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

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SB204
HG1GZ33-1
By Senators Coleman-Madison, Coleman, Figures
RFD: Judiciary
First Read: 21-Jan-26
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HG1GZ33-1 01/21/2026 VSM (L)ma 2025-3465
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First Read: 21-Jan-26
SYNOPSIS:
Under existing law, the acquisition of real
property by a local land bank authority is subject to
certain procedural, geographic, and cost restrictions
Existing law also requires the Alabama Land Bank
Authority to give public notice prior to the
disposition of land.
This bill would shorten the redemption period
for certain tax-delinquent properties, allow a local
government or local land bank authority to buy property
at a public auction with a minimum bid and obtain deeds
after one year.
This bill would restrict the geographic areas
where land bank authorities are permitted to acquire
property, expand the acquisition and the management
powers of local land bank authorities, and streamline
the quiet title procedure.
This bill would authorize the creation of
multijurisdictional local land bank authorities through
intergovernmental agreements, grant property tax
exemptions for properties owned by these authorities,
and eliminate the public notice of disposition
requirement.
This bill would expand the powers of local land
bank authorities.
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bank authorities.
This bill would allow local governments to
allocate part of their property tax revenues to these
authorities and transfer properties to state and local
governments for floodplain and stormwater management.
This bill would require a percentage of ad
valorem taxes collected on property conveyed by a local
land bank authority to be remitted to the local
authority for a five-year period after the conveyance.
This bill would give the Governor the authority
to create a local land bank authority by executive
order during a state of emergency.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to the current style.
A BILL
TO BE ENTITLED
AN ACT
Relating to land bank authorities; to amend Sections
24-9-4, 24-9-5, 24-9-6, 24-9-7, 24-9-8, 24-9-10, 40-1-3,
40-10-1, 40-10-18, 40-10-29, 40-10-120, 40-10-184, Code of
Alabama 1975, and Section 40-10-199 as last amended by Act
2025-348 of the 2025 Regular Session, Code of Alabama 1975; to
provide for the creation of a multijurisdictional local land
bank authority; to authorize the acquisition of tax delinquent
property and tax liens by local land bank authorities; to
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property and tax liens by local land bank authorities; to
provide for the exemption of local land bank authority
property from taxes and fees; to eliminate the public notice
requirement for disposition of land; to provide for the
allocation of a portion of the ad valorem taxes on certain
property conveyed to a local land bank authority ; to add
Sections 24-9-11 and 24-9-12 to the Code of Alabama 1975 to
authorize a local land bank authority to transfer property to
governmental entities for floodplain and stormwater drainage
management; to authorize the Governor to create local land
bank authorities in the event of a state of emergency; and to
make nonsubstantive, technical revisions to update the
existing code language to the current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 24-9-4, 24-9-5, 24-9-6, 24-9-7,
24-9-8, 24-9-10, 40-1-3, 40-10-1, 40-10-18, 40-10-29,
40-10-120, 40-10-184 Code of Alabama 1975, and Section
40-10-199 Code of Alabama 1975, as last amended by Act
2025-348 of the 2025 Regular Session , are amended to read as
follows:
"§24-9-4
When used in the chapter, the following words shall
have the following meanings:
(1) AGREEMENT. The intergovernmental cooperation
agreement entered into between an authority and a local land
bank authority by the parties pursuant to this chapter.
(2) AUTHORITY. The Alabama Land Bank Authority.
(3) BOARD. The Alabama Land Bank Authority Board.
(4) LOCAL LAND BANK AUTHORITY. A local land bank
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(4) LOCAL LAND BANK AUTHORITY. A local land bank
authority created by a county or municipality , as provided in
Section 24-9-10.
(5) PROPERTY. Real property, including any improvements
thereon.
(6) TAX-DELINQUENT PROPERTY. Any property on which the
taxes levied and assessed by any party remain in whole or in
part unpaid on the date due and payable."
"§24-9-5
(a) There is created the The Alabama Land Bank
Authority Board which is created and shall govern have the
authority to administer and enforce this chapter.
(b) The board shall consist of the following members:
(1) Four residents of the state appointed by the
Governor.
(2) Two representatives from nonprofit organizations
engaged in low-income housing appointed by the Governor.
(3) The Presiding Officer of the Senate or his or her
designee.
(4) The Speaker of the House of Representatives or his
or her designee.
(5) The Chair of the Senate Finance and Taxation
General Fund Committee or his or her designee.
(6) The Chair of the House Ways and Means General Fund
Committee or his or her designee.
(7) The State Revenue Commissioner or his or her
designee.
(8) The Superintendent of the State Banking Department
or his or her designee.
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or his or her designee.
(9) The Director of the Alabama Department of Economic
and Community Affairs or his or her designee.
(10) The Secretary of the Alabama Department of
Commerce or his or her designee.
(11) The State Finance Director or his or her designee.
(12) The Chair of the Alabama Housing Finance Authority
or his or her designee.
(13) The Administrator of the Alabama Credit Union
Administration or his or her designee.
(c) The members of the board shall serve four year
four-year terms. In appointing the initial members of the
board under subdivision (b)(1) of subsection (b) , the Governor
shall designate two to serve four years, one to serve three
years, and one to serve two years.
(d) Members of the board shall receive reimbursement
for expenses incurred in the performance of their duties , but
no other compensation.
(e) The board may employ the necessary personnel for
the performance of its functions and fix their compensation.
(f) The board shall elect from its membership a chair,
a vice chair, and a secretary-treasurer. The board shall adopt
rules to govern its proceedings. A majority of the membership
of the board shall constitute a quorum for all meetings.
Approval by a majority of the membership shall be necessary
for any action to be taken by the authority. All meetings
shall be open to the public, except as otherwise permitted by
the Alabama Open Meetings Act, and a written record shall be
maintained of all meetings.
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maintained of all meetings.
(g) The membership of the board shall be inclusive and
reflect the racial, gender, geographic, urban/rural urban,
rural, and economic diversity of the state.
(h) The board, when acting in its official capacity,
its members, and the authority shall be immune from civil
liability against the claims of any individual or other entity
of any nature whatsoever for claims of any kind arising out of
from its ownership or administration of properties or related
to its decisions or actions, which provided the decisions or
actions were made in good faith, without malice, and
predicated upon based on information which was then available
to the board at the time .
(i) The authority shall be a public body corporate and
politic with the power to accept and issue deeds in its name,
including, without limitation, the acceptance of accepting
real property in accordance with this chapter, and to
institute initiating quiet title actions as provided in
Section 24-9-8, and shall have any other powers necessary and
incidental to carry out execute the powers and the purpose
purposes granted by this chapter.
(j) In addition to the acquiring tax-delinquent
property acquired by the authority as provided herein , the
authority may also:
(1)acquire Acquire , by purchase, donation, or exchange,
other publicly owned property from local governments,
including that which was acquired years earlier as a result of
property previously obtained through foreclosure proceedings
of that property, or property that has become surplus.
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of that property, or property that has become surplus.
(2) The authority may also acquire Acquire property
through voluntary donations and transfers from private owners
and may acquire by purchase or lease property on the open
market property from a private owner to complete an assemblage
of property for redevelopment owners .
(k) No later than October 1, 2018, the State Revenue
Commissioner or his or her designee shall convene the first
meeting of the authority."
"§24-9-6
(a) The authority, at such times as it deems to be
considers appropriate, may submit a written request to the
Land Commissioner of the Alabama Department of Revenue for the
to transfer of the state's interest in certain properties to
the authority. Upon receipt of such the request, the Land
Commissioner shall issue a tax deed conveying the state's
interest in the property to the authority. The authority shall
not be required to pay the amount deemed considered to have
been bid to cover delinquent taxes or any other amount in
order to obtain the tax deed.
(b)(1) The Land Commissioner shall only transfer the
following properties to the authority:
(1)a. Delinquent property outside the geographic
boundaries of a local land bank authority that may be
transferred by the Land Commissioner to the authority shall be
limited to parcels that have has been bid in for the state
pursuant to Chapter 10 of Title 40 for at least three years .
b. and the The state's interest in real property
acquired pursuant to Chapter 29 of Title 40 for delinquent
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acquired pursuant to Chapter 29 of Title 40 for delinquent
taxes administered by the state and held for at least three
years.
(2) The three-year holding periods in paragraph (1)a.
shall not apply to properties with one or more housing code,
building code, or nuisance abatement liens.
(2)(3) The Land Commissioner or his or her agents or
assistants may adopt rules necessary to transfer such the
properties to the authority.
(c) The authority shall administer properties acquired
it acquires by it as follows:
(1) All property acquired by the authority shall be
inventoried , and the inventory shall be maintained as a public
record.
(2) The authority shall have the power to manage,
maintain, protect, rent, lease, repair, insure, alter, sell,
trade, exchange, or otherwise dispose of any property acquired
pursuant to subsection (b) (1), on terms and conditions
determined in the sole discretion of the authority.
(d) Nothing contained in Act 2013-249 this section
shall be construed to grant any power of eminent domain to the
authority or any local land bank authority."
"§24-9-7
(a) The authority shall adopt rules for the disposition
of property in which the authority holds has a legal
interest ,. which The rules shall address the conditions set
forth outlined in this section.
(b) The authority may manage, maintain, protect, rent,
repair, insure, or alter property in which the authority has a
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repair, insure, or alter property in which the authority has a
legal interest. The authority may also , convey, sell,
transfer, exchange, rent, lease as lessor, or otherwise
dispose of property or, property rights , or interests in
property in which the authority holds a legal interest to any
public or private person for a value determined by the
authority , on terms and conditions, and in a manner , and for
an amount of consideration the authority considers proper,
fair, and valuable, including for no monetary consideration.
The transfer and use of property under this section and the
exercise by the authority of powers and duties under Act
2013-249 this section shall be considered a necessary public
purpose and for the benefit of the public.
(c)(1) Before the authority may sell, lease, exchange,
trade, or otherwise dispose of any property, it shall either:
(1)a. Establish a purchase price and conditions for
sale purposes .;
(2)b. Establish a price and conditions for rent or
lease purposes .; or
(3)c. Establish the conditions for trade, exchange, or
other disposal of the property.
(2) The conditions made pursuant to this subsection
established in this section may include a requirement that the
transferee must provide a development plan or execute a
development agreement with the authority . specifying The
agreement shall specify the transferee's commitments regarding
the development of the property and the time frame within
which the development must occur the property development, the
timeline for completion , the range of permitted uses for the
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timeline for completion , the range of permitted uses for the
property, and any restrictions on its subsequent resale or
transfer.
(d) The disposition of property by the authority shall
not be governed by any laws or rules otherwise applicable to
the disposition of property by a state or local agency.
Provided, however, that, prior to the disposition of property,
the authority shall give notice of its intent to dispose of
any property for which notice was not previously advertised by
the Commissioner of Revenue, or his or her designee, or by a
local official in a manner as prescribed by the authority and
shall include in the notice the date, time, and place at which
persons objecting to the intended action must appear. If no
objection is made within 30 days from the date of the notice,
the authority may proceed with the disposition of the property
as noticed without a public auction.
(e) No property shall be sold, traded, exchanged, or
otherwise disposed of by the authority to any entity that
intends to use the property solely for investment purposes
only and with no intent and has no intention to use the
property other than except to transfer the property at a
future date for monetary gain.
(f) The authority shall not sell, trade, exchange, or
otherwise dispose of any property held by the authority to any
party person who had an interest in the property at the time
it was tax delinquent or to any party person who transferred
the party's its interest in the property to the authority by
sale, trade, exchange, or otherwise, unless the person pays
all the taxes, interest, municipal liens, penalties, fees, and
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all the taxes, interest, municipal liens, penalties, fees, and
any other charges due and owing owed under Chapter 10 and
Chapter 29 of Title 40, including the amount to the Land
Commissioner would have received had the property not been
transferred to the authority.
(g) Except as otherwise provided in this section, the
authority shall have full discretion in determining the sale
price of the property. No purchaser from the authority shall
be responsible for the proper disposition of the proceeds paid
to the authority for the purchase of property. "
"§24-9-8
(a) The authority may initiate a quiet title action
under this section to quiet title to real property held by the
authority or interests in tax delinquent property held by the
authority by taking the following actions in the following
order: (i) undertaking the examination of title conducting a
title examination as required in subsection (b) ; and
thereafter (ii) filing the a petition to quiet title as
provided in subsection (c) ; and (iii) . Following the filing of
the petition, the authority shall record filing a Notice of
Pending Quiet Title Action with the office of the judge of
probate in the county in which where the property subject to
quiet title action is located pursuant to subsection (d). a
notice of pending quiet title action. The notice shall include
the name of the taxpayer whose interest was affected by the
tax sale; the name of any other party as revealed by a search
and examination of the title to the property who may claim an
interest in the property; a legal description of the property;
the street address of the property if available; the name,
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the street address of the property if available; the name,
address, and telephone number of the authority; a statement
that the property is subject to the quiet title proceedings
under Act 2013-249; a statement that any legal interests in
the property may be extinguished by a circuit court order
vesting title to the property in the authority; and the date,
time, and place of the hearing on the petition to quiet title.
Notwithstanding anything in this chapter to the contrary any
other provisions in this chapter , no quiet title action and
nothing in this chapter shall affect any right, title, or
interest, whether recorded or unrecorded, in the subject
property which was held at the time of the tax sale by that
any person individual or entity engaged in the generation,
transmission, or distribution of electric power, natural gas,
or telecommunications had at the time of the tax sale .
(b) After the notice required under subsection (a) has
been recorded, Before filing a quiet title petition under this
section, the authority shall obtain a title examination of the
property and a title opinion the record title to the property
shall be examined and an opinion of title rendered by an
attorney at law, who is licensed to practice law in this
state, or a certificate of title shall be prepared by a title
agent or title insurer duly licensed under the Alabama Title
Insurance Act as set out in Section 27-25-1, et seq., for the
benefit of the authority Chapter 25 of Title 27 in order to
identify all owners of parties or owners with an interest in
the property.
(c) Once When the authority has identified the owners
or parties of interest in the property , the authority shall
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or parties of interest in the property , the authority shall
file a single petition with the clerk of the circuit court
clerk for the judicial district in which the property subject
to foreclosure under this section is located . The petition may
list listing all property subject to foreclosure by the
authority and for which the authority seeks to quiet title. No
such action shall be subject to the payment of filing fees. No
filing fees shall be required for the petition. The list of
properties shall include a legal description of, a tax parcel
identification number for, and the street address of each
parcel or property. The petition shall seek a judgment in
favor of the authority against each property listed and shall
include a date, within 90 days, on which the authority
requests request a hearing on the petition no later than 90
days from the filing of the petition . The petition shall also
seek an order granting the authority full title to each
property without the right of redemption. request that a
judgment be entered vesting absolute title in the authority,
without right of redemption for each parcel of property
listed, as provided in this section. At any time during the
pendency of this a pending quiet title action, the authority
may file a motion to release or dismiss a certain parcel or
parcels of land from the petition , which and that release will
not affect the remaining parcels of land subject to the
petition.
(d) A Notice of Pending Quiet Title Action shall
include all the following:
(1) The name of the taxpayer affected by the tax sale.
(2) Any other parties identified through a title search
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(2) Any other parties identified through a title search
who may claim an interest in the property.
(3) A legal description of the property.
(4) The street address of the property, if available.
(5) The name, address, and phone number of the
authority.
(6) A statement that the property is subject to quiet
title proceedings under this section.
(7) A statement that any legal interests in the
property may be extinguished by a circuit court order vesting
title to the property in the authority.
(8) The date, time, and place of the hearing on the
petition.
(e) The case shall be docketed in the circuit court by
the clerk , and shall be a preferred case therein for expedited
processing . The circuit court in which a petition is filed
under subsection (c) shall immediately set the date, time, and
place for a hearing on the petition for quiet title. In no
event may the clerk court schedule the hearing later than 90
days after the filing of a petition by the authority under
subsection (c) . The court may, for good cause on a party's
request , on the request of a party or as needed , extend the
90-day period to allow completion of service of process on all
interested persons , and to allow those persons 30 days after
service of process to file an answer or other responsive
pleadings to the petition , may extend the 90-day period for
good cause shown .
(e)(f) The authority shall serve all persons having
with record title or, interest in the property, or a lien upon
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with record title or, interest in the property, or a lien upon
the property with a notice of the hearing on the petition to
quiet title. Such service Service shall be attempted by
personal service and by certified mail .; provided if If
service is perfected by either method, the service will be
sufficient to provide service of process upon all persons
having record title , or interest in , or lien upon the
property. If the persons entitled to service are located
outside the county, they may be served by certified mail.
(f)(g) The notice required under subsection (e) this
section shall include:
(1) The date on which the authority recorded, under
subsection (a), the notice of the pending quiet title and
foreclosure action. filed the Notice of Pending Quiet Title
Action with the judge of probate;
(2) A statement that a person with a property interest
in the property may lose such the interest, if any, as a
result of the quiet title and foreclosure hearing .;
(3) A legal description, tax parcel identification
number of the property, and the street address of the
property .;
(4) The date and time of the hearing on the petition
for quiet title and a statement that the judgment of the court
may result in title to the property vesting in the authority .;
(5) An explanation of any rights of redemption and
notice that the judgment of the court may extinguish any
ownership interest in or right to redeem the property .; and
(6) The name, address, and telephone number of the
authority.
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authority.
(g) (h)(1) In the event the sheriff is unable to
perfect service or certified mail attempts are returned
unclaimed, the authority shall conduct a search for the person
with an interest in the property conveyed to the authority.
(1) The search, at a minimum, shall include the
following:
a. An examination of the addresses given on the face of
the instrument vesting interest or the addresses given to the
clerk of the probate court by the transfer declaration form.
b. A search of the current telephone directory
electronic telephone databases for the municipality and the
county in which the property is located.
c. A letter of inquiry to the person who sold the
property to the owner whose interest was sold in the tax sale
at the address shown in the transfer tax declaration or in the
telephone directory electronic telephone databases .
d. A letter of inquiry to the attorney handling the
closing prior to the tax sale if such the information is
provided on the deed forms.
(2) A sign being no less than four feet by four feet
shall be erected on the property and maintained by the
authority for a minimum of 30 days , reading as follows:
"THIS PROPERTY HAS BEEN CONVEYED TO THE ________ LAND
BANK AUTHORITY AND IS SUBJECT TO A QUIET TITLE ACTION. PERSONS
WITH INFORMATION REGARDING THE PRIOR OWNERSHIP OF OR INTEREST
IN THE PROPERTY ARE REQUESTED TO CONTACT THE LAND BANK
AUTHORITY AT _________."
(3) Any additional parties who are identified as having
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(3) Any additional parties who are identified as having
an interest in the property shall be provided notice in
accordance with this section.
(h)(4) If the interested party is an individual, the
authority shall examine voter registration lists, available
municipal archives for records of deaths, and the probate
court records of estates opened in the county in which the
property is located.
(i)(5) If the interested party is a business entity,
the authority shall search the records of the Secretary of
State for the name and address of a registered agent.
(j)(i) If an interested party appears at the hearing
and asserts a right to redeem the property, that party may
redeem in accordance with Chapter 10 and Chapter 29 of Title
40.
(k)(j)(1) If the authority has made the search as
required by this section and been is unable to locate those
persons required to be served under subsection (e) , and has
located additional addresses of those persons through the
search and attempted without success to serve those persons in
either manner provided by subsection (e) pursuant to this
section , the authority shall provide notice by publication.
Prior to the hearing, a notice shall be published once each
week for three successive weeks in a newspaper of general
circulation in the county in which the property is located. If
no paper is published in that county, publication shall be
made in a newspaper of general circulation in an adjoining
county. This publication shall substitute for notice under
this subsection or subsection (g) section . The published
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this subsection or subsection (g) section . The published
notice shall include the information required in subsection
(f)(e). Should the identity of some or all of the persons who
may have an interest in the property be unknown, or should
such the persons be infants or persons of unsound mind, the
court shall appoint a guardian ad litem to represent and
defend the interests of such the unknown, infant the infants ,
or incompetent the persons of unsound mind who are parties in
the action.
(2) A person claiming an interest in a parcel of
property set forth in the quiet title action who desires to
contest that the petition shall file an answer containing
written objections with the clerk of the circuit court and
serve those objections on the authority before the date of the
hearing. The circuit court may appoint and utilize , as the
court considers necessary , a special master for assistance
with the resolution of any objections to the quiet title
action or questions regarding the title to the property
subject thereto . Within 30 days following the hearing, the
circuit court shall enter judgment on a petition to quiet
title. The circuit court's judgment shall specify all of the
following:
a. The legal description, tax parcel identification
number, and, if known, the street address of the subject
property.
b. That fee simple title to the property by the
judgment is vested absolutely in the authority, except as
otherwise provided in paragraph e. this subsection , without
any further rights of redemption.
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any further rights of redemption.
c. That all liens against the property, including any
lien for unpaid taxes or special assessments, are
extinguished.
d. That, except as otherwise provided in paragraph e.
this section , the authority has good and marketable fee simple
title to the property.
e. That all existing recorded and unrecorded interests ,
recorded or unrecorded, in the property are extinguished
terminated , except for a recorded easement or right-of-way,
restrictive covenant, prior reservation or severance of all
mineral, mining, oil, and gas rights within and underlying the
property , such state of facts as shown on recorded plats, or
restrictions or covenants imposed under the Alabama Land
Recycling and Economic Development Act , or any other
environmental law in effect in the state ., severed Severed
oil, gas, and mineral rights and mineral leases and agreements
are excepted from Act 2013-249 and any quiet title action
authorized herein in this section .
f. A finding that all persons entitled to notice and an
opportunity to be heard have been provided received that
notice and opportunity , and that the authority properly
provided notice to all interested parties or that the
authority complied with followed the notice procedures in
subdivision (1) subsection (j). , which This compliance shall
create a rebuttable presumption that all interested parties
received notice and had an opportunity to be heard.
(l)(k) Except as otherwise provided in paragraph
(k)(2)e., fee Fee simple title to property set forth in a
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(k)(2)e., fee Fee simple title to property set forth in a
petition for quiet title filed under subsection (c) shall vest
absolutely in the authority upon the effective date of the
judgment by the circuit court and the authority shall have
absolute title to the property . The authority's title is not
subject to any recorded or unrecorded lien, except as provided
in paragraph (k)(j)(2)e. and shall not be stayed except as
provided in and subsection (m)(l). A judgment entered under
this section is a final order with respect to the property
affected by the judgment and shall not be stayed unless
appealed .
(m)(l) The authority or a person claiming to have an
interest in property under this section may , within 42 days
following the effective date of the judgment under subsection
(k) (j), appeal the circuit court's judgment quieting title to
the property to the court of appeals. An This appeal under
this subsection is limited to the record of the proceedings in
the circuit court under this section . In the event of When a
timely appeal is filed , the circuit court's judgment quieting
title to the property shall be stayed until the court of
appeals has reversed, modified, or affirmed that judgment. If
an appeal under this subsection stays the circuit court's
judgment, the circuit court's judgment is stayed only as to
the property that is the subject of that appeal , and the
circuit court's judgment quieting title to other property that
is not the subject of that appeal is not stayed.
(n)(m) The authority shall record an order of judgment
for each parcel of property in the office of with the judge of
probate for the county in which the subject where the property
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probate for the county in which the subject where the property
is located.
(o)(n) Notwithstanding the limitation of actions
requirements for adverse possession under , any other
provisions of Section 40-10-82, or any other law, the
authority may initiate a quiet title action under this section
at any time after acquiring an interest in the property which
is subject to the action. A final decree of an action properly
filed in compliance with this section shall extinguish all
outstanding rights of redemption."
"§24-9-10
(a) If the number of tax delinquent properties in a
municipality exceeds 100, then the governing body of a
municipality may adopt a resolution declaring that it is wise,
expedient, and necessary that a local land bank authority be
formed by the municipality by the filing for record of a
certificate of incorporation in accordance with the provisions
of subsection (c) this section .
(b) If the number of tax delinquent properties in a
municipality county exceeds 100, then the governing body of a
county may adopt a resolution declaring that it is wise,
expedient, and necessary that a local land bank authority be
formed by the county by the filing for record of a certificate
of incorporation in accordance with the provisions of
subsection (c) this section .
(c) A county and a municipality located within that
county may create a single land bank authority by an
intergovernmental agreement if both the county and the
municipality each meet the criteria of subsections (a) and
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municipality each meet the criteria of subsections (a) and
(b). The intergovernmental agreement shall comply with all
provisions of subsections (d) and (e) and Chapter 102 of Title
11.
(d) Upon the adoption of the authorizing resolution,
the municipality or county , as the case may be, shall proceed
to incorporate the local land bank authority by filing for
record in the office of the judge of probate of the county a
certificate of incorporation which that shall comply in form
and substance with the requirements of this section and which
shall be in the form and executed in the manner herein
provided in this section . The certificate of incorporation of
the local land bank authority shall state all of the
following:
(1) The name of the local unit of government forming
the local land bank authority.
(2) The name of the local land bank authority.
(3) The size of the initial governing body of the local
land bank authority, which shall be composed of an odd number
of members, but not less than five.
(4) The qualifications, method of selection, and terms
of office of the initial board members.
(5) A method for the adoption of bylaws by the
governing body of the local land bank authority.
(6) A method for the distribution of proceeds from the
activities of the local land bank authority.
(7) A method for the dissolution of the local land bank
authority.
(8) Any other matters considered advisable by the local
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(8) Any other matters considered advisable by the local
unit of government, consistent with Act 2013-249 this chapter .
(d)(e) Following incorporation, a local land bank
authority may enter into an intergovernmental agreement with
the authority providing for the transfer to the local land
bank authority of any property held by the authority which is
located within the corporate limits of the municipality or the
boundary of the county which that created the land bank.
(e)(f) A local land bank authority shall have all of
the powers and duties of the authority as set forth in this
chapter. In addition, a local land bank authority shall have
the following powers:
(1) To adopt, amend, and repeal bylaws for the
regulation of its affairs and the conduct of its business.
(2) To sue and be sued in its own name and to prosecute
and defend civil actions in any court having jurisdiction of
the subject matter and of the parties, including, but not
limited to, actions to clear title to the property of the
local land bank authority.
(3) To adopt and make use of a corporate seal and to
alter the same at its pleasure.
(4) To acquire by purchase, lease, or otherwise and to
hold, lease, and dispose of real or personal property of every
kind and character, or any interests therein, in furtherance
of the public purposes of the local land bank authority.
(5) To acquire, accept, or retain equitable interests,
security interests, or other interests in any real property,
personal property, or fixtures by loan agreement, note,
mortgage, trust deed, security agreement, assignment, pledge,
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mortgage, trust deed, security agreement, assignment, pledge,
conveyance, contract, lien, or other consensual transfer in
order to secure credit extended by the local land bank
authority.
(6) To borrow from private lenders, municipalities, the
state, or from federal government funds, as may be necessary,
for the operation and work of the local land bank authority.
(7) To issue negotiable revenue bonds and notes
according to this chapter.
(8) To procure insurance or guarantees from the state
or federal government for the payments of any debts or parts
of debts incurred by the local land bank authority, and to pay
premiums in connection with the insurance or guarantees.
(9) To enter into contracts and other instruments
necessary, incidental, or convenient to the performance of its
duties and the exercise of its powers, including, but not
limited to, intergovernmental agreements under Chapter 102 of
Title 11, for the joint exercise of powers under this chapter.
(10) To enter into contracts and other instruments
necessary, incidental, or convenient to the performance of
functions by the local land bank authority on behalf of
municipalities or agencies or departments of municipalities;
or the departments of municipalities; or of functions on
behalf of the local land bank authority.
(11) To procure insurance against losses in connection
with the real property, assets, or activities of the local
land bank authority.
(12) To invest money of the local land bank authority,
at the discretion of the board of directors, in instruments,
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at the discretion of the board of directors, in instruments,
obligations, securities, or properties determined proper by
the board of directors, and name and use depositories for its
money.
(13) To hire and compensate employees and contractors,
to provide retirement and other forms of deferred
compensation, to provide fringe benefits, and to otherwise
contract with employees and contractors.
(1)(14) Without the approval of a local unit of
government in which property held by the local land bank
authority is located, to control, hold, manage, maintain,
operate, repair, lease as lessor, secure, prevent the waste or
deterioration of, demolish, and take all other actions
necessary to preserve the value of the property it holds or
owns. An A local land bank authority may take or perform the
following actions with respect to property held or owned by
the local land bank authority:
a. Grant or acquire a license, easement, or option with
respect to property as the local land bank authority
determines is reasonably necessary to achieve the purposes of
this chapter.
b. Fix, charge, and collect rents, fees, and charges
for use of property under the control of the local land bank
authority or for services provided by the local land bank
authority.
c. Pay any tax or special assessment due on property
acquired or owned by the local land bank authority.
d. Take any action, provide any notice, or institute
any proceeding required to clear or quiet title to property
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any proceeding required to clear or quiet title to property
held by the local land bank authority in order to establish
ownership by and vest title to property in the local land bank
authority, including, but not limited to, a quiet title and
foreclosure action pursuant to Section 24-9-8.
e. Remediate environmental contamination on any
property held by the local land bank authority.
(2) Enter (15) To enter into an intergovernmental
agreement with a municipality or county , or another local land
bank authority, providing for one or more of the following:
a. The conveyance to the local land bank authority of
tax delinquent property held by the municipality or county for
title clearance, including, but not limited to, a quiet title
and foreclosure action under Section 24-9-8.
b. The acquisition and title clearance of property by
the local land bank authority of property to be conveyed by
the local land bank authority to the municipality or county or
another entity pursuant to the agreement between the local
land bank authority and the municipality or county.
c. The performance of operational and administrative
services to be provided to another local land bank authority.
(16) To acquire property at a sale conducted in
accordance with Section 40-10-18 by tendering a bid equal to
the minimum amount specified in the decree of sale, plus any
subsequent costs and expenses. This bid shall be accepted, and
a certificate of purchase issued to the local land bank
authority. The tender of the minimum bid must be made in cash,
with a credit for any part of the minimum bid already due and
payable to the county, municipality, and school board whose
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payable to the county, municipality, and school board whose
taxes and liens are part of the minimum bid. After 90 days
from the date of sale, upon return of the certificate, the
judge of probate shall execute and deliver a deed for each lot
or parcel of property purchased by the local land bank
authority. The deed shall convey to the grantee all right,
title, interest, and estate of any and all persons having an
interest in the property as of the date of the sale.
(17) To acquire a tax lien at an auction conducted in
accordance with Section 40-10-184 by tendering a cash bid at
an interest rate of 0.00 percent, which shall be accepted as
the successful bid. The bid shall be tendered in cash, with a
credit for any part of the minimum bid already due and payable
to the county, municipality, and school board whose taxes and
liens are part of the minimum bid.
(18) To apply for and receive funding through grants
and loans from the governmental unit or units that created the
local land bank authority, other municipalities, the state,
the federal government, and from other public and private
sources.
(19) To receive and retain payments for services
rendered, rent and lease payments, consideration for
disposition of real and personal property, proceeds of
insurance coverage for losses incurred, income from
investments, and for any other asset and activity lawfully
permitted to a local land bank authority under this chapter.
(f)(g) A local unit of government and any agency or
department of such the local unit of government may do one or
more any of the following:
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more any of the following:
(1) Anything necessary or convenient to aid a local
land bank authority in fulfilling its purposes under Act
2013-249 this chapter .
(2) Lend, grant, transfer, appropriate, or contribute
funds to a local land bank authority in furtherance of its
purposes.
(3) Lend, grant, transfer, or convey funds to a local
land bank authority that are received from the federal
government or, this state , or from any nongovernmental entity
in aid of the purposes of Act 2013-249 this chapter .
(h)(1) A local land bank authority created by a county
may acquire real property only within the geographical
boundaries of the county and only in those portions of the
county outside of the geographical boundaries of the local
land bank authority created by a municipality located
partially or wholly within the county.
(2) A local land bank authority created by a
municipality may acquire real property in any of the following
locations:
a. Within its own geographical boundaries.
b. Outside of its own geographical boundaries if the
real property is not located within the boundaries of any
other local land bank authority.
c. Within the geographical boundaries of another local
land bank authority pursuant to an intergovernmental agreement
between the local land bank authorities.
(g) In the event a county creates a local authority,
the local authority may acquire real property that has been
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the local authority may acquire real property that has been
tax delinquent for three or more years only in those portions
of the county located outside of the geographical boundaries
of any other local authority created by any municipality
located partially or entirely within the county. The Land Bank
Authority may acquire real property that has been tax
delinquent for three or more years only in those portions of
the state located outside of the geographical boundaries of
any local authority created by any municipality or county.
(h)(i) Any local land bank authority formed by a
municipality or county pursuant to this section shall continue
to exist in accordance with its articles of incorporation and
this section in the event that the number of tax delinquent
properties in the local jurisdiction forming the local land
bank authority subsequently decreases to 100 or less.
(i)(j) Any local land bank authority formed by a
municipality or county pursuant to this section shall permit
the Alabama Department of Examiners of Public Accounts to
perform an audit upon request by the department. The
department shall assess the cost of the audit against the
local land bank authority.
(k) As public property used for public purposes, the
real property of a local land bank authority, including, but
not limited to, real property held by a local land bank
authority pursuant to a long-term lease contract with
community land trusts and its income, are exempt from all
license fees, recording fees, stormwater fees, and other
municipal assessments, and all other taxes imposed by the
state or by any of its political subdivisions.
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state or by any of its political subdivisions.
(l) Up to 75 percent of the ad valorem taxes collected
on any real property conveyed by a local land bank authority,
excluding any state or school district ad valorem tax, shall
be remitted to the local land bank authority. The exact
percentage of the taxes to be remitted shall be specified in
the local law, ordinance, resolution, or intergovernmental
contract of the local land bank authority. The allocation of
ad valorem tax revenues shall begin with the first taxable
year after the conveyance and continue for a period of five
consecutive tax years. The funds shall be remitted to the
local land bank authority following the administrative
procedures established by the tax commissioner or tax
collecting official of the county where the local land bank
authority is located. The allocation of ad valorem tax
revenues shall not occur if the taxes have been previously
pledged to secure a tax increment financing debt of the
authorizing governmental subdivision creating the tax
increment district pursuant to Chapter 99 of Title 11, unless
the authorizing subdivision enters into an agreement with the
local land bank authority to remit the funds. "
"§40-1-3
From and after Beginning October 1 of each year, when
property becomes assessable , the state shall have a lien upon
each and on every piece or parcel of real property owned by
any taxpayer for the payment of all taxes which may be
assessed against him or her and upon each piece and parcel of
property real or personal assessed to an owner unknown ., which
lien These liens shall continue remain until such the taxes
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lien These liens shall continue remain until such the taxes
are paid ., and the The county shall have a like similar lien
thereon for the payment of the for taxes which may be assessed
by it.; and, if such If the property is within the limits of a
municipal corporation, such that municipal corporation shall
have a like similar lien thereon for the payment of the taxes
whichthat may be assessed by it. These liens shall be superior
to all other liens and shall exist in the order named, and
each of such the liens may be enforced and foreclosed by sale
for taxes as provided in this title, or as other liens upon
property are enforced, except as otherwise provided by
lawslaw. These taxes and liens shall include all liens
transmitted to the tax collecting official by counties and
municipal corporations in accordance with Sections 11-40-35,
11-53B-16, 11-67-66, 45-37A-53, and any other state or local
law authorizing the transmittal of nuisance abatement liens
for weed removal and grass cutting ."
"§40-10-1
(a) The probate court of each county may order the sale
of lands therein for the payment of within its jurisdiction to
pay taxes assessed on the lands, or against the owners of the
lands, when the tax collector shall report reports to the
court that he or she or the holder of a tax lien issued
pursuant to Acts 1995, No. 95-408 Section 40-1-3 was unable to
collect the taxes assessed against the land, or any mineral,
timber , or water right or other special right, or easement
therein rights or easements , or against the owner thereof ,
without a sale of the land.
(b) For purposes of any enforcement proceedings under
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(b) For purposes of any enforcement proceedings under
this chapter, the taxes due shall include all liens of a
municipality for housing and building code violations,
enforcement actions, and nuisance abatement assessment liens
that are transmitted to the tax collecting official in
accordance with Title 11. "
"§40-10-18
(a) If no person shall bid bids for any real estate
property offered at such the sale an amount sufficient to pay
the sum more than the minimum bid specified stated in the
decree of sale, plus other subsequent and the costs and
expenses subsequently accruing , and no minimum bid is tendered
by a local government or a local land bank authority, the
judge of probate shall bid in such real estate the real
property for the state at a price not exceeding the sum
specified in such decree and such subsequently accruing cost
and expenses the minimum bid . In no event shall the judge of
probate bid in for the state less than the entire amount of
real estate property included in any assessment.
(b) If no person bids more than the minimum bid
specified in the decree of sale for any real property offered
at the sale, plus other subsequent costs and expenses, a local
government or local land bank authority where the real
property is located may bid for the minimum amount.
Notwithstanding subsection (a), this bid shall be accepted and
a certificate of purchase issued to the entity. The minimum
bid in accordance with this subsection shall be paid in cash
with a credit for any amounts already due and payable to the
county, municipality, and school board that make up part of
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county, municipality, and school board that make up part of
the minimum bid. "
"§40-10-29
(a) After the expiration of three years from the date
of the sale of any real estate for taxes, the judge of probate
then in office must execute and deliver issue a deed to each
lot or parcel of real estate sold to the purchaser, other than
the state , or person to whom the certificate of purchase has
been assigned, upon the return of the certificate, proof that
all ad valorem taxes have been paid, and payment of a fee of
five dollars ($5) to the judge of probate ., a deed to each lot
or parcel of real estate sold to the purchaser This deed
covers each lot or parcel of real estate that has not been
redeemed and remaining unredeemed , including therein and, if
desired by the purchaser, it may include any number of multiple
parcels , or lots purchased by him or her at suchthe sale.; and
such The deed shall convey to and vest in the grantee transfer
all the right, title, interest and estate rights, titles,
interests, and estates of the person whose duty it was to pay
responsible for paying the taxes on such real estate and as
well as the lien and claim of the state and county thereto ,
but it shall not convey the any right, title , or interest of
any reversioner or remainderman therein .
(b) After one year from the sale for the minimum bid to
a local government or local land bank authority, and upon
return of the certificate of purchase, the judge of probate
shall execute and deliver to the purchaser a deed to the real
property sold to the purchaser. The deed shall convey to and
vest in the grantee all the rights, titles, interests, and
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vest in the grantee all the rights, titles, interests, and
estates of all persons having an interest in the real property
as of the date of the sale. "
"§40-10-120
(a)(1) Except as otherwise provided in this section,
real property Real estate which hereafter that may be are sold
for taxes and purchased by the state may be redeemed at any
time before the title passes out of from the state . or, if If
purchased by any other another purchaser, the property may be
redeemed at any time within three years from the date of the
sale by the owner, his or her heirs, or personal
representatives, or by any mortgagee or purchaser of such
lands, or any part thereof, any part of the real property, or
by any person having an interest therein, or in any part
thereof in all or part of the real property , legal or
equitable, in severalty individually or as a tenant in common,
including a judgment creditor or other creditor having a lien
thereon lienholder. , or on any part thereof; and an An infant
or insane person of unsound mind entitled to redeem at any
time before the expiration of three years from the sale may
redeem at any time within one year after the removal of the
disability ; and such . The redemption may be of any part of the
lands so sold property, sold, which includes the whole of the
including the entire interest of the redemptioner. If the
mortgage or other instrument creating a lien under which a
party seeks creating the right to redeem is duly recorded at
the time of before the tax sale, the party shall, in addition
to the time herein specified, have the right to redeem the
real estate sold, or any portion thereof covered by his or her
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real estate sold, or any portion thereof covered by his or her
mortgage or lien, at any time within one year from the date of
written notice from the purchaser of his or her purchase of
the lands at tax sale served upon such party the right to
redeem extends additionally to one year after receiving
written notice from the purchaser of the tax sale. , and notice
Notice served upon either the original mortgagees or
lienholders or their transferee of record, or their heirs,
personal representatives, or assigns shall be sufficient
notice.
(2) When any real property is sold for taxes and has
also been sold in one or more prior sales for taxes without
redemption from the prior tax sales, the three-year period for
redemption shall be measured from the date of the earliest
sale of the real property for taxes.
(3) When any real property is sold for taxes at the
minimum bid specified in the decree of sale and the real
property is not lawfully occupied as a residence as of the
date of the sale, the period for redemption shall be one year
from the date of the sale if one or both of the following
conditions apply:
a. The minimum bid included amounts attributable to one
or more housing and building code liens or nuisance abatement
liens.
b. Housing and building code liens or nuisance
abatement liens had been filed of record prior to the date of
the sale.
(4) When any real property is sold to a local
government or local land bank authority in accordance with
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government or local land bank authority in accordance with
Section 40-10-18 for the minimum bid specified in the decree
of sale plus subsequent costs and expenses, the period for
redemption shall be one year from the date of the sale.
(b) If any real property has been sold for taxes and is
subject to redemption from the sale as set forth in subsection
(a) and has also been sold in one or more subsequent sales for
taxes, then any party entitled to redeem such the sale for
taxes may redeem such the sale if the redemptioner
simultaneously redeems his or her sale and all subsequent
sales. In the event of a redemption of successive sales, the
redemption amount shall be ascertained by applying the
provisions of Sections 40-10-121 and 40-10-122. Redemption
amounts computed pursuant to Section 40-10-121 shall be paid
as stated therein in that section . Redemption amounts computed
pursuant to Section 40-10-122 shall be paid as stated therein
in that section if the purchaser had the right to redeem
pursuant to subsection (a) or was the owner of the then
current tax certificate or tax title. Otherwise, those funds
shall be disposed of as set forth in Section 40-10-28 and paid
to such the purchaser or his or her assignee only as set forth
in Section 40-10-28, with the time limits for such the
application computed utilizing using the sale date when the
purchaser's interest was sold for taxes."
"§40-10-184
(a) On the day and time designated for a tax lien
auction, the tax collecting official shall proceed to auction
all tax liens described in the tax lien auction list compiled
as provided in Section 40-10-183, except those for which the
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as provided in Section 40-10-183, except those for which the
taxes, penalties, interest, fees, and costs due on the real
property have been paid. Any tax lien unsold after a tax lien
auction shall continue pursuant to Section 40-1-3 for future
auction or sale as provided in this article. Interest shall
continue to accrue on unsold tax liens at the rate imposed on
delinquent real property taxes.
(b)(1) A tax lien shall be sold at auction pursuant to
this article to the person who: (i) pays all taxes due,
including unpaid taxes for previous years, interest,
penalties, fees, and costs due on the property; (ii) pays an
administrative fee of forty-five dollars ($45), effective upon
the preparation of the tax lien auction list, plus the amount
to be paid to the holder of a tax lien certificate who has not
exercised his or her first right to purchase as provided in
Section 40-10-191; and (iii) bids the lowest interest rate on
the amount required to be paid to redeem the property from the
sale.
(2) The beginning interest rate bid shall not exceed a
rate of 12 percent . and additional Additional bids may be made
at a rate less than the immediately preceding bid.
(3) If an in-person auction ends in a tie and the
winner cannot be determined, the tax collecting official shall
draw lots to determine the winning bidder. If an online
auction ends in a tie and the winner cannot be determined, the
tie shall be resolved by a random number generator.
(c) The sale of a tax lien does not extinguish any deed
restriction, deed covenant, or easement on or appurtenant to
the parcel. A tax lien offered for auction or sale shall be
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the parcel. A tax lien offered for auction or sale shall be
identified by a uniform parcel number and a legal
description."
"§40-10-199
(a) Tax liens that are not sold at the tax lien auction
conducted by the tax collecting official shall be separated in
the tax lien auction list as prescribed by Section 40-10-183 ,
and the lien shall continue pursuant to Section 40-1-3. The
Except as otherwise provided in this subsection, the tax
collecting official, at any time after the tax lien auction
date, may sell at private sale an unsold tax lien for no less
than all taxes, interest, penalties, costs, and fees, plus the
amount to be paid to the holder of a tax lien certificate who
has not exercised his or her first right to purchase as
provided in Section 40-10-191. A local land bank authority may
acquire the unsold tax lien for cash with a credit for any
part of the tax lien that is due and payable to the state,
county, municipality, and school board. The purchaser at
private sale shall be entitled to interest on the amount paid
at a rate agreed to by the tax collecting official, not to
exceed 12 percent. All private tax lien sales shall be entered
in the record of tax lien auctions and sales, as provided in
Section 40-10-188.
(b) All tax liens that remain unsold by the tax lien
auction or sale shall be included in all future tax lien
auctions or sales until sold.
(c) Any tax lien that does not sell at auction shall be
reported to the county commission when seeking approval of
errors in assessments, litigations litigation , or insolvents
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errors in assessments, litigations litigation , or insolvents
as the tax collecting official shall be allowed credit for
taxes due to this state upon final settlement with the state
Comptroller."
Section 2. Sections 24-9-11 and 24-9-12 are added to
the Code of Alabama 1975, to read as follows:
§24-9-11
(a) A local land bank authority may convey ownership or
interest in real property to a state or local governmental
entity for purposes of floodplain management or stormwater
drainage in the event of all of the following:
(1) Floodplain management or stormwater retention or
drainage is the highest and best use of the real property.
(2) As a result of housing and building code
restrictions, floodplain elevations, and other local, state,
or federal law or public and private agreements, conditions,
and limitations, the real property is no longer suitable for
development or redevelopment.
(b)(1) A local land bank authority may convey ownership
of, or interest in, real property under this section by grant,
deed, lease, or other form of conveyance and may include
additional limitations, restrictions, and conditions to be
determined by the local land bank authority.
(2) Consideration for the conveyance may be any of the
following not otherwise prohibited by law:
a. A nominal monetary payment.
b. A contractual obligation in favor of the party to
which the real property is being conveyed.
c. An exchange of real property.
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c. An exchange of real property.
d. Other consideration determined by the local land
bank authority and the party to whom the real property is to
be conveyed.
§24-9-12
(a) Upon declaring a state of emergency caused by a
natural disaster that causes widespread damage to, and
destruction of, real property and improvements and dislocation
of residents, the Governor may create a local land bank
authority in accordance with this section.
(1) The Governor may issue an executive order providing
for the immediate creation of a local land bank authority of a
local government located in whole or in part in a geographical
area that is subject to the declaration of the state of
emergency.
(2) The executive order shall provide for incorporation
and certification of the local land bank authority as required
under this chapter.
(b) Any local land bank authority created pursuant to
this section shall have all powers of a local land bank
authority created pursuant to Section 24-9-10.
(c) Upon the necessary and appropriate action of the
local governments having jurisdiction over the geographical
areas subject to the declaration of the state of emergency, a
local land bank authority created pursuant to this section may
be converted into a local land bank authority created pursuant
to Section 24-9-10, at which time the local land bank
authority shall be the successor in interest and at law to the
local land bank authority created pursuant to this section.
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local land bank authority created pursuant to this section.
(d) In the event that a local land bank authority
created pursuant to this section is not converted pursuant to
subsection (c) within 12 months following the date of the
Governor's executive order, the local land bank authority
created by the executive order shall be dissolved in
accordance with the provisions of the Governor's executive
order.
Section 3. This act shall become effective on June 1,
2026.
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