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ISSUE NO. 3 / MARCH 20, 2015
Housing Trust Fund Legislation Raises Concern

The HBAA, along with Alabama Association of Realtors, met with advocates for low income housing this week to discuss a bill that seeks to fund the Alabama Housing Trust Fund. Sponsored by Rep. Patricia Todd (D-Birmingham), HB 141 would double the recording fee on real property and raise an estimated $24 million/year for the Housing Trust Fund.  The HBAA has expressed its concerns with the measure and the process leading up to the bill's introduction.

 

The Housing Trust Fund was created, but not funded, back in 2012. The act created an advisory board made up of low income advocates and housing industry representatives to find ways to help improve housing for low income families. To date, the advisory board has not met, nor have any rules been established as to how any funds that might come into the Housing Trust Fund would be spent. This would be a crucial requirement should any money be allocated to the Housing Trust Fund to ensure that the money goes for those purposes it is designed for and not overly burdened by administrative expenses.

 

By doubling the fee, the bill proposes to raise over $45 million in total. Those monies not dedicated to the Alabama Housing Trust Fund would be split between the county, probate judge, and the state treasury. The entire amount is to be paid by the housing industry, yet no effort to involve builders, realtors, or the banking industry was taken by the bill's advocates.

 

Another concern is that a cash starved state government could see this as an opportunity to grab these monies for its own needs. The $45 million in new taxes could be co-opted for other purposes. This is a real and present threat that the HBAA expressed clearly in its meeting this week. The bill might be better served by being introduced after the current budget crisis has been abated.

 

With so many concerns and just as many questions unanswered, the HBAA opposes the bill. The HBAA had originally requested a public hearing on the bill in committee on Wednesday; however, due to an unforeseen scheduling issue, Committee Vice-Chairman Ken Johnson (R-Moulton) had to cancel the meeting. There are currently no plans to place the bill back on the committee agenda.

 

The HBAA will continue to meet and discuss the issue with the low income advocates, but it is not eager to jump into promoting a fee/tax increase on housing that does not provide a more substantial opportunity for home ownership. One program that does provide such opportunity is the wildly successful Housing Initiative. Run by the Alabama Housing Finance Authority, this program has generated $300 million in economic activity in a ten month period with only a $6 million investment by the state. The HBAA will continue to oppose any program that doesn't directly benefit builders, realtors, bankers, and Alabama's low and moderate income home buyers.  

Senator Livingston Introduces HVAC Bill on HBAA's Behalf

Senator Steve Livingston (R-Scottsboro) introduced the HBAA backed HVAC legislation on Thursday. Similar to previous versions, SB 290 provides updates to the HVAC law including the transfer of unused funds to the Alabama Home Builders Foundation for HVAC training purposes.

 

The bill has been assigned to the Senate Fiscal Responsibility and Economic Development committee. The committee chairman, Senator Phil Williams (R-Gadsden), has asked that the bill be placed on its next committee agenda for consideration.

 

Additionally, the House Boards and Commissions committee chairman, Rep. Howard Sanderford (R-Huntsville), has asked that the House version of the bill, HB 231 by Rep. Jack Williams (R-Birmingham), be placed on his next committee agenda as well.

 

The HBAA would like to thank these fine legislators for their efforts to support the HBAA and this important legislation.

HOA Discussions Result in Final Admendments

This past week, Rep. Mac McCutcheon met with Todd Slyman, a builder/developer from Huntsville and a past HBAA president, and HBAA staff to go over the few remaining concerns with the Home Owners Association legislation. Rep. McCutcheon was agreeable to the concerns expressed by the HBAA and has committed to work to incorporate those into his draft.

The HBAA appreciates Rep. McCutcheon for his efforts to address the concerns it has raised and looks forward to working with him to pass meaningful legislation.

Legislature Leaves for Spring Break

The legislature is in recess next week for Spring Break. The HBAA Legislative Alert will return with the Legislature.

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