State Capital
HBAA Legislative Alert
January 31, 2014
HOUSE PASSES KEY HBAA LEGISLATION 

Despite the ice and snow that prevented many legislators from making it to Montgomery early in the week, members of the House made up for it on Thursday by passing a key component of the HBAA's legislative agenda, the Housing Initiative Update. The measure now moves to the Senate for consideration.

 

Originally passed in 2009, the Housing Initiative was a bold effort to create a new market for home mortgages by investors.   Unfortunately, the secondary market that would purchase these bundles of mortgages collapsed. Since that time, the HBAA has been working with the Alabama Housing Finance Authority to find a way to utilize state funds that were set aside for the housing program.  

 

In late 2013, the AHFA and the HBAA arrived at a decision. To produce activity in the housing market, the funds could be used to offset the cost of private mortgage insurance (PMI), thus lowering the monthly payment of a home considerably. Here is a full listing of the proposed program guidelines:

 

Program Details:

  • 97% LTV through Fannie Mae's HFA Preferred product for conventional loans.
  • AHFA-provided down payment assistance up to 3%. The assistance will be a second mortgage amortizing over a 10-year period at the same interest rate as the first mortgage.
  • AHBI funds will pay the PMI premium in an up-front single premium-saving each homebuyer more than $1,000 annually.
  • Total household income may not exceed $97,300.
  • Homebuyers must complete a homeownership education course to qualify.
  • Newly constructed residences and existing homes will be eligible to participate.
  • Eligible Loan Area: The entire geographical limits of the State.
  • Lender requirements will be consistent with the current Step Up program requirements.

Current estimates suggest that the new program could spur the sale of up to 2,500 homes across Alabama in the spring and summer of this year.

Below is a comprehensive look at the HBAA legislative agenda and where its legislation is in the process:

HB 46/SB 227 "Pre-Sale Agreements"

Sponsors: Rep. Chris England/Senator Gerald Allen

Description: This bill is designed to clarify that pre-sale agreements for the purchase of lots in subdivisions are enforceable.

Status: HB 46 has been scheduled for committee action next Wednesday. A committee substitute will be offered by the County Commissioners Association with HBAA support. The substitute states that the developer will file a preliminary set of engineered drawings of the proposed subdivision with the County prior to offering the pre-sale agreements.

 

HB 102/SB 195 "Alabama Housing Initiative Update"

Sponsors: Rep. Mike Hill/Senator Cam Ward      

Description: The legislation updates the Alabama Housing Initiative that was originally passed in 2009. It provides for alternative housing programs that, if passed, are projected to spur up to 2,500 new and existing home sales during the 2014 calendar year.

Status: HB 102 passed the House this week. The bill will be assigned to a Senate committee on Tuesday.

Special Recognition: A special thanks goes out to Speaker of the House Mike Hubbard for making the passage of this bill a priority. On Thursday, the Speaker made it known that they wanted to pass five bills in order to get to HB 102. His leadership and the fine work of Rep. Mike Hill resulted in a unanimous vote in the House. Additionally, the HBAA would like to thank all those who signed on as co-sponsors in the House. Thirty-three house members added their names to this important legislation.


HB 142/SB 124 "HVAC Law Revisions"

Sponsors: Rep. Jack Williams/Senator Gerald Allen

Description: Identical to the legislation introduced in the 2013 legislative session, this legislation codifies the Duct and Envelope Testing registration process and establishes a duct cleaning and filter changing company registration. Additionally, the bill allows for the transfer of surplus agency funds to the Alabama Home Builders Foundation to be used to support HVAC programs at trade schools and apprentice training programs in Alabama.

Status: The HBAA is working to get the bill assigned to the House special order calendar at the earliest opportunity.

 

HB 143/SB 150 "Plumbers Law Revisions"

Sponsors: Rep. Jack Williams/Senator Gerald Allen

Description: Identical to the legislation introduced in the 2013 legislative session, this legislation makes several changes to the plumbers law including creating alternative disciplinary action for violations and allowing the transfer of surplus agency funds to be used by the Alabama Home Builders Foundation to support plumbing programs at trade schools and apprentice training programs in Alabama.

Status: SB 150 had been scheduled to be considered by the Senate committee this week, but the winter storm prevented that from happening.

HBAA IS ACTIVELY SUPPORTING THE FOLLOWING BILLS:

HB 13 "Ad Valorem/Tax Credit Housing"

Sponsor: Rep. Oliver Robinson

Description: The legislation seeks to provide a method to determine the fair and reasonable market value of occupancy rental property on which exist restrictive covenants/laws. This deals directly with Tax Credit developed multi-family projects in rural areas. By arriving at a lower ad valorem value on the property, available tax credits will be able to stretch further and help fund additional properties.

Status: HB 13 has been assigned to the House Commerce and Small Business Committee. This week's winter storm prevented the bill from being heard in the committee. There is a chance that it will be on next Wednesday's committee agenda.

 

HB 99/SB 207 "Prohibition of Business License Tax on Individual Apartments"

Sponsors: Rep. Jim Patterson/Senator Vivian Figures

Description: This legislation is similar to the legislation supported by the HBAA last session that would have restricted a municipality from charging an individual business license on each apartment in an apartment complex. The main difference in the 2014 version of the bill is that it is not a constitutional amendment, unlike the 2013 version.

Status: SB 207 is scheduled to come before the House Commerce and Small Business Committee this coming Wednesday.   

 

HB 105 "Tax Payer Bill of Rights"

Sponsor: Rep. Paul DeMarco

Description: The "Tax Payer Bill of Rights" creates an independent tax tribunal to hear appeals of tax assessments issued by the Department of Revenue. Currently, appeals of tax assessments are handled by the department's internal affairs division which tends to be less objective than an independent tribunal.

Status: HB 105 is awaiting action by the full Senate. The HBAA and its business association partners are working to get the bill placed on a special order calendar at the earliest opportunity, which could be as early as Thursday.

 

SB 291 "Landlord Tenant"

Sponsor: Senator Del Marsh

Description: The "Landlord Tenant" legislation is an update to current Alabama law. Among the proposed changes are provisions to increase the length of time landlords must return deposits and termination of lease for noncompliance with the rental agreement or abandonment. The HBAA has worked with the Realtors and the Alabama Apartment Association to address all of the concerns of the industry. The HBAA will continue to work with its industry partners to move the legislation forward in the coming weeks.

Status: SB 291 has been assigned to the Banking and Insurance Committee. The HBAA will work with Committee Chairman, Senator Slade Blackwell, to get the bill assigned to the committee agenda as soon as possible.

As of Thursday,

686 bills have been introduced.

Among them are a number of bills that the HBAA is actively opposing.  Among these is:

HB 158 "Reducing the Right of Redemption"

Sponsor: Rep. Wes Long

Description:

The bill would reduce the right of redemption period on foreclosed property from one year to sixty (60) days.

Status:

The bill was removed from the House Commerce and Small Business Committee agenda this week and has not been rescheduled. The HBAA has called for a public hearing on the bill should it be brought back before the committee. 

 

SENATE
Adjourned: Thursday, January 30, 2014 at 4:00pm
Convene: Tuesday, February 4, 2014 at 2:00pm

HOUSE
Adjourned: Thursday, January 30, 2014 at 3:30pm
Convene: Tuesday, February 4, 2014 at 1:00pm













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