LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

March 30, 2007

TO:	Honorable Kevin Bailey, Chair, House Committee on Urban Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2175 by Deshotel (Relating to an urban land bank program in certain municipalities.), Committee Report 1st House, Substituted

No fiscal implication to the State is anticipated.

The bill would add Chapter 379E to Subtitle A of Title 12, Local Government Code, to authorize certain municipalities to establish an urban land bank program. The governing body of an applicable municipality would be authorized to adopt an urban land bank program in which the officer charged with selling real property ordered sold pursuant to foreclosure of a tax lien may sell certain eligible real property by private sale for purposes of affordable housing development as provided by the new chapter. A land bank would be established or adopted for the purpose of acquiring, holding, and transferring unimproved real property. A municipality that adopts an urban land bank program would be required to operate the program in conformance with an urban land bank plan. The bill provides for how a plan should be developed and implemented and how the program should be administered.

The bill would take effect September 1, 2007.

Local Government Impact

The fiscal impact would vary by municipality, depending on whether the municipality chooses to establish an urban land bank program and the amount of property involved.

Source Agencies:

LBB Staff:

JOB, DB