Alabama HB496: Class 2 municipalities, foreclosure bidding preference and notice for adjoining owners

What the bill says

An Act, Relating to Class 2 municipalities; to amend Section 11-40-62, as last amended by Act 2025-348, 2025 Regular Session, and Section 11-40-69, Code of Alabama 1975; to include adjoining homeowners as interested parties that must receive notice of municipal lien foreclosures; to allow adjoining homeowners to have bidding preference in foreclosures of municipal liens; and to make nonsubstantive, technical revisions to update the existing code language to current style.

From the enrolled text:

An Act, Relating to Class 2 municipalities; to amend Section 11-40-62, as last amended by Act 2025-348, 2025 Regular Session, and Section 11-40-69, Code of Alabama 1975; to include adjoining homeowners as interested parties that must receive notice of municipal lien foreclosures; to allow adjoining homeowners to have bidding preference in foreclosures of municipal liens; and to make nonsubstantive, technical revisions to update the existing code language to current style. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Section 11-40-62, as last amended by Act 2025-348, 2025 Regular Session, and Section 11-40-69, Code of Alabama 1975, are amended to read as follows: "§11-40-62 As used in this article, the following words and phrases have the following meanings: (1) ADJOINING OWNERS. Property owners of owner-occupied property that share a common property line or boundary with the property. (2) INTERESTED PARTY. a. Includes the following parties: 1. The person who last appears as owner of the real property in the county office of the judge of probate's property records. 2. The current mortgagee of record of the property or Page 2. The current mortgagee of record of the property or HB496 Enrolled assignee of record of the mortgagee. 3. The current holder of a beneficial interest in a deed of trust recorded against the real property. 4. A tax certificate …

Read the full official text

Sponsors

• Drummond, Barbara (D, HD-103) · primary sponsor
• Clarke, Adline (D, HD-097)
• Jones, Sam (D, HD-099)

Latest actions

1. April 9, 2026: Enacted
2. April 2, 2026: Delivered to Governor
3. April 2, 2026: Signature Requested
4. April 2, 2026: Enrolled
5. April 2, 2026: Ready to Enroll
6. April 2, 2026: Motion to Read a Third Time and Pass - Adopted Roll Call 1062
7. April 2, 2026: Third Reading in Second House
8. April 1, 2026: Read for the Second Time and placed on the Calendar
9. April 1, 2026: Reported Out of Committee Second House
10. March 31, 2026: Pending Committee Action in Second House

Votes

• Senate Roll Call #1062 (April 2, 2026): 30 yea, 0 nay, passed
• Senate Roll Call #1061 (April 2, 2026): 30 yea, 0 nay, passed
• House Roll Call #903 (March 17, 2026): 15 yea, 0 nay, passed
• House Roll Call #902 (March 17, 2026): 50 yea, 0 nay, passed
• House Roll Call #901 (March 17, 2026): 64 yea, 0 nay, passed

Common questions

What is HB496?

HB496 is a bill in the Alabama Legislature (2026 Regular Session): Class 2 municipalities, foreclosure bidding preference and notice for adjoining owners.

What does HB496 do?

In its own words: An Act, Relating to Class 2 municipalities; to amend Section 11-40-62, as last amended by Act 2025-348, 2025 Regular Session, and Section 11-40-69, Code of Alabama 1975; to include adjoining homeowners as interested parties that must receive notice of municipal lien foreclosures; to allow adjoining homeowners to have bidding preference in foreclosures of municipal liens; and to make nonsubstantive, technical revisions to update the existing code language to current style.

What is the status of HB496?

Signed into law as of April 9, 2026. Latest action: Enacted (April 9, 2026).

Who sponsored HB496?

Drummond, Barbara (D, HD-103), with 2 co-sponsors.

Where is the official record for HB496?

On the Alabama Legislature website: https://alison.legislature.state.al.us/instrument/2026RS/HB496