AL HB404

Class 1 municipalities in Alabama may create nonprofit community land trusts to provide affordable housing through 99-year ground leases to low-income families (≤80% area median income) and moderate-income families (≤120% area median income)

Seven-member board of directors appointed by the mayor and city council, with required expertise in real estate, finance, architecture, and affordable housing; board serves four-year terms

At least 80% of leased dwelling units must go to low-income families; up to 20% may be leased to moderate-income families; housing costs capped at 30% of household income

Community land trust and municipality each have 120-day preemptive purchase options on improvements when properties are sold; resale-restricted formulas maintain long-term affordability

Property tax exemptions for trust-owned property under construction or awaiting lease (up to 3 years); leased properties assessed at limited equity price or income-based valuation rather than market value