HB512 Summary

• Establishes the Alabama Affordable Housing Act, creating a dedicated trust fund in the State Treasury administered by the Alabama Housing Finance Authority to provide affordable housing to individuals and families with low to moderate incomes.

• Creates the Alabama Affordable Housing Trust Fund Committee with 13 members representing various state agencies, nonprofit organizations, and stakeholder groups, appointed by the Board to oversee fund operations and rank funding applications.

• Designates at least 51 percent of annual trust fund proceeds for distribution to eligible nonprofit developers, with administrative costs capped at 10 percent of collected funds and support services limited to 20 percent annually.

• Prioritizes serving individuals and families at or below 60 percent of area median income, with at least a majority of funds serving those at or below 30 percent of area median income as determined by the U.S. Department of Housing and Urban Development.

• Permits fund use for homeownership promotion, rental housing, grants and loans, predevelopment costs, acquisition and construction, down payment assistance, and permanent supportive housing for special needs populations including homeless individuals, disabled persons, and victims of domestic violence.