Relating to land bank authorities; to amend Sections 24-9-4, 24-9-6, 24-9-10, 40-1-3, 40-10-1, 40-10-18, 40-10-29, 40-10-120, 40-10-184, and to add Sections 29-4-11 and 29-4-12 to the Code of Alabama 1975; to provide for the creation of multijurisdictional local land bank authorities; further authorize the acquisition of tax delinquent property and tax liens by local land bank authorities; further provide for the exemption of land bank authority property from taxes and fees; provide for the allocation of a portion of the ad valorem taxes on property conveyed by a land bank authority to the authority; further provide for the conveyance of land bank authority property; and authorize the Governor to create a local land bank authority in the event of a state of emergency.
SB6 allows local land bank authorities greater authority to manage tax delinquent properties and encourages collaboration between jurisdictions through the creation of multijurisdictional authorities. Moreover, it mandates the allocation of a portion of property tax revenues from properties conveyed by land bank authorities back to those authorities, thus ensuring a consistent funding stream for their operations. This legislative change is expected to promote proactive management of vacant or underutilized properties, improve local governance, and enhance community development efforts.
Senate Bill 6 (SB6) introduces significant changes to the structure and function of local land bank authorities in Alabama. The bill aims to streamline the acquisition of tax delinquent properties by allowing local land bank authorities to purchase these properties directly at public auctions if there are no open market bids. Additionally, it seeks to shorten the redemption period for such properties that remain unsold, making the process more efficient and reducing the time frame in which owners can reclaim their properties. This modification aims to facilitate the repurposing of forgotten or abandoned lands, potentially revitalizing neighborhoods and increasing local tax revenue.
Notably, critics of SB6 may raise concerns regarding the potential for misuse of power by local land bank authorities, particularly in instances where property rights are involved. The bill’s provisions allowing the Governor to create local land bank authorities via executive order in emergencies could be perceived as overreach, prompting discussions about local governance and autonomy. As land bank authorities take on expanded roles, questions arise regarding accountability and transparency, particularly in decisions that affect community stability and the management of public assets.