HB512 Alabama 2010 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Patricia Todd
Democrat
Session: Regular Session 2010
Title: Affordable Housing Trust Fund and Affordable Housing Trust Fund Committee, established to provide housing opportunities for low to moderate income households, members, duties, Affordable Housing Act
Summary: The bill creates the Alabama Affordable Housing Act, establishing a dedicated Affordable Housing Trust Fund and a committee to fund and oversee programs that expand affordable housing for low- and moderate-income residents.
What This Bill Does
It creates a state treasury trust fund to increase affordable housing production, maintain existing units, and serve low-to-moderate income people (with priority for those at or below 60% AMI and at least a majority at or below 30% AMI). It also establishes a governing committee to review funding applications, set program rules, and annually report on diversity; the fund can receive federal money and may issue bonds. The committee must distribute 51% of the proceeds to eligible nonprofit developers and can fund a range of activities, including grants, loans, predevelopment costs, needs assessments, and various housing development and support services, with certain limits on services. Eligible applicants include nonprofits, municipalities, counties, public housing authorities, and qualifying for-profit partners in nonprofit collaborations for very low-income housing, supporting both rental and homeownership projects and related assistance like down payments and permanent supportive housing.

Who It Affects
Low- and moderate-income individuals and families in Alabama, especially those at or below 60% of area median income (and prioritizing those at or below 30% AMI), who would gain access to more affordable rental and ownership opportunities and related support services.
Not-for-profit developers, municipalities, counties, public housing authorities, and certain for-profit partners that can apply for funding and implement affordable housing projects.

Key Provisions
Creates the Alabama Affordable Housing Act, the Alabama Affordable Housing Trust Fund, and the Alabama Affordable Housing Trust Fund Committee to increase affordable housing opportunities for low-to-moderate income households.
Establishes the Alabama Affordable Housing Trust Fund in the State Treasury, administered by the Alabama Housing Finance Authority; allows receipt of federal funds and use of proceeds to fund bonds.
Sets targeted income goals: the fund should serve those at or below 60% AMI (majority of funds) and at least a majority at or below 30% AMI as determined by HUD; funded activities aim to increase production, maintenance, and availability of affordable housing and to preserve existing units.
Creates an 11–13 member Alabama Affordable Housing Trust Fund Committee with diverse appointments from government, nonprofit, housing, and consumer groups; requires diversity representation and annual reporting on compliance with diversity goals.
Committee duties include developing program rules, ranking funding applications, pursuing additional revenue sources, and ensuring resources alleviate the housing crisis for targeted populations (including vulnerable groups).
The committee must annually distribute 51% of trust proceeds to eligible nonprofit developers.
Eligible applicants for funding include nonprofits, municipalities, counties, public housing authorities, and certain for-profit entities partnered with nonprofits to provide housing for very low-income households (income at or below 30% below the average monthly income).
Authorized uses of funds cover a wide range of housing activities: promoting and maintaining homeownership and rental housing; grants, loans, and revolving funds; predevelopment costs; needs assessments; technical assistance; acquisition, construction, rehabilitation, and repair; operating reserves; down payment assistance; permanent supportive housing; and retention of housing units, with a cap on support services at 20% of funds per year.
Effective date: the act takes effect immediately after passage and governor approval.
Annual reporting and governance provisions require the committee to meet regularly, keep meeting minutes, and have expenditures governed to support program goals.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Housing