HB177 Alabama 2022 Session

Sponsors

Session

Regular Session 2022

Title

Home buyers, extend the ability to create a first-time and second chance home buyer savings account in banks or financial institutions, extend term of account, responsibilities further defined of account holders, Revenue Dept to report additional information, Secs. 24-11-5, 24-11-7, 24-11-10 am'd.

Description

Under existing law, the 2018 Alabama First-time and Second Chance Home Buyer Savings Account Act allows first-time and second chance home buyers to create savings accounts to save toward the down payment and closing costs of a home. The act placed a five-year limit on the creation of first-time home buyer savings accounts.

The act also limited the term of a first-time home buyer savings account to five years.

This bill would extend by five years the ability for first-time and second chance home buyers to create a first-time and second chance home buyer savings account.

This bill would extend the term of a first-time and second chance home buyer savings account to expire December 31, 2028.

This bill would further define the responsibilities of the account holder and require documentation to substantiate the account transactions and credit claims.

This bill would also require the Department of Revenue to report the number of reports received by the department from account holders who have expended funds from a savings account to purchase a home.

To amend Sections 24-11-5, 24-11-7, and 24-11-10, Code of Alabama 1975, relating to first-time and second chance home buyer savings accounts; to extend the ability to create a first-time and second chance home buyer savings account; to allow deposits for ten years; to define the account holder's responsibilities; and to require the Department of Revenue to report additional information.

Subjects

Home Buyers