§ 24-9-10 — Incorporation of Local Authority

(a) If the number of tax delinquent properties in a municipality exceeds 100, then the governing body of a municipality may adopt a resolution declaring that it is wise, expedient, and necessary that a local authority be formed by the municipality by the filing for record of a certificate of incorporation in accordance with the provisions of subsection (c).
(b) If the number of tax delinquent properties in a municipality exceeds 100, then the governing body of a county may adopt a resolution declaring that it is wise, expedient, and necessary that a local authority be formed by the county by the filing for record of a certificate of incorporation in accordance with the provisions of subsection (c).
(c) Upon the adoption of the authorizing resolution, the municipality or county, as the case may be, shall proceed to incorporate the local authority by filing for record in the office of the judge of probate of the county a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner herein provided. The certificate of incorporation of the local authority shall state all of the following:
(1) The name of the local unit of government forming the local authority.
(2) The name of the local authority.
(3) The size of the initial governing body of the local authority, which shall be composed of an odd number of members, but not less than five.
(4) The qualifications, method of selection, and terms of office of the initial board members.
(5) A method for the adoption of bylaws by the governing body of the local authority.
(6) A method for the distribution of proceeds from the activities of the local authority.
(7) A method for the dissolution of the local authority.
(8) Any other matters considered advisable by the local unit of government, consistent with Act 2013-249.
(d) Following incorporation, a local authority may enter into an intergovernmental agreement with the authority providing for the transfer to the local authority of any property held by the authority which is located within the corporate limits of the municipality or the boundary of the county which created the land bank.
(e) A local authority shall have all of the powers of the authority as set forth in this chapter. In addition, a local authority shall have the following powers:
(1) Without the approval of a local unit of government in which property held by the authority is located, control, hold, manage, maintain, operate, repair, lease as lessor, secure, prevent the waste or deterioration of, demolish, and take all other actions necessary to preserve the value of the property it holds or owns. An authority may take or perform the following actions with respect to property held or owned by the authority:
a. Grant or acquire a license, easement, or option with respect to property as the authority determines is reasonably necessary to achieve the purposes of this chapter.
b. Fix, charge, and collect rents, fees, and charges for use of property under the control of the authority or for services provided by the authority.
c. Pay any tax or special assessment due on property acquired or owned by the authority.
d. Take any action, provide any notice, or institute any proceeding required to clear or quiet title to property held by the authority in order to establish ownership by and vest title to property in the authority, including, but not limited to, a quiet title and foreclosure action pursuant to Section 24-9-8.
e. Remediate environmental contamination on any property held by the authority.
(2) Enter into an intergovernmental agreement with a municipality or county providing for one or more of the following:
a. The conveyance to the authority of tax delinquent property held by the municipality or county for title clearance, including, but not limited to, a quiet title and foreclosure action under Section 24-9-8.
b. The acquisition and title clearance of property by the authority of property to be conveyed by the authority to the municipality or county or another entity pursuant to the agreement between the authority and the municipality or county.
(f) A local unit of government and any agency or department of such local unit of government may do one or more of the following:
(1) Anything necessary or convenient to aid a local authority in fulfilling its purposes under Act 2013-249.
(2) Lend, grant, transfer, appropriate, or contribute funds to a local authority in furtherance of its purposes.
(3) Lend, grant, transfer, or convey funds to a local authority that are received from the federal government or this state or from any nongovernmental entity in aid of the purposes of Act 2013-249.
(g) In the event a county creates a local authority, the local authority may acquire real property that has been tax delinquent for three or more years only in those portions of the county located outside of the geographical boundaries of any other local authority created by any municipality located partially or entirely within the county. The Land Bank Authority may acquire real property that has been tax delinquent for three or more years only in those portions of the state located outside of the geographical boundaries of any local authority created by any municipality or county.
(h) Any local authority formed by a municipality or county pursuant to this section shall continue to exist in accordance with its articles of incorporation and this section in the event that the number of tax delinquent properties in the local jurisdiction forming the authority subsequently decreases to 100 or less.
(i) Any local authority formed by a municipality or county pursuant to this section shall permit the Alabama Department of Examiners of Public Accounts to perform an audit upon request by the department. The department shall assess the cost of the audit against the local authority.

Legislative History

(Act 2013-249, p. 610, §2; Act 2021-345, §1.)