Bill > HB649

This bill authorizes Class 1 municipalities, which are the largest cities in Alabama, to establish and operate a housing trust fund to address the shortage of affordable housing. The bill defines "affordable housing" as housing priced for individuals or families earning up to 120% of the local median income, and a "housing trust fund" as a dedicated fund for increasing housing production, rehabilitation, and maintenance to keep it affordable for those earning at or below that income threshold. The legislation outlines the findings of the Legislature regarding the critical need for affordable housing, its impact on economic stability and public services, and the public purpose served by such a fund. It specifies that these municipalities can fund the trust fund through various sources like donations, bond proceeds, grants, appropriations, and investment earnings, but it does not grant new taxing authority. The bill mandates an annual independent audit of the fund and requires the creation of a seven-member advisory committee with diverse expertise to guide the fund's operation, including setting priorities and reviewing its impact. Funds from the trust can be used for a wide range of activities, including developing, rehabilitating, and financing affordable housing, providing down payment and rental assistance, offering home-buyer counseling, supporting nonprofit developers, and covering administrative costs, with specific limits on certain uses. The act is set to become effective on June 1, 2026.

Government Affairs

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