Text of AL HB 726 (2009)

Page 0 HB726 1 109252-1 2 By Representatives Hall, Todd, Newton (D), Scott, Dunn, 3 Robinson (O) and Coleman 4 RFD: Government Appropriations 5 First Read: 24-MAR-09 6 Page 1 109252-1:n:03/10/2009:JRC/mfp LRS2009-1700 1 2 3 4 5 6 7 SYNOPSIS: This bill would provide for the Alabama 8 Affordable Housing Act, the Alabama Affordable 9 Housing Trust Fund, and the Alabama Affordable 10 Housing Trust Fund Committee to increase home 11 ownership and rental opportunities to those 12 individuals and families with low to moderate 13 incomes. 14 This bill would establish funding and 15 policies for the committee to work towards 16 alleviating the housing crisis in Alabama for 17 certain individuals and families. 18 19 A BILL 20 TO BE ENTITLED 21 AN ACT 22 23 To establish the Alabama Affordable Housing Act, the 24 Alabama Affordable Housing Trust Fund, and the Alabama 25 Affordable Housing Trust Fund Committee for the purpose of 26 making available housing opportunities to individuals and 27 Page 2 families with low incomes; to provide for funding; to provide 1 for committee members; and to provide for duties for the 2 committee. 3 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: 4 Section 1. This act shall be known as and may be 5 cited as the Alabama Affordable Housing Act. 6 Section 2. It is hereby found and declared that 7 Alabama is in need of more housing that is affordable to its 8 residents with low incomes and the development of new units 9 throughout the state that are affordable to these individuals 10 and families is critical to addressing the gaps that exist 11 between demand and availability. 12 Section 3. The Alabama Affordable Housing Act is 13 enacted for the following purposes: 14 (1) To increase the production of housing units 15 affordable to individuals and families with low incomes. 16 (2) To maintain and renovate existing affordable 17 housing units to insure their continued availability to 18 individuals and families with low incomes. 19 (3) To increase and preserve the supply of rental 20 housing affordable to individuals and families with low 21 incomes. 22 (4) To increase home ownership to those with low 23 incomes. 24 Section 4. When used in this act, the following 25 words shall have the following meanings: 26 Page 3 (1) ALABAMA AFFORDABLE HOUSING TRUST FUND. The trust 1 fund created pursuant to Section 5. 2 (2) AUTHORITY. The Alabama Housing Finance Authority 3 as defined by Section 24-1A-2, Code of Alabama 1975. 4 (3) BOARD. The Alabama Housing Finance Advisory 5 Board of Directors as defined by Section 24-1A-2, Code of 6 Alabama 1975. 7 (4) COMMITTEE. The Alabama Affordable Housing Trust 8 Fund Committee. 9 (5) LOW AND MODERATE INCOME FAMILIES. Persons and 10 families of one or more persons, irrespective of race, creed, 11 national origin, sex, and/or sexual orientation determined by 12 the committee to require such assistance as is made available 13 by this act on account of insufficient personal or family 14 income in accordance with federal standards set by the U.S. 15 Department of Housing and Urban Development determining 16 housing eligibility based on income of such persons and 17 families. 18 Section 5. The Alabama Affordable Housing Trust Fund 19 is created in the State Treasury for the collection and 20 distribution of dedicated funding for the purpose of 21 increasing the production of housing units affordable to low 22 income individuals and families, maintaining and renovating 23 such housing including existing units serving the target 24 population. The trust fund shall be administered by the 25 authority who shall appoint a committee as prescribed in 26 Section 6 of this act to advise the board and authority as to 27 Page 4 program components and operations. Proceeds may be used to 1 fund bonds. 2 Section 6. (a) There is created the Alabama 3 Affordable Housing Trust Fund Committee which shall administer 4 and enforce this act. The committee shall be appointed by the 5 Alabama Housing Finance Board to oversee and manage the trust 6 fund. The trust fund shall target individuals and families who 7 are living at or below 60 percent of the area median income, 8 with at least the majority of the fund, and to a larger 9 percentage when possible, shall target those individuals and 10 families living at or below 30 percent of the area median 11 income. 12 (b) The committee shall consist of 11 members 13 appointed by the board and shall include one representative 14 member from each of the following: 15 (1) The Alabama House of Representatives. 16 (2) The Alabama Senate. 17 (3) The Lieutenant Governor or his or her designee. 18 (4) The Low Income Housing Coalition of Alabama. 19 (5) The Alabama Alliance to End Homelessness. 20 (6) The Alabama Realtor's Association. 21 (7) The Alabama Homebuilder's Association. 22 (8) The Alabama Council for Affordable and Rural 23 Housing. 24 (9) The Alabama Banker's Association. 25 (10) The Alabama Housing Finance Authority Board. 26 Page 5 (11) An individual living at or below 60 percent of 1 the median family income. 2 (c) The term of office of each member of the 3 committee shall be three years. Notwithstanding the foregoing, 4 of the first members appointed, four shall be appointed for a 5 term of one year, four for terms of two years, and three for 6 terms of three years. No member shall serve more than two 7 consecutive three-year terms, without interruption in service 8 of at least three years. 9 (d) Each term on the committee shall expire on 10 September 30 of the year in which the term expires, the board 11 shall appoint a new member or reappoint the current member. If 12 a vacancy occurs, within 90 days of the vacancy the board 13 shall appoint a replacement to fill the vacancy for the 14 remainder of the unexpired term. 15 (e) The board may remove a member of the committee 16 only for neglect of duty, an unexcused failure to attend more 17 than one of the regularly scheduled meetings held in a 18 calendar year during the term in office of the member, 19 malfeasance, violation of this act, or conviction of a felony. 20 (f) Members of the committee shall receive 21 reimbursement for expenses incurred in the performance of 22 duties. 23 (g) The committee may employ the necessary personnel 24 for performance of its functions and fix their compensation. 25 Section 7. (a) The committee shall elect from its 26 membership a chair, a vice chair, a secretary, and a 27 Page 6 treasurer. The committee shall adopt rules to govern its 1 proceedings. A majority of the appointed membership of the 2 committee shall constitute a quorum for all meetings. 3 (b) The authority may authorize necessary 4 expenditures to implement this act. However, the expenditures 5 shall not exceed 10 percent of the funds collected during any 6 fiscal year for administrative purposes. 7 (c) The committee shall meet within 30 days after a 8 quorum of its first members is appointed, and thereafter shall 9 hold regular meetings. Minutes of each meeting of the 10 committee, recording the members present and the business 11 taken, shall be signed and kept by the secretary or an 12 assistant secretary appointed by the committee. 13 (d) The committee's responsibilities include the 14 following: 15 (1) Establish policies for the operation of the 16 trust. 17 (2) Pursue additional sources of revenue in addition 18 to that prescribed by this act. 19 (3) Ensure that the dedicated resources alleviate 20 the housing crisis for Alabamians by assisting individuals and 21 families with low incomes and targeting hard to serve, special 22 needs population that includes individuals who are: 23 a. Living with mental illness. 24 b. Mentally retarded. 25 c. Homeless or on the verge of becoming homeless. 26 d. Disabled. 27 Page 7 e. Elderly. 1 Section 8. A mortgage record tax rate of .05 for 2 each $100 shall be the revenue source for the fund. 3 Section 9. (a) The following organizations shall be 4 eligible to apply to the committee for funding: 5 (1) Not-for-profit organizations. 6 (2) Municipalities. 7 (3) Public housing authorities. 8 (4) Profit organizations that are in partnership 9 with not-for-profit organizations. 10 (b) The committee may, but is not limited to, use 11 the funds to further the purposes of this act for: 12 (1) Promoting, creating, and maintaining 13 homeownership and rental housing options. 14 (2) Grants, loans, and revolving loan funds. 15 (3) Predevelopment costs. 16 (4) Needs assessments. 17 (5) Technical assistance. 18 (6) Acquisition, construction, rehabilitation, and 19 repair. 20 (7) Support services so as not to exceed 20 percent 21 of the funds in any one calendar year. 22 (8) Assistance with operating reserves. 23 (9) Down payment assistance. 24 (10) Permanent supportive housing models. 25 (11) Rental and home ownership. 26 (12) Retention of housing units. 27 Page 8 Section 10. This act shall become effective 1 immediately following its passage and approval by the 2 Governor, or its otherwise becoming law. 3