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Bill

HB 401

Relating to Alabama Housing Trust Fund; mortgage recording fee increase

2026 Regular Session Introduced by Kelvin Datcher

Increases Alabama's mortgage recording fee to generate revenue for the state's Housing Trust Fund, potentially raising homebuying costs while funding affordable housing programs.

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Bill Summary · HB 401

Legislative bill overview

HB 401 proposes to increase the mortgage recording fee in Alabama and direct the additional revenue toward the Alabama Housing Trust Fund. The bill aims to generate dedicated funding for affordable housing initiatives by imposing higher fees on mortgage transactions recorded in the state.

Why is this important

Mortgage recording fees are transaction costs paid when properties change hands, affecting both homebuyers and real estate markets. Increasing these fees would raise revenue for affordable housing but could potentially increase closing costs for buyers, particularly impacting first-time homebuyers and lower-income purchasers seeking affordable units.

Potential points of contention

  • Housing affordability paradox: While the fund supports affordable housing, higher recording fees increase costs for the very buyers the program aims to help
  • Real estate market impact: Increased transaction costs could reduce property sales volume and economic activity in the real estate sector
  • Fee burden distribution: Questions about whether this is an equitable funding mechanism or disproportionately affects certain buyer demographics and geographic areas

Compiled from official sources — confirm details with the bill’s official record.

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