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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of certain urban land bank demonstration |
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programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 379C.009(b), (b-1), and (b-2), Local |
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Government Code, are amended to read as follows: |
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(b) Except as provided by Subsection (b-1), the land bank |
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must sell a property to a qualified participating developer within |
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the eight-year [four-year] period following the date of acquisition |
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for the purpose of construction of affordable housing for sale or |
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rent to low income households. |
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(b-1) Before the completion of the eight-year [four-year] |
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period described by Subsection (b), the land bank may, subject to |
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Section 379C.0106: |
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(1) transfer property that the land bank determines is |
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not appropriate for residential development to the taxing units |
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described by Subsection (b-2) [(b)]; or |
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(2) sell property described by Subdivision (1) to a |
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political subdivision or a nonprofit organization. |
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(b-2) If after eight [four] years a qualified participating |
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developer has not purchased the property, the property shall be |
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transferred from the land bank to the taxing units who were parties |
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to the judgment for disposition as otherwise allowed under the law. |
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SECTION 2. Section 379C.010(c), Local Government Code, is |
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amended to read as follows: |
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(c) If property is developed for rental housing, the deed |
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restrictions must be for a period of not less than 15 years and must |
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require that 20 [:
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[(1) 100] percent of the rental units be occupied by |
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low income households [with incomes not greater than 60 percent of
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area median family income, based on gross household income,
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adjusted for household size, for the metropolitan statistical area
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in which the municipality is located, as determined annually by the
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United States Department of Housing and Urban Development;
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[(2)
40 percent of the units be occupied by households
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with incomes not greater than 50 percent of area median family
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income, based on gross household income, adjusted for household
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size, for the metropolitan statistical area in which the
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municipality is located, as determined annually by the United
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States Department of Housing and Urban Development; or
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[(3)
20 percent of the units be occupied by households
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with incomes not greater than 30 percent of area median family
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income, based on gross household income, adjusted for household
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size, for the metropolitan statistical area in which the
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municipality is located, as determined annually by the United
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States Department of Housing and Urban Development]. |
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SECTION 3. Section 379C.014(c), Local Government Code, is |
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amended to read as follows: |
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(c) A sale under this section within the eight-year |
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[four-year] period following the date of acquisition of the |
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property by the land bank is for a public purpose and satisfies the |
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requirement under Section 379C.009(b) that the property be sold |
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within the eight-year [four-year] period to a qualified |
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participating developer. |
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SECTION 4. Chapter 379C, Local Government Code, is amended |
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by adding Section 379C.016 to read as follows: |
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Sec. 379C.016. ALLOCATION AND USE OF AD VALOREM TAXES |
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COLLECTED ON PROPERTY DEVELOPED UNDER PROGRAM. An interlocal |
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agreement under Section 379C.008(a)(4) may provide that, for the |
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first five calendar years occurring after the date of completion of |
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the development of a property acquired by a qualified participating |
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developer under this chapter, 50 percent of the ad valorem taxes |
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collected on the property must be deposited to the credit of the |
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land bank for the use of the program. |
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SECTION 5. Section 379C.010(c), Local Government Code, as |
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amended by this Act, applies only to property purchased from a land |
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bank by a qualified participating developer on or after the |
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effective date of this Act. |
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SECTION 6. This Act takes effect September 1, 2019. |