Housing (Urban Areas)

HB 404 authorizes Class 1 municipalities in Alabama to create nonprofit community land trusts that provide affordable housing to low-income and moderate-income families through long-term 99-year ground leases. The trusts must lease land (not sell it) to qualifying families earning 80% or less of the area median income (low-income) or up to 120% (moderate-income), as defined by HUD. Key provisions require trusts to be membership-based with public meetings, have a diverse board appointed by the mayor and city council, and include resale rules to maintain affordability. This bill directly affects eligible families seeking stable housing and municipalities seeking new affordable housing tools, with no tax implications for the trusts’ properties.