HB450 Alabama 2020 Session

Summary

Primary Sponsor

Merika ColemanSenator

Democrat

Session

Regular Session 2020

Title

Land Bank Authority, local land bank authorities, municipalities, and counties, tax delinquent properties, Secs. 24-9-6, 24-9-7, 24-9-8, 24-9-10 am'd.

Summary

HB450 expands and speeds up Alabama’s land bank program by allowing earlier transfers of tax-delinquent properties, removing some revenue-sharing rules, and enabling more local governments to form land bank authorities with broader powers.

What This Bill Does

It lowers the transfer requirement for tax-delinquent properties to be moved from the state to the Alabama Land Bank Authority from five years to three years, with the state's interest also needed for at least three years. It removes the mandatory distribution of sale proceeds from land bank properties, giving authorities more discretion over how funds are used. It allows municipalities or counties with 100 or more delinquent properties to form local land bank authorities and grants these local authorities broader powers to manage, develop, lease, sell, and otherwise dispose of property, including pursuing title actions and environmental remediation. It also details processes for quiet title actions to extinguish competing interests and vest title in the authority, and authorizes intergovernmental agreements and funding mechanisms to support these activities.

Who It Affects

• Local governments (municipalities and counties) with 100+ delinquent properties, who would be eligible to form local land bank authorities and gain new property management and development powers.
• Property owners, taxpayers, and residents in areas with tax-delinquent parcels, whose properties may be transferred to land banks and whose proceeds from sales and title actions could be affected by the new rules and broader disposal options.

Key Provisions

• §24-9-6: Transfer of state interest in tax-delinquent properties to the Land Bank Authority after at least three years of bidding and at least three years of the state's interest (instead of five).
• §24-9-6 and §24-9-7: Elimination of distribution requirements for proceeds from land bank property sales; proceeds may be used at the authority's discretion rather than following fixed shares.
• §24-9-10: Local governments (municipalities/counties) may form local land bank authorities with 100+ delinquent properties (previous threshold was higher), and local authorities receive expanded powers to manage, lease, repair, finance, develop, quiet title, and remediate property, including intergovernmental agreements.
• §24-9-7 and §24-9-8: Local authorities gain authority to conduct quiet title actions to extinguish conflicting interests and vest fee simple title in the authority, with notice requirements and procedures for hearings and possible appeals.
• §24-9-10: Local authorities may acquire property outside other authorities’ boundaries and operate with new governance provisions, funding options, and the ability to continue existing despite drops in the number of delinquent properties.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Land Bank Authorities