HB406ENGROSSED
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HB406
7ZJCVEE-2
By Representatives Clarke, Gray, Bracy, Jones, Brown,
Chestnut, Almond, Lands
RFD: Ways and Means General Fund
First Read: 02-Apr-24
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First Read: 02-Apr-24
A BILL
TO BE ENTITLED
AN ACT
Relating to county housing authorities; to amend
Sections 24-1-61 and 24-1-66, Code of Alabama 1975; to further
provide for the powers of a county housing authority; to
ratify certain acts of county housing authorities before the
effective date of this act; to exempt county housing
authorities from taxes in certain circumstances; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 24-1-61 and 24-1-66, Code of
Alabama 1975, are amended to read as follows:
"§24-1-61
The For the purposes of this article, the following
terms, wherever used or referred to in this article shall have
the following respective meaning, unless a different meaning
clearly appears from the context 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
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powers, and subject to the restrictions set forth in this
article.
(2)(5) COUNTY. All of the county except that any
portion which lies within the territorial boundaries of any
city or incorporated town municipality.
(3)(6) COUNTY COMMISSION. The governing body of any
county.
(4)(9) HOUSING COMMISSIONER. One of the members of an
authority appointed in accordance with the provisions of this
article.
(5)(8) GOVERNMENT. Such term shall include the The
state and or federal governments and or any subdivision,
agency, or instrumentality, corporate or otherwise, of either
of them.
(6)(16) STATE. The State of Alabama.
(7) FEDERAL GOVERNMENT. Such term shall include the The
United States of America, the federal Secretary United States
Department of Housing and Urban Development , or any agency,
instrumentality, corporate or otherwise, of the United States
of America.
(8)(10) HOUSING PROJECT. Such term shall include all
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 "housing project" may also be
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persons of low income. The term "housing project" 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.
(9)(3) COMMUNITY FACILITIES. Such term shall include
real Real and personal property and buildings and equipment
for recreational or social assemblies ,; for educational,
health, or welfare purposes ; and necessary utilities, when
designed primarily for the benefit and use of the occupants of
the dwelling accommodations.
(10)(14) PERSONS OF LOW INCOME. Persons Individuals
receiving less than the incomes determined by the authority as
the amount persons 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 from time to
time shall be binding and conclusive for all purposes of this
article.
(11)(2) BONDS. Any bonds, interim certificates, notes,
debentures, warrants, or other obligations of the authority
issued pursuant to this article.
(12) MORTGAGE. Such term shall include deeds 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
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for bonds and conferring a right to foreclose and cause a sale
thereof.
(13)(17) TRUST INDENTURE. Such term shall include
instruments 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.
(14)(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.
(15) REAL PROPERTY. Such term shall include lands 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 or
corporations.
(16)(13) OBLIGEE OF THE AUTHORITY or OBLIGEE. Such term
shall include any 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.
(11) MIXED-USE PROJECT. Any development project that
provides more than one use or purpose within a shared building
or development and which may include any combination of
housing, lodging, office, retail, medical, recreational,
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housing, lodging, office, retail, medical, recreational,
commercial, governmental, industrial, or other components. "
"§24-1-66
(a) An authority shall constitute a public body and a
body corporate and politic exercising public powers , and
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 into living, dwelling, and or
housing conditions and into the means and methods of improving
such 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 in relation related to the problem of
clearing, replanning, and reconstruction of areas in which
unsafe or unsanitary dwelling, public school, or housing
conditions exist , and; the provision of dwelling
accommodations for persons of low income , and to cooperate ;
and cooperation with the county or any regional planning
agency;.
(4) To prepare, carry out, and or operate housing
projects;.
(5) To provide for the construction, reconstruction,
improvement, alteration, or repair of any housing project or
any part thereof;of a housing project.
(6) To take over by purchase, lease, or otherwise any
housing project undertaken by any government or by the
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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 ;.
(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 thereof;of a
housing project.
(9) To arrange with any city or town or the county or
with a any other government for the furnishing, planning,
replanning, opening , or closing of streets, roads, roadways,
alleys, or other places, or facilities, or for the acquisition
by the county or a another government, of property, options or
property rights, or for the furnishing of property or services
in connection with a project ;.
(10) To lease or rent any of the dwelling or dwellings,
other accommodations or any of the, lands, buildings,
structures, or facilities embraced in any housing project or
community facility and to establish and or revise the rents or
charges therefor;.
(11) To enter upon 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, or
otherwise, any property, real or personal, or any interest
therein in property from any person, firm, corporation, city,
county, or government; entity.
(13) To sell, exchange, transfer, assign , or pledge any
property, real or personal, or any interest therein in
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property, real or personal, or any interest therein in
property to any person, firm, corporation, city, county, or
government;entity.
(14) To own, hold, clear, and or improve property ;.
(15) To insure or provide for the insurance of the
property or operations of the authority against such 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
thereofof 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 hereinafter 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 thereof, 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 or, 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 ;.
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(21) To sue and be sued ;.
(22) To have a seal and to alter the same at
pleasure;seal.
(23) To have perpetual succession ;.
(24) To make and execute contracts and or other
instruments necessary or convenient to the exercise of the
powers of the authority ;.
(25) To make and from time to time , amend and, or
repeal bylaws, rules, and or regulations, not inconsistent
with this article , to carry into effect the powers and or
purposes of the authority ;.
(26) To conduct examinations and or investigations and,
to hear testimony and, 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 and 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 such any agencies, boards, or
commissions as are charged with the duty of abating nuisances
or demolishing unsafe or unsanitary structures within its 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 ; and.
(29) To operate, manage, lease, convey, or otherwise
deal with any housing project, community facility, or
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deal with any housing project, community facility, or
mixed-use project upon terms the authority deems appropriate,
useful, or expedient, regardless of who owns, will own, or
will acquire the project or facility.
(30) To participate in any lawful form of business
organization which may be 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 shall have the power to 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
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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 not-for-profit subsidiaries or affiliates to
assist the authority in fulfilling its purposes.
(33) To create, establish, or support other
non-affiliated 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 non-affiliated 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 non-affiliated 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,
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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.
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.
(29)(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 , or; by
a committee appointed by it, the authority consisting of one
or more housing commissioners , or; by counsel; or by an
officer or employee specially specifically authorized by the
authority to conduct it. Any housing commissioner, counsel for
the authority, or any other person designated by it the
authority to conduct an investigation or examination shall
have power to may administer oaths, take affidavits, and or
issue subpoenas or commissions.
(c)(1) An authority may exercise any or all of the
powers conferred upon it in this article , either generally or ,
with respect to any specific housing project or
projectscommunity facility , through or by an agent or agents
which it may designate, including any corporation or
corporations which are lawful form of business organization
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corporations which are lawful form of business organization
that is or shall may be formed under the laws of this state,
and for such purposes an authority may cause one or more
corporations any lawful form of business organization to be
formed under the laws of this state or may acquire the capital
stock of any corporation or corporations equity interest in any
lawful form of business organization .
(2) Any corporate agent, all of the stock of which
shall be solely owned by the authority or its nominee or
nominees, may, 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 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
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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 the
Legislature shall specifically so stateprovided by the
Legislature.
(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, 2024, 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."
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Title 39."
Section 2. (a) All of the following shall be exempt
from all state 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.
(c) A county housing authority shall be exempt from all
fees, taxes, or other costs imposed by a judge of probate.
Section 3. This act shall become effective immediately.
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Section 3. This act shall become effective immediately.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Ways and Means General
Fund
................02-Apr-24
Read for the second time and placed
on the calendar:
2 amendments
................25-Apr-24
Read for the third time and passed
as amended
Yeas 101
Nays 0
Abstains 1
................30-Apr-24
John Treadwell
Clerk
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