The bill amends Section 24-1A-43 of the Code of Alabama 1975, focusing on the Mortgage Guarantee Fund, which is administered by the Alabama Housing Finance Authority. It allows for the expenditure of funds from this fund to support various housing programs that promote home ownership, including alternative housing programs. The bill specifies that a total of six million dollars ($6,000,000) is appropriated from the Alabama Capital Improvement Trust Fund to the mortgage guarantee fund for the fiscal year ending September 30, 2009, and outlines the procedures for reimbursement of foreclosure losses related to qualified mortgage loans.

Key changes include the replacement of the term "guarantee fund" with "mortgage guarantee fund" throughout the text, and the introduction of provisions that allow any additional funds appropriated to the mortgage guarantee fund, once the initial funds are depleted, to be allocated for other housing programs. The bill also clarifies that reimbursements from the mortgage guarantee fund will be limited to 40% of the foreclosure balance of each qualified mortgage loan and establishes a priority for payments based on the order of certifications received. The act is set to become effective on October 1, 2024.

Statutes affected:
Introduced: 24-1A-43
Enrolled: 24-1A-43