H.B. No. 2840
 
 
 
 
AN ACT
  relating to the urban land bank demonstration program in certain
  municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 379C.005, Local Government Code, is
  amended to read as follows:
         Sec. 379C.005.  QUALIFIED PARTICIPATING DEVELOPER. To
  qualify to participate in an urban land bank demonstration program,
  a developer must:
               (1)  have built one [three] or more housing units
  within the three-year period preceding the submission of a proposal
  to the land bank seeking to acquire real property from the land
  bank;
               (2)  have a development plan approved by the
  municipality for the land bank property; and
               (3)  meet any other requirements adopted by the
  municipality in the urban land bank demonstration plan.
         SECTION 2.  Section 379C.009, Local Government Code, is
  amended by amending Subsection (b) and adding Subsections (b-1) and
  (b-2) to read as follows:
         (b)  Except as provided by Subsection (b-1), the [The] land
  bank must sell a property to a qualified participating developer
  within the four-year period following the date of acquisition for
  the purpose of construction of affordable housing for sale or rent
  to low income households.
         (b-1)  Before the completion of the four-year period
  described by Subsection (b), the land bank may, subject to Section
  379C.0106:
               (1)  transfer property that the land bank determines is
  not appropriate for residential development to the taxing units
  described by Subsection (b); or
               (2)  sell property described by Subdivision (1) to a
  political subdivision or a nonprofit organization.
         (b-2)  If after four years a qualified participating
  developer has not purchased the property, the property shall be
  transferred from the land bank to the taxing units who were parties
  to the judgment for disposition as otherwise allowed under the law.
         SECTION 3.  Section 379C.0106(a), Local Government Code, is
  amended to read as follows:
         (a)  In this section, "eligible adjacent property owner"
  means a person who:
               (1)  owns property located adjacent to property owned
  by the land bank; and
               (2)  [has owned the adjacent property and continuously
  occupied that property as a primary residence for the two-year
  period preceding the date of the sale; and
               [(3)]  satisfies eligibility requirements adopted by
  the land bank.
         SECTION 4.  Chapter 379C, Local Government Code, is amended
  by adding Section 379C.014 to read as follows:
         Sec. 379C.014.  ADDITIONAL AUTHORIZED USE OF LAND BANK
  PROPERTY. (a)  Notwithstanding the other provisions of this
  chapter, the land bank may sell property to a developer to allow the
  construction of a grocery store that has at least 6,000 square feet
  of enclosed space and that offers for sale fresh produce and other
  food items for home consumption.
         (b)  To qualify to purchase property from the land bank under
  this section, a developer is not required to be a qualified
  participating developer but must obtain the municipality's
  approval of a development plan for the land bank property and must
  develop the property in accordance with the approved development
  plan.
         (c)  A sale under this section within the four-year period
  following the date of acquisition of the property by the land bank
  satisfies the requirement under Section 379C.009(b) that the
  property be sold within that period to a qualified participating
  developer.
         (d)  The land bank may sell property as provided by this
  section only after granting any rights of first refusal otherwise
  required by this chapter, and any completed sale under this section
  remains subject to the right of reverter provided by Section
  379C.009(d).
         SECTION 5.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2840 was passed by the House on May 4,
  2013, by the following vote:  Yeas 118, Nays 11, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2840 on May 21, 2013, by the following vote:  Yeas 81, Nays 64,
  3 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2840 was passed by the Senate, with
  amendments, on May 17, 2013, by the following vote:  Yeas 28, Nays
  2.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor