SB3 Alabama 2024 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2024

Title

Local land bank authorities, tax sale property acquisitions, tax exemption for acquired properties, tax revenue allocation, conveyance to state and local governments, multijurisdictional land bank authorities, Governor authorized to create upon state of emergency.

Summary

SB3 creates and expands local land bank authorities to acquire, manage, and redevelop tax-delinquent properties, fund themselves with local taxes, convey land for floodplain and emergency uses, and modernize tax sale and quiet-title processes.

What This Bill Does

It establishes the Alabama Land Bank Authority Board to govern a statewide land bank and allows counties or municipalities to form multijurisdictional local land bank authorities via intergovernmental agreements. It authorizes transferring tax-delinquent property and related tax liens to land banks, provides tax exemptions for land bank property, and lets local governments allocate a portion of ad valorem taxes to the land banks for up to five years. It authorizes land banks to convey property to state or local governments for floodplain management and stormwater drainage, and it gives the Governor authority to create local land banks by executive order after a state of emergency (with possible conversion to a permanent authority). It also updates tax sale and redemption rules—allowing minimum-bid tender by land banks, enabling private sales of unsold tax liens, and enforcing a quiet-title process that vests title in the land bank and largely extinguishes outstanding liens.

Who It Affects

• Local governments (counties and municipalities) and the Governor, who would form, fund, and manage local land bank authorities, set geographic boundaries, authorize intergovernmental agreements, and exercise emergency creation powers.
• Property owners and taxpayers with delinquent taxes, as the bill changes property transfer rules to land banks, introduces new redemption periods, requires notices and quiet-title proceedings, and may result in title vesting in the land bank and extinguishment of most liens.

Key Provisions

• Creates the Alabama Land Bank Authority Board to govern this chapter, with specified members, four-year terms, expense reimbursement, staffing power, and open-meetings rules.
• Allows the creation of multijurisdictional local land bank authorities through intergovernmental agreements and authorizes intergovernmental cooperation with the Alabama Land Bank Authority.
• Authorizes the authority to acquire tax-delinquent property and certain other public or surplus properties, hold and dispose of them, and exempts its property from certain taxes and fees.
• Permits the local land banks to allocate up to 75% of ad valorem taxes from property conveyed to them for up to five years, with details set by local law and exceptions if taxes are pledged to other debts.
• Gives local land banks power to convey property to state or local governments for floodplain management or stormwater drainage when such use is highest and best or development is no longer feasible.
• authorizes the Governor to create local land banks by executive order during a state of emergency and to convert or dissolve them as specified.
• Requires a quiet-title process to vest title in the land bank, extinguish most liens, provide notice and hearing procedures, and outlines appeal rights and timelines.
• Updates tax sale laws to align with land bank activities, including minimum-bid tendering, 0% bid procedures, private sales of unsold tax liens, and revised redemption periods; permits tax lien foreclosures and required notices.

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

Subjects

Authorities, Boards, & Commissions