HB56 Alabama 2017 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Kyle South
Republican
Session: Regular Session 2017
Title: Municipal public housing authorities, non-profit affiliates of, limited immunity extended to, Sec. 24-1-27 am'd.
Summary: HB56 extends limited tort immunity to qualifying non-profit affiliates of Alabama Public Housing Authorities by making them governmental entities for purposes of that immunity.
What This Bill Does
The bill amends Section 24-1-27 to treat certain non-profit affiliates that act as corporate agents for public housing authorities as governmental entities with limited tort immunity. If an affiliate meets specific criteria (board structure, executive director as president, asset-return provisions on change of control, and a sole purpose to develop, own, manage, operate, or maintain the housing authority’s low-income housing), lawsuits against the affiliate would fall under the same tort-immunity framework as the housing authority. It sets appearance and control requirements to qualify and establishes an effective date for when the changes take effect.

Who It Affects
Non-profit affiliates of Alabama Public Housing Authorities that meet the prescribed criteria to become corporate agents.
Individuals or entities who might sue these affiliates for tort claims (their liability protections would be governed by Chapter 93).
Public Housing Authorities and their housing projects, which would operate under the extended immunity and the described governance/ownership structure for their affiliates.

Key Provisions
Amendment to Section 24-1-27 to make qualifying non-profit affiliates of Alabama Public Housing Authorities governmental entities for purposes of limited tort immunity.
Establish criteria for corporate agents to qualify: (a) housing authority board constitutes all directors of the corporate agent; (b) executive director serves as president of the corporate agent; (c) organizational documents require return of public housing assets to the housing authority if control changes; (d) sole purpose of the corporate agent is to develop, own, manage, operate, or maintain the housing authority’s low-income housing.
Qualifying corporate agents become governmental entities under Chapter 93 of Title 11, and tort suits against them are subject to Chapter 93 limitations.
Effective date: the act becomes effective on the first day of the third month following its passage and 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: Housing