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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the rural housing land assemblage |
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program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 12, Local Government Code, is |
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amended by adding Chapter 394A to read as follows: |
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CHAPTER 394A. RURAL HOUSING LAND ASSEMBLAGE PROGRAM |
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Sec. 394A.001. SHORT TITLE. This chapter may be cited as |
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the Rural Housing Land Assemblage Program Act. |
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Sec. 394A.002. DEFINITIONS. In this chapter: |
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(1) "Affordable" means that the monthly mortgage |
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payment or contract rent does not exceed 30 percent of the |
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applicable median income for that unit size, in accordance with the |
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income and rent limit rules adopted by the department. |
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(2) "Department" means the Texas Department of Housing |
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and Community Affairs. |
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(3) "Low-income household" means: |
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(A) for rental housing, a household with a gross |
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income not to exceed 60 percent of the greater of the area median |
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income or national nonmetropolitan median income, adjusted for |
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household size, as determined annually by the United States |
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Department of Housing and Urban Development; or |
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(B) for purchased housing, a household with a |
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gross income not to exceed 80 percent of the greater of the area |
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median income or the state median income, adjusted for household |
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size, as determined annually by the United States Department of |
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Housing and Urban Development or by the department based on data |
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from the United States Department of Housing and Urban Development, |
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as appropriate. |
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(4) "Rural county" means a county classified as a |
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rural county by the United States Department of Agriculture for |
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purposes of the rural housing loan programs authorized by the |
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Housing Act of 1949 (42 U.S.C. Section 1471 et seq.). |
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(5) "Rural housing land assemblage entity" means an |
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entity established or designated by the governing bodies of one or |
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more rural municipalities or rural counties for the purpose of |
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implementing and operating a rural housing land assemblage program. |
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(6) "Rural housing land assemblage program" means a |
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program to acquire, hold, and transfer real property under this |
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subchapter for the purpose of providing affordable housing for |
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low-income households. |
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(7) "Rural municipality" means a municipality |
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classified as a rural municipality by the United States Department |
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of Agriculture for purposes of the rural housing loan programs |
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authorized by the Housing Act of 1949 (42 U.S.C. Section 1471 et |
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seq.). |
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Sec. 394A.003. RURAL HOUSING LAND ASSEMBLAGE PROGRAM. The |
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governing bodies of one or more rural municipalities or rural |
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counties may participate in a rural housing land assemblage |
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program. As part of the program, a participating municipality or |
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county shall: |
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(1) enter into interlocal agreements with any other |
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participating municipalities or counties governing the scope and |
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operation of the program, subject to the provisions of this |
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chapter; and |
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(2) establish or designate an entity to serve as the |
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rural housing land assemblage entity in charge of implementing and |
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operating the program. |
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Sec. 394A.004. RURAL HOUSING LAND ASSEMBLAGE ENTITY. A |
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rural housing land assemblage entity may acquire, hold, and |
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transfer, for the purpose of providing affordable housing for |
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low-income households, real property that is not improved with a |
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habitable building or buildings and is otherwise unoccupied. |
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Sec. 394A.005. PRIVATE SALE TO LAND ASSEMBLAGE ENTITY. (a) |
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Notwithstanding any other law and except as provided by Subsection |
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(f), real property that is ordered sold pursuant to foreclosure of a |
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tax lien may be sold in a private sale to a rural housing land |
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assemblage entity by the officer charged with the sale of the |
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property, without first offering the property for sale as otherwise |
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provided by Section 34.01, Tax Code, if: |
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(1) the property is used for the purpose of providing |
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affordable housing as described by Section 394A.004; |
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(2) the market value of the property as appraised by |
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the local appraisal district and as specified in the judgment of |
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foreclosure is less than the total amount due under the judgment, |
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including all taxes, penalties, and interest, plus the value of |
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nontax liens held by a taxing unit and awarded by the judgment, |
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court costs, and the cost of the sale; |
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(3) the property is not improved with a habitable |
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building or buildings and is otherwise unoccupied; |
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(4) there are delinquent taxes on the property for a |
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total of at least five years; and |
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(5) each municipality or county that participates in |
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the rural housing land assemblage program has executed with the |
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other 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 rural housing land assemblage entity. |
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(b) A sale of property for use in connection with the rural |
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housing land assemblage program is a sale for a public purpose. |
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(c) If the person being sued in a suit for foreclosure of a |
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tax lien does not contest the market value of the property in the |
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suit, the person waives the right to challenge the amount of the |
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market value determined by the court for purposes of the sale of the |
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property under Section 33.50, Tax Code. |
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(d) For any sale of property under this section, each person |
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who was a defendant to the judgment, or that person's attorney, |
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shall be given, not later than the 60th day before the date of sale, |
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written notice of the proposed method of sale of the property by the |
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officer charged with the sale of the property. Notice shall be |
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given in the manner prescribed by Rule 21a, Texas Rules of Civil |
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Procedure. |
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(e) After receipt of the notice required by Subsection (d) |
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and before the date of the proposed sale, the owner of the property |
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subject to sale may file with the officer charged with the sale a |
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written request that the property not be sold in the manner provided |
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by this section. |
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(f) If the officer charged with the sale receives a written |
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request as provided by Subsection (e), the officer shall sell the |
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property as otherwise provided in Section 34.01, Tax Code. |
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(g) The owner of the property subject to sale may not |
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receive any proceeds of a sale under this section. However, the |
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owner does not have any personal liability for a deficiency of the |
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judgment as a result of a sale under this section. |
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(h) Notwithstanding any other law, if consent is given by |
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the taxing units that are a party to the judgment, property may be |
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sold to the rural housing land assemblage entity for less than the |
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market value of the property as specified in the judgment or less |
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than the total of all taxes, penalties, and interest, plus the value |
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of nontax liens held by a taxing unit and awarded by the judgment, |
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court costs, and the cost of the sale. |
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(i) The deed of conveyance of the property sold to a rural |
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housing land assemblage entity under this section conveys to the |
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entity the right, title, and interest acquired or held by each |
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taxing unit that was a party to the judgment, subject to the right |
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of redemption. |
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Sec. 394A.006. EXEMPTION FROM AD VALOREM TAXATION. |
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Property sold to and held by a rural housing land assemblage entity |
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for subsequent resale is entitled to an exemption from ad valorem |
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taxation for a period not to exceed three years from the date of |
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acquisition. The exemption period may be renewed for a property for |
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an additional period, not to exceed three years, on approval of the |
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governing body of each participating municipality or county and any |
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other taxing unit in which the property is located. Property is |
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entitled to an exemption under this section only during the period |
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the property is held by the rural housing land assemblage entity. |
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Sec. 394A.007. DEPARTMENT RULEMAKING AUTHORITY. The |
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department shall develop and adopt additional guidelines and rules |
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governing the operation of a rural housing land assemblage program, |
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including reporting and audit requirements for rural housing land |
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assemblage entities, affordability terms, additional income |
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targeting, and the imposition of deed and resale restrictions on |
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real property sold under the program to achieve the purpose of |
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providing affordable housing for low-income households. |
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Sec. 394A.008. OPEN RECORDS AND MEETINGS. A rural housing |
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land assemblage entity is subject to Chapters 551 and 552, |
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Government Code. |
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Sec. 394A.009. RECORDS; AUDIT. (a) A rural housing land |
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assemblage entity shall keep accurate minutes of its meetings and |
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shall keep accurate records and books of account that conform with |
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generally accepted principles of accounting and that clearly |
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reflect the income and expenses of the rural housing land |
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assemblage entity and all transactions in relation to its property. |
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(b) A rural housing land assemblage entity shall file with |
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each participating municipality or county not later than the 90th |
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day after the close of the entity's fiscal year annual audited |
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financial statements prepared by a certified public accountant. The |
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financial transactions of the rural housing land assemblage entity |
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are subject to audit by a participating municipality or county and |
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by the department. |
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SECTION 2. This Act takes effect September 1, 2009. |