Homewood council gives first reading to $20 residential permit fee to fund construction trade academy

The Homewood City Council held the first reading May 18 of an ordinance that would impose an additional $20 fee on each principal building permit issued for new detached single-family dwellings, with proceeds remitted to the Alabama Construction Trade Academy Fund.

City attorney Mr. Merrill read the ordinance text, citing Act 2025-398 as the authorizing state law and describing program and reporting requirements. The ordinance would apply only to principal permits issued for new detached single-family homes; fees would be collected before permit issuance and remitted in accordance with conditions stated in the ordinance.

The proposed ordinance requires the fund administrator to provide the City Council by June 1 each year an annual program report (including completion-to-employment rates and 6- and 12-month employment tracking for graduates) and an audited financial statement prepared by an independent certified public accountant. The ordinance also includes an automatic cessation clause: collections would stop if the fund administrator ceases to operate or accept funds, and the city may discontinue remittance after 90 days’ written notice and a majority vote.

Mayor Jennifer Andress and council members emphasized the ordinance’s purpose as workforce development for residential construction amid concerns about labor shortages and housing costs. Council did not take a final vote; the item was carried to the June 8 meeting for a scheduled roll-call vote on final adoption.

If adopted, the fee would take effect on the date of adoption; the ordinance text also allows the city manager to designate staff to implement administrative procedures.

Next steps: council will hold a roll-call vote on June 8. The ordinance text as read cites Act 2025-398 as the enabling authority and contains specific reporting and audit expectations for the fund administrator.