The bill amends the Code of Alabama 1975 to enhance the authority of Class 2 municipalities regarding the management of municipal code liens and tax lien certificates. It revises the definition of "municipal code liens" to clarify that these liens arise from non-payment of fines, penalties, or costs related to housing and building code enforcement. New provisions allow these municipalities to enter properties with tax lien certificates to perform necessary repairs, with the costs of such repairs excluded from the property's redemption price. The bill also outlines a process for the sale of unsold tax lien certificates, enabling municipalities to acquire them at the best price after a specified period.

Additionally, the bill deletes certain legal language that previously restricted the definition of municipal code liens and the rights of tax lien certificate holders, thereby expanding municipal authority. It allows municipalities to determine reasonable repair costs through the court if a public auction demand is made. Furthermore, if tax liens remain unsold after three auctions, municipalities can acquire them without paying all due taxes upfront. The bill modifies pre-filing notice requirements for foreclosure actions and is set to take effect on October 1, 2025.

Statutes affected:
Introduced: 11-40-62, 40-10-184, 40-10-198, 40-10-199
Engrossed: 40-10-198, 40-10-199
Enrolled: 40-10-198, 40-10-199