Just a few short weeks since being signed into law, details have been released on how the Alabama Home Buyer's Initiative will look and function. Below are the guidelines that have been released by the Alabama Housing Finance Authority:

Mortgage Enhancement, Affordable Rates & Down Payment Assistance

Private mortgage insurance (PMI), underwritten by Genworth Mortgage Insurance and provided at the expense of the initiative, will insure the first mortgage.

• The Alabama Home Buyer Initiative enhancement is designed to complement AHFA's Step Up financing product.
• Step Up provides 30-year, fixed-rate financing and down payment assistance for borrowers earning less than $97,300.
• Step Up is able to offer 97% LTV financing through Fannie Mae's HFA Preferred product for conventional loans.
• AHFA provides 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.
• Homebuyers must complete a homeownership education course to qualify.
• Proposed construction, new and existing homes will be eligible to participate.
• For proposed construction cases, $100 million has been reserved for the first six-month period of the initiative. Each loan will receive a four-month commitment of funds during the home's construction period.

Click here to view the press release from the AHFA announcing the new program and learn more about how you and your customers can apply to take advantage of this mortgage product.

House Bill 143 by Rep. Jack Williams ran into an issue this week as a number of out-of-state bonding companies railed against the "recovery fund" provision of the bill that would have eliminated the need for individual performance bonds. Their efforts led to a return to the original language of the bill that would establish a statewide $15,000 bond. Although the bond is significantly higher than the previous $2,000 bond, the Alabama Plumbers and Gas Fitters board recommended raising the bond to cover the performance bonds issued by local governments. According to the board, a statewide approach will not only save plumbers time and ease their record keeping time by consolidating the bonds into one, it will also increase compliance with the law and provide better consumer protection. The HBAA and the thousands of home-grown, Alabama small businesses that make up the plumbing industry see this as a step in the right direction to providing regulatory relief where it is desperately needed.

The HBAA would like to thank the Senate Governmental Affairs Committee for its work to get this matter resolved in a fair and equitable manner for both sides. The HBAA would like to extend a special thanks to Senator Jimmy Holley of Elba for holding a special meeting after session on Tuesday so that the bill could move forward.

Revisions to the Landlord Tenant Act continue to move forward. This week, HB 523 by Rep. Paul Beckman received a 98-0 vote this week and now heads to the Senate for consideration. The Senate companion bill, SB 291 by Senator Del Marsh, is currently awaiting final passage in the House.

Over the next few sessions, it is widely expected that modifications to the landlord tenant act will be brought up in "small bites." As complex as the law is, it is difficult to make significant changes in one pass. The HBAA will work with the Alabama Realtors and the Alabama Apartment Council as the process to look at future changes begins later in the year.

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.

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 was amended by the Senate Governmental Affairs Committee this week and given a favorable report. The HBAA is working with the Senate leadership to get the bill assigned to a special order at the earliest opportunity.  

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: Enacted as Act No. 2014-146.

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 awaiting final passage in the House.

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.