to the property shall be stayed until the court of appeals has reversed, modified, or affirmed that judgment. If an appeal under this subsection stays the circuit court’s judgment, the circuit court’s judgment is stayed only as to the property that is the subject of that appeal and the circuit court’s judgment quieting title to other property that is not the subject of that appeal is not stayed.
(n) The authority shall record an order of judgment for each parcel of property in the office of the judge of probate for the county in which the subject property is located.
(o) Notwithstanding the requirements for adverse possession under Section 40-10-82, or any other law, the authority may initiate a quiet title action under this section at any time after acquiring an interest in the property which is subject to the action. A final decree of an action properly filed in compliance with this section shall extinguish all outstanding rights of redemption.
(Act 2009-738, p. 2203, §8; Act 2010-727, p. 1827, §1; Act 2013-249, p. 610, §1; Act 2018-192, §1; Act 2021-345, §1.)
This chapter shall not apply to property owned, operated, or used by utilities engaged in the generation, transmission, or distribution of electricity.
(Act 2009-738, p. 2203, §9.)
(a) If the number of tax delinquent properties in a municipality exceeds 100, then the governing body of a municipality may adopt a resolution declaring that it is wise, expedient, and necessary that a local authority be formed by the municipality by the filing for record of a certificate of incorporation in accordance with the provisions of subsection (c).
(b) If the number of tax delinquent properties in a municipality exceeds 100, then the governing body of a county may adopt a resolution declaring that it is wise, expedient, and necessary that a local authority be formed by the county by the filing for record of a certificate of incorporation in accordance with the provisions of subsection (c).
(c) Upon the adoption of the authorizing resolution, the municipality or county, as the case may be, shall proceed to incorporate the local authority by filing for record in the office of the judge of probate of the county a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner herein provided. The certificate of incorporation of the local authority shall state all of the following:
(1) The name of the local unit of government forming the local authority.
(2) The name of the local authority.
(3) The size of the initial governing body of the local authority, which shall be composed of an odd number of members, but not less than five.
(4) The qualifications, method of selection, and terms of office of the initial board members.
(5) A method for the adoption of bylaws by the governing body of the local authority.
(6) A method for the distribution of proceeds from the activities of the local authority.
(7) A method for the dissolution of the local authority.
(8) Any other matters considered advisable by the local unit of government, consistent with Act 2013-249.
(d) Following incorporation, a local authority may enter into an intergovernmental agreement with the authority providing for the transfer to the local authority of any property held by the authority which is located within the corporate limits of the municipality or the boundary of the county which created the land bank.
(e) A local authority shall have all of the powers of the authority as set forth in this chapter. In addition, a local authority shall have the following powers:
(1) Without the approval of a local unit of government in which property held by the authority is located, control, hold, manage, maintain, operate, repair, lease as lessor, secure, prevent the waste or deterioration of, demolish, and take all other actions necessary to preserve the value of the property it holds or owns. An authority may take or perform the following actions with respect to property held or owned by the authority:
a. Grant or acquire a license, easement, or option with respect to property as the authority determines is reasonably necessary to achieve the purposes of this chapter.
b. Fix, charge, and collect rents, fees, and charges for use of property under the control of the authority or for services provided by the authority.
c. Pay any tax or special assessment due on property acquired or owned by the authority.
d. Take any action, provide any notice, or institute any proceeding required to clear or quiet title to property held by the authority in order to establish ownership by and vest title to property in the authority, including, but not limited to, a quiet title and foreclosure action pursuant to Section 24-9-8.
e. Remediate environmental contamination on any property held by the authority.
(2) Enter into an intergovernmental agreement with a municipality or county providing for one or more of the following:
a. The conveyance to the authority of tax delinquent property held by the municipality or county for title clearance, including, but not limited to, a quiet title and foreclosure action under Section 24-9-8.
b. The acquisition and title clearance of property by the authority of property to be conveyed by the authority to the municipality or county or another entity pursuant to the agreement between the authority and the municipality or county.
(f) A local unit of government and any agency or department of such local unit of government may do one or more of the following:
(1) Anything necessary or convenient to aid a local authority in fulfilling its purposes under Act 2013-249.
(2) Lend, grant, transfer, appropriate, or contribute funds to a local authority in furtherance of its purposes.
(3) Lend, grant, transfer, or convey funds to a local authority that are received from the federal government or this state or from any nongovernmental entity in aid of the purposes of Act 2013-249.
(g) In the event a county creates a local authority, the local authority may acquire real property that has been tax delinquent for three or more years only in those portions of the county located outside of the geographical boundaries of any other local authority created by any municipality located partially or entirely within the county. The Land Bank Authority may acquire real property that has been tax delinquent for three or more years only in those portions of the state located outside of the geographical boundaries of any local authority created by any municipality or county.
(h) Any local authority formed by a municipality or county pursuant to this section shall continue to exist in accordance with its articles of incorporation and this section in the event that the number of tax delinquent properties in the local jurisdiction forming the authority subsequently decreases to 100 or less.
(i) Any local authority formed by a municipality or county pursuant to this section shall permit the Alabama Department of Examiners of Public Accounts to perform an audit upon request by the department. The department shall assess the cost of the audit against the local authority.
(Act 2013-249, p. 610, §2; Act 2021-345, §1.)
This chapter shall be known as and may be cited as the Alabama Affordable Housing Act.
(Act 2012-384, p. 1015, §1.)
When used in this chapter, the following words shall have the following meanings:
(1) ADVISORY COMMITTEE. The Alabama Housing Trust Fund Advisory Committee.
(2) ALABAMA DEPARTMENT OF ECONOMIC AND COMMUNITY AFFAIRS (ADECA). As established by Section 41-23-1.
(3) ALABAMA HOUSING TRUST FUND. The trust fund created pursuant to Section 24-10-4.
(4) SIXTY PERCENT OF MEDIAN FAMILY INCOME. A person or persons living together whose annual income or incomes do not exceed 60 percent of the median family income of a geographic area, as determined by the U.S. Department of Housing and Urban Development, with adjustments for smaller and larger families.
(Act 2012-384, p. 1015, §2.)
(a) It is hereby found and declared that Alabama is in need of more safe, decent, and affordable housing for residents with incomes at or below 60 percent of the median family income.
(b) It is further declared that the lack of affordable housing in Alabama adversely affects a community’s ability to develop and maintain a viable and stable economy. The establishment of the Alabama Housing Trust Fund is intended to:
(1) Provide a flexible source of funding for all Alabama communities to address their affordable housing needs.
(2) Help families attain economic stability.
(3) Revitalize blighted and distressed neighborhoods by creating safe, decent, and affordable housing.
(4) Contribute to economic growth through increased housing production, employment, and tax revenue, thereby benefiting all Alabama residents.
(5) Alleviate deficiencies in the supply of safe, decent, and affordable housing for residents with incomes at or below 60 percent of the median family income, many of whom are physically disabled, elderly, victims of domestic violence, veterans, homeless or on the verge of homelessness, living with HIV/AIDS, or living with developmental disabilities.
(6) Alleviate deficiencies in the supply of safe, decent, and affordable housing in rural areas of the state.
(Act 2012-384, p. 1015, §3.)
The Alabama Affordable Housing Trust Fund is created in the State Treasury for the collection and distribution of designated funds for the purpose of increasing the production of housing units, rehabilitating existing housing units, and maintaining such housing so that it can be made affordable to individuals and families whose incomes are at or below 60 percent of the median family income. The Alabama Housing Trust Fund shall be administered by ADECA which shall appoint an advisory committee as prescribed in Section 24-10-8 to advise the Director of ADECA as to program components and operations.
(Act 2012-384, p. 1015, §4.)
(a) The Alabama Housing Trust Fund shall be maintained and administered by ADECA. ADECA is authorized and directed to do all the following:
(1) Invest and reinvest all money held in the trust fund in investments under ADECA’s investment policies, pending its use for the purposes described in Section 24-10-6.
(2) Keep books and records relating to the investment, interest earnings, and uses of monies deposited into the trust fund.
(3) Establish procedures for the withdrawal, allocation, and use of the monies held in the trust fund for the purposes described in Section 24-10-6.
(4) Publish, on an annual basis, criteria for determining the distribution of funds.
(5) Conduct an annual independent audit of the trust fund.
(6) Prepare, in collaboration with the advisory committee, an annual performance report, which shall be provided to the Governor, Speaker of the House of Representatives, and the President Pro Tempore of the Senate, outlining the use of the trust fund monies, including, but not limited to, the trust fund’s success in meeting its intended purposes.
(7) Conduct, or hire an outside entity to conduct a statewide housing needs assessment, once every five years to inform ADECA, its director, and the advisory committee of the affordable housing needs in Alabama. The assessment should include the housing needs for individuals with disabilities, those living with HIV/AIDS, intellectual disability, individuals experiencing homelessness, victims of domestic violence, veterans, and the elderly.
(8) Enter into contracts and agreements in connection with the operation of the trust fund, including contracts and agreements with federal agencies, local governmental entities, community developers, and other not-for-profit groups. This provision shall not authorize contracts and agreements with for-profit entities.
(9) Engage in ongoing efforts to increase funding sources for the trust fund, including any additional ongoing state-dedicated funding source.
(b) ADECA shall seek the input of the Alabama Housing Trust Fund Advisory Committee, outlined in Section 24-10-8, but the Director of ADECA has final decision-making authority on all matters relating to the trust fund and the programs administered under Section 24-10-4.
(c) ADECA shall be periodically paid a reasonable fee from amounts deposited to the trust fund to reimburse ADECA for its services in administering the trust fund. On an annual basis, ADECA shall not be paid in excess of 10 percent of the total annual deposits to the trust fund.
(Act 2012-384, p. 1015, §5.)
The Alabama Affordable Housing Act is established for the following purposes:
(1) To increase the production of housing units and home ownership and to preserve the supply of rental housing that is affordable to individuals and families with incomes at or below 60 percent of the median family income.
(2) To maintain and rehabilitate existing affordable housing units to insure their continued availability to individuals and families with incomes at or below 60 percent of the median family income.
(3) To serve individuals and families living at or below 60 percent of the median family income. No less than 50 percent of the resources placed into the fund each year shall be used to serve individuals and families with household incomes at or below 30 percent of the median family income as determined by the U.S. Department of Housing and Urban Development.
(4) To annually distribute, when possible, a majority of the proceeds from the trust fund to eligible nonprofit developers.
(5) To annually distribute no less than 40 percent of funds for activities that provide housing and housing assistance to individuals and families in rural areas and small cities that are classified as the Balance of State under the U.S. Department of Housing and Urban Development’s Home Investment Partnership Program.
(Act 2012-384, p. 1015, §6.)
(a) In order for a proposal to be an activity eligible for support, the following minimum requirements must be met:
(1) Beneficiaries of the activity must be individuals or families whose annual income or incomes do not exceed 60 percent of the median family income of a geographic area, as determined by the U.S. Department of Housing and Urban Development, with adjustments for smaller and larger families.
(2) Housing to be funded must meet minimum housing quality standards set forth by the U.S. Department of Housing and Urban Development.
(3) Housing to be funded must comply with the design standards of the Americans with Disabilities Act.
(4) Housing to be funded must meet the same requirements for duration of affordability as set forth in the rules of ADECA for its HOME Investment Partnership Program, with priority given to housing that is to be affordable in perpetuity.
(b) Activities to be funded by the Alabama Housing Trust Fund shall be selected through a competitive process under rules to be determined by ADECA with input from the advisory committee.
(c) ADECA shall ensure that activities funded through the trust fund shall address the housing needs of each of the following populations, consistent with the input of the advisory committee and the statewide housing needs assessment:
(1) Disabled.
(2) Elderly.
(3) Victims of domestic violence.
(4) Veterans.
(5) Homeless or on the verge of becoming homeless.
(6) Living with an intellectual disability.
(7) Living with HIV/AIDS.
(d)(1) The rules of ADECA shall also set forth evaluation criteria, which shall include without limitation the following for all applications:
a. The experience of the entity making the proposal, determined through consideration of the proposer’s past history in completing activities of a similar scale and nature.
b. The timeliness with which units will be developed or the activity implemented.
(2) For housing-specific applications, the rules of ADECA shall set forth evaluation criteria, which shall include, without limitation, the following:
a. An evaluation of the property management history of the developer and management agent provided that rental housing is proposed.
b. The number of years a development shall maintain units at affordable rental or sales prices and the strength of enforcement mechanisms to ensure long-term affordability.
c. The number of affordable units being made available to individuals and families whose annual incomes do not exceed 30 percent of the median family income of a geographic area, as determined by the U.S. Department of Housing and Urban Development, with adjustments for smaller and larger families.
d. The degree to which trust fund monies are used to leverage additional funding.
e. The extent to which the activity will leverage or augment local community affordable housing goals or locally adopted affordable housing plans such as revitalization areas or other geographic areas targeted for investment.
f. The extent to which housing produced will be part of a mixed income development or neighborhood.
g. The extent to which the activity serves individuals and families with special needs, including persons who are disabled, elderly, victims of domestic violence, veterans, homeless or on the verge of becoming homeless, living with HIV/AIDS, and those living with intellectual disabilities.
h. The extent to which the activity adheres to energy efficiency, green and health design, and other environmental and sustainability standards.
i. The extent to which housing will be located near transit lines, shopping, community services, and other amenities.
(e) No related entities, principals, or individuals shall be allocated trust fund funds in excess of 15 percent of the state’s annual allocation.
(Act 2012-384, p. 1015, §7.)
(a) There is created the Alabama Housing Trust Fund Advisory Committee for the purpose of advising the Director of ADECA and staff of the department with respect to the Alabama Housing Trust Fund.
(b) The membership of the advisory committee shall be inclusive and reflect the racial, gender, geographic, urban/rural and economic diversity of the state. The advisory committee shall annually report to the Legislature by the second legislative day of each regular session the extent to which the advisory committee has complied with the diversity provisions provided for in this chapter.
(c) Each member of the advisory committee should have a demonstrated interest in the housing needs of individuals and families with extremely low incomes to incomes at 60 percent of median family income and the revitalization of distressed neighborhoods.
(d) The advisory committee shall consist of 16 members and shall include one representative member from the following organizations and the following additional appointments:
(1) The Alabama House of Representatives appointed by the Speaker of the House.
(2) The Alabama Senate appointed by the Senate President Pro Tempore.
(3) The Lieutenant Governor or his or her designee.
(4) The Alabama Association of Habitat Affiliates.
(5) The Low Income Housing Coalition of Alabama.
(6) The Community Action Association of Alabama.
(7) The Alabama Alliance to End Homelessness.
(8) The Alabama Department of Mental Health.
(9) The Alabama Association of Realtors.
(10) The Governor’s Statewide Interagency Council on Homelessness.
(11) The Home Builders Association of Alabama.
(12) A member appointed by the Independent Living Resources of Greater Birmingham, Montgomery Center for Independent Living, and Independent Living Center of Mobile.
(13) The Alabama Council for Affordable and Rural Housing.
(14) The Alabama Bankers Association.
(15) An individual whose income does not exceed 60 percent of the state median family income appointed by the Governor.
(16) The Alabama Manufactured Housing Association.
(e) To avoid a conflict of interest, or the appearance of a conflict of interest, no sitting committee organization may apply for trust fund dollars during its time on the committee. If an affiliate organization applies for funding, the related committee organization will recuse itself from any discussion or voting on the application.
(f) The term of office of each member of the advisory committee shall be three years. In order to stagger the terms of the members, the initial members of the committee shall draw lots as follows:
(1) Six shall be appointed each for a term of one year.
(2) Five each for a term of two years.
(3) Five each for a term of three years.
No member shall serve more than two consecutive three-year terms, without interruption in service of at least three years.
(g) Each term on the advisory committee shall expire on September 30 of the year in which the term expires. When this occurs, the director or the elected official responsible for appointing the position shall appoint a new member or reappoint the current member. If a vacancy occurs within 90 days of the vacancy, the director shall appoint a replacement to fill the vacancy for the remainder of the unexpired term.
(h) The director may remove a member of the advisory committee only for neglect of duty, an unexcused failure to attend more than one of the regularly scheduled meetings held in a calendar year during the term in office of the member, malfeasance, violation of this chapter, or conviction of a felony.
(i) Members of the advisory committee shall receive reimbursement for expenses incurred in the performance of duties as approved by the ADECA Director.
(j) If necessary, ADECA may employ staff to assist the advisory committee in the performance of its functions.
(Act 2012-384, p. 1015, §8.)
The committee’s responsibilities shall include the following:
(1) Review and advise ADECA staff on all policies and procedures for operation of the Alabama Housing Trust Fund including, but not limited to:
a. Development of a process for making awards from the trust fund.
b. Development of policies and rules for operating the trust fund including priorities for making awards and criteria for evaluating applications, and delineation of all compliance and reporting responsibility of fund recipients.
(2) Review and advise ADECA staff on the collection and presentation of data on the use and impact of the trust fund and the preparation of an annual performance report to be submitted to the Legislature, Governor, and the public.
(3) Pursue additional sources of revenue in addition to that prescribed by this chapter.
(4) Ensure that the dedicated resources alleviate the housing crisis for Alabamians by assisting individuals and families with incomes at or below 60 percent of the median family income and targeting hard-to-serve, special needs populations that include individuals who are:
a. Disabled.
b. Elderly.
c. Victims of domestic violence.
d. Veterans.
e. Homeless or on the verge of becoming homeless.
f. Living with an intellectual disability.
g. Living with HIV/AIDS.
h. Mentally ill.
(5) Prepare, in collaboration with ADECA staff, an annual review of the rules, compliance responsibilities, set-asides, funding priorities, policies, funding recommendations and decisions, including any recommended changes to the operation of the trust fund. This review shall be presented to the Director of ADECA for final approval.
(6) The advisory committee shall elect from its membership a chair, vice chair, and secretary. The advisory committee shall adopt rules to govern its proceedings. A majority of the appointed membership of the committee shall constitute a quorum for all meetings.
(7) The advisory committee shall meet within 30 days after a majority of its first members is appointed, and thereafter shall hold regular meetings. Minutes of each meeting of the advisory committee, recording the members present and the business taken, shall be signed and kept by the secretary or an assistant secretary appointed by the advisory committee.
(Act 2012-384, p. 1015, §9.)
The following organizations shall be eligible to apply to ADECA for funding:
(1) Not-for-profit organizations.
(2) Municipalities.
(3) Counties.
(4) Public housing authorities.
(5) For-profit organizations. Profit organizations that use Alabama Housing Trust Fund monies to provide housing for extremely low income individuals and families must partner with not-for-profit organizations that can, if necessary, provide resident services to ensure housing stability.
(Act 2012-384, p. 1015, §10.)
All home ownership projects funded by the Alabama Housing Trust Fund must follow the same ownership requirements of the current Alabama Habitat for Humanity home ownership program.
(Act 2012-384, p. 1015, §11.)
This chapter shall be known and may be cited as the “Alabama First-time and Second Chance Home Buyer Savings Account Act.”
(Act 2018-467, §1.)
The Legislature recognizes that saving for the purchase of a first home is very challenging in today’s economy. The Legislature declares that first-time and second chance home buyer savings accounts provide an opportunity for Alabama residents to save funds for home ownership. The first-time and second chance home buyer savings account program is intended to enable first-time and second chance home buyers in Alabama to plan for and utilize a tax incentive to save funds for a down payment and closing costs for the purchase of a first home in Alabama.
(Act 2018-467, §2.)
As used in this chapter, the following terms shall have the following meanings:
(1) ACCOUNT HOLDER. A first-time and second chance home buyer who establishes, individually or jointly with another first-time and second chance home buyer, a first-time and second chance home buyer savings account.
(2) ALLOWABLE CLOSING COSTS. A disbursement listed on a settlement statement for the purchase of a single-family residence in Alabama by a first-time and second chance home buyer.
(3) DEPARTMENT. Alabama Department of Revenue.
(4) ELIGIBLE COSTS. The down payment and allowable closing costs for the purchase of a single-family residence in Alabama by a first-time and second chance home buyer. Eligible costs do not include any costs incurred prior to the establishment of a first-time and second chance home buyer savings account.
(5) FINANCIAL INSTITUTION. Any bank, savings institution, industrial loan association, credit union, or other similar entity authorized to do business and accept deposits in Alabama.
(6) FIRST-TIME AND SECOND CHANCE HOME BUYER. An individual who resides in Alabama and has not owned or purchased, either individually or jointly, a single-family residence during a period of ten years prior to the date of the purchase of a single-family residence.
(7) FIRST-TIME AND SECOND CHANCE HOME BUYER SAVINGS ACCOUNT or ACCOUNT. An account with a financial institution created for the purpose of payment or reimbursement of eligible costs for the purchase of a single-family residence in Alabama by a first-time and second chance home buyer and designated by the financial institution upon its creation as a first-time and second chance home buyer savings account.
(8) SETTLEMENT STATEMENT. The statement of receipts and disbursements for a transaction related to real estate, including a statement prescribed under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. §2601 et seq., as amended, and regulations thereunder.
(9) SINGLE-FAMILY RESIDENCE. A single-family residence owned and occupied by a first-time and second chance home buyer as the first-time and second chance home buyer’s principal residence, which may also include a manufactured home, trailer, mobile home, condominium unit, or cooperative.
(Act 2018-467, §3.)
(a) Beginning January 1, 2019, a first-time and second chance home buyer may open an account with a financial institution designated in its entirety by the financial institution as a first-time and second chance home buyer savings account.
(b) Funds from a first-time and second chance home buyer savings account may be used only to pay a first-time and second chance home buyer’s eligible costs for the purchase of a single-family residence in Alabama.
(c) A first-time and second chance home buyer may jointly own a first-time and second chance home buyer savings account with another first-time and second chance home buyer if the joint account holders file a joint income tax return.
(d) Only cash and marketable securities may be contributed to a first-time and second chance home buyer savings account. Subject to the limitations of Section 24-11-7, persons other than the account holder may contribute funds to a first-time and second chance home buyer savings account. There is no limitation on the amount of contributions that may be made to or retained in a first-time and second chance home buyer savings account.
(Act 2018-467, §4.)
(a) The account holder shall do all of the following:
(1) Not use funds held in a first-time and second chance home buyer savings account to pay expenses of administering the account, except that a service or other account fee may be deducted from the account by the financial institution in which the account is held.
(2) Submit the following to the Department of Revenue with the account holder’s Alabama income tax return:
a. Detailed information, in a form prescribed by the department, regarding the first-time and second chance home buyer savings account, including a list of transactions for the account during the tax year.
b. Form 1099 issued by the financial institution for the account.
(3) Submit to the department, upon a withdrawal of funds from a first-time and second chance home buyer savings account, a detailed account of the eligible costs toward which the account funds were applied and a statement of the amount of funds remaining in the account, if any. If upon withdrawal of funds from the first-time and second chance home buyer savings account, the account holder fails to provide the department with the detailed account of the eligible costs towards which the account funds were applied, the entire account’s funds, including the interest and other income on principal, shall be subject to the penalties listed under Section 24-11-8.
(b) Failure to submit the documentation required under subsection (a) on an annual basis with the filing of the Alabama income tax return will result in the automatic denial of the deduction and exclusion.
(Act 2018-467, §5; Act 2022-223, §1.)
(a) A financial institution shall be required to do the following:
(1) Create a new account for the first-time and second chance home buyer and designate the account as a “first-time and second chance home buyer’s savings account” on records and transactional statements related to the account.
(2) Provide the account holder with a detailed account statement relating to the first-time and second chance home buyer’s savings account on a yearly basis.
(b) A financial institution shall not be required to do any of the following:
(1) Track the use of money withdrawn from a first-time and second chance home buyer savings account.
(2) Allocate funds in a first-time and second chance home buyer savings account between joint account holders.
(3) Report any information not otherwise required by law to the Department of Revenue or any other governmental agency.
(c) A financial institution is not responsible or liable for the following:
(1) Determining or ensuring that an account satisfies the requirements to be a first-time and second chance home buyer savings account.
(2) Determining or ensuring that funds in a first-time and second chance home buyer savings account are used for eligible costs.
(3) Reporting or remitting taxes or penalties related to the use of a first-time and second chance home buyer savings account.
(d) Upon being furnished proof of the death of the account holder and any other information related to the death required by the financial institution or contract governing the first-time and second chance home buyer savings account, a financial institution shall distribute the principal and accumulated interest or other income in the account in accordance with the terms of the contract governing the account, or as otherwise required by law.
(Act 2018-467, §6.)
(a) Except as otherwise provided in this chapter and subject to the limitations under this section, a first-time and second chance home buyer savings account holder shall be entitled to a state tax deduction, subject to the limitations of this section, not to exceed five thousand dollars ($5,000) for an account holder who files an individual tax return or ten thousand dollars ($10,000) for joint account holders who file a joint tax return, for contributions made by the account holder to a first-time and second chance home buyer savings account during the tax year in which the deduction is claimed.
(b) Except as otherwise provided in this chapter and subject to the limitations under this section, earnings from the first-time and second chance home buyer savings account, including interest and other income on the principal, shall be excluded from taxable income of an account holder for Alabama income tax purposes during the tax year.
(c) An account holder may claim the deduction and exclusion under this section as follows:
(1) For a period not to exceed 10 years.
(2) For an aggregate total amount of principal and earnings not to exceed twenty-five thousand dollars ($25,000) for individual accounts and fifty thousand dollars ($50,000) for joint accounts during the 10-year period.
(3) Only if the principal and earnings of the account remain in the account until a withdrawal is made for eligible costs related to the purchase of a single-family residence by a first-time and second chance home buyer.
(d) A person other than the account holder who deposits funds in a first-time and second chance home buyer savings account shall not be entitled to the deduction and exclusion provided under this chapter.
(e) Any funds in a first-time and second chance home buyer savings account not expended on eligible costs by December 31 of the last year of the 10-year period beginning with January 1 of the tax year in which a deduction was first claimed under subsection (a) shall thereafter be included in the account holder’s taxable income.
(f) The deduction and exclusion from taxable income provided by this chapter shall apply to any alternative basis for calculating taxable income for Alabama income tax purposes.
(g) The funds in the first-time and second chance home buyer savings account shall not be used to purchase a single-family residence outside of this state.
(h) No first-time and second chance home buyer savings account shall be established under this chapter after December 31, 2028, unless extended by an act of the Legislature.
(Act 2018-467, §7; Act 2022-223, §1.)
Except as otherwise provided in this section, if the account holder withdraws any funds from a first-time and second chance home buyer savings account for a purpose other than eligible costs for the purchase of a single-family residence in this state, the following shall apply:
(1) The entire balance of the fund, including interest and other income on principal, shall be included in the account holder’s taxable income for the tax year in which the withdrawal was made.
(2) The account holder shall pay a penalty to the Department of Revenue equal to 10 percent of the amount withdrawn. The penalty shall not apply to funds withdrawn from an account which were:
a. Withdrawn by reason of the account holder’s death or disability or due to unemployment after the account holder has exhausted his or her applicable unemployment compensation benefits.
b. A disbursement of assets of the account pursuant to a filing for protection under the United States Bankruptcy Code, 11 U.S.C. § 101 et seq.
(3) Subdivisions (1) and (2) do not apply to funds withdrawn or distributed from a first-time and second chance home buyer savings account that within 60 days of their withdrawal or distribution are deposited in full into another first-time and second chance home buyer savings account. This subdivision shall apply both to transfers between any qualifying first-time and second chance home buyer savings accounts whether such transfers are to or from qualifying individual or joint accounts. The timely transfer of funds from a first-time and second chance home buyer savings account to another first-time and second chance home buyer savings account in accordance with this subdivision shall not alter the time limitations set forth in subsection (e) of Section 24-11-7.
(Act 2018-467, §8.)
The Department of Revenue shall adopt forms for the following:
(1) The designation of an account with a financial institution to serve as a first-time and second chance home buyer savings account.
(2) An account holder to annually submit to the Department of Revenue detailed information regarding the first-time and second chance home buyer savings account, including, but not limited to, a list of transactions for the account during the tax year and identifying any supporting documentation required to be maintained by the account holder.
(Act 2018-467, §9.)
The department shall report to the Fiscal Division of the Legislative Services Agency on an annual basis the total annual number of deductions claimed and total amount of deposits deducted pursuant to this chapter, the number of taxpayers who submitted an account to the department pursuant to Section 24-11-5(a)(3), and the number of taxpayers who claimed a first-time and second chance home buyer deduction that did not expend the funds pursuant to Section 24-11-7(e), or were subjected to the penalty provisions of Section 24-11-8.
(Act 2018-467, §10; Act 2022-223, §1.)
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