HB430 Alabama 2017 Session

Summary

Primary Sponsor

Barbara DrummondRepresentative

Democrat

Session

Regular Session 2017

Title

Class 2 municipalities, property subject to building code violations and liens, in rem foreclosure procedure, Secs. 11-40-50 to 11-40-54, inclusive, repealed

Summary

HB430 lets Class 2 municipalities in Alabama pursue judicial in rem foreclosures of non-owner-occupied properties that violate building codes, to recover enforcement costs and possibly transfer title to a responsible new owner.

What This Bill Does

It repeals the old Sections 11-40-50 to 11-40-54 and gives Class 2 municipalities the authority to enact ordinances to enforce building regulations and to foreclose on non-owner-occupied properties that don’t meet code. It creates a detailed process where a municipal code lien is recorded, interested parties are notified, and a court hearing decides whether to foreclose and sell the property to satisfy the lien and any delinquent taxes. Municipal code liens would generally take priority over other liens except taxes, and proceeds from the sale are used first to pay those liens and taxes, with any surplus distributed to interested parties. Owner-occupied properties are excluded from this process, and the remedies are in rem only (the government can’t pursue individuals personally), with the possibility to transfer title to a responsible owner who reimburses enforcement costs.

Who It Affects

• Group 1: Class 2 municipalities — gain authority to adopt ordinances and use judicial in rem foreclosure to enforce code violations on non-owner-occupied properties and recover enforcement costs.
• Group 2: Non-owner-occupied property owners, mortgage lenders, tax certificate holders, and other interested parties — may face foreclosures on their properties or secured interests if they don’t pay municipal code liens and taxes; notices, hearings, and redemption rules apply; ownership could transfer to a responsible buyer if costs are reimbursed.

Key Provisions

• Repeals Sections 11-40-50 through 11-40-54 relating to the use and occupancy of buildings.
• Authorizes Class 2 municipalities to enact ordinances for enforcement of local and state building regulations and to conduct judicial in rem foreclosures on non-owner-occupied properties failing to comply.
• Defines terms including code enforcement director, interested party, municipal code lien, minimum bid price, redemption amount, taxes, and owner-occupied.
• Establishes that municipal code liens are superior to all liens except tax liens.
• Creates a detailed process: recording liens, filing a petition in circuit court, sending notices, holding a judicial hearing, and conducting a court-supervised sale.
• Sale proceeds are used first to pay municipal code lien payoffs and delinquent taxes; any surplus is distributed to interested parties according to priority.
• Owner-occupied properties are excluded; if a property is found to be owner-occupied during proceedings, the case is dismissed.
• Allows transfer of title to a responsible new owner if the current owner reimburses enforcement costs; otherwise, sale proceeds and liens settle as defined.
• Remedies are in rem only and do not create personal liability or apply to nongovernmental transferees; enforcement can only be initiated by the adopting Class 2 municipality.
• Phased implementation and ordinance requirements, including notices and phase-in if not applying to all properties at once.
• Effective date: immediate upon governor's 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

Class 2 Municipalities