Senate Bill 204 Alabama 2026 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

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

SB204 would expand Alabama's local land bank authorities by creating multijurisdictional banks, shortening tax-sale redemption periods, broadening geographic reach and powers, and granting the Governor emergency authority to form land banks during disasters.

What This Bill Does

It authorizes the creation of multijurisdictional local land bank authorities through intergovernmental agreements, with a governing board and tax exemptions for land bank property. It shortens redemption periods for certain tax-delinquent properties and enables local governments or land banks to buy at public auctions with a minimum bid and obtain deeds after one year, while streamlining quiet-title procedures to transfer property to the authority with clear title. It restricts where land banks may acquire property, expands their acquisition and management powers (including floodplain and stormwater uses), allows property transfers to government entities for floodplain/stormwater work, and sets up revenue sharing of ad valorem taxes to support the banks for a five-year period; it also removes certain public-notice requirements for dispositions. It gives the Governor emergency authority to create a local land bank by executive order during a state of emergency, with a path to convert it to a standard local land bank and a dissolution clause if not converted within 12 months.

Who It Affects

• Local governments (counties and municipalities) and their residents, who could form or join multijurisdictional land banks, share property tax revenues with them, and transfer property for floodplain and stormwater management.
• Property owners, lienholders, taxpayers, and other parties with interests in tax-delinquent properties, who would see changed redemption timelines, new quiet-title processes, and potential transfer of property to a land bank.

Key Provisions

• Authorize the creation of multijurisdictional local land bank authorities via intergovernmental agreements, including governance and tax-exemption provisions for bank-held property.
• Expand the powers of local land banks to acquire, manage, dispose of, and transfer real property (including non-delinquent property) and to pursue quiet-title actions with streamlined procedures that vest title in the land bank after judgment.
• Shorten redemption periods for tax-delinquent properties and allow deeds to be issued after one year when properties are acquired at public auctions with minimum bids.
• Eliminate or modify public-notice requirements for certain dispositions by land banks and allow transfer of property to governmental entities for floodplain and stormwater management; authorize intergovernmental agreements for property transfers.
• Provide for allocation/remittance of ad valorem taxes on land-bank-conveyed property (up to a specified percentage for five years) and exempt land-bank property from certain taxes/fees; enable grants and loans to support the banks.
• Grant the Governor authority to create a local land bank by executive order during a state of emergency, with a mechanism to convert to a regular local land bank and a dissolution clause if not converted within 12 months.

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