Last week in the Alabama Legislature proved to be a busy one for bills affecting real estate and housing as two measures secured final passage, two others passed the House, and three additional bills were filed late in the week. 

Lawmakers worked in the chambers for the traditional two meeting days and will do so again this week, but changes in that schedule are coming.

There are currently 18 meeting days remaining in the 30 meeting days that the Alabama Constitution allows for the 2026 regular legislative session.

Two bills secured final passage last week and have been transmitted to Gov. Kay Ivey for review and signature.

HB 27 by State Rep. Chip Brown (R - Hollinger’s Island) was approved by the State Senate on Tuesday, and it expands the list of expenses that can be covered using catastrophe savings accounts.

Under current Alabama law, catastrophe savings accounts, which provide tax advantages to the holders because deposits are tax deductible, may be used to cover insurance deductibles and uninsured damage resulting from windstorm events.

Brown’s bill extends the “qualified catastrophic expenses” to include measures that proactively fortify a property against damage from hurricanes, floodwaters, and other windstorm event damage, but those expenses are capped at $15,000.

The Alabama Senate also awarded final passage on Thursday to legislation by State Rep. Allen Treadaway (R - Morris) that creates a program for “special reserve deputies” in order to address a backlog of unexecuted writs. The law allows the Jefferson County sheriff to appoint certified, non-employee deputies to assist with seizing and securing real property during declared "emergency writ conditions.”

AAR’s Seller Impersonation/ Title Fraud Legislation

SB 292 has been assigned to the Senate Fiscal Responsibility and Economic Development Committee and HB 491 has been assigned to the House Judiciary Committee. You can read SB 292 here and HB 491 here. A recap of the bill from CNN Week 1 can be found here.

A high-profile bill sponsored by Speaker Pro Tem Chris Pringle (R - Mobile) and House Speaker Nathaniel Ledbetter (R - Rainsville) was approved by the House on Tuesday.

Under the provisions of HB 220, the governor, the speaker of the House, and the president pro tempore of the Senate would be given the authority to remove and replace board and commission members that they appoint at any time.

During floor discussion, Pringle said the bill is necessary in case an appointed individual habitually fails to show up to meetings, refuses to fulfill their responsibilities, or requires removal for other reasons, and he noted that the terms of many appointments last as long as eight years, which is an unacceptable period of time for an appointee who is derelict in their duties to remain in place.

The legislation applies to “any board, authority, or commission comprised of individual members, of which some or all members are appointed, as established under state law” and notes that all appointees “serve at the pleasure” of their appointing authority.

The bill, which passed unanimously, now goes to the Senate for consideration.

Also on Tuesday, the House approved a measure by State Rep. Paul Lee (R - Dothan), which removes the current requirement for permanently and totally disabled military veterans to reverify their disabled status each year in order to receive a full ad valorem tax exemption on their primary homes.

Under the provisions of HB 155, once a veteran has initially established their permanent disability, the property tax homestead exemption becomes permanent without need for renewal.

Both bills now proceed to the State Senate for consideration.

Three House bills were filed almost sequentially late last week that are closely related from the City of Birmingham.

HB 401 by State Rep. Kelvin Datcher (D - Birmingham) doubles the recording fee for mortgages, deeds of trust, sales contracts, and similar instruments given to secure debt on real property, and directs 25% of the proceeds to an Alabama Housing Trust Fund with the rest divided among the city, county, and state. The Alabama REALTORS® opposes the bill for increasing the fees and costs on new home and property buyers. The bill was referred to the House Ways and Means General Fund Committee.

HB 402, also introduced by Datcher, expands the scope, power, and prevalence of local land banks, which are publicly-owned entities authorized to acquire vacant, abandoned, and tax-foreclosed properties. The measure makes it easier for land banks to acquire buildings and parcels, shortens the tax redemption period, and allows for multi-jurisdictional land banks. HB 402 was referred to the House Fiscal Responsibility Committee.

HB 404 by State Rep. Neil Rafferty (D - Birmingham) would allow Class 1 municipalities in Alabama to form community land trusts in order to provide and lease low-to-moderate income housing to individuals. Cities must have populations exceeding 300,000 in order to be considered a Class 1 municipality, so Birmingham is the only qualifying city in Alabama. HB 404 was referred to the County and Municipal Government Committee.

Those bills join HB 315 by Rep. Mary Moore (D- Birmingham) which would allow a Class 1 municipality to enact a vacant land registry, require fees for vacant land, and enforcement provisions. HB 315 was referred to the Jefferson County Legislation Committee.  

HB 402, HB 404, HB 315, and the related companion bills in the Senate, contain a number of problematic provisions that make it easier for local government to take private property through direct and indirect takings. The Alabama REALTORS® oppose the bills as written.

House and Senate leaders had originally signaled the chambers would meet for three days this week, but at the time this edition of Capitol News and Notes is being written, they have decided to meet for only two.

Next week, however, is expected to be a three-day meeting week as leadership continues working toward an early final adjournment so lawmakers with primary opposition may return to their districts and campaign ahead of the May 19 party primary elections.