The bill amends Section 24-1A-43 of the Code of Alabama 1975, concerning the Home Buyers Initiative Act, specifically addressing the Mortgage Guarantee Fund. The bill provides for the expenditure of funds appropriated to the Mortgage Guarantee Fund to be used for housing programs that promote home ownership, including alternative housing programs. It establishes a mortgage guarantee fund in the State Treasury, administered by the Alabama Housing Finance Authority, to reimburse foreclosure losses related to qualified mortgage loans under the Alabama Home Buyers Initiative. An appropriation of six million dollars ($6,000,000) from the Alabama Capital Improvement Trust Fund to the mortgage guarantee fund is mandated within ten days after the act becomes effective, with the Legislature finding it necessary to make this appropriation in excess of the Governor's certification for capital improvements.

The bill outlines the procedures for the mortgage guarantee fund, including the payment of a mortgage guarantee fund fee at closing, the crediting of interest or investment income to the fund, and the issuance of payment warrants by the state Comptroller upon certification from the program administrator. Reimbursements from the fund are capped at 40 percent of the loan's foreclosure balance and are paid in the order certifications are received. The fund remains available until depleted, with any remaining balance or excess amount, and future fees, to be made available for other housing programs administered by the program administrator. Upon depletion of the initial appropriation, any additional funds appropriated to the mortgage guarantee fund shall also be available for other housing programs, including alternative housing programs as provided in Section 24-1A-44. The act is set to become effective on October 1, 2024.

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