Bill > HB163

This bill, titled the Property Insurance and Capital Expenditure Act, amends existing Alabama law to allow local governments to establish programs that facilitate private financing for property improvements aimed at reducing insurance costs and enhancing resilience. Key provisions include defining terms like "assessment agreement" (an agreement where a property owner allows a local government to place a lien on their property to secure repayment of financing), "capital provider" (a private entity providing the financing), and "consent agreement" (an agreement with mortgage holders that subordinates their liens to the new assessment lien). The bill clarifies that "qualified projects" can include improvements for wind resistance, safe rooms, battery storage, flood mitigation, and energy/water efficiency, and that these programs apply to commercial, industrial, agricultural, and multi-family properties (excluding smaller residential buildings). Local governments can designate regions for these programs, and while they facilitate the process, the financing itself comes from private "capital providers." The bill explicitly states that public funds cannot be used to fund or repay these private loans, and local government officials are protected from liability for decisions made under the program. It also repeals provisions related to a loss reserve fund and state regulatory jurisdiction, and establishes that the billing, collection, and enforcement of these assessment liens are the responsibility of the capital provider, not the local government.

Government Affairs

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