Committee adopts substitute to let improvement districts finance residential developments

The Alabama House Committee on Economic Development and Tourism on an unspecified date adopted a substitute for House Bill 311, a bill by Representative Will Cox that would allow improvement districts to be used for residential developments and, supporters said, help lower costs for first-time homebuyers.

Supporters told the committee the substitute incorporates changes requested by tax collection officials and includes a limitation on interest rate increases tied to the rates charged for bonds. "It does lower the cost for first time home buyers," Representative Will Cox said while presenting the measure.

The substitute was moved and seconded; Representative Raffy is recorded as the seconder for one motion and Representative Jeff Brown later moved adoption of HB 311 as substituted, with Representative Lomax seconding. Committee members voiced no recorded opposition and the substitute was adopted by voice vote.

Committee discussion and the bill text, as described by Cox, reflect several procedural safeguards: local approval by the governing body in the jurisdiction where a project would be located (city councils or county commissions may accept or decline projects), prior certification submitted to the probate court and notice to potential buyers. Cox said tax collection officials met with the bill authors and provided technical edits, and the substitute incorporated those edits. He also said a concession was made so that a government entity could not increase the interest rate beyond what is charged for the bonds.

A committee member asked about differences shown on charts comparing neighboring states; Cox said some nearby states have pending legislation on related topics. Committee members also discussed liability, and Cox said the plan is to certify projects in probate court before any assessments are charged so buyers are notified in advance. Cox gave an example from prior hearings in which a county commission approved three of four proposed projects and declined one, demonstrating local discretion.

The committee record shows the substitute was adopted and the amended HB 311 was approved to move forward from committee; no roll-call tally with member-by-member votes was recorded in the transcript.

Ending: The committee advanced HB 311 as substituted. Staff and members said additional technical work had been done with tax officials; the bill will continue through the legislative process with the substitute language in place.