House Bill 402 Alabama 2026 Session

Summary

Primary Sponsor

Kelvin DatcherRepresentative

Democrat

Session

2026 Regular Session

Title

Local land bank authorities; shorten tax sale redemption period; restrictions on geographic scope; creation of multijurisdictional land banks by agreement; Governor's emergency authorization to create land bank

Summary

HB402 would expand Alabama local land bank authorities, create multijurisdictional banks, shorten redemption periods for some tax-delinquent properties, and allow emergency-created banks to manage and transfer property for redevelopment and floodplain/stormwater purposes.

What This Bill Does

It would authorize the creation of multijurisdictional local land bank authorities via intergovernmental agreements and allow the Governor to create a local land bank by executive order during a state of emergency. It would broaden land banks' powers to acquire, manage, and dispose of real property (including tax-delinquent property), streamline quiet title actions, and remove some public notice requirements for dispositions. It would shorten redemption periods for certain tax-delinquent properties, permit purchases at public auctions with a minimum bid and issuance of deeds after one year, and authorize transfers of property to government entities for floodplain and stormwater management, with part of the conveyed property taxes remitted to the land bank for five years and certain tax exemptions for LBA-owned property.

Who It Affects

• Local governments (counties and municipalities) would gain authority to form and operate multijurisdictional land banks, transfer and receive property with LBAs, and allocate portions of ad valorem taxes to LBAs for five years.
• Property owners, lienholders, and other interested parties in tax-delinquent properties would face shortened redemption periods, new notice and quiet title processes, potential transfer of property to land banks, and changes to how liens and interests are extinguished or affected by quiet title actions.

Key Provisions

• Authorize the creation of multijurisdictional local land bank authorities through intergovernmental agreements and define governing structures and procedures.
• Expand the acquisition, management, and disposal powers of local land banks, including authority over tax-delinquent property and streamlined quiet title actions.
• shorten redemption periods for certain tax-delinquent properties and allow purchases at public auctions with minimum bids, with deeds issued after one year.
• Eliminate public notice of disposition for land bank property and establish enhanced notice and expedited court processes for quiet title actions, including vesting title in the authority upon judgment.
• Authorize transfer of property to state or local governmental entities for floodplain management and stormwater drainage, with consideration mechanisms and potential restrictions.
• Require remittance of a portion of ad valorem taxes on conveyed property to the land bank for a five-year period and provide tax exemptions for LBA-owned property; outline funding and governance requirements.
• Authorize the Governor to create local land bank authorities by executive order during a state of emergency, with possible conversion to a standard LBA and dissolution if not converted within 12 months.
• Update and align code language with current style and establish broader intergovernmental coordination for land bank activities.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Authorities, Boards, & Commissions