Governor Robert Bentley signed the Housing Initiative, now known as Act #2014-88, into law this week. Details of the program are expected to be rolled out in the coming weeks. Once in place, the program will result in a mortgage product with no private mortgage insurance requirement and with underwriting guidelines similar to the Step-Up program of the Alabama Housing Finance Authority.

The HBAA would like to thank Governor Bentley for his help making this law a reality. Throughout the process, Governor Bentley recognized this measure as an economic development bill that was not only good for Alabama's builders, subs, and suppliers, but good for the entire state.  

The enactment of this legislation is a major victory for the housing industry and should result as a catalyst for a robust construction season over the spring and summer. The HBAA will provide additional information concerning the program details as they become available.

The HBAA-backed revisions to the plumbers and gas fitters law passed the House this week. House Bill 143 by Rep. Jack Williams was assigned to the ten-minute calendar which normally consists of "non-controversial" bills. Licensure legislation usually attracts significant attention, but the bill's inclusion on the calendar is a testament to the leadership of Rep. Williams in the weeks leading up to the vote. The bill was amended to remove references to bonds and replaced it with a recovery fund concept. Although a substantial change to the bill, Rep. Williams spent time visiting with other House members to address their concerns and provide answers prior to floor action. The bill passed on a vote of 97-0.

The bill is slated to come before the Senate Governmental Affairs committee on Tuesday.

House Bill 137 by Rep. Mac McCutcheon received a favorable report this week from the House Committee on Commerce and Small Business. Although some issues remain, the HBAA would like to thank Rep. McCutcheon for working to address the concerns of the home building industry. Among the remaining issues is language that would require HOAs to register with the Alabama Real Estate Commission and be subject to rules it would adopt at a later date.

The HBAA will continue to work with Rep. McCutcheon to improve the measure.

Senate Bill 291 by Senator Del Marsh passed the Senate this week on a vote of 28-0. The bill now moves to the House where it has been assigned to the House Committee on Commerce and Small Business.

Here is a more comprehensive overview on the bills that are part of the HBAA's legislative agenda this session:

HB 46/SB 227 "Pre-Sale Agreements"

Sponsor: 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: The HBAA is working to get HB 46 assigned to an upcoming special order calendar in the Senate. SB 227 was given a favorable report this week by the Senate Governmental Affairs Committee.

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: Enacted as Act No. 2014-88

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 HB 142 brought before the Senate 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: HB 143 passed the House this week and is expected to come before the Senate Governmental Affairs Committee next week.   

Here is the latest on other bills that the HBAA is actively supporting:

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: Enacted as Act No. 2014-15

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 was carried over by the Senate.  

HB 523/SB 291 "Landlord Tenant"

Sponsor: Rep. Paul Beckman/ 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 is continuing to work with the Realtors and the Alabama Apartment Association to make certain all issues regarding the landlord tenant law are addressed.

Status: SB 291 passed the Senate this week and has been assigned to the House Committee on Commerce and Small Business.

HB 458 "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 458 is awaiting consideration by the full House.