HB91ENGROSSED Page 0 HB91 N9UFJT8-2 By Representative Clarke RFD: State Government First Read: 04-Feb-25 PFD: 24-Jan-25 1 2 3 4 5 6 HB91 Engrossed Page 1 PFD: 24-Jan-25 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 previously created subsidiaries of county housing authorities; to exempt county housing authorities from all 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 TheFor 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB91 Engrossed Page 2 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 andgovernment 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 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB91 Engrossed Page 3 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 realReal 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. (10)(14) PERSONS OF LOW INCOME. PersonsIndividuals 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 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB91 Engrossed Page 4 for bonds and conferring a right to foreclose and cause a sale thereof. (13)(17) TRUST INDENTURE. Such term shall include instrumentsInstruments 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, 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB91 Engrossed Page 5 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 shall have 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 ; or 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 county;. 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB91 Engrossed Page 6 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 thereof; of a housing project. (9) To arrange with any city or town municipality 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, 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB91 Engrossed Page 7 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 property to any person, firm, corporation, city, county, or government; entity. (14) To own, hold, clear, andor 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 thereof, 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 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 thereofof 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, 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB91 Engrossed Page 8 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 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, 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB91 Engrossed Page 9 conditions exist which are dangerous to the public health, morals, safety, or welfare ; and. (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 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 HB91 Engrossed Page 10 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 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 HB91 Engrossed Page 11 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. (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, andor 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 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 HB91 Engrossed Page 12 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 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 that 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 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 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 HB91 Engrossed Page 13 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 the Legislature shall specifically so state 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 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 HB91 Engrossed Page 14 (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." Section 2. (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. 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 HB91 Engrossed Page 15 (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. (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. Section 3. This act shall become effective on June 1, 2025. 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 HB91 Engrossed Page 16 2025. House of Representatives Read for the first time and referred to the House of Representatives committee on State Government ................04-Feb-25 Read for the second time and placed on the calendar: 0 amendments ................03-Apr-25 Read for the third time and passed as amended Yeas 96 Nays 6 Abstains 1 ................10-Apr-25 John Treadwell Clerk 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431