Housing (Homeownership)

This bill proposes adding a constitutional amendment to allow Perry County residents aged 65 or older to claim a senior property tax exemption on their primary homes. The exemption would freeze the assessed value of the property for tax purposes, protecting owners from future property value increases while they continue to live there. To qualify, homeowners must have lived in the property as their main residence for at least five years before the tax year they first claim the exemption, and they must apply in writing between October 1 and December 31. The exemption applies only to single-family owner-occupied homes and does not prevent the property from being subject to regular millage rate changes or taxes on any new additions made after claiming the exemption.

This bill requires real estate wholesalers and unsolicited property solicitors in Alabama to obtain a license from the Alabama Real Estate Commission and provide specific written disclosures to sellers and buyers about the nature of their transactions. The law defines real estate wholesaling as a practice where a buyer contracts with a homeowner to purchase a property and then assigns that interest to another buyer for a fee, requiring clear statements that the wholesaler does not own the property and intends to market or assign the interest. Both the Alabama Real Estate Commission and the Alabama Securities Commission will have shared authority to enforce these rules, with violations potentially resulting in fines, penalties, and rescission of certain contracts. The legislation specifically targets single-family residential properties and aims to increase transparency in transactions that could otherwise harm vulnerable homeowners.

This bill requires Alabama tax officials to issue a "tentative certificate" to disabled veterans with a 100% VA disability rating who provide proof of their rating, a home purchase agreement, and an affidavit confirming the property will be their primary residence. It prohibits lenders and settlement agents from including homestead property taxes in these veterans' debt-to-income ratio calculations when processing mortgage applications. The certificate allows eligible veterans - who already qualify for homestead tax exemptions under existing law (Sections 40-9-19/21) - to avoid having their property tax burden counted toward loan eligibility. This change directly affects disabled veterans with 100% VA disability ratings seeking home loans in Alabama.

HB 308 proposes a constitutional amendment to allow Mobile County residents aged 65 or older to claim a property tax exemption on their primary residence. To qualify, homeowners must own a single-family, owner-occupied home used as their principal residence for at least five years before claiming the exemption. The exemption freezes the property’s assessed value from the year prior to claiming (effective October 1, 2027), while requiring annual renewal through the Mobile County Revenue Commissioner by December 31 each year. This change would directly affect Mobile County seniors meeting the age and residency criteria, but requires voter approval to become part of Alabama’s constitution.