At the request of the Alabama Housing Finance Authority (AHFA), the HBAA introduced legislation this week that will preserve down payment assistance (DPA) programs in Alabama for low and moderate income home buyers.   Representative Mike Hill (R-Columbiana) and Senator Slade Blackwell (R-Mountain Brook) are sponsoring the legislation.

A recent Housing and Urban Development (HUD) interpretive ruling has effectively ended the long-existing DPA programs run by states through its FHA programs. In Alabama, the DPA program is responsible for over 16,000 mortgages being issued since its inception. Without DPA, low to moderate income borrowers would find it difficult to purchase a home. In order to bypass HUD's adverse ruling, the AHFA will be granted authority to originate second mortgage loans that will be identical to those it currently services under the current DPA program. Without this change, down payment assistance with FHA financing in Alabama will effectively end.

House Bill 651, introduced on Tuesday, has the full support of the Speaker of the House Mike Hubbard who allowed the House Financial Services Committee to hold a meeting in the chamber during session to get the bill reported out for a second reading on Wednesday. The bill is now scheduled for its third reading in the House on Tuesday after having been picked for the special order calendar by Rep. Mary Sue McClurkin (R-Indian Springs).

The HBAA is joined by the Alabama Bankers Association and the Alabama Association of Realtors in supporting the bill. With only five legislative days remaining in the 2013 legislative session, it is important for the bill to move quickly and not get bogged down. The HBAA will be working closely with the House and Senate sponsors to make that happen.

The HBAA would like to thank Speaker Hubbard for recognizing the importance of this legislation and to all the House and Senate members who are working diligently to support housing.

Senate Bill 427 sponsored by Senator Gerald Allen (R-Tuscaloosa) received a favorable report from the Senate Small Business Committee this week. A few Senators expressed concern over language in the bill that allows the Heating, Air Conditioning and Refrigeration Board to register duct cleaning companies, as well as filter changing firms. The HBAA is working to assure those Senators that the measure actually reduces the regulatory burden on these companies.

Alabama, unlike neighboring states, currently has no registration classification for duct cleaning and filter changing businesses. For that reason, anyone having such a business is required to have a full HVAC license which requires 3,000 hours of experience, education, and testing in all facets of the industry and payment of the $165 license fee. The proposed legislation creates the two new classifications and limits fees for such registrations to $100. The board currently has stated it plans to set its fee to $50. That is a significant decrease in cost and regulatory hurdles.

The HBAA fully expects to overcome any remaining concerns and to work with Senator Gerald Allen to get the bill on the Senate calendar as soon as possible.