House Bill 649 Alabama 2026 Session

Summary

Primary Sponsor

Kelvin DatcherRepresentative

Democrat

Session

2026 Regular Session

Title

Class 1 municipalities; creation of housing trust fund authorized

Summary

HB649 would authorize Class 1 municipalities to create and run a local housing trust fund to support affordable housing.

What This Bill Does

If enacted, a Class 1 municipality could establish a housing trust fund by ordinance or resolution, and would appoint a seven-member advisory committee to oversee its operation. The fund could be financed from various sources such as donations, grants, bond proceeds, and municipal or state funding, and used for a range of affordability-related activities. The bill defines affordable housing as housing priced for households at or below 120% of the local median income, with the advisory committee aiming to aid those at or below 60% of the median; the fund would undergo annual independent audits and must follow reporting and open-meetings requirements.

Who It Affects

• Class 1 municipalities that choose to create a housing trust fund and manage it
• Residents and households in Class 1 municipalities earning up to 60% of the local area median income who would seek housing assistance
• Households up to 120% of the local area median income seeking affordable housing or related services
• Nonprofit housing developers, housing advocates, and land bank authorities involved with affordable housing programs and advisory board representation

Key Provisions

• Authorize Class 1 municipalities to create and operate a housing trust fund by ordinance or resolution
• Create a seven-member housing trust fund advisory committee with defined composition and appointment rules
• Define AFFORDABLE HOUSING as housing for rent or sale affordable to households at or below 120% of the local area median income, with special focus on aiding those at or below 60% of MFI
• Allow funding from donations, bond proceeds, grants/loans, government appropriations, investment earnings, and other authorized sources; specify no new tax authority unless allowed by law
• Require an annual independent audit of the housing trust fund and provide results to the mayor and governing body
• Specify allowable uses including development/rehabilitation, predevelopment costs, construction, matching funds, down payment/rental assistance, homebuyer counseling, technical assistance, support for land trusts, and administrative costs up to 5% per year
• Require the advisory committee to develop award processes, policies, data reporting, funding partnerships, and annual rule reviews; ensure funding addresses needs of those at or below 60% MFI
• Advisory committee duties include meeting requirements, reporting, and ensuring compliance with open meetings rules
• Effective date: June 1, 2026

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 31, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities