Ala. Code §§ 24-1B-1 to 24-1B-12 § 24-1B-9
Ground Lease Terms and Requirements.
Operative Text
(a) A ground lease shall have a maximum term of 99 years and may be renewed under conditions set forth in the ground lease. (b) A ground lease shall include, but is not limited to, the following provisions: (1) The term and, if applicable, renewability of the ground lease. (2) The resale-restricted formula. (3) A community land trust’s preemptive purchase option right. (4) An organizing municipality’s preemptive purchase option right. (5) Any term that, if violated, becomes grounds for cancelling the ground lease, subject to any superior rights of a mortgagee or other holder of an interest in the real property, and in accordance with the provisions of Section 24-1B-8(d). (6) Occupancy requirements consistent with the basis used to determine whether the specified interest is affordable housing. (7) The amount of the ground lease fee and the conditions under which the fee may be increased. (c) A community land trust shall record any ground lease in its entirety.
Section 24-1B-9 of the Alabama Code governs the structure and content of ground leases used in community land trust arrangements. Under this provision, a ground lease cannot exceed 99 years in duration, though it may be renewed according to terms written into the lease itself. The provision also mandates that every ground lease include specific elements—such as a resale-restricted pricing formula, preemptive purchase options for both the community land trust and the organizing municipality, occupancy requirements, ground lease fee terms, and conditions that could trigger cancellation—and that the full lease be recorded in its entirety.
Plain English — not legal advice.
Community land trusts and property managers operating under Alabama Code § 24-1B-9 generally ensure that every ground lease they execute contains all seven enumerated provisions, including a clearly defined resale-restricted formula and preemptive purchase option rights for both the trust and the organizing municipality. Compliant operators also keep the ground lease term at or below 99 years and document any renewal conditions explicitly within the lease. Recording the complete ground lease—not a summary or memorandum—is a standard practice required under subsection (c) of this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
If you occupy a home subject to a community land trust ground lease in Alabama, Section 24-1B-9 establishes that your lease must contain certain protections and disclosures, including the resale formula that affects what you can charge if you sell, the ground lease fee and how it can change, and the occupancy requirements tied to the property's affordable-housing status. Understanding these required provisions can help you identify whether your lease complies with the statutory minimums. Tenant-rights organizations and legal aid services familiar with community land trust arrangements can help you review whether a ground lease meets the requirements set out in § 24-1B-9.
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