County housing authorities, further provides for the powers of authorities and exempts from taxes
HB91 revises Alabama law governing county housing authorities. It updates definitions in Section 24-1-61 and expands/clarifies the powers of county housing authorities in Section 24-1-66, including authority to investigate housing conditions, acquire and manage property, enter contracts, issue debt, create and support subsidiaries and affiliates, and participate in mixed-use projects and other lawful business organizations. The bill also expressly authorizes authorities to use agents or corporate entities to carry out their functions and validates certain previously created wholly owned business entities formed by authorities before June 1, 2025.
The bill further provides that county housing authorities, their property and income, their bonds, bond income, and related conveyances, leases, mortgages, and deeds of trust are exempt from state taxes, including deed and mortgage taxes. It also allows local tax exemptions, and even exemption from probate fees and costs, if approved by the county governing body through a resolution or ordinance. The act becomes effective June 1, 2025.
HB91 amends Sections 24-1-61 and 24-1-66 of the Code of Alabama 1975 to broaden the operational and financing authority of county housing authorities and to add explicit statutory support for subsidiaries, affiliates, mixed-use development, and business-organization structures used to carry out housing projects and community facilities. It also creates tax exemptions at the state level and authorizes optional local exemptions, while limiting county liability for authority obligations and actions. The bill affects county housing authorities, county commissions, local taxing entities, and entities doing business with authorities.
The bill appears to have broad legislative support. It passed the Alabama House by a wide margin and later received unanimous or near-unanimous votes on subsequent motions and concurrence, indicating generally favorable sentiment toward modernizing county housing authority powers and tax treatment. The available record shows no committee transcript opposition, and the final votes suggest the measure was not highly controversial overall.
The main points of potential contention are the expansion of county housing authorities into mixed-use projects and other business structures, the ratification of previously formed subsidiaries, and the tax exemptions granted to authorities and their wholly owned subsidiaries. These provisions could raise concerns about public accountability, competition with private developers, and reduced tax revenue for counties and municipalities. The bill addresses some of those concerns by requiring local approval for certain local tax exemptions and by stating that authority obligations do not become county liabilities, but the scope of the new powers remains the most notable policy issue.