April 9, 2026 - MONTGOMERY, AL – Alabama Governor Kay Ivey (R) has signed Rep. Barbara Drummond's (D-Mobile) two bills, HB496 and HB529. Both bill are aimed at preventing urban blight.
"In urban areas where property becomes abandoned or neglected, it often leads to a host of problems including higher crime rates and risks to public safety," said Rep. Drummond. "Not only that, they become an eyesore and detract from the beauty of our neighborhoods. I'm grateful to all who supported this important legislation because I believe it will have a significant and positive impact for everyone in the community."
Rep. Drummond serves as Chair for the Alabama House Democratic Caucus.
HB496 (Act#2026-407) ensures that adjoining homeowners receive notice of a municipal lien and have bidding preference if that property undergoes foreclosure.
HB496 updates Alabama law for Class 2 municipalities-primarily the City of Mobile-by expanding who must be notified when a property faces foreclosure for unpaid municipal code liens. The bill adds adjoining homeowners to the list of "interested parties," ensuring neighbors receive notice before a foreclosure occurs. It also gives those adjoining homeowners a bidding preference: they may submit bids before a public auction, and if any qualifying neighbor bids, the city must accept the highest adjoining‑owner bid and cancel the auction. The bill also updates definitions, clarifies lien and tax payoff procedures, and makes technical, nonsubstantive revisions to modernize the code language. The act takes effect October 1, 2026.
HB529 (Act#2026-361) revises the foreclosure process and shortens the time periods for proceeding foreclosure sales, executing foreclosure deeds and filing foreclosure reports.
HB529 makes several procedural changes to how Class 2 municipalities-primarily the City of Mobile-carry out judicial in rem foreclosures on properties with unpaid municipal code liens. The bill removes the requirement that the city notify all state and local taxing authorities before filing a foreclosure petition, limiting notice only to the county's ad valorem tax collector. It also eliminates the mandate to use specific statutory language for foreclosure petitions and deeds, allowing the municipality to adopt its own locally approved forms.
HB529 shortens multiple timelines in the foreclosure process. A foreclosure sale may now occur 30 days after the court order instead of 45, and the circuit court must execute the foreclosure deed within 30 days rather than 90. The municipality must also file its foreclosure report within 30 days instead of 90. These changes significantly accelerate the overall process.
The bill also updates several code sections to modernize language, clarify notice requirements, and reaffirm procedures for identifying interested parties, publishing notices, and distributing sale proceeds. Overall, HB529 streamlines Mobile's foreclosure system, reduces delays, and grants the city more administrative flexibility. The act takes effect October 1, 2026.
Thursday was the last day of the 2026 Alabama regular legislative session.
Rep. Drummond recently ran for the position of Mayor of Mobile.
(A.I. contributed to this report.)
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