BILL ANALYSIS

 

 

Senate Research Center

S.B. 583

89R1831 SCL-D

By: West

 

Local Government

 

3/6/2025

 

As Filed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Affording a home in Texas has become increasingly difficult since the pandemic. According to the Comptroller of Public Account's Housing Affordability Challenge, Texas' median home price increased nearly 40 percent between 2019 and 2023. Despite increasing costs, and a shortage of 306,000 homes, Texas is not building enough residential properties. According to the Texas A&M University Real Estate Research Center, the number of single-family residential building permits issued decreased from 180,329 in 2021 to 149,860 in 2023. The number of multi-family residential (5+ units) building permits issued decreased from 2,865 in 2022 to 2,221 in 2023. In the effort to address housing supply concerns, Texas counties and municipalities may already own an untapped resource.

 

According to a review of the 2015 Travis Central Appraisal District's rolls, the Real Estate Council of Austin discovered public jurisdictions in Travis County owned 6,154 parcels of land, valued at $15,014,344,320. While public-owned land is not universally suitable for development, a few local governments had identified unused property that was. For example, Austin Independent School District, at the time of the report, had identified 10 of its unused or vacant properties to put up for sale.

 

Other states have already taken an interest in the use of unused public land for affordable housing. Under Florida Statutes �125.379 and �166.0451, each local government is required to, every three years, survey and create a list of all real property it owns that is suitable for use as affordable housing. Each county or municipality is then required to hold a public hearing sharing the list and make the inventory list public on its website.

 

This program has produced very interesting results. According to a survey conducted by the Florida Housing Coalition, in a sample of 68 local governments, 28 percent had donated between one and nine unused parcels, 15 percent had donated between 10 and 20 unused parcels, 12 percent had donated more than 20 parcels, and two local government had donated over 35 unused parcels to nonprofit housing organizations.

 

The use of public land to address housing affordability is a long, complex process. Before it begins, however, Texas must first regularly identify which parcels are suitable for development to begin with.

 

S.B. 583 will require certain counties and municipalities to annually create a list of public land suitable for use or development for use as affordable housing.

 

This bill defines affordable housing as residential property which has monthly rents or mortgage payments that are no more than 30 percent of the median adjusted gross income for a household making less than 120 percent of median adjusted gross income in either the state or the local government jurisdiction, whichever is higher.

 

The requirements of this bill would only apply to municipalities with over 25,000 residents and counties with over 50,000 residents.

 

This bill would require each applicable municipality and county to annually prepare an inventory list of all real property it owns within its jurisdiction that is suitable for use or development for use as affordable housing. The list must include the address and legal description of each property, as well as a statement on whether the property is vacant or improved.

 

This bill would also require the governing body of each applicable municipality and county to review the inventory list at a public hearing and adopt a resolution that includes the inventory list. Additionally, each applicable municipality and county would be required to publish its inventory list on its internet website or a conspicuous place it regularly posts notices.

 

As proposed, S.B. 583 amends current law relating to lists of public real property suitable for use or to be developed for use as affordable housing by certain municipalities and counties.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Chapter 250, Local Government Code, by adding Section 250.014, as follows:

 

Sec. 250.014. LISTS OF PUBLIC REAL PROPERTY SUITABLE FOR AFFORDABLE HOUSING BY CERTAIN MUNICIPALITIES AND COUNTIES. (a) Defines "affordable housing."

 

(b) Provides that this section applies only to a municipality with a population of more than 25,000 and a county with a population of more than 50,000.

 

(c) Requires each municipality and county, not later than March 1 of each year, to prepare an inventory list of all real property located within its respective jurisdiction that the municipality or county owns and determines is suitable for use or to be developed for use as affordable housing. Requires that the list include the address and legal description of each property listed and a statement on whether the property is vacant or improved.

 

(d) Requires the governing body of each municipality and county to review the inventory list prepared for the municipality or county under this section at a public hearing and adopt a resolution that includes the list at the conclusion of the hearing.

 

(e) Requires each municipality and county to publish the inventory list on an Internet website maintained by the municipality or county, as applicable, or a conspicuous place in the location the municipality or county, as applicable, regularly posts notices if the county or municipality, as applicable, does not maintain an Internet website.

 

SECTION 2. Effective date: upon passage or September 1, 2025.