SB238 Summary

• Amends Section 24-1A-43 of the Alabama Code to expand the use of the Mortgage Guarantee Fund beyond foreclosure loss reimbursement to include other housing programs that promote home ownership.

• Establishes that when the original $6,000,000 appropriation from the Alabama Capital Improvement Trust Fund is depleted or when the fund balance exceeds the maximum needed for foreclosure reimbursement, remaining funds and future mortgage guarantee fund fees shall be redirected to other housing programs including alternative housing programs.

• Authorizes the Alabama Housing Finance Authority to identify and administer alternative housing programs and homeowner education initiatives using available funds from the mortgage guarantee fund after the original appropriation is exhausted.

• Becomes effective October 1, 2024.