SB83 Alabama 2015 Session

Summary

Primary Sponsor

Jimmy Holley

Republican

Session

Regular Session 2015

Title

Eminent domain, prohibited for purpose of acquiring mortgages or deeds of trust, Secs. 11-47-170, 11-80-1, 18-1B-2 am'd.

Summary

This bill bans using eminent domain to take mortgages or deeds of trust by the state, counties, municipalities, and related entities, with limited exceptions for public uses and blight redevelopment, and adds sale-back protections for condemned property.

What This Bill Does

It prohibits condemnation to acquire mortgages or deeds of trust by state and local governments and related entities. It allows condemnation for public uses and certain blight redevelopment efforts if the primary goal is not to acquire a mortgage or deed of trust, and it preserves condemnation authority for public utilities and for constructing streets and government facilities. If condemned property is not used or is later sold, it must first be offered back to the original owner at the purchase price (adjusted for certain taxes) with a 90-day acceptance window.

Who It Affects

• State agencies, counties, municipalities, and entities under local government control (they cannot condemn to acquire mortgages or deeds of trust).
• Property owners and mortgage holders (condemnation decisions now include mandatory sale-back provisions and compensation rules).
• Public utilities and infrastructure projects (condemnation remains available for utilities and for building streets, government buildings, and park facilities).

Key Provisions

• Prohibits the use of eminent domain to acquire mortgages or deeds of trust by the State, counties, municipalities, and entities under their control.
• Allows condemnation for public uses and for blight redevelopment under Title 24 if the primary purpose is not to acquire a mortgage or deed of trust; in redevelopment, compensation to the owner remains first.
• Requires that condemned property not used for its public purpose and later sold be offered back to the original owner or heirs at the price paid, less taxes actually paid, with a 90-day acceptance period.
• Explicitly preserves eminent domain authority for public utilities and for constructing, maintaining, or operating streets, government buildings, and park/recreation facilities.
• States that condemnation of property encumbered by a mortgage or deed of trust is permissible only if there is a public use; condemnation solely for acquiring a mortgage or deed of trust is not a public use.
• Effective date: becomes law on the first day of the third month after passage and governor approval.

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

Subjects

Eminent Domain