AL HB496

Class 2 municipalities must provide adjoining homeowners (owner-occupants sharing a common property line) with notice of municipal lien foreclosure proceedings

Adjoining homeowners gain bidding preference and may submit bids before any public auction on foreclosed properties

Bids from adjoining owners must include an affidavit confirming owner-occupancy of adjacent property and homestead exemption status

If adjoining owner bids are received, the municipality accepts the highest such bid and cancels the public auction; payment is due immediately upon acceptance

Effective date: October 1, 2026