SB371 Alabama 2010 Session

Summary

Primary Sponsor

Del Marsh

Republican

Co-Sponsors

Trip PittmanKim BenefieldArthur OrrWendell MitchellLarry DixonScott Beason

Session

Regular Session 2010

Title

Municipalities, Neighborhood Revitalization Authorities, establishment by homeowners and businesses authorized, to manage and coordinate financing for neighborhood projects, tax credits, Neighborhood Revitalization Act

Summary

SB371 would let homeowners and businesses form Neighborhood Revitalization Authorities to finance local improvement projects through voluntary assessments, with a 10-year tax credit for contributors.

What This Bill Does

It authorizes the voluntary creation of Local Neighborhood Revitalization Authorities to plan, finance, and oversee neighborhood projects. Funding comes from voluntary assessments on participating members, and projects include street, utility, and related improvements; public funds are not used and bidding is exempt. The municipality approves the formation and appoints the board, and excess funds are refunded or managed by the authority; projects are dedicated to the municipality when finished. Starting in 2011, participants can claim a tax credit equal to 10% of their assessment, up to $1,000 per year, for up to 10 years.

Who It Affects

• Homeowners and businesses in participating neighborhoods: may form authorities, pay voluntary assessments to fund revitalization projects, and may receive a 10-year tax credit on those assessments.
• Municipalities (cities) and their residents in areas voting to form authorities: must approve petitions, appoint the board, oversee project dedication and dissolution, and benefit from potential infrastructure improvements.

Key Provisions

• Formation is voluntary and requires petition signatures from at least 75% of assessable property owners in the proposed area.
• Petitions must describe the area, include a map, and designate initial board members; the municipality approves and appoints the board.
• Authorities can contract, acquire, construct, install, and operate revitalization projects; they may require connection of utilities, but cannot own or operate electric, cable, Internet, or telecom systems.
• Projects are funded by voluntary assessments; no public funds are used; projects may be exempt from state bidding law.
• Projects can include street resurfacing, sidewalks, sewer and water, underground utilities, drainage, curbs and gutters, paving dirt roads, and related engineering costs.
• Excess funds after project completion are refunded or allocated by the authority; dissolution is possible when debts are paid and assets are dedicated to the municipality.
• Starting in 2011, participating homeowners and businesses receive a 10% income tax credit on the assessment, up to $1,000 per year, for up to 10 years.
• Authority members have immunity from liability; the municipality and its officers are shielded from civil actions related to facilities built by the authority.
• The act expires December 31, 2014 unless extended; existing authorities continue to operate until projects are completed and dissolution occurs.

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

Subjects

Municipalities