HB405 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Adline ClarkeRepresentative
Democrat
Session: Regular Session 2024
Title: Municipal housing authorities, further provides for the powers of authorities and exempts from taxes
Summary: HB405 would broaden and clarify the powers of municipal housing authorities in Alabama, allow them to form subsidiaries, and grant broad tax exemptions to support housing projects and related facilities.
What This Bill Does
It expands the authority's powers to develop and manage housing projects and community facilities, participate in lawful business organizations, make loans, and enter contracts. It ratifies and enables the creation of wholly-owned subsidiaries, and allows further subsidiaries or affiliates to assist in purposes, with limits on eminent domain for non-fully-owned entities. It authorizes activities such as design-build arrangements, leasing and managing housing, setting rents, acting as agent for federal programs, and coordinating with cities on streets and planning. It also exempts the authority and its property, income, and related transactions from state taxes, with local option for additional tax exemptions by resolution, and makes the act effective immediately.

Who It Affects
Municipal housing authorities in Alabama — gain broader powers to develop, finance, own, operate, and contract for housing projects and related facilities, including the ability to create and operate subsidiaries.
Local governments, taxpayers, and housing residents — tax exemptions for authorities (subject to local resolution) could affect state/local revenue; residents may benefit from expanded housing projects and potentially new community facilities.

Key Provisions
Exemption from state taxes for the municipal housing authority, its property and income, and for bonds and income from bonds; local governments may exempt other taxes by resolution.
Authority may create and own wholly-owned subsidiaries and enter into arrangements with affiliates or non-affiliated entities to support housing projects, with limits on eminent domain for non-wholly-owned affiliates.
Expanded powers to investigate housing conditions, plan and operate housing projects, take over existing projects, act as agent for federal programs, lease/dwellings, set rents, and coordinate with cities on streets and utilities.
Authority may borrow, issue bonds, secure debt with revenues or property, invest funds, insure, and engage in design-build, lease, license, and other procurement arrangements, including compliance with Title 39 when public funds are used.
Board determinations by the authority are conclusive; authority may appoint governing bodies or contract with others for development, operation, and management of housing projects and facilities.
Non-substantive technical revisions to update code language and to ratify prior actions related to subsidiary formation and authority powers.
Effective date is immediate.

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