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.