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. Chapter 34, Subchapter A., Tax Code, is amended 1-7 by adding Section 34.051 to read as follows: 1-8 SUBCHAPTER A. TAX SALES 1-9 Sec. 34.051. RESALE BY TAXING UNIT FOR THE PURPOSE OF URBAN 1-10 REDEVELOPMENT. (a) A municipality is authorized to resell tax 1-11 foreclosed property for less than the market value specified in the 1-12 judgment of foreclosure or less than the total amount of the 1-13 judgments against the property if consent to such a conveyance is 1-14 evidenced by an interlocal agreement between the municipality and 1-15 each taxing unit that is a party to the judgment providing, 1-16 however, that the interlocal agreement complies with the 1-17 requirements of subsection (c). 1-18 (b) Any property sold under this section must be sold 1-19 conditioned on its use consistent with the municipality's urban 1-20 redevelopment plans within two years from the date of conveyance or 1-21 title to the property reverts to the municipality. This two year 1-22 reverter condition does not apply if the property is sold to a 1-23 non-profit entity that holds the property in a land bank for the 1-24 sole purpose of conveying the property for urban redevelopment that 2-1 is consistent with or part of the municipality's urban 2-2 redevelopment plans. Any property held in such a land bank shall 2-3 be exempt from ad valorem taxation and deemed to be held on behalf 2-4 of the municipality for a public purpose if the entity holding 2-5 title complies with the requirements of the interlocal agreement 2-6 provided for in subsection (c) for use in the municipality's urban 2-7 redevelopment plans. 2-8 (c) Any taxing unit may enter into an interlocal agreement 2-9 with the municipality for the resale of tax foreclosed properties 2-10 to be used for a purpose consistent with the municipality's urban 2-11 redevelopment plans. Any such interlocal agreement should include 2-12 the following: 2-13 (1) A general statement and goals of the 2-14 municipality's urban redevelopment plans. 2-15 (2) A statement that the interlocal agreement concerns 2-16 only tax foreclosed property that is either vacant or distressed 2-17 and has a tax delinquency of six or more years. 2-18 (3) A statement that the properties will be used only 2-19 for a purpose consistent with an urban redevelopment plan that is 2-20 primarily aimed at providing housing for families of low or 2-21 moderate income. 2-22 (4) A statement that the principal goal of the 2-23 interlocal agreement is to provide an efficient mechanism for 2-24 returning deteriorated or unproductive properties to the tax rolls, 2-25 enhancing the value of ownership to the surrounding properties and 2-26 improving the safety and quality of life in deteriorating 2-27 neighborhoods. 3-1 (5) All properties are sold subject to any right of 3-2 redemption. 3-3 (d) An action attacking the validity of a sale of property 3-4 pursuant to this section may not be instituted after the expiration 3-5 of one year after the date of the sale and then only after the 3-6 unconditional tender into the registry of the court of an amount 3-7 equal to all taxes, penalties, interest, costs and post judgment 3-8 interest of all judgments on which the original foreclosure sale 3-9 was based.