HB 496 Alabama House · 2026 Regular Session

Class 2 municipalities, foreclosure bidding preference and notice for adjoining owners

HB 496 requires Class 2 municipalities (smaller Alabama cities/towns) to notify neighboring homeowners when foreclosing on properties for unpaid code violations (like unsafe housing). It adds "adjoining owners" to the list of parties who must receive foreclosure notices and grants them the right to bid on the property before public auction, with bidding preference over other bidders. This applies specifically to municipal liens from code enforcement, not tax foreclosures, and updates existing code language to clarify these requirements. The bill directly affects adjacent property owners in communities governed by Class 2 municipal codes and changes how foreclosure notices and bidding processes operate.

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

House Passage

Mar 2026

Senate Passage

Apr 2026

Signed into Law

Apr 2026

Introduced Feb 24, 2026 Signed Apr 9, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Introduced → Engrossed · 3 edits · Apr 2, 2026

MINOR

The engrossed version broadens the definition of 'owner occupied' property to include Section 40-9-19 (the general homestead exemption) alongside the previously listed specific exemptions (Sections 40-9-19.1, 40-9-20, and 40-9-21). This change applies both to the definition itself and to the eligibility requirement for adjoining owners bidding on foreclosed properties, meaning more homeowners will qualify for foreclosure notice and bidding preference protections.

DEFINITION

The 'OWNER OCCUPIED' definition now includes Section 40-9-19 (general homestead exemption) in addition to Sections 40-9-19.1, 40-9-20, and 40-9-21, broadening which properties qualify for the bill's protections.

The 'OWNER OCCUPIED' definition's second prong changed from 'eligible for a homestead exemption' to 'eligible for an exemption under these sections,' aligning the language with the expanded list of qualifying tax exemptions.

ELIGIBILITY

The adjoining owner bidding requirement in Section 11-40-69(b) now references Sections 40-9-19, 40-9-19.1, 40-9-20, or 40-9-21 (previously omitted 40-9-19), expanding which adjoining homeowners can submit bids before a public auction.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 2, 2026

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 1062

upper

Apr 1, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Mar 31, 2026

Upper · Passed

Pending Committee Action in Second House (Mobile County Legislation)

upper

Mar 17, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 903

lower

Mar 17, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 902

lower

Mar 17, 2026

Introduced

Mobile County Legislation Engrossed Substitute Offered (Mobile County Legislation)

lower

Mar 11, 2026

Lower · Passed

Reported Out of Committee House of Origin (Mobile County Legislation)

lower

Feb 24, 2026

Lower · Passed

Pending Committee Action in House of Origin (Mobile County Legislation)

lower

1 primary · 0 co-sponsors