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A BILL TO BE ENTITLED
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AN ACT
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relating to the urban land bank demonstration program in certain |
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municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 379C.008, Local Government Code, is |
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amended by amending Subsection (a) and adding Subsection (a-1) to |
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read as follows: |
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(a) Notwithstanding any other law and except as provided by |
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Subsection (f), property that is ordered sold pursuant to |
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foreclosure of a tax lien may be sold in a private sale to a land |
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bank by the officer charged with the sale of the property without |
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first offering the property for sale as otherwise provided by |
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Section 34.01, Tax Code, if: |
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(1) the market value of the property as specified in |
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the judgment of foreclosure is less than the total amount due under |
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the judgment, including all taxes, penalties, and interest, plus |
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the value of nontax liens held by a taxing unit and awarded by the |
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judgment, court costs, and the cost of the sale; |
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(2) the property is not improved with a habitable |
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building or buildings or an uninhabitable building or buildings |
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that are occupied as a residence by an owner or tenant who is |
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legally entitled to occupy the building or buildings; |
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(3) there are delinquent taxes on the property for a |
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total of at least five years; and |
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(4) the municipality has executed with the other |
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taxing units that are parties to the tax suit an interlocal |
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agreement that enables those units to agree to participate in the |
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program while retaining the right to withhold consent to the sale of |
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specific properties to the land bank. |
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(a-1) The property may be sold to a land bank, regardless of |
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current zoning, and on development may be zoned for more than one |
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use that must include residential housing in accordance with this |
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chapter, provided that the requirements of Subsection (a) are |
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satisfied. |
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SECTION 2. Section 379C.009, Local Government Code, is |
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amended by amending Subsections (a), (b), and (d) and adding |
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Subsection (a-1) to read as follows: |
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(a) Except as provided by Subsection (a-1), each [Each] |
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subsequent resale of property acquired by a land bank under this |
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chapter must comply with the conditions of this section. |
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(a-1) Notwithstanding any other law, this section does not |
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apply to property sold to an eligible adjacent property owner under |
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Section 379C.0106. |
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(b) The land bank must sell a property to a qualified |
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participating developer within the four-year [three-year] period |
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following the date of acquisition for the purpose of construction |
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of affordable housing for sale or rent to low income households. If |
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after four [three] years a qualified participating developer has |
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not purchased the property, the property shall be transferred from |
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the land bank to the taxing units who were parties to the judgment |
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for disposition as otherwise allowed under the law. |
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(d) The deed conveying a property sold by the land bank must |
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include a right of reverter so that if the qualified participating |
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developer does not apply for a construction permit and close on any |
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construction financing within the three-year [two-year] period |
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following the date of the conveyance of the property from the land |
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bank to the qualified participating developer, the property will |
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revert to the land bank for subsequent resale in accordance with |
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this chapter [to another qualified participating developer] or |
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conveyance to the taxing units who were parties to the judgment for |
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disposition as otherwise allowed under the law. If the property is |
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replatted under Section 379C.0107, the right of reverter applies to |
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the entire property as replatted. |
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SECTION 3. Section 379C.010(a), Local Government Code, is |
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amended to read as follows: |
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(a) The land bank shall impose deed restrictions on property |
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sold to qualified participating developers requiring the |
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development and sale, [or] rental, or lease-purchase of the |
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property to low income households. |
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SECTION 4. Chapter 379C, Local Government Code, is amended |
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by adding Section 379C.0105 to read as follows: |
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Sec. 379C.0105. LOT EXCHANGE PERMITTED. (a) |
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Notwithstanding Section 379C.010, the land bank may permit a |
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qualified participating developer to exchange a property purchased |
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from the land bank with any other property owned by the developer |
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if: |
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(1) the developer agrees to construct on the other |
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property affordable housing for low income households as provided |
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by this chapter; and |
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(2) the other property will be located in: |
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(A) a planned development incorporating the |
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property originally purchased from the land bank; or |
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(B) another location as approved by the land |
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bank. |
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(b) The land bank shall adjust the deed restrictions under |
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Section 379C.010 for each of the properties exchanged by the |
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developer under this section. |
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SECTION 5. Chapter 379C, Local Government Code, is amended |
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by adding Section 379C.0106 to read as follows: |
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Sec. 379C.0106. PROPERTY DETERMINED TO BE INAPPROPRIATE FOR |
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RESIDENTIAL DEVELOPMENT: RIGHT OF FIRST REFUSAL. (a) In this |
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section, "eligible adjacent property owner" means a person who: |
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(1) owns property located adjacent to property owned |
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by the land bank; |
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(2) has owned the adjacent property and continuously |
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occupied that property as a primary residence for the two-year |
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period preceding the date of the sale; and |
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(3) satisfies eligibility requirements adopted by the |
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land bank. |
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(b) Notwithstanding any other right of first refusal |
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granted under this chapter, if the land bank determines that a |
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property owned by the land bank is not appropriate for residential |
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development, the land bank first shall offer the property for sale |
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to an eligible adjacent property owner according to terms and |
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conditions developed by the land bank that are consistent with this |
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chapter. |
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(c) The land bank shall sell the property to an eligible |
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adjacent property owner, at whichever value is lower: |
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(1) the fair market value for the property as |
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determined by the appraisal district in which the property is |
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located; or |
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(2) the sales price recorded in the annual plan. |
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(d) Except as provided by Subsection (e), an adjacent |
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property owner that purchases property under this section may not |
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lease, sell, or transfer that property to another person before the |
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third anniversary of the date the adjacent property owner purchased |
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that property from the land bank. |
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(e) Subsection (d) does not apply to the transfer of |
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property purchased under this section if the transfer: |
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(1) is made according to a policy adopted by the land |
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bank; and |
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(2) is made to a family member of the eligible adjacent |
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property owner or occurs as a result of the death of the eligible |
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adjacent property owner. |
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SECTION 6. Chapter 379C, Local Government Code, is amended |
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by adding Section 379C.0107 to read as follows: |
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Sec. 379C.0107. REPLATTING BY QUALIFIED PARTICIPATING |
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DEVELOPER. The land bank may sell two adjacent properties that are |
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owned by the land bank to a qualified participating developer if: |
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(1) at least one of the properties is appropriate for |
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residential development; and |
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(2) the developer agrees to replat the two adjacent |
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properties as one property that is appropriate for residential |
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development. |
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SECTION 7. The heading to Section 379C.011, Local |
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Government Code, is amended to read as follows: |
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Sec. 379C.011. RIGHT OF FIRST REFUSAL TO QUALIFIED |
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ORGANIZATIONS. |
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SECTION 8. Section 379C.011(b), Local Government Code, is |
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amended to read as follows: |
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(b) Except as provided by Section 379C.0106, the [The] land |
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bank shall first offer a property for sale to qualified |
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organizations. |
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SECTION 9. Section 379C.013(c), Local Government Code, is |
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amended to read as follows: |
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(c) For purposes of evaluating the effectiveness of the |
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program, the land bank shall submit an annual performance report to |
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the municipality not later than November 1 of each year in which the |
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land bank acquires or sells property under this chapter. The |
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performance report must include: |
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(1) a complete and detailed written accounting of all |
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money and properties received and disbursed by the land bank during |
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the preceding fiscal year; |
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(2) for each property acquired by the land bank during |
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the preceding fiscal year: |
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(A) the street address of the property; |
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(B) the legal description of the property; |
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(C) the date the land bank took title to the |
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property; |
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(D) the name and address of the property owner of |
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record at the time of the foreclosure; |
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(E) the amount of taxes and other costs owed at |
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the time of the foreclosure; and |
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(F) the assessed value of the property on the tax |
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roll at the time of the foreclosure; |
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(3) for each property sold by the land bank during the |
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preceding fiscal year to a qualified participating developer or |
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eligible adjacent property owner: |
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(A) the street address of the property; |
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(B) the legal description of the property; |
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(C) the name and mailing address of the purchaser |
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[developer]; |
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(D) the purchase price paid [by the developer]; |
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and |
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(E) if sold to a qualified participating |
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developer: |
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(i) the maximum incomes allowed for the |
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households by the terms of the sale; and |
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(ii) [(F)] the source and amount of any |
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public subsidy provided by the municipality to facilitate the sale |
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or rental of the property to a household within the targeted income |
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levels; |
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(4) for each property sold by a qualified |
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participating developer during the preceding fiscal year, the |
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buyer's household income and a description of all use and sale |
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restrictions; and |
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(5) for each property developed for rental housing |
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with an active deed restriction, a copy of the most recent annual |
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report filed by the owner with the land bank. |
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SECTION 10. The changes in law made by this Act apply to |
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property held by the land bank or purchased from a land bank by a |
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qualified participating developer or an eligible adjacent property |
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owner without regard to whether the purchase was made before, on, or |
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after the effective date of this Act. |
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SECTION 11. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2009. |
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* * * * * |