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Enacted

Alabama authorizes Class 1 municipalities to create community land trusts for affordable housing

Original title: Class 1 municipalities; authorization to establish community land trusts, affordable housing

Last action · April 17, 2026: EnactedSponsor: Neil Rafferty

Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Does

Alabama authorizes to establish nonprofit community land trusts that acquire and lease real property for affordable housing using s up to 99 years, effective October 1, 2026.

Why it matters

Establishes a new municipal framework allowing local governments to hold land and offer long-term restricted housing options to low- and moderate-income residents while providing property tax exemptions.

Background
  • Class 1 municipalities in Alabama refer to cities with a population of 175,000 or more, currently applying primarily to Birmingham. context
  • Community land trusts are nonprofit legal entities designed to hold land cooperatively and ensure housing affordability remains permanently tied to the property. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Class 1 municipalities

Municipalities are granted the authority to create, regulate, audit, and fund nonprofit community land trusts within their jurisdictions.

Directly affected

Low-income and moderate-income families

Families meeting income thresholds gain access to long-term affordable housing options through 99-year ground leases.

Directly affected

Department of Examiners of Public Accounts

The department is required to conduct annual audits of every community land trust established under this act.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Who is eligible to lease affordable housing from a community land trust?
Low-income and moderate-income families or individuals whose household income falls at or below 80 percent or 120 percent of the metro statistical area median income adjusted for family size.
What happens if a community land trust loses its nonprofit status?
The organization must transfer its interest in s within 120 days to the organizing municipality or a designated municipal or nonprofit 501(c)(3) affordable housing organization.
Are community land trust properties eligible for property tax breaks?
Yes. Residential property owned by a trust and intended for affordable housing is exempt from all for up to three years during construction or transfer, and property subject to a receives a 20 percent property tax exemption for 20 years.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Current status: Became law.

Procedural history

23 actions
  1. Apr 17, 2026HouseEnrolled
    Enacted
  2. Apr 7, 2026HouseEnrolled
    Delivered to Governor
  3. Apr 7, 2026Senate
    Signature Requested
  4. Apr 7, 2026House
    Enrolled
  5. Apr 7, 2026House
    Ready to Enroll
  6. Apr 7, 2026House
    Ready to Enroll
Show 17 earlier actions
  1. Apr 7, 2026SenateFloor
    Motion to Read a Third Time and Pass - Adopted Roll Call 1163
  2. Apr 7, 2026Senate
    Third Reading in Second House
  3. Apr 2, 2026Senate
    Read for the Second Time and placed on the Calendar
  4. Apr 2, 2026SenateCommittee
    Reported Out of Committee Second House
  5. Apr 1, 2026SenateCommittee
    Pending Committee Action in Second House
  6. Apr 1, 2026SenateIntroduced
    Read for the first time and referred to the Senate Committee on Jefferson County Legislation
  7. Mar 31, 2026House
    Engrossed
  8. Mar 31, 2026HouseFloor
    Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1110
  9. Mar 31, 2026House
    Motion to Adopt - Adopted Roll Call 1109
  10. Mar 31, 2026House
    Rafferty 1st Amendment Offered
  11. Mar 31, 2026House
    Motion to Adopt - Adopted Roll Call 1108
  12. Mar 31, 2026House
    County and Municipal Government Engrossed Substitute Offered
  13. Mar 31, 2026House
    Third Reading in House of Origin
  14. Mar 19, 2026House
    Read for the Second Time and placed on the Calendar
  15. Mar 18, 2026HouseCommittee
    Reported Out of Committee House of Origin
  16. Feb 5, 2026HouseCommittee
    Pending Committee Action in House of Origin
  17. Feb 5, 2026HouseIntroduced
    Read for the first time and referred to the House Committee on County and Municipal Government

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Establishment of Municipal Land Trust Framework

The act creates a formal, uniform statutory structure for municipal nonprofit land trusts, detailing board governance, auditing, and taxpayer-funded property tax exemptions.

Connected Entities

Neil Rafferty, Department of Housing and Urban Development, Department of Examiners of Public Accounts and 2 more
PersonNeil Rafferty“Representative who introduced HB 404”Map →
OrganizationDepartment of Housing and Urban Development“Federal agency determining area median income and housing counseling standards”Map →
OrganizationDepartment of Examiners of Public Accounts“State department tasked with annually auditing community land trusts”Map →
OrganizationAlabama Housing Finance Authority“Appoints a board member and receives annual reports from community land trusts”Map →
PersonJohn Treadwell“Clerk of the House of Representatives”Map →

Sources

Open source document

alison.legislature.state.al.us

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy15
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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