The bill SB9 Enrolled authorizes Class 1 municipalities in Alabama to enforce local and state building maintenance regulations through judicial in rem foreclosure of municipal code enforcement and nuisance abatement liens on certain properties. It allows these municipalities to recover unpaid municipal code and nuisance abatement liens, as well as associated enforcement costs, upon the court-ordered sale of the property. Key definitions are provided, including "interested party," "municipal code lien," and "owner-occupied," with the act specifically excluding owner-occupied properties. The bill outlines the procedures for filing municipal code liens, which will take precedence over all other liens except tax liens, and mandates that municipalities enact an ordinance detailing the effective date and properties subject to these procedures.

Additionally, the bill establishes a framework for judicial in rem foreclosure proceedings, ensuring that these proceedings do not create personal liability for property owners and are limited to governmental entities authorized to enforce municipal ordinances. It includes a six-month waiting period after recording a municipal code lien before foreclosure can be filed, requires notification to other taxing entities, and mandates a judicial hearing for interested parties to contest the lien. Key insertions in the bill include provisions for properties sold under this act to be free of all liens except for certain rights of redemption and due taxes, as well as a process for interested parties to redeem the property prior to sale. The act is set to take effect on October 1, 2024.

Statutes affected:
Introduced: 40-10-29
Engrossed: 40-10-29
Enrolled: 40-10-29