1-1 By: Ehrhardt (Senate Sponsor - Madla) H.B. No. 3349
1-2 (In the Senate - Received from the House May 11, 2001;
1-3 May 11, 2001, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 11, 2001, reported favorably by
1-5 the following vote: Yeas 4, Nays 0; May 11, 2001, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to providing a means by which abandoned property can be
1-10 conveyed with clear title to be used for housing for low-income
1-11 individuals or families.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Sections 29.001, 29.002, and 29.003, Property
1-14 Code, are amended to read as follows:
1-15 Sec. 29.001. APPLICATION OF CHAPTER. This chapter applies
1-16 only to real property that is not exempt from forced sale under the
1-17 constitution or laws of this state and is:
1-18 (1) received by a person as a result of the death of
1-19 another person:
1-20 (A) by inheritance;
1-21 (B) under a will;
1-22 (C) by a joint tenancy with a right of
1-23 survivorship; or
1-24 (D) by any other survivorship agreement in which
1-25 the interest of the decedent passes to a surviving beneficiary
1-26 other than an agreement between spouses for community property with
1-27 a right of survivorship; or [and]
1-28 (2) owned in part by a nonprofit organization that is
1-29 exempt from federal income tax under Section 501(a), Internal
1-30 Revenue Code of 1986, and its subsequent amendments, by being
1-31 listed as an exempt organization under Section 501(c)(3), Internal
1-32 Revenue Code of 1986, and its subsequent amendments, that:
1-33 (A) has been incorporated in this state for at
1-34 least one year;
1-35 (B) has a corporate purpose to develop
1-36 affordable housing that is stated in the articles of incorporation
1-37 or charter;
1-38 (C) has at least one-fourth of its board of
1-39 directors residing in the county in which the property is located;
1-40 and
1-41 (D) engages primarily in the building, repair,
1-42 rental, or sale of housing for low-income individuals or families
1-43 [not exempt from forced sale under the constitution or law of this
1-44 state].
1-45 Sec. 29.002. PETITION FOR FORCED SALE. (a) A person,
1-46 including a nonprofit organization, that [who] owns an undivided
1-47 interest in real property to which this chapter applies may file in
1-48 the district court in a county in which the property is located a
1-49 petition for a court order to require another owner of an undivided
1-50 interest in that property to sell the other owner's interest in the
1-51 property to the person if:
1-52 (1) the person has paid the other owner's share of ad
1-53 valorem taxes imposed on the property for any three years in a
1-54 five-year period or, in the case of a nonprofit organization, has
1-55 paid the other owner's share of ad valorem taxes imposed on the
1-56 property for any two years in a three-year period; and
1-57 (2) the other owner has not reimbursed the person for
1-58 more than half of the total amount paid by the person for the taxes
1-59 on the owner's behalf.
1-60 (b) The petition must contain:
1-61 (1) a description of the property;
1-62 (2) the name of each known owner of the property;
1-63 (3) the interest held by each known owner of the
1-64 property;
2-1 (4) the total amount paid by the petitioner for the
2-2 defendant's share of ad valorem taxes imposed on the property; and
2-3 (5) if applicable, the amount paid by the defendant to
2-4 the petitioner to reimburse the petitioner for paying the
2-5 defendant's share of ad valorem taxes imposed on the property.
2-6 Sec. 29.003. HEARING ON PETITION FOR FORCED SALE. At a
2-7 hearing on a petition filed under Section 29.002, the petitioner
2-8 must prove by clear and convincing evidence that:
2-9 (1) the petitioner has paid the defendant's share of
2-10 ad valorem taxes imposed on the property that is the subject of the
2-11 petition for any three years in a five-year period or, in the case
2-12 of a nonprofit organization, the petitioner has paid the
2-13 defendant's share of ad valorem taxes imposed on the property that
2-14 is the subject of the petition for any two years in a three-year
2-15 period;
2-16 (2) before the date on which the petition was filed
2-17 the petitioner made a demand that the defendant reimburse the
2-18 petitioner for the amount of the defendant's share of ad valorem
2-19 taxes imposed on the property paid by the petitioner; and
2-20 (3) the defendant has not reimbursed the petitioner
2-21 more than half of the amount of money the petitioner paid on the
2-22 defendant's behalf for the defendant's share of ad valorem taxes
2-23 imposed on the property.
2-24 SECTION 2. Chapter 29, Property Code, is amended by adding
2-25 Section 29.0035 to read as follows:
2-26 Sec. 29.0035. DEMAND TO UNKNOWN DEFENDANT. If the address or
2-27 identity of the defendant is unknown, the demand of the petitioner
2-28 for reimbursement from the defendant required by Section 29.003(2)
2-29 may be met by publication in a newspaper in the county in which the
2-30 property is located once each week for four consecutive weeks, with
2-31 the final publication occurring not later than the 30th day before
2-32 the date on which the petition is filed. The publication must
2-33 contain the demand for reimbursement and:
2-34 (1) a general description of the property involved;
2-35 (2) the legal description of the property according to
2-36 the survey of the property, including the number of the lot and
2-37 block or any other plat description that may be of record if the
2-38 property is located in a municipality;
2-39 (3) the county in which the property is located;
2-40 (4) the interest of the defendant; and
2-41 (5) the name and address of the petitioner.
2-42 SECTION 3. This Act takes effect immediately if it receives
2-43 a vote of two-thirds of all the members elected to each house, as
2-44 provided by Section 39, Article III, Texas Constitution. If this
2-45 Act does not receive the vote necessary for immediate effect, this
2-46 Act takes effect September 1, 2001.
2-47 * * * * *