By Puente H.B. No. 2078
74R6342 DRH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sale or lease of property by municipalities,
1-3 counties, or other political subdivisions.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 272.001(b), (c), (f), and (g), Local
1-6 Government Code, are amended to read as follows:
1-7 (b) The notice and bidding requirements of Subsection (a) do
1-8 not apply to the types of land and real property interests
1-9 described by this subsection and owned by a political subdivision.
1-10 The land and those interests described by this subsection may not
1-11 be conveyed, sold, or exchanged for less than the fair market value
1-12 of the land or interest unless the conveyance, sale, or exchange is
1-13 with one or more abutting property owners who own the underlying
1-14 fee simple. The fair market value is determined by an appraisal
1-15 obtained by the political subdivision that owns the land or
1-16 interest or, in the case of land or an interest owned by a
1-17 home-rule municipality, the fair market value may be determined by
1-18 the price obtained by the municipality at a public auction for
1-19 which notice to the general public is published in the manner
1-20 described by Subsection (a). The notice of the auction must
1-21 include, instead of the content required by Subsection (a), a
1-22 description of the land, including its location, the date, time,
1-23 and location of the auction, and the procedures to be followed at
1-24 the auction. The appraisal or public auction price is conclusive
2-1 of the fair market value of the land or interest, regardless of any
2-2 contrary provision of a home-rule charter. This subsection applies
2-3 to:
2-4 (1) narrow strips of land, or land that because of its
2-5 shape, lack of access to public roads, or small area cannot be used
2-6 independently under its current zoning or under applicable
2-7 subdivision or other development control ordinances;
2-8 (2) streets or alleys, owned in fee or used by
2-9 easement;
2-10 (3) an easement that the political subdivision plans
2-11 to abandon <for which one or more abutting property owners own the
2-12 underlying fee simple>;
2-13 (4) land or a real property interest originally
2-14 acquired for streets, rights-of-way, or easements that the
2-15 political subdivision chooses to exchange for other land to be used
2-16 for streets, rights-of-way, <or> easements, or other public
2-17 purposes, including transactions partly for cash;
2-18 (5) land that the political subdivision wants to have
2-19 developed by contract with an independent foundation;
2-20 (6) a real property interest conveyed to a
2-21 governmental entity that has the power of eminent domain; or
2-22 (7) a municipality's land that is located in a
2-23 reinvestment zone designated as provided by law and that the
2-24 municipality desires to have developed under a project plan adopted
2-25 by the municipality for the zone.
2-26 (c) The land or interests described by Subsections (b)(1),
2-27 (2), and (3) may be sold to abutting property owners in the same
3-1 subdivision of land <proportion to their abutting ownership, and
3-2 the division between owners must be made in an equitable manner>.
3-3 (f) The fair market value of land, an easement, or other
3-4 real property interest <to be dedicated or conveyed by plat or deed
3-5 to a political subdivision> in an exchange <for land, an easement,
3-6 or other real property interest as> authorized by Subsection (b)(4)
3-7 is conclusively determined by an appraisal obtained by the
3-8 political subdivision <to which the land, easement, or other
3-9 interest is to be dedicated or conveyed>. The cost of any streets,
3-10 utilities, or other improvements constructed on the affected land
3-11 or to be constructed by an entity other than the political
3-12 subdivision on the affected land may be considered in determining
3-13 that fair market value.
3-14 (g) A political subdivision may acquire or assemble land or
3-15 real property interest, except by condemnation, and sell, exchange,
3-16 or otherwise convey the land or interests to an entity for the
3-17 development of low-income or moderate-income housing. The
3-18 municipality shall determine the terms and conditions of the
3-19 transactions so as to effectuate and maintain the public purpose.
3-20 If conveyance of land under this subsection serves a public
3-21 purpose, the land may be conveyed for less than its fair market
3-22 value. To receive a conveyance under this subsection, the entity
3-23 must be an individual, corporation, partnership, or other legal
3-24 entity that conducts significant activities in the provision of
3-25 decent, affordable housing to low-income and moderate-income
3-26 persons, as determined by the political subdivision.
3-27 SECTION 2. This Act takes effect September 1, 1995.
4-1 SECTION 3. The importance of this legislation and the
4-2 crowded condition of the calendars in both houses create an
4-3 emergency and an imperative public necessity that the
4-4 constitutional rule requiring bills to be read on three several
4-5 days in each house be suspended, and this rule is hereby suspended.