SB32 Alabama 2021 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2021

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

SB32 expands how tax-delinquent properties are transferred and managed by state and local land banks, removes some sale-proceeds rules, and lets local governments form land banks with new powers when there are many delinquent properties.

What This Bill Does

It allows the Land Commissioner to transfer the state's interest in certain tax-delinquent properties to the Alabama Land Bank Authority after those properties have been bid in for the state and held for a multi-year period. It also removes the requirement that sale proceeds must be distributed in a specific way. Additionally, it lets municipalities or counties with 100 or more delinquent properties in a municipality form local land bank authorities with broad powers to manage, develop, lease, sell, or otherwise dispose of properties, and to enter intergovernmental agreements with the state authority.

Who It Affects

• State Land Bank Authority and the Land Commissioner, who gain authority to transfer and manage tax-delinquent properties and to set disposal terms.
• Municipalities or counties with 100+ delinquent properties, which may form local land bank authorities with expanded powers to hold, manage, and dispose of property and to collaborate with the state authority.

Key Provisions

• Transfer of certain tax-delinquent properties from the state to the Alabama Land Bank Authority after the property has been bid in for the state and held by the state for a multi-year period, with the authority allowed to receive the tax deed without paying the bid amount.
• The Alabama Land Bank Authority can inventory, manage, rent, repair, insure, alter, sell, trade, exchange, or otherwise dispose of properties it acquires, on terms determined by the authority, and without eminent domain power.
• Disposal rules for land bank properties: disposition may be outside typical state/local disposal laws, but requires notice and a hearing; sale conditions and development requirements may be set by the authority; strict limits on disposing to entities for investment-only purposes and on redrawing title if taxes and related charges are not paid.
• Proceeds from property sales are split: one-third to the authority’s operations, one-third to recover authority expenses, and one-third to local tax recipients (if the property was initially bid in for delinquent taxes) or to the state Comptroller for distribution to the delinquent tax recipients otherwise.
• The authority may initiate quiet title actions to clear title and vest ownership in the authority, with required notices, hearings, and a final judgment; liens and certain interests are extinguished, and redemption rights may be extinguished by judgment.
• Local authorities formed by municipalities or counties may possess powers to preserve and manage property, grant easements, collect rents, clear titles, and undertake development activities; they may enter intergovernmental agreements with the state authority and receive support from local governments.
• Audits of local authorities by the Alabama Department of Examiners of Public Accounts may be conducted, with audit costs charged to the local authority.
• Effective date: the act becomes law on the first day of the third month following governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Land Bank Authorities