SB326 Alabama 2010 Session

Summary

Primary Sponsor

Quinton Ross

Democrat

Co-Sponsors

Linda Coleman-MadisonWendell Mitchell

Session

Regular Session 2010

Title

Tax delinquent properties, Alabama Land Bank Authority, acquisition of property, definition of tax delinquent property altered, board voting procedures altered, civil immunity for board members, holding certain property to be redeemed for taxes, Act 2009-738, 2009 Reg. Sess. am'd.; Secs. 24-9-2, 24-9-4, 24-9-5, 24-9-6, 24-9-7, 24-9-8 am'd.

Summary

SB326 expands and restructures the Alabama Land Bank Authority to acquire, manage, and dispose of tax-delinquent and other properties for redevelopment, with new governance, tax forgiveness, and redevelopment rules.

What This Bill Does

It broadens the Authority’s purpose to rehabilitate land for housing, industry, and economic development; it removes the minimum date for taxes to be unpaid to qualify as tax-delinquent; it requires a majority board vote for actions and provides civil immunity to board members. It designates the Authority as a public corporation with expanded powers to hold, acquire, and dispose of property, including property sold for delinquent taxes and to allow redemption. It can repeal unpaid state taxes at the time of sale, distribute sale proceeds to fund operations, recover expenses, and fund local tax recipients, limits ownership retention to 10 years with reversion to local governments if not reclaimed, and allows extinguishing the right of redemption with notice procedures for foreclosures.

Who It Affects

• Local governments (cities, counties, and school districts) by gaining new authority to reclaim or receive property after sale or at the end of the 10-year holding period, and by receiving a share of sale proceeds to fund local tax obligations.
• Private buyers and nonprofit housing or development groups by potentially purchasing tax-delinquent properties, Redeveloping them within specified timeframes, and benefiting from tax forgiveness and prioritized disposition for low-income housing and economic development.

Key Provisions

• Expands the Authority’s purpose to acquire tax-delinquent properties to rehabilitate land for housing, industry, and redevelopment and to remove blight.
• Removes the minimum date that taxes must be unpaid to qualify as tax-delinquent property.
• Requires a majority of the Authority board to approve any action and grants civil immunity to board members acting in good faith.
• Treats the Authority as a public body corporate and politic with broad powers to hold, acquire, convey, and manage property, including deeds and quiet-title actions.
• Allows the Authority to hold in its name property sold for delinquent taxes and to permit redemption of that property.
• Authorizes the repeal and rescission of unpaid state taxes at sale, with school district taxes needing school board consent for forgiveness.
• Permits distribution of sale proceeds: one-third for Authority operations, one-third for recovery of expenses, and one-third to tax recipients (including school districts) proportionate to their tax bills.
• Limits how long the Authority may hold tax-delinquent property to 10 years, after which title reverts to the local municipality or county unless rejected.
• Allows extinguishment or foreclosure of redemption rights and prescribes notice procedures for foreclosures, including service methods and signage.
• Requires notice to local subdivisions about redevelopment plans and potential zoning changes to align with local planning.
• Requires inventory, classification, and management of tax-delinquent properties, and authorizes disposal on terms set by the Authority.
• Prescribes governance provisions for the board, including open meetings, clerk-treasurer duties, and diversity requirements.

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

Subjects

Alabama Land Bank Authority