HB90INTRODUCED
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HB90
HEMD388-1
By Representative Clarke
RFD: State Government
First Read: 04-Feb-25
PFD: 24-Jan-25
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6 HEMD388-1 1/23/2025 THR (L)ma 2024-2932
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PFD: 24-Jan-25
SYNOPSIS:
Under existing law, a municipal housing
authority has numerous powers.
This bill would further provide for a municipal
housing authority's power to manage housing projects
and community facilities, participate in lawful forms
of business organizations, make loans, create
subsidiaries or other lawful business organizations,
and enter into contracts.
This bill would ratify the creation of any
wholly-owned subsidiary of a municipal housing
authority.
This bill would further provide for a municipal
housing authority's power to evaluate and award
contracts.
This bill would exempt public housing
authorities from all taxes.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
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AN ACT
Relating to municipal housing authorities; to amend
Sections 24-1-22 and 24-1-27, Code of Alabama 1975; to further
provide for the powers of a municipal housing authority; to
exempt public housing authorities from all taxes; to ratify
certain previously created subsidiaries of municipal housing
authorities; 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 24-1-22 and 24-1-27, Code of
Alabama 1975, are amended to read as follows:
"§24-1-22
The following terms, wherever used or referred to in
For the purposes of this article, shall have the following
respective meanings, unless a different meaning clearly
appears from the context 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)(3) CITY. Any city or incorporated town municipality
in the State of Alabama this state.
(3)(8) COUNCIL. The legislative body, council, board of
commissioners or other body charged with governing the city a
municipality.
(4) CITY CLERK and MAYOR. The clerk, and the mayor or
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(4) CITY CLERK and MAYOR. The clerk, and the mayor or
president of the board of commissioners, respectively, of the
city, or the officers thereof 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)(10) GOVERNMENT. Such term shall include the state
and federal governments and any subdivision, agency, or
instrumentality, corporate or otherwise, of either of them.
(7)(17) STATE. The State of Alabama.
(8)(9) FEDERAL GOVERNMENT. Such term shall include
theThe 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.
(9)(11) 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 dwelling
accommodations at rentals within the means of persons of low
income. ThisThe 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.
(10)(6) COMMUNITY FACILITIES. Such term shall include
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(10)(6) COMMUNITY FACILITIES. Such term shall include
realReal 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.
(11)(15) PERSONS OF LOW INCOME. PersonsIndividuals
receiving less than the income 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 the authority or any cities, 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.
(12)(2) BONDS. Any bonds, interim certificates, notes,
debentures, warrants, or other obligations of the authority
issued pursuant to this article.
(13) MORTGAGES. 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
thereof.
(14)(18) TRUST INDENTURE. Such term shall include
instrumentsInstruments pledging the revenues of real or
personal properties but not conveying such properties
conferring a right to foreclose and cause a sale thereof.
(15)(7) CONTRACT. Any agreement of an authority with or
for the benefit of an obligee whether contained in a
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for the benefit of an obligee whether contained in a
resolution, trust indenture, mortgage, lease, bond, or other
instrument.
(16) 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.
(17)(14) 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.
(12) 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,
commercial, governmental, industrial, or other components. "
"§24-1-27
(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
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housing conditions and into the means and methods of improving
suchthe 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 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 or cooperation with any city or
regional planning agency.
(4) To prepare, carry out, and of 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 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 such 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 thereof of a
housing project.
(9) To arrange with any city located within its
boundaries or with a any other government for the furnishing,
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boundaries 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 such a city, or a other 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,
or government entity.
(13) To sell, exchange, transfer, assign, or pledge any
property, real or personal, or any interest therein in
property to any person, firm, corporation, city, or government
entity.
(14) To own, hold, clear, and 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 such the proceeds to the city in
which it is organized only in such the manner and to such the
extent that such the payment will not violate the terms of any
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extent that such 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 so
pay over any part of the proceeds derived from the sale of any
real or personal property acquired in connection with a
redevelopment project , as that term is defined in Section
24-1-4 pursuant to Chapter 2 .
(16) To insure or provide for the insurance of the
property or operations of the authority against such 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
thereofof 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 hereinafter 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 thereof, 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 or, sinking
funds, or any funds not required for immediate disbursement ,
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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 same at pleasure
seal.
(24) To have perpetual succession.
(25) To make and execute contracts and or other
instruments necessary or convenient to the exercise of the
powers of the authority.
(26) 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.
(27) 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.
(28) To issue subpoenas requiring the attendance of
witnesses or the production of books and or papers and, 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 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,
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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
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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.
(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.
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facility is accomplished by or on behalf of the authority.
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.
(30)(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 , or; by
a committee appointed by it, the authority consisting of one
or more commissioners , or; by counsel,; or by an officer or
employee especially specifically authorized by the authority
to conduct it. Any commissioner, counsel for the authority , or
any other person designated by it the authority to conduct an
investigation or examination shall have the power to
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 projects
community facility , through or by an agent or agents which it
may designate, including any corporation or corporations
lawful form of business organization which arethat 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
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corporation or corporations equity interest in any lawful form
of business organization .
(2) Any corporate agent , all of the stock of which
shall be is 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 tort against the agent shall be subject to the
limitations and provisions of Chapter 93 of Title 11, as
applicable to each such 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
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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 the
Legislature shall specifically so stateprovided 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) Notwithstanding any provision of law to the
contrary, proposals under this section may be evaluated or
awarded by the authority based on the qualifications of
participants or the best value, or both, as evaluated by the
procedures of the authority and taking into consideration the
best interests of the authority. Evaluation criteria for a
contract procured pursuant to this subsection shall be set
forth in the contract's request for proposal. A contract may
also be awarded through any existing procurement authority,
proposal, or any other means of procurement available to the
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proposal, or any other means of procurement available to the
authority."
Section 2. (a) For the purposes of this section, the
term "municipal housing authority" has the same meaning as in
Section 21-1-22, Code of Alabama 1975.
(b) All of the following shall be exempt from all
taxation in this state, including, but not limited to, deed
taxes, mortgage taxes, license taxes, or excise 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 shall be exempt from all taxation in this state.
(c) A municipal housing authority shall be exempt from
all fees, taxes, or other costs imposed by a judge of probate.
(d) The exemptions created pursuant to this section
shall apply to any wholly-owned subsidiary of a municipal
housing authority.
Section 3. This act shall become effective on June 1,
2025.
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