Ala. Code §§ 24-1B-1 to 24-1B-12 § 24-1B-10
Tax Exemptions.
Operative Text
(a) For real property acquired for residential purposes which is owned by a community land trust and not subject to a ground lease, the real property shall be exempted from all ad valorem taxation for a period of three years if the community land trust intends the real property to be used as affordable housing and the community land trust is either: (1) Conducting or causing the construction on the real property, including, but not limited to, construction of a new residential property, rehabilitation of an existing property, and related tasks; or (2) Attempting to transfer or lease the real property or specified interest in accordance with Section 24-1B-6. (b) Real property subject to a ground lease used as affordable housing included in any leasehold interest shall be exempt from 20 percent of all property taxes for 20 years, as long as it remains affordable housing.
Under Alabama Code §§ 24-1B-1 to 24-1B-12, § 24-1B-10, community land trusts in Alabama can receive property tax relief on land they hold for affordable housing. Property not yet under a ground lease gets a full exemption from ad valorem taxes for up to three years while the trust is actively building, rehabilitating, or working to transfer or lease the property. Once a ground lease is in place and the property is being used as affordable housing, a 20 percent exemption from property taxes applies for up to 20 years, so long as the affordable housing status is maintained.
Plain English — not legal advice.
Community land trust operators should be aware that § 24-1B-10 creates two distinct tax-benefit windows: a full ad valorem exemption during the pre-lease development or transfer phase, and a long-term 20 percent property tax reduction once a qualifying ground lease is active. Compliant operators generally document that the property is intended for affordable housing use and that active construction, rehabilitation, or transfer efforts are underway to support the three-year exemption. For the ongoing 20-year exemption, operators typically maintain records confirming the property continues to meet the affordable housing criteria required by the statute.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in community land trust homes subject to a ground lease may benefit indirectly from § 24-1B-10, which provides a 20 percent property tax exemption for up to 20 years as long as the property remains affordable housing. This tax relief is designed to help keep housing costs lower over time, and tenants can ask their community land trust about how the property's tax status is being maintained. If questions arise about whether a property qualifies or continues to qualify under this provision, tenant-rights organizations or a housing counselor familiar with Alabama law can be useful resources.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation