HB406 Alabama 2024 Session

Updated Feb 23, 2026

High Interest

Summary

Primary Sponsor: Adline ClarkeRepresentative
Democrat
Session: Regular Session 2024
Title: County housing authorities, further provides for the powers of authorities and exempts from taxes
Summary: HB406 would expand county housing authorities' powers, allow them to form subsidiaries and engage in business activities, and provide tax exemptions for the authorities and related transactions.
What This Bill Does
It broadens the authority of county housing authorities to participate in business ventures, loan money, create and own subsidiaries, and enter into contracts. It ratifies the creation of wholly‑owned subsidiaries and gives authorities power to evaluate and award contracts. It also grants extensive tax exemptions at the state level (and allows local exemptions via resolution), and makes the act effective immediately.

Who It Affects
County housing authorities, which gain expanded powers to operate housing projects, facilities, and subsidiaries and enjoy broad tax exemptions
Bondholders and lenders who would benefit from tax-exempt bonds and income from those bonds (and local governments that may approve local tax exemptions)

Key Provisions
Expands county housing authorities' powers to participate in lawful business organizations, make loans, create subsidiaries, enter into contracts, and evaluate/award contracts; ratifies creation of wholly‑owned subsidiaries.
Explicitly exempts county housing authorities from state taxes, including taxes on the authority, its property and income, bonds issued by the authority, income from those bonds, conveyances, leases, mortgages, and deeds of trust; local tax exemptions may be allowed by resolution; probate fees exemption.
Authorizes borrowing and financing activities (issuing bonds, securing debt with revenues or property, guaranteeing loans, and forming subsidiaries or affiliates) and broad interactions with private/public partners, including design-build and other project delivery arrangements; requires compliance with relevant statutes and board determinations.
Allows creation and use of corporate agents or subsidiaries to implement the authority's purposes, with governance and compliance rules; clarifies that agreements and contracts follow established statutory requirements; act becomes effective immediately.

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