By Giddings, Serna, Naishtat, et al. H.B. No. 110
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to land acquired by a taxing unit through foreclosure of a
1-3 lien.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 34.015, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 34.015. Alternate Manner of Sale. (a) Notwithstanding
1-8 any other provision of this subchapter, the governing body of a
1-9 municipality [with a population of 1.5 million or more] may provide
1-10 for the manner in which land acquired by the municipality following
1-11 the [ordered sold pursuant to] foreclosure of a tax lien in favor
1-12 of the municipality may be sold if the land is sold to:
1-13 (1) a nonprofit organization that develops housing for
1-14 low income individuals and families as a primary activity to
1-15 promote community-based revitalization of the municipality; or
1-16 (2) a nonprofit corporation described by 26 U.S.C.
1-17 Section 501(c)(3) that:
1-18 (A) has been incorporated in this state for at
1-19 least one year;
1-20 (B) has a corporate purpose to develop
1-21 affordable housing that is stated in its articles of incorporation,
1-22 bylaws, or charter;
1-23 (C) has at least one-fourth of its board of
1-24 directors residing in the municipality; and
2-1 (D) engages primarily in the building, repair,
2-2 rental, or sale of housing for low income individuals and families
2-3 [charitable organization entitled to an exemption under Section
2-4 11.181 from ad valorem taxation on real property owned by the
2-5 organization].
2-6 (b) A municipality operating under this section may by
2-7 ordinance determine the individuals and families who qualify as low
2-8 income individuals and families. In adopting an ordinance under
2-9 this section, the municipality shall consider median income of
2-10 individuals and median family income in the area.
2-11 SECTION 2. Section 101.064, Civil Practice and Remedies
2-12 Code, is amended to read as follows:
2-13 Sec. 101.064. LAND ACQUIRED UNDER FORECLOSURE OF LIEN.
2-14 (a) This section applies only to a municipality [with a population
2-15 of 1.5 million or more] that acquires land at a sale following the
2-16 foreclosure of a lien held by the municipality.
2-17 (b) This chapter does not apply to a claim that:
2-18 (1) arises after the date the land was acquired and
2-19 before the date the land is sold, conveyed, or exchanged by the
2-20 municipality; and
2-21 (2) arises from:
2-22 (A) the condition of the land;
2-23 (B) a premises defect on the land; or
2-24 (C) an action committed by any person, other
2-25 than an agent or employee of the municipality, on the land.
2-26 (c) In this section, the term "land" includes any building
2-27 or improvement located on land acquired by a municipality.
3-1 SECTION 3. Section 34.05(g), Tax Code, is amended to read as
3-2 follows:
3-3 (g) Sections 263.001 and 272.001(a), Local Government Code,
3-4 do not apply to property sold by a taxing unit in a municipality
3-5 [with a population of 1.5 million or more] under this section.
3-6 SECTION 4. Section 34.05, Tax Code, is amended by adding
3-7 Subsection (h) to read as follows:
3-8 (h) A taxing unit to which property is bid in may recover
3-9 its costs of upkeep, maintenance, and environmental cleanup from
3-10 the resale proceeds without further court order.
3-11 SECTION 5. The importance of this legislation and the
3-12 crowded condition of the calendars in both houses create an
3-13 emergency and an imperative public necessity that the
3-14 constitutional rule requiring bills to be read on three several
3-15 days in each house be suspended, and this rule is hereby suspended,
3-16 and that this Act take effect and be in force from and after its
3-17 passage, and it is so enacted.