82R1409 JAM-D
 
  By: Rodriguez H.B. No. 2197
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the purchase of property as part of a homestead land
  bank program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 373A.208, Local Government Code, is
  amended by amending Subsections (a), (g), and (h) and adding
  Subsection (g-1) to read as follows:
         (a)  Notwithstanding any other law and except as provided by
  Subsection (f), property that is ordered sold pursuant to
  foreclosure of a tax lien may be sold in a private sale to a land
  bank by the officer charged with the sale of the property without
  first offering the property for sale as otherwise provided by
  Section 34.01, Tax Code, if:
               (1)  [the market value of the property as appraised by
  the local appraisal district and as specified in the judgment of
  foreclosure is less than the total amount due under the judgment,
  including all taxes, penalties, and interest, plus the value of
  nontax liens held by a taxing unit and awarded by the judgment,
  court costs, and the cost of the sale;
               [(2)]  the property is not improved with a habitable 
  building or with an uninhabitable building that is occupied as a
  residence by an owner or tenant who is legally entitled to occupy
  the building or buildings;
               (2) [(3)]  there are delinquent taxes on the property
  for a total of at least five years; and
               (3) [(4)]  the municipality has executed with the other
  taxing units that are parties to the tax suit an interlocal
  agreement that enables those units to agree to participate in the
  program while retaining the right to withhold consent to the sale of
  specific properties to the land bank.
         (g)  The owner of the property subject to sale under this
  subchapter [may not receive any proceeds of a sale under this
  subchapter.     However, the owner] does not have any personal
  liability for a deficiency of the judgment as a result of the [a]
  sale [under this subchapter].
         (g-1)  The owner may not receive any proceeds of a sale under
  this subchapter unless the amount of sale proceeds exceeds the
  total amount due under the judgment, including all taxes,
  penalties, and interest, plus the value of nontax liens held by a
  taxing unit and awarded by the judgment, court costs, and the cost
  of the sale, in which event the excess proceeds shall be distributed
  in the manner provided for excess proceeds of a sale under Chapter
  34, Tax Code, pursuant to the foreclosure of a tax lien.
         (h)  Notwithstanding any other law, if consent is given by
  the taxing units that are a party to the judgment, property may be
  sold to the land bank for less than the market value of the property
  as specified in the judgment or less than the total of all taxes,
  penalties, and interest, plus the value of nontax liens held by a
  taxing unit and awarded by the judgment, court costs, and the cost
  of the sale.  The taxing units may not consent to a sale for a
  reduced amount as authorized by this subsection if the market value
  of the property as appraised by the local appraisal district and as
  specified in the judgment of foreclosure exceeds the total amount
  due under the judgment, including all taxes, penalties, and
  interest, plus the value of nontax liens held by a taxing unit and
  awarded by the judgment, court costs, and the cost of the sale.
         SECTION 2.  Section 373A.211(e), Local Government Code, is
  amended to read as follows:
         (e)  If the land bank conveys the property to a qualified
  organization before the expiration of the period specified by the
  municipality under Subsection (d), the interlocal agreement
  executed under Section 373A.208(a)(3) [373A.208(a)(4)] may provide
  tax abatement for the property until the expiration of that period.
         SECTION 3.  Section 373A.208(c), Local Government Code, is
  repealed.
         SECTION 4.  This Act takes effect September 1, 2011.