House Bill 163 Alabama 2026 Session

Summary

Primary Sponsor

Troy StubbsRepresentative

Republican

Session

2026 Regular Session

Title

Property Insurance and Energy Reduction Act; allow financing of projects through private funding

Summary

HB163 creates a framework for Alabama local governments to finance energy, water efficiency, and resilience upgrades on private property through private funding secured by voluntary assessments.

What This Bill Does

It renames the act and lets local governments designate regions where private financing may be offered for qualified projects. Owners can obtain private financing to pay for qualifying improvements, with repayment secured by an assessment lien on the benefited property and assigned to the private capital provider. Mortgagees must sign consent and subordination agreements; the local government does not guarantee repayment, and funding is not a general obligation. Residential property under five units is excluded, and requirements include feasibility analysis and energy/water efficiency or resilience improvements; the act becomes effective June 1, 2026.

Who It Affects

• Local governments (counties and municipalities) may designate regions, administer programs, and issue assessment liens with liability protections for officials.
• Property owners with qualifying real property in designated regions may participate in private financing for eligible improvements, subject to mortgagee consent and a lien securing repayment.

Key Provisions

• Renames the act to Property Insurance Reduction and Capital Expenditure Act and expands scope to private financing for qualified projects.
• Allows designation of regions and private financing for qualified projects, secured by voluntary assessments on benefiting properties and assignable to a capital provider.
• Requires mortgagee consent and subordination agreements, with the assessment lien recorded and priority aligned with other liens; local government does not guarantee repayment and enforcement rests with the capital provider.
• Defines qualified projects (energy/water efficiency, flood mitigation, resilience) and real qualifying property (excludes residential property with fewer than five units); requires feasibility analyses and professional certifications.
• Establishes program governance (administrator, guidebook, fees up to the lesser of 1% of financed amount or $50,000; may contract) and prohibits using public funds to back private loans; provides liability protections for officials.
• Repeals the state loss reserve fund and regulatory jurisdiction provisions and sets an effective date of June 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 10, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities