Alabama § 24-1B-6 - Powers and Duties.

§ 24-1B-6. Powers and Duties.

(a) Subject to the restrictions of this chapter, a community land trust shall have all the powers permitted to a nonprofit corporation under Chapter 3 of Title 10A.

(b) Notwithstanding subsection (a), the powers and purposes of the community land trust include, but are not limited to:

(1) Acquiring real property with the intention that the property will be used for residential purposes;

(2) Leasing affordable housing;

(3) Constructing or providing for the construction of improvements to real property to constitute affordable housing;

(4) Entering into ground leases with qualified lessees and any other agreements or real property transactions related to the purposes of the community land trust;

(5) Engaging in other activities related to the sale, leasing, management, maintenance, and preservation of properties owned by the community land trust. This includes mortgaging the trust’s interest in real property, or entering into or subordinating its rights to third parties through land use restrictive covenants or similar instruments concerning affordable housing;

(6) Accepting funding from the organizing municipality and any other source authorized under Chapter 3 of Title 10A;

(7) Subordinating the community land trust’s interest in ground leases to parties financing affordable housing on the related property, by entering into lease addendum with or agreements with financing parties, agreeing not to terminate a ground lease except as mutually agreed with such parties;

(8) Performing any other act or exercising any other power that is consistent with or incidental to this chapter, or the operation or administration of the community land trust;

(9) Providing pre-purchase counseling and homeownership education to prospective tenants and qualifying owners related to the community land trust’s housing programs, in accordance with HUD-approved housing counseling standards;

(10) Conducting outreach, distributing public information, and facilitating communications about the community land trust’s housing programs, eligibility criteria, and application procedures; and

(11) Working with and providing technical support to lenders, nonprofit organizations, and other housing entities to promote the community land trust’s affordable housing goals.

(c) In conducting its activities, the community land trust shall use good faith efforts to:

(1) Use competitive, transparent processes to offer for lease real property or improvements on real property; and

(2) No later than May 1 of each year, publish a report that includes: (i) activities for that year; (ii) the status of any real property owned by the trust during the year; (iii) details of contracts worth fifty thousand dollars ($50,000) or more related to real property interests; (iv) sources of funding for the trust; (v) a list of employees, board members, and independent contractors along with their compensation; and (vi) any other material matters requested by the Alabama Housing Finance Authority. This report shall be posted on the sponsoring municipality’s website and sent to the Alabama Housing Finance Authority.

(d) The community land trust shall promptly post selection criteria, scoring methods, and eligibility requirements when using competitive processes for affordable housing eligibility. When merit-based decisions are not suitable or when there is over-subscription due to high demand, the trust shall adopt lottery or wait-list processes as appropriate, ensuring the processes prohibit discrimination and favoritism. Sole-source awards or other noncompetitive contracts or grants awarded to a single developer, contractor, or entity should be avoided, and if used, must be documented, justified in writing, and approved by the board of directors.