BILL ANALYSIS
H.B. 1743
By: Glaze (Cain)
State Affairs
4-21-95
Senate Committee Report (Unamended)
BACKGROUND
The concept of using court-ordered receivership as a tool for
preservation was generated as a result of the regular review of
Housing and Urban Development funded demolition and renovation
projects by the City of Tyler Preservation Board (board). A number
of structures that appeared not to be beyond repair were being
demolished due to the owner's neglect.
As a result of this concern, the board became aware of the
provisions of Section 214 et seq. of the Texas Local Government
Code relating to the appointment of a receiver in lieu of
demolition. The City of Tyler has now authorized the
implementation of the receiver statute, although no cases have been
filed under its provisions.
As part of the review of the statute, it became apparent that with
some modifications, the statute could be utilized in some cases for
the preservation of historic structures.
PURPOSE
As proposed, H.B. 1743 authorizes and sets forth the procedure for
a municipality to preserve a substandard building as historic
property, including the method for selling the property under
certain circumstances.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 214A, Local Government Code, by adding
Section 214.00111, as follows:
Sec. 214.00111. ADDITIONAL AUTHORITY TO PRESERVE SUBSTANDARD
BUILDING AS HISTORIC PROPERTY. (a) Applies this section only
to a municipality that is designated as a certified local
government by the state historic preservation officer.
(b) Provides that this section does not apply to an owner-occupied, single-family dwelling.
(c) Requires the municipal historic preservation board
(board) to review a building to determine whether the
building can be rehabilitated and designated a historic
place, landmark or property.
(d) Requires the board to submit a report to the
municipality indicating the results of a review before a
public hearing is conducted.
(e) Authorizes the municipality to proceed as provided by
Section 214.001 if the board determines that the building is
prohibited from being rehabilitated and designated as a
historic property.
(f) Prohibits the municipality from permitting the building
to be demolished for at least 90 days after the report is
submitted if the board determines that the building may be
rehabilitated and designated as historic property. Requires
the municipality to notify the owner and attempt to identify
an alternative use for the building or locate a purchaser to
rehabilitate and maintain the building. Authorizes the
municipality to appoint a receiver if the municipality is
not able to locate the owner or if the owner does not
respond within the time period.
(g) Authorizes the municipality to require the building to
be demolished after the 90-day period if the municipality is
not able to perform certain actions.
(h) Provides that an owner of a building is not liable for
penalties that accrue during the 90-day period provided for
disposition of historic property.
SECTION 2. Amends Section 214.003, Local Government Code, as
follows:
Sec. 214.003. RECEIVER. (a) Makes no changes.
(b) Makes a conforming change.
(c) Authorizes the court to appoint as a receiver for
historic property a nonprofit organization or an individual
with a demonstrated record of rehabilitating historical
buildings if the court finds that certain circumstances
exist.
(d)-(f) Redesignate existing Subsections (c)-(e).
(g) Authorizes a receiver appointed by the court to make any
repairs necessary to bring the property into compliance with
guidelines for rehabilitating historic properties
established by the secretary of the interior or the board if
the property is considered historic property under Section
214.00111.
(h) Makes a conforming change.
(i)-(k) Redesignate existing Subsections (h)-(j).
(l) Authorizes a receiver or the home-rule municipality that
filed the action under which the receiver was appointed to
petition the court to terminate the receivership and order
the sale of the property, rather than transfer ownership of
the property to the receiver.
(m) Redesignates existing Subsection (l).
(n) Authorizes the court to order the sale of the property
if the court finds that certain circumstances exist rather
than authorizing the court to award clear title to the
receiver.
(o) Requires the court to order the sale to be conducted by
the petitioner and the notice of the date and time of the
sale to be sent if the record owners and lienholders are
identified in the same manner as Chapter 51, Property Code.
Authorizes the owner to be served notice by publication if
the owner cannot be located after due diligence. Authorizes
the receiver to bid on the property at the sale. Requires
the petitioner to make a report of the sale to the court.
(p) Requires the court to confirm the sale and order a
distribution of the proceeds of the sale in a certain order.
(q) Requires any remaining sums to be paid to the owner.
Requires the court to order the remaining sums to be
deposited in an account with the district clerk's office in
the district in which the action is pending if the owner is
not identified or cannot be located and requires the clerk
to hold the funds as provided by other law.
(r) Requires the court to award fee title to the purchaser
subject to any recorded bona fide liens that were not paid
by the proceeds of the sale.
SECTION 3. Emergency clause.
Effective date: 90 days after adjournment.