By Dutton H.B. No. 3263 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the authorization of an interlocal agreement between 1-3 taxing units that provides for the disposal of tax foreclosed 1-4 property at less than market value. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter A, Chapter 34, Tax Code, is amended by 1-7 adding Section 34.051 to read as follows: 1-8 Sec. 34.051. RESALE BY TAXING UNIT FOR THE PURPOSE OF URBAN 1-9 REDEVELOPMENT. (a) A municipality is authorized to resell tax 1-10 foreclosed property for less than the market value specified in the 1-11 judgment of foreclosure or less than the total amount of the 1-12 judgments against the property if consent to such a conveyance is 1-13 evidenced by an interlocal agreement between the municipality and 1-14 each taxing unit that is a party to the judgment providing, 1-15 however, that the interlocal agreement complies with the 1-16 requirements of Subsection (c). 1-17 (b) Any property sold under this section must be sold 1-18 conditioned on its use consistent with the municipality's urban 1-19 redevelopment plans within two years from the date of conveyance, 1-20 or title to the property reverts to the municipality. This two 1-21 year reverter condition does not apply if the property is sold to a 1-22 nonprofit entity that holds the property in a land bank for the 1-23 sole purpose of conveying the property for urban redevelopment that 1-24 is consistent with or part of the municipality's urban 2-1 redevelopment plans. Any property held in such a land bank shall 2-2 be exempt from ad valorem taxation and deemed to be held on behalf 2-3 of the municipality for a public purpose if the entity holding 2-4 title complies with the requirements of the interlocal agreement 2-5 provided for in Subsection (c) for use in the municipality's urban 2-6 redevelopment plans. 2-7 (c) Any taxing unit may enter into an interlocal agreement 2-8 with the municipality for the resale of tax foreclosed properties 2-9 to be used for a purpose consistent with the municipality's urban 2-10 redevelopment plans. Any such interlocal agreement should include 2-11 the following: 2-12 (1) A general statement and goals of the 2-13 municipality's urban redevelopment plans. 2-14 (2) A statement that the interlocal agreement concerns 2-15 only tax foreclosed property that is either vacant or distressed 2-16 and has a tax delinquency of six or more years. 2-17 (3) A statement that the properties will be used only 2-18 for a purpose consistent with an urban redevelopment plan that is 2-19 primarily aimed at providing housing for families of low or 2-20 moderate income. 2-21 (4) A statement that the principal goal of the 2-22 interlocal agreement is to provide an efficient mechanism for 2-23 returning deteriorated or unproductive properties to the tax rolls, 2-24 enhancing the value of ownership to the surrounding properties, and 2-25 improving the safety and quality of life in deteriorating 2-26 neighborhoods. 2-27 (5) All properties are sold subject to any right of 3-1 redemption. 3-2 (d) An action attacking the validity of a sale of property 3-3 pursuant to this section may not be instituted after the expiration 3-4 of one year after the date of the sale and then only after the 3-5 unconditional tender into the registry of the court of an amount 3-6 equal to all taxes, penalties, interest, costs, and post-judgment 3-7 interest of all judgments on which the original foreclosure sale 3-8 was based.