Alabama Exempts Community Land Trusts Property from Property Tax

The Alabama Legislature enacted House Bill 404, authorizing Class 1 municipalities to establish nonprofit community land trusts that can acquire and lease real property to qualified low-income and moderate-income families through 99-year ground leases for affordable housing. The law provides property tax exemptions, including a three-year full exemption for undeveloped trust properties and a 20 percent tax reduction for 20 years on leased properties used as affordable housing. The law takes effect on Oct. 1. [H.B. 404, enacted 04/17/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.