Alabama § 24-1B-5 - Purpose; Bylaws; Board of Directors; Political Activity; Audits.

§ 24-1B-5. Purpose; Bylaws; Board of Directors; Political Activity; Audits.

(a) The purpose of a community land trust is to:

(1) Promote long-term affordable housing for low-income and moderate-income families;

(2) Promote productive use of land through ground leases; and

(3) Promote investment in affordable housing for long-term community benefit.

(b) The bylaws of a community land trust shall provide all of the following:

(1) The organization is membership-based.

(2) Corporate membership is open to the general public.

(3) Membership meetings are open to the general public, including nonmembers.

(c) The board of directors shall consist of seven directors serving four-year terms. No director shall be a municipal, county, or state elected official, and no immediate family member or member of the official’s household shall be a director. If an existing director or other individual becomes an elected official, thereby disqualifying that individual or another from serving as a director, that existing director shall promptly tender his or her resignation.

(1) Three directors shall be appointed by the governing body of the organizing municipality and shall have expertise and experience in careers or activities involving real estate, property management, finance, real estate law, transit planning, residential contracting, banking, architecture, or city planning.

(2) Three directors shall be appointed by the mayor of the organizing municipality. One director shall be a professional in the finance or banking industry with experience in affordable and low-income housing, lending, finance, or tax credits for residential and commercial properties. One director shall be a registered architect, landscape architect, or city planner with experience in long-range planning and neighborhood or community master planning. One director shall be a specialist in housing-related activities with experience in developing affordable housing for low-income families and moderate-income families.

(3) One director who meets the requirements of subdivision (1) shall be appointed by the Board of Directors of the Alabama Housing Finance Authority. The appointed director may be a member of that board.

(4) The board of directors shall reflect the diversity of the community served by the community land trust to the extent practicable. No board member shall be an employee or independent contractor of the community land trust or have any immediate family member or household member who is an employee or independent contractor of the community land trust, except that the executive director shall be an ex officio member of the board of directors. A director may be removed by the appointing authority in the same manner as the original appointment. The board of directors shall adopt, review annually, and revise if necessary, a conflict of interest policy binding upon the board and staff of the community land trust.

(d)(1) The board of directors may establish, through resolutions or bylaws, provisions for director compensation, including salary, per diem, and travel expenses.

(2) The board of directors may employ staff through resolutions adopted by the board. Employees of the community land trust shall not be subject to the state Merit System. The community land trust shall not employ an elected municipal, county, or state official or any immediate family member or member of an official’s household as an employee or independent contractor.

(3) Meetings of the board of directors, including quorum requirements and participation by electronic means, shall be governed by Sections 10A-3-2.11 and 10A-3-2.13.

(4) Directors shall be immune from civil liability for reasonable acts or omissions made within the scope of their official duties, except for acts or omissions involving willful misconduct, negligence, or fraud.

(5) The community land trust shall not: (i) engage in political activity, lobbying, political consultation, or public advocacy relating to the operation, financing, or organization of the community land trust; or (ii) employ any person or engage any vendor to engage in any material part in political activity, lobbying, political consultation, or public advocacy relating to the operation, financing, or organization of the community land trust.

(6) The community land trust shall be audited annually by the Department of Examiners of Public Accounts, with the cost paid by either the sponsoring municipality or the community land trust. The audits shall be made publicly available on the sponsoring municipality’s website and promptly provided to the public upon request.