SB342INTRODUCED
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SB342
FKIXSCC-1
By Senators Coleman-Madison, Coleman, Smitherman, Stewart,
Singleton, Hatcher
RFD: County and Municipal Government
First Read: 22-Apr-25
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6 FKIXSCC-1 04/17/2025 TRP (L)bm 2025-1616
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First Read: 22-Apr-25
SYNOPSIS:
Under existing law, the acquisition of real
property by local land bank authorities is subject to
certain restrictions on the procedure, geographic
location, and costs.
This bill would provide a shortened redemption
period for a tax delinquent property that is not
acquired by an open market bidder at a tax sale
auction, would authorize a local government or a local
land bank authority to purchase property at public
auction by tendering the minimum bid in the absence of
open market bids, and would limit the geographical
boundaries of local land bank authority acquisitions.
This bill would provide for the creation of
multijurisdictional local land bank authorities by
intergovernmental agreements and a property tax
exemption for a property owned by a local land bank
authority; authorize local governments to allocate a
portion of local property tax revenues to local land
bank authorities; authorize a local land bank authority
to convey properties to state and local governments for
flood plain management and storm water drainage; and
authorize the Governor to create a local land bank
authority by executive order following a declaration of
state of emergency.
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state of emergency.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
Relating to land bank authorities; to amend Sections
24-9-4, 24-9-5, 24-9-6, 24-9-7, 24-9-8, 24-9-10, 40-1-3,
40-10-1, 40-10-18, 40-10-29, 40-10-120, and Sections 40-10-184
and 40-10-199 as last amended by Act 2024-324 of the 2024
Regular Session, Code of Alabama 1975; to add Sections 24-9-11
and 24-9-12 to the Code of Alabama 1975; to provide for the
creation of multijurisdictional local land bank authorities;
to further authorize the acquisition of tax delinquent
property and tax liens by local land bank authorities; to
further provide for the exemption of local land bank authority
property from taxes and fees; to provide for the allocation of
a portion of the ad valorem taxes on certain property conveyed
to a local land bank authority to the authority; to further
provide for the conveyance of local land bank authority
property; to authorize the Governor to create local land bank
authorities in the event of a state of emergency; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 24-9-4, 24-9-5, 24-9-6, 24-9-7,
24-9-8, 24-9-10, 40-1-3, 40-10-1, 40-10-18, 40-10-29,
40-10-120, and Sections 40-10-184, and 40-10-199 as last
amended by Act 2024-324 of the 2024 Regular Session, as last
amended by Code of Alabama 1975, are amended to read as
follows:
"§24-9-4
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 land
bank 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 LAND BANK 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."
"§24-9-5
(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
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(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
yearfour-year terms. In appointing the initial members of the
board under subdivision (b)(1) of subsection (b) , the Governor
shall designate two to serve four years, one to serve three
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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 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,
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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."
"§24-9-6
(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 the 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
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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 located outside the geographic boundaries of a local
land bank authority 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. The three-year
period shall not apply to properties encumbered by one or more
housing, building code, or nuisance abatement liens.
(2) The Land Commissioner or his or her agents or
assistants may adopt rules necessary to transfer such the
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."
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authority or any local authority."
"§24-9-7
(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)(1) Before the authority may sell, lease, exchange,
trade, or otherwise dispose of any property, it shall either:
(1)a. Establish a purchase price and conditions for
sale purposes.;
(2)b. Establish a price and conditions for rent or
lease purposes.; or
(3)c. Establish the conditions for trade, exchange, or
other disposal of the property.
(2) The conditions made pursuant to this
subsectionsubdivision (1) may include a requirement that the
transferee must provide a development plan or execute a
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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,
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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. "
"§24-9-8
(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
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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, Prior to filing the petition described in
subsection (a), 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
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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
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title or interest in or lien upon the property with a notice
of the hearing on the petition to quiet title. SuchThe 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 the 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 .; and
(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
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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
electronic telephone databases 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 electronic telephone databases .
d. A letter of inquiry to the attorney handling the
closing prior to the tax sale if such the 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.
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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 the persons be infants or persons of unsound
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or should such the persons be infants or persons of unsound
mind, the court shall appoint a guardian ad litem to represent
and defend the interests of such the unknown, infant the
infants, or incompetent the persons of unsound mind who are
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
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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 the 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
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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 limitation of actions,
requirements for adverse possession under, any other
provisions of 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."
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outstanding rights of redemption."
"§24-9-10
(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 land bank authority be
formed by the municipality by the filing for record of a
certificate of incorporation in accordance with the provisions
of subsection (c)(d).
(b) If the number of tax delinquent properties in a
municipality county exceeds 100, then the governing body of a
county may adopt a resolution declaring that it is wise,
expedient, and necessary that a local land bank authority be
formed by the county by the filing for record of a certificate
of incorporation in accordance with the provisions of
subsection (c)(d).
(c) A county and a municipality located within that
county may create a single land bank authority by an
intergovernmental agreement, so long as both the county and
the municipality each meet the criteria of subsections (a) and
(b). The intergovernmental agreement shall comply with all
provisions of subsections (d) and (e) and Chapter 102 of Title
11.
(d) Upon the adoption of the authorizing resolution,
the municipality or county, as the case may be, shall proceed
to incorporate the local land bank 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
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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 land
bank authority shall state all of the following:
(1) The name of the local unit of government forming
the local land bank authority.
(2) The name of the local land bank authority.
(3) The size of the initial governing body of the local
land bank 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 land bank authority.
(6) A method for the distribution of proceeds from the
activities of the local land bank authority.
(7) A method for the dissolution of the local land bank
authority.
(8) Any other matters considered advisable by the local
unit of government, consistent with Act 2013-249.
(d)(e) Following incorporation, a local land bank
authority may enter into an intergovernmental agreement with
the authority providing for the transfer to the local land
bank 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)(f) A local land bank authority shall have all of
the powers of the authority as set forth in this chapter. In
addition, a local land bank authority shall have the following
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addition, a local land bank authority shall have the following
powers:
(1) To adopt, amend, and repeal bylaws for the
regulation of its affairs and the conduct of its business.
(2) To sue and be sued in its own name and to prosecute
and defend civil actions in any court having jurisdiction of
the subject matter and of the parties, including, but not
limited to, actions to clear title to the property of the
local land bank authority.
(3) To adopt and make use of a corporate seal and to
alter the same at its pleasure.
(4) To acquire by purchase, lease, or otherwise and to
hold, lease, and dispose of real or personal property of every
kind and character, or any interests therein, in furtherance
of the public purposes of the local land bank authority.
(5) To acquire, accept, or retain equitable interests,
security interests, or other interests in any real property,
personal property, or fixtures by loan agreement, note,
mortgage, trust deed, security agreement, assignment, pledge,
conveyance, contract, lien, or other consensual transfer in
order to secure credit extended by the local land bank
authority.
(6) To borrow from private lenders, from
municipalities, from the state, or from federal government
funds, as may be necessary, for the operation and work of the
local land bank authority.
(7) To issue negotiable revenue bonds and notes
according to the provisions of this chapter.
(8) To procure insurance or guarantees from the state
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(8) To procure insurance or guarantees from the state
or federal government for the payments of any debts or parts
of debts incurred by the local land bank authority, and to pay
premiums in connection with the insurance or guarantees.
(9) To enter into contracts and other instruments
necessary, incidental, or convenient to the performance of its
duties and the exercise of its powers, including, but not
limited to, intergovernmental agreements under Chapter 102 of
Title 11, for the joint exercise of powers under this chapter.
(10) To enter into contracts and other instruments
necessary, incidental, or convenient to the performance of
functions by the local land bank authority on behalf of
municipalities or agencies or departments of municipalities;
or the departments of municipalities; or of functions on
behalf of the local land bank authority.
(11) To procure insurance against losses in connection
with the real property, assets, or activities of the local
land bank authority.
(12) To invest money of the local land bank authority,
at the discretion of the board of directors, in instruments,
obligations, securities, or properties determined proper by
the board of directors, and name and use depositories for its
money.
(13) To hire and compensate employees and contractors,
to provide retirement and other forms of deferred
compensation, to provide fringe benefits, and to otherwise
contract with employees and contractors.
(1)(14) Without the approval of a local unit of
government in which property held by the local land bank
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government in which property held by the local land bank
authority is located, to 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. AnA local land bank authority may take or perform the
following actions with respect to property held or owned by
the local land bank authority:
a. Grant or acquire a license, easement, or option with
respect to property as the local land bank 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 local land bank
authority or for services provided by the local land bank
authority.
c. Pay any tax or special assessment due on property
acquired or owned by the local land bank authority.
d. Take any action, provide any notice, or institute
any proceeding required to clear or quiet title to property
held by the local land bank authority in order to establish
ownership by and vest title to property in the local land bank
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 local land bank authority.
(2) Enter (15) To enter into an intergovernmental
agreement with a municipality or county , or another local land
bank authority, providing for one or more of the following:
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bank authority, providing for one or more of the following:
a. The conveyance to the local land bank 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 local land bank authority of property to be conveyed by
the local land bank authority to the municipality or county or
another entity pursuant to the agreement between the local
land bank authority and the municipality or county.
c. The performance of operational and administrative
services to be provided to another local land bank authority.
(16) To acquire property at a sale conducted in
accordance with Section 40-10-18 by tendering a bid equal to
the minimum amount specified in the decree of sale and the
costs and expenses subsequently accruing, which shall be
accepted, and a certificate of purchase issued to the local
land bank authority. The tender of the minimum bid in
accordance with this subdivision shall be for cash, with a
credit for any and all components of the minimum bid already
due and payable to the county, municipality, and school board
whose taxes and liens compose part of the minimum bid. After
90 days from the date of sale, upon return of the certificate,
the judge of probate shall execute and deliver to the local
land bank authority a deed for each lot or parcel of property
that it purchased. The deed shall convey to, and vest in, the
grantee all right, title, interest, and estate of any and all
persons having an interest in the property as of the date of
the sale.
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the sale.
(17) To acquire a tax lien at an auction conducted in
accordance with Section 40-10-184 by tendering a cash bid at
an interest rate of 0.00 percent, which shall be accepted as
the successful bid. The bid shall be tendered for cash, with a
credit for any and all components of the minimum bid already
due and payable to the county, municipality, and school board
whose taxes and liens compose part of the minimum bid.
(18) To apply for and receive funding through grants
and loans from the governmental unit or units that created the
local land bank authority from other municipalities, from the
state, from the federal government, and from other public and
private sources.
(19) To receive and retain payments for services
rendered, for rent and leasehold payments received, for
consideration for disposition of real and personal property,
for proceeds of insurance coverage for losses incurred, for
income from investments, and for any other asset and activity
lawfully permitted to a local land bank authority under this
act.
(f)(g) A local unit of government and any agency or
department of such the local unit of government may do one or
more of the following:
(1) Anything necessary or convenient to aid a local
land bank authority in fulfilling its purposes under Act
2013-249.
(2) Lend, grant, transfer, appropriate, or contribute
funds to a local land bank authority in furtherance of its
purposes.
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purposes.
(3) Lend, grant, transfer, or convey funds to a local
land bank authority that are received from the federal
government or this state or from any nongovernmental entity in
aid of the purposes of Act 2013-249this chapter.
(h) A local land bank authority created by a county may
acquire real property only within the geographical boundaries
of the county and only in those portions of the county outside
of the geographical boundaries of the local land bank
authority created by a municipality located partially or
wholly within the county. A local land bank authority created
by a municipality may acquire real property in any of the
following locations:
(1) Within its own geographical boundaries.
(2) Outside of its own geographical boundaries so long
as the real property is not located within the boundaries of
any other local land bank authority.
(3) Within the geographical boundaries of another local
land bank authority pursuant to an intergovernmental agreement
between the local land bank authorities.
(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
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the state located outside of the geographical boundaries of
any local authority created by any municipality or county.
(h)(i) Any local land bank 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 local land
bank authority subsequently decreases to 100 or less.
(i)(j) Any local land bank 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 land bank authority.
(k) As public property used for public purposes, the
real property of a local land bank authority, including, but
not limited to, real property held by a local land bank
authority pursuant to a long-term lease contract with
community land trusts and its income, are exempt from all
license fees, recording fees, and all other taxes imposed by
the state or by any of its political subdivisions, as well as
all stormwater fees and other municipal assessments.
(l) Up to 75 percent of the ad valorem taxes collected
on any and all real property, except any state or school
district ad valorem tax, conveyed by a local land bank
authority shall be remitted to the local land bank authority.
The specific percentage of the taxes to be remitted shall be
set forth in the local law, ordinance, resolution, or
intergovernmental contract of the local land bank authority.
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intergovernmental contract of the local land bank authority.
The allocation of ad valorem tax revenues shall commence with
the first taxable year following the date of conveyance and
shall continue for a period of five consecutive tax years. The
funds shall be remitted to the local land bank authority in
accordance with the administrative procedures established by
the tax commissioner or tax collecting official of the county
in which the local land bank authority is located. The
allocation of ad valorem tax revenues shall not occur if the
taxes have been previously pledged to secure a tax increment
financing debt of the authorizing governmental subdivision
creating the tax increment district pursuant to Chapter 99 of
Title 11, unless the authorizing subdivision enters into an
agreement with the local land bank authority for the
remittance of the funds to the local land bank authority."
"§40-1-3
From and after October 1 of each year, when property
becomes assessable the state shall have a lien upon each and
every piece or parcel of real property owned by any taxpayer
for the payment of all taxes which may be assessed against him
or her and upon each piece and parcel of property real or
personal assessed to owner unknown, which lien shall continue
until suchthe taxes are paid, and the county shall have a like
lien thereon for the payment of the taxes which may be
assessed by it; and, if suchthe property is within the limits
of a municipal corporation, suchthe municipal corporation
shall have a like lien thereon for the payment of the taxes
which may be assessed by it. These liens shall be superior to
all other liens and shall exist in the order named, and each
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all other liens and shall exist in the order named, and each
of suchthe liens may be enforced and foreclosed by sale for
taxes as provided in this title, or as other liens upon
property are enforced, except as otherwise provided by
lawslaw. These taxes and liens shall include any and all liens
transmitted to the tax collecting official by counties and
municipal corporations in accordance with Sections 11-40-35,
11-53B-16, 11-67-66, 45-37A-53, and any other state law
authorizing the transmittal of nuisance abatement liens for
weed removal and grass cutting ."
"§40-10-1
(a) The probate court of each county may order the sale
of lands therein for the payment of taxes assessed on the
lands, or against the owners of the lands, when the tax
collector shall report to the court that he or she or the
holder of a tax lien issued pursuant to Acts 1995, No. 95-408
was unable to collect the taxes assessed against the land, or
any mineral, timber or water right or special right, or
easement therein, or the owner thereof, without a sale of the
land.
(b) For purposes of any enforcement proceedings under
this chapter, the taxes due shall include any and all liens of
a municipality for housing and building code violations and
enforcement actions and nuisance abatement assessment liens
that are transmitted to the tax collecting official in
accordance with Title 11. "
"§40-10-18
(a) If no person shall bidbids for any real
estateproperty offered at suchthe sale an amount sufficient to
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estateproperty offered at suchthe sale an amount sufficient to
pay the sumgreater than the minimum bid specified in the
decree of sale, and the costs and expenses subsequently
accruing, and no minimum bid is tendered by a local government
or a local land bank authority, the judge of probate shall bid
in such real estate the real property for the state at a price
not exceeding the sum specified in such decree and such
subsequently accruing cost and expenses the minimum bid. In no
event shall the judge of probate bid in for the state less
than the entire amount of real estateproperty included in any
assessment.
(b) If no person bids for any real property offered at
the sale in an amount greater than the minimum bid specified
in the decree of sale, and the costs and expenses subsequently
accruing, a local government or local land bank authority in
which the real property is located may tender a bid for the
minimum amount which bid shall be accepted and a certificate
of purchase issued to the entity. The tender of the minimum
bid in accordance with this subsection shall be for cash with
a credit for any and all components of the minimum bid already
due and payable to the county, municipality, and school board
whose taxes and liens compose part of the minimum bid. "
"§40-10-29
(a) After the expiration of three years from the date
of the sale of any real estate for taxes, the judge of probate
then in office must execute and deliver to the purchaser,
other than the state, or person to whom the certificate of
purchase has been assigned, upon the return of the
certificate, proof that all ad valorem taxes have been paid,
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certificate, proof that all ad valorem taxes have been paid,
and payment of a fee of five dollars ($5) to the judge of
probate, a deed to each lot or parcel of real estateproperty
sold to the purchaser and remaining unredeemed, including
therein, if desired by the purchaser, any number of parcels,
or lots purchased by him or her at suchthe sale; and suchthe
deed shall convey to and vest in the grantee all the right,
title, interest, and estate of the person whose duty it was to
pay the taxes on suchthe real estateproperty and the lien and
claim of the state and county thereto, but it shall not convey
the right, title , or interest of any reversioner or
remainderman therein.
(b) After the expiration of one year from the sale for
the minimum bid to a local government or local land bank
authority, upon return of the certificate of purchase, the
judge of probate shall execute and deliver to the entity a
deed to the real property sold to the entity. The deed shall
convey to and vest in the grantee all of the right, title,
interest, and estate of all persons having an interest in the
real property as of the date of the sale. "
"§40-10-120
(a)(1) Except as otherwise provided in this subsection,
real property Real estate which hereafter may be sold for
taxes and purchased by the state may be redeemed at any time
before the title passes out of the state or, if purchased by
any other purchaser, may be redeemed at any time within three
years from the date of the sale by the owner, his or her
heirs, or personal representatives, or by any mortgagee or
purchaser of such lands, or any part thereof, all or part of
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purchaser of such lands, or any part thereof, all or part of
the real property, or by any person having an interest
therein, or in any part thereof in all or part of the real
property, legal or equitable, in severalty or as tenant in
common, including a judgment creditor or other creditor having
a lien thereon, or on any part thereof; and an infant or
insane person of unsound mind entitled to redeem at any time
before the expiration of three years from the sale may redeem
at any time within one year after the removal of the
disability; and suchthe redemption may be of any part of the
lands soreal property sold, which includes the whole of the
interest of the redemptioner. If the mortgage or other
instrument creating a lien under which a party seeks to redeem
is duly recorded at the time of the tax sale, the party shall,
in addition to the time herein specified, have the right to
redeem the real estateproperty sold, or any portion thereof
covered by his or her mortgage or lien, at any time within one
year from the date of written notice from the purchaser of his
or her purchase of the landsreal property at tax sale served
upon suchthe party, and notice served upon either the original
mortgagees or lienholders or their transferee of record, or
their heirs, personal representatives, or assigns shall be
sufficient notice.
(2) When any real property is sold for taxes and has
also been sold in one or more prior sales for taxes without
redemption from the prior tax sales, the three-year period for
redemption shall be measured from the date of the earliest
sale of the real property for taxes.
(3) When any real property is sold for taxes at the
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(3) When any real property is sold for taxes at the
minimum bid specified in the decree of sale and the real
property is not lawfully occupied as a residence as of the
date of the sale, the period for redemption shall be one year
from the date of the sale if one or both of the following
conditions apply:
a. The minimum bid included amounts attributable to one
or more housing and building code liens or nuisance abatement
liens.
b. Housing and building code liens or nuisance
abatement liens had been filed of record prior to the date of
the sale.
(4) When any real property is sold to a local
government or local land bank authority in accordance with
Section 40-10-18 for the minimum bid specified in the decree
of sale and the costs and expenses subsequently accruing, the
period for redemption shall be one year from the date of the
sale.
(b) If any real property has been sold for taxes and is
subject to redemption from the sale as set forth in subsection
(a) and has also been sold in one or more subsequent sales for
taxes, then any party entitled to redeem suchthe sale for
taxes may redeem suchthe sale if the redemptioner
simultaneously redeems his or her sale and all subsequent
sales. In the event of a redemption of successive sales, the
redemption amount shall be ascertained by applying the
provisions of Sections 40-10-121 and 40-10-122. Redemption
amounts computed pursuant to Section 40-10-121 shall be paid
as stated thereinin that section. Redemption amounts computed
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as stated thereinin that section. Redemption amounts computed
pursuant to Section 40-10-122 shall be paid as stated
thereinin that section if the purchaser had the right to
redeem pursuant to subsection (a) or was the owner of the then
current tax certificate or tax title. Otherwise, those funds
shall be disposed of as set forth in Section 40-10-28 and paid
to suchthe purchaser or his or her assignee only as set forth
in Section 40-10-28, with the time limits for suchthe
application computed utilizing the sale date when the
purchaser's interest was sold for taxes."
"§40-10-184
(a) On the day and time designated for a tax lien
auction, the tax collecting official shall proceed to auction
all tax liens described in the tax lien auction list compiled
as provided in Section 40-10-183, except those for which the
taxes, penalties, interest, fees, and costs due on the real
property have been paid. Any tax lien unsold after a tax lien
auction shall continue pursuant to Section 40-1-3 for future
auction or sale as provided in this article. Interest shall
continue to accrue on unsold tax liens at the rate imposed on
delinquent real property taxes.
(b)(1) A tax lien shall be sold at auction pursuant to
this article to the person who: (i) pays all taxes due,
including unpaid taxes for previous years, interest,
penalties, fees, and costs due on the real property; (ii) pays
an administrative fee of forty-five dollars ($45), effective
upon the preparation of the tax lien auction list, plus the
amount to be paid to the holder of a tax lien certificate who
has not exercised his or her first right to purchase as
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has not exercised his or her first right to purchase as
provided in Section 40-10-191; and (iii) bids the lowest
interest rate on the amount required to be paid to redeem the
real property from the sale.
(2) The beginning interest rate bid shall not exceed a
rate of 12 percent , and additional bids may be made at a rate
less than the immediately preceding bid.
(3) If an in-person auction ends in a tie and the
winner cannot be determined, the tax collecting official shall
draw lots to determine the winning bidder. If an online
auction ends in a tie and the winner cannot be determined, the
tie shall be resolved by a random number generator.
(c) The sale of a tax lien does not extinguish any deed
restriction, deed covenant, or easement on or appurtenant to
the parcel. A tax lien offered for auction or sale shall be
identified by a uniform parcel number and a legal
description."
"§40-10-199
(a) Tax liens that are not sold at the tax lien auction
conducted by the tax collecting official shall be separated in
the tax lien auction list as prescribed by Section 40-10-183
and the lien shall continue pursuant to Section 40-1-3.
TheExcept as otherwise provided in this subsection, the tax
collecting official, at any time after the tax lien auction
date, may sell at private sale an unsold tax lien for no less
than all taxes, interest, penalties, costs, and fees, plus the
amount to be paid to the holder of a tax lien certificate who
has not exercised his or her first right to purchase as
provided in Section 40-10-191. A local land bank authority may
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provided in Section 40-10-191. A local land bank authority may
acquire the unsold tax lien for cash with a credit for any and
all components of the tax lien aggregate amount due and
payable to the state, county, municipality, and school board.
The purchaser at private sale shall be entitled to interest on
the amount paid at a rate agreed to by the tax collecting
official, not to exceed 12 percent. All private tax lien sales
shall be entered in the record of tax lien auctions and sales,
as provided in Section 40-10-188.
(b) All tax liens that remain unsold by the tax lien
auction or sale shall be included in all future tax lien
auctions or sales until sold.
(c) Any tax lien that does not sell at auction shall be
reported to the county commission when seeking approval of
errors in assessments, litigationslitigation, or insolvents as
the tax collecting official shall be allowed credit for taxes
due to this state upon final settlement with the state
Comptroller."
Section 2. Sections 24-9-11 and 24-9-12 are added to
the Code of Alabama 1975, to read as follows:
§24-9-11
(a) A local land bank authority may convey ownership
of, or interest in, real property to a state or local
governmental entity for purposes of floodplain management or
stormwater drainage in the event of all of the following:
(1) Floodplain management or stormwater retention or
drainage is the highest and best use of the real property.
(2) As a result of housing and building code
restrictions, floodplain elevations, and other local, state,
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restrictions, floodplain elevations, and other local, state,
or federal law or public and private agreements, conditions,
and limitations, the real property is no longer suitable for
development or redevelopment.
(b)(1) A local land bank authority may convey ownership
of, or interest in, real property under this section by grant,
deed, lease, or other form of conveyance, and may include
additional limitations, restrictions and conditions to be
determined by the local land bank authority.
(2) Consideration for the conveyance may be any of the
following not otherwise prohibited by law:
a. A nominal monetary payment.
b. A contractual obligation in favor of the party to
which the real property is being conveyed.
c. An exchange of real property.
d. Other consideration determined by the local land
bank authority and the party to whom the real property is to
be conveyed.
§24-9-12
(a) Upon declaring a state of emergency caused by a
natural disaster that causes widespread damage to, and
destruction of, real property and improvements and dislocation
of residents, the Governor may create a local land bank
authority in accordance with this section.
(1) The Governor may issue an executive order providing
for the immediate creation of a local land bank authority of a
local government located in whole or in part in a geographical
area that is subject to the declaration of the state of
emergency.
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emergency.
(2) The executive order shall provide for incorporation
and certification of the local land bank authority as required
under this chapter.
(b) Any local land bank authority created pursuant to
this section shall have all powers of a local land bank
authority created pursuant to Section 24-9-10.
(c) Upon the necessary and appropriate action of the
local governments having jurisdiction over the geographical
areas subject to the declaration of the state of emergency, a
local land bank authority created pursuant to this section may
be converted into a local land bank authority created pursuant
to Section 24-9-10, at which time the local land bank
authority shall be the successor in interest and at law to the
local land bank authority created pursuant to this section.
(d) In the event that a local land bank authority
created pursuant to this section is not converted pursuant to
subsection (c) within 12 months following the date of the
Governor's executive order, the local land bank authority
created by the executive order shall be dissolved in
accordance with the provisions of the Governor's executive
order.
Section 3. This act shall become effective on October
1, 2025.
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