SB195 Alabama 2014 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2014

Title

Housing Finance Authority, mortgage guarantee fund, use of funds for, alternative housing programs authorized under Home Buyers Initiative Act, guidelines, Sec. 24-1A-44 added; Sec. 24-1A-42 am'd.

Summary

The bill would allow the mortgage guarantee fund from the Alabama Home Buyers Initiative to be used for alternative housing programs, with a new framework for certifying, allocating, and managing those funds.

What This Bill Does

It expands the use of the mortgage guarantee fund beyond foreclosure losses to support alternative housing programs. The Alabama Housing Finance Authority would certify how much money is available for each program and may create separate fund accounts; funds would be disbursed via warrants that are limited obligations, payable only from the certified amounts. The program administrator can modify programs and certified amounts, and the fund would remain available until depleted, with loan eligibility still restricted to US citizens or legally present individuals.

Who It Affects

• Program administrator and state financial offices (Alabama Housing Finance Authority, State Treasurer, and Comptroller) who gain new authority to certify, designate, fund, and manage alternative housing programs funded by the mortgage guarantee fund.
• Alabama home buyers, homeowners, lenders, and investors who participate in or benefit from alternative housing programs funded by the mortgage guarantee fund, subject to citizenship/legal presence requirements for loans.

Key Provisions

• authorizes using the mortgage guarantee fund to fund alternative housing programs in addition to its original purpose of covering foreclosure losses
• adds definitions for 'Alternative Housing Program' and 'Certified Amount' and clarifies how funds and titles are tracked and allocated
• creates Section 24-1A-44 detailing certification requirements, funding mechanics, separate accounts per program, and limited obligation warrants payable only from certified amounts
• allows the program administrator to increase, decrease, or terminate certified amounts and to modify programs without requiring Treasurer/Comptroller consent, as long as funds remain available and obligations are limited to the certified amounts
• requires all interest or investment income on the mortgage guarantee fund to stay within the fund and provides the fund can be depleted only through funding of alternative housing programs
• maintains eligibility rules for loans (US citizenship or legal presence with proper documentation) and defines the term 'Alabama Home Buyers Initiative' to include both the conventional mortgage program and one or more alternative housing programs

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Mortgages