February Governmental Affairs Update
Welcome to the February edition of our Governmental Affairs Update, your go-to source for the latest insights into the regulatory landscape affecting real estate in the Mobile area.
As we navigate the dynamic intersection of government policies and real estate, stay informed, stay engaged, and empower your real estate journey with the Mobile Area Association of REALTORS®.
City of Mobile
Mayor Sandy Stimpson’s administration partnered with the Water Institute of the Gulf and a team of local partners to develop a Resilience Assessment and Plan for the city.
The final Resilience Plan will serve as the roadmap with which to build the city’s resilience and will include details about timelines, partners, funding, and other mechanisms to support implementation.
Actions will be woven into the existing long-range plans and day-to-day work of the City and its partners so that resilience is built into everything that Mobile does.
The Second Public Planning Workshop is set for Wednesday, March 6, at the Seals Community Center from 5:30 – 8 p.m.
Gov. Kay Ivey announced awarding of nearly $150 million to go towards broadband expansion in the state.
The 66 Capital Projects Fund grants totaling $148.3 million were awarded to 16 internet service providers that will expand high-speed internet availability to homes, businesses and public institutions in portions of 48 counties.
“High-speed internet service continues to strengthen and expand across the state, and we are taking the necessary strides on this journey to achieve full broadband access for Alabama,” said Governor Ivey. “This has been a monumental task, but it is one that will pay multiple dividends for our state and its residents. Today is an exciting day as we announce these latest projects.”
Here are the projects located in the GCMLS coverage area:
• AT&T Southeast – Five grants totaling $6.97 million to expand broadband services in Franklin, Jefferson, Mobile, Morgan and Russell counties. The expansion has the potential to reach more than 1,871 households and businesses.
• Mediacom – Eight projects totaling $22.8 million to provide broadband services in parts of Baldwin, Clarke, Conecuh, Escambia, Monroe and Mobile counties. The project areas include almost 8,000 households and businesses.
• Millry Telephone Co. Inc. – One grant totaling $3.6 million to expand broadband services in parts of Washington County. The expansion has the potential to reach 988 new households and businesses.
Mobile City Council
Recent Action Taken:
Feb. 6 Meeting
• Approved to rezone recently annexed parcels in West Mobile from R-1 to B-3:
– Kings Branch – 28 Parcels
– Orchard Estates – 32 Parcels
– Cottage Hill – 88 Parcels
Feb. 14 Meeting
• Approved a modification of a previously approved planning approval for property located at 3650, 3704, 3708, and 3758 Spring Hill Avenue. The modification allows an expansion for the site on property.
• Adopted the Community and Housing Development CDBG, HOME and ESG 2024-2025 Action Plan.
• Appointed Richard Pipkins and George Hunter to the Industrial Development Board.
Feb. 20 Meeting
• Approved modification of a previously approved PUD for property located at 5041 Rangeline Crossing Drive. The modification allows for the construction of a new multi-family residential development.
• Approved contract with Harris Contracting Services for new pickeball and tennis courts at Crawford-Murphy and Stotts Parks.
– Stotts Parks: New Pickleball Courts
– Crawford-Murphy Park: New Pickleball and Tennis Courts
– Amount: $1,516,200
Feb. 27 Meeting
The City Council heard from Derek Boulware from Housing First, who provided an update on their 10th Annual 2024 Project Homeless Connect Event. During the event, Boulware said:
- 121 State ID’s were issued
- 148 people were assisted with legal matters
- 166 people were assisted with health issues
- There were 653 volunteers assisting
- 563 homeless people attended, which was 40 more than last year.
To view all of the properties which may be torn down by the city, click here.
To view all City Council Agendas and Minutes, click here.
Mobile County Commission
Recent Action Taken:
Feb. 15 Meeting
• Authorized a preliminary award in the amount of $975,388 of HOME funds to Creel Road in support of their application to Alabama Housing Finance Authority for 2024 Low Income Housing Tax Credits for a proposed affordable housing development.
• Authorized a preliminary award in the amount of $1.5 million of HOME funds to Camelia Square in support of their application to Alabama Housing Finance Authority for 2024 Low Income Housing Tax Credits for a proposed senior housing development.
• Authorized a subrecipient agreement with Legal Services Alabama for the term of February 1, 2024 through January 31, 2025, in an amount of up to $21,750.00 of Emergency Solutions Grants (ESG) Program funds to provide Rapid Re-Housing services to persons who are homeless and who live within the geographic designation of the Urban County.
• Authorized a subrecipient agreement with Infinite Opportunities for the term of February 1, 2024 through January 31, 2025, in an amount of up to $5,700.00 of Emergency Solutions Grants (ESG) Program funds to provide Rapid Re-Housing services to persons who are homeless and who live within the geographic designation of the Urban County.
• Authorized a subrecipient agreement with Housing First, Inc. for the term of February 1, 2024 through January 31, 2025, in an amount of up to $46,935.00 of Emergency Solutions Grants (ESG) Program funds to provide Rapid Re-Housing services to persons who are homeless and who live within the geographic designation of the Urban County.
• Authorized a subrecipient agreement with Legal Services Alabama for the term of February 1, 2024 through January 31, 2025, in an amount of up to $22,750.00 of Emergency Solutions Grants (ESG) Program funds to provide Homelessness Prevention services to persons who are at risk of becoming homeless and who live within the geographic designation of the Urban County.
• Authorized a subrecipient agreement with Infinite Opportunities for the term of February 1, 2024 through January 31, 2025, in an amount of up to $6,150.00 of Emergency Solutions Grants (ESG) Program funds to provide Homelessness Prevention services to persons who are homeless or at risk of becoming homeless and who live within the geographic designation of the Urban County.
• Authorized a subrecipient agreement with Penelope House for the term of February 1, 2024 through January 31, 2025, in an amount of up to $25,000.00 of Emergency Solutions Grants (ESG) Program funds to provide Emergency Shelter services to persons who are homeless or at risk of becoming homeless and who live within the geographic designation of the Urban County.
• Authorized a subrecipient agreement with Family Promise of Coastal Alabama for the term of February 1, 2024 through January 31, 2025, in an amount of up to $9,000.00 of Emergency Solutions Grants (ESG) Program funds to provide Emergency Shelter services to persons who are homeless or at risk of becoming homeless and who live within the geographic designation of the Urban County.
• Approved preliminary and final plat of Waring Oil Subdivision. (2 lots, I-10 Service Road and McDonald Road, District 3) AND preliminary and final plat of Bender Park Subdivision. (3 lots, General Road, District 3)
Feb. 26 Meeting
• Approved a donation of eight parcels of real property by The Nature Conservancy to the Mobile County Commission for the development of the Lightning Point Park located in the City of Bayou La Batre, pending legal review.
• Approved preliminary and final plat of Theodore Crossing North. (2 lots, Creel Road, District 3) AND preliminary and final plat of Sims Family Bayfront. (3 lots, Byrnewood Drive East, District 3)
• Approved preliminary plat only of Acadian Farms Subdivision, Phase One. (59 lots, Airport Boulevard, District 2)
State Updates
While the legislature has been busy, much of that activity has been focused on large ticket items, like the gambling package, a ballot harvesting prohibition, an anti-DEI bill, a school safety program, and school choice, to name a few. But bill filing numbers are ticking up, and correspondingly, committee action is picking up.
REALTOR®-Supported Property Tax Cap Bill Filed in Senate
The Senate version of a bill that caps annual increases to the assessed value to property taxes was filed. SB 110, sponsored by Sen. David Sessions (R-Grand Bay) and pushed by Lt. Gov. Will Ainsworth, would limit annual increases of a properties assessed value at 3% for residences and agricultural land, and 5% for commercial property. Included in the bill are REALTOR® requested amendments in two areas: 1) clarify that improvements, which are excluded from the cap, do not include repairs and maintenance, and 2) certain changes of ownership, like transfers between spouses or between family members for no or nominal consideration, do not result in the property losing the cap.
As a refresher, real property is taxed based on its assessed value, which is determined by multiplying the appraised or fair market value of property by a percentage set by state statute depending on the class of property. For example, residences are class III property and subject to a 10% multiplier. So, a property appraised at $100,000 has an assessed value of $10,000 ($100,000 x 10%). To determine the amount of property taxes, the assessed value is then multiplied by the applicable millage rate, which can include multiple rates (e.g., state, county, school, municipality). So, the $100,000 property with a total millage rate of 36.5 would result in property taxes of $365 ($10,000 assessed value x .0365 millage rate).
REALTOR®-Supported Squatter Removal Bill Filed
An issue of concern for owners and property managers, the removal of squatters from a dwelling is the topic of HB 182. Sponsored by Rep. Craig Lipscomb (R-Gadsden), the bill allows law enforcement to remove a squatter, or an individual not authorized to be in the dwelling without judicial involvement upon an owner or owner’s agent requests the squatter’s removal by affidavit. Of note, tenants cannot be considered as squatters, so the current laws on tenant eviction continue to apply.
Gambling Package Advances out of House
The two-bill gambling package passed a House committee and the full House of Representatives last week. As a reminder, one of the bills is a constitutional amendment that would allow gambling in Alabama, and the second bill, called enabling legislation, lays out all the laws on gambling. The constitutional amendment received 70 yay votes, over the requisite 63 for a constitutional amendment, while the enabling bill passed with 67 yay votes.
Included in the enabling legislation is REALTOR®-supported language that prohibits political contributions from those involved in the gambling industry. Intended to minimize corruption, the language remains unchanged out of the House, although amendments were made to both bills.
The package would allow a state lottery, a total of 10 casino sites (an additional 7 from the existing 3 owned by the Poarch Band of Creek Indians), sports betting, and a compact with the Poarch Band.
The Senate is expected to take up both bills in the coming weeks.
Online Auction of State Land Bank Properties
Last Tuesday, Rep. Reed Ingram (R-Montgomery) filed a REALTOR®-supported bill to allow for an online auction of properties held by the state land bank. The state land bank has a backlog of thousands of properties, received or purchased by the state when tax-delinquent property was not purchased at a tax sale. These properties can languish for years before someone purchases them though a lengthy process. HB 196 is a commonsense bill to allow the Department of Revenue Commissioner, who oversees the state land bank, to sell these properties that have been held in the state land bank for at least five years. The properties would be sold by online public auction. Selling the state’s interest in these properties to new owners will help put these properties back into their highest and best use. Revenue generated by the auction would be split equally between the state and local governments where the properties are located.
Statewide Residential Building Code Filed
A bill authorizing the establishment of a statewide residential building code was filed last week. HB 198, filed by Rep. Chip Brown (R-Mobile), is very similar to a bill filed last year, and would allow the Home Builders Licensure Board to adopt residential building codes and standards of practice. While municipalities usually adopt and enforce building codes, the unincorporated areas of a county often lack a standard building code or the county lacks the resources to inspect new builds. While adoption of the statewide code is not mandatory, the bill aims to improve the current situation by setting minimum standards if a local government adopts a building code and is a step toward establishing a mechanism for inspection of new buildings in rural areas.
Reducing Costs of HVAC Work
The Senate Fiscal Responsibility and Economic Development Committee gave a favorable report to legislation by Sen. Keith Kelly (R-Anniston) that clarifies HVAC contractors may complete basic wiring work directly related to HVAC systems without the added time and expense of having to hire an electrician.
The Alabama Electrical Contractors’ Board has sought a requirement that property owners hire electricians for all forms of maintenance no matter how routine or how skilled alternative contractors may be.
Kelly filed SB101 to prevent the misinterpretation of current law that electrical contractors incorrectly claim justifies their mandate. The bill now goes to the Senate floor for consideration.
Passage of SB101 in both chambers would cut time and costs for HVAC installations, maintenance and repairs for home and property owners, homebuilders, and other stakeholders.
Other Bills of Interest
Several other bills of interest were filed last week related to real property or property development. These include the following:
• HB 226, sponsored by Rep. Cynthia Almond (R-Tuscaloosa), would set a 30-day timeframe for appealing a final decision of a municipal zoning adjustment board.
• HB 209 would add Lake Martin to the list of water bodies covered by last year’s act that placed restrictions on wake boating and wake surfing. Sponsored by Rep. Ed Oliver (R-Dadeville), the bill would also prohibit boats from operating above idle speed within 100 feet of any shoreline, dock, pier, boathouse or other structure located on Lake Martin, Smith Lake, Lake Wedowee, or on Shoal Creek.
• HB 215 would create a permit program for shoreline owners at the coast to dredge and create living shoreline and is sponsored by Rep. Jennifer Fidler (R-Fairhope). The program would be administered by the Alabama Department of Conservation and Natural Resources.
If you have any questions about Governmental Affairs, City Council Meetings/County Commission Meetings, or voting, please reach out to Christopher Lugo, at christopher@gcmls.com