HB90 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Adline ClarkeRepresentative
Democrat
Session: 2025 Regular Session
Title: Municipal housing authorities, further provides for the powers of authorities and exempts from taxes
Summary: HB90 expands the powers and tax-exempt status of municipal housing authorities in Alabama, including the ability to create subsidiaries and engage in broader housing projects and financing.
What This Bill Does
The bill broadens a municipal housing authority’s powers to manage housing projects and community facilities, participate in business ventures, make loans, create subsidiaries, and sign contracts. It ratifies any wholly-owned subsidiaries already created by such authorities and allows them to evaluate and award contracts. It also grants tax exemptions for public housing authorities and their bonds, income, conveyances, leases, mortgages, and deeds of trust, with local approval required to grant county or municipal tax exemptions; it additionally authorizes broad financing, borrowing, investment, and organizational options to support housing-related activities, and requires compliance with certain funding rules when state funds are used. The changes take effect June 1, 2025.

Who It Affects
Municipal and public housing authorities in Alabama: gain expanded powers to manage projects, create and own subsidiaries, enter contracts, lend and borrow money, and participate in various business arrangements, with potential state tax exemption of their activities and bonds.
Counties, municipalities, and local governments: may grant exemptions from certain taxes to housing authorities via resolutions or ordinances, potentially affecting local tax revenues and requiring local action to activate exemptions.

Key Provisions
Tax exemptions: public housing authorities and their property and income are exempt from all state taxes; bonds and income from bonds are tax-exempt; local (county/municipal) tax exemptions require separate resolutions or ordinances; probate fees are also waived for authorities under specified conditions.
Expanded powers and subsidiaries: authorities can create, establish, acquire, operate, or support for-profit or nonprofit subsidiaries or affiliates; may appoint corporate agents or enter into various design-build and related agreements; may form or acquire other lawful business organizations, invest funds, borrow money, and enter into contracts to carry out housing projects and related facilities; ratification of previously created wholly-owned subsidiaries is recognized as valid.

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