The bill HB405 Engrossed amends Sections 24-1-22 and 24-1-27 of the Code of Alabama 1975, significantly enhancing the powers and operational capabilities of municipal housing authorities. Key insertions include the authority for housing authorities to act as agents for the federal government in housing projects, manage community facilities, and engage in various business organizations related to housing development. The bill also allows these authorities to make loans and create for-profit or not-for-profit subsidiaries to support their objectives. Additionally, it clarifies the authority's ability to enter into contracts for housing projects, conduct investigations, administer oaths, and issue subpoenas, while validating previous business entities owned by the authority prior to June 1, 2024.

The bill also includes several deletions aimed at streamlining language and clarifying the authority's powers, such as replacing specific terms like "dwelling" with broader terms like "community facilities." It outlines tax exemptions for municipal housing authorities, including exemptions from state taxes, bonds issued by the authority, and certain local taxes, contingent upon local governing body approval. The act is designed to modernize the legal framework governing municipal housing authorities, enhance their operational flexibility, and provide significant tax relief, with the provisions set to take effect immediately upon passage.

Statutes affected:
Introduced: 24-1-22, 24-1-27
Engrossed: 24-1-22, 24-1-27