SB9 Alabama 2024 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2024

Title

Class 1 Municipalities, enforcement of state regulations and municipal code liens, judicial in rem foreclosure, court-ordered sale of property, recovery of unpaid liens and cost of enforcement, not applicable to owner-occupied real property.

Summary

SB9 lets Class 1 municipalities use a court foreclosure process to collect municipal code liens on non-owner-occupied property, with owner-occupied homes exempt.

What This Bill Does

Class 1 municipalities may file a judicial in rem foreclosure to collect unpaid municipal code and nuisance abatement liens on non-owner-occupied real estate. The process requires an ordinance, notices to interested parties, a court hearing, and a lis pendens, leading to a court sale of the property to satisfy the liens and any applicable taxes. Taxes have priority over municipal liens, and the sale would transfer the property free of most liens except specific exceptions; redemption rights apply before and after the sale. The act applies only to Class 1 municipalities and becomes effective October 1, 2024.

Who It Affects

• Class 1 municipalities in Alabama, which may initiate and enforce judicial in rem foreclosures to collect municipal code liens and associated enforcement costs.
• Property owners of real estate that is not owner-occupied within those Class 1 municipalities, whose properties could be foreclosed to satisfy municipal code liens and related costs (owner-occupied properties are excluded).

Key Provisions

• Authorizes Class 1 municipalities to enforce municipal code liens and nuisance abatement costs through judicial in rem foreclosures on non-owner-occupied property.
• Defines municipal code lien as fines, penalties, abatement costs, assessments, or enforcement costs related to housing and building code violations or nuisance abatement, with certain statutory linkages and exclusions.
• Establishes that tax liens have priority over municipal code liens; taxes and redemption payoffs are considered in the foreclosure process.
• Requires a governing ordinance from the Class 1 municipality to authorize and regulate the use of these procedures, including initial date and which properties are subject or excluded.
• Sets procedural steps: initial six-month waiting period before filing, ability to consolidate multiple liens, notice to taxing entities at least 60 days prior, lis pendens, and a hearing date.
• Allows a sale of the property by the court to satisfy the municipal lien and applicable taxes, with the sale conducted similarly to other foreclosure procedures and the sale being final upon completion.
• Provides that the property will be sold free and clear of most liens and encumbrances, with specific exceptions such as federal redemption rights, certain taxes due after the order, and existing easements or covenants as of filing.
• Permits redemption of the property before sale by paying the redemption amount, with owner redemption resulting in dismissal and other parties obtaining a lien equal to their payment.
• Gives detailed provisions for sale proceeds distribution, including payments of the lien payoffs, costs, and any tax payoff amounts, and handling of any surplus.
• Requires deeds to be executed and recorded within defined timeframes after sale, and for the municipality to file a sale report with the circuit court clerk.
• Authorizes use of adopted forms and provides for guardian ad litem if interest holders are unknown or underage.
• Effective date: October 1, 2024.

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