Texas 2009 - 81st Regular

Texas House Bill HB1389 Compare Versions

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11 81R8455 AJA-F
22 By: Davis of Dallas H.B. No. 1389
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the acquisition of real property for public use.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Section 373.002(b), Local Government Code, is
1010 amended to read as follows:
1111 (b) Activities conducted under this chapter are directed
1212 toward the following purposes:
1313 (1) elimination of [slums and] areas affected by
1414 blight;
1515 (2) prevention of blighting influences and of the
1616 deterioration of property and neighborhood and community
1717 facilities important to the welfare of the community;
1818 (3) elimination of conditions detrimental to the
1919 public health, safety, and welfare;
2020 (4) expansion and improvement of the quantity and
2121 quality of community services essential for the development of
2222 viable urban communities;
2323 (5) more rational use of land and other natural
2424 resources;
2525 (6) improved arrangement of residential, commercial,
2626 industrial, recreational, and other necessary activity centers;
2727 (7) restoration and preservation of properties of
2828 special value for historic, architectural, or aesthetic reasons;
2929 (8) reduction of the isolation of income groups in
3030 communities and geographical areas, promotion of increased
3131 diversity and vitality of neighborhoods through spatial
3232 deconcentration of housing opportunities for persons of low and
3333 moderate income, and revitalization of deteriorating or
3434 deteriorated neighborhoods to attract persons of higher income; and
3535 (9) alleviation of physical and economic distress
3636 through the stimulation of private investment and community
3737 revitalization in [slum or] blighted areas.
3838 SECTION 2. Section 373.004, Local Government Code, is
3939 amended to read as follows:
4040 Sec. 373.004. GOALS OF PROGRAM. Through a community
4141 development program, a municipality may conduct work or activities
4242 designed to:
4343 (1) improve the living and economic conditions of
4444 persons of low and moderate income;
4545 (2) benefit low or moderate income neighborhoods;
4646 (3) aid in the prevention or elimination of [slums
4747 and] blighted areas;
4848 (4) aid a federally assisted new community; or
4949 (5) meet other urgent community development needs,
5050 including an activity or function specified for a community
5151 development program that incorporates a federally assisted new
5252 community.
5353 SECTION 3. Section 373.006, Local Government Code, is
5454 amended to read as follows:
5555 Sec. 373.006. REQUIRED PROCEDURES BEFORE ADOPTION OF
5656 COMMUNITY DEVELOPMENT PROGRAM. Before exercising powers under
5757 Section 373.005, the governing body of the municipality must:
5858 (1) identify areas of the municipality in which
5959 predominantly low and moderate income persons reside and each unit
6060 of real property in the municipality[,] that has the
6161 characteristics of blight [are blighted or slum areas] or that is a
6262 [are] federally assisted new community in the municipality
6363 [communities];
6464 (2) establish community development program areas in
6565 which community development activities, building rehabilitation,
6666 or the acquisition of privately owned buildings or land is
6767 proposed;
6868 (3) adopt, by resolution or ordinance, a plan under
6969 which citizens may publicly comment on the proposed community
7070 development program;
7171 (4) conduct public hearings on the proposed program
7272 before the 15th day before the date of its final adoption by the
7373 governing body; and
7474 (5) adopt the community development program by
7575 resolution or ordinance.
7676 SECTION 4. Sections 374.002(a) and (b), Local Government
7777 Code, are amended to read as follows:
7878 (a) The legislature finds that [slum and] blighted areas
7979 exist in municipalities in this state and that those areas:
8080 (1) are a serious and growing menace that is injurious
8181 and inimical to the public health, safety, morals, and welfare of
8282 the residents of this state;
8383 (2) contribute substantially and increasingly to the
8484 spread of disease and crime, requiring excessive and
8585 disproportionate expenditures of public funds for the preservation
8686 of the public health and safety, and for crime prevention,
8787 correctional facilities, prosecution and punishment, treatment of
8888 juvenile delinquency, and the maintenance of adequate police, fire,
8989 and accident protection and other public services and facilities;
9090 and
9191 (3) constitute an economic and social liability,
9292 substantially impair the sound growth of affected municipalities,
9393 and retard the provision of housing accommodations.
9494 (b) For these reasons, prevention and elimination of [slum
9595 and] blighted areas are matters of state policy and concern that may
9696 be best addressed by the combined action of private enterprise,
9797 municipal regulation, and other public action through approved
9898 urban renewal plans. The legislature further finds that the repair
9999 and rehabilitation of buildings and other improvements in affected
100100 areas, public acquisition of real property, demolition of buildings
101101 and other improvements as necessary to eliminate [slum or] blight
102102 conditions or to prevent the spread of those conditions, the
103103 disposition of property acquired in affected areas and incidental
104104 to the purposes stated by this subsection, and other public
105105 assistance to eliminate those conditions are public purposes for
106106 which public money may be spent and the power of eminent domain
107107 exercised.
108108 SECTION 5. Sections 374.003(3), (18), (25), (26), and (28),
109109 Local Government Code, are amended to read as follows:
110110 (3) "Blighted area" means a tract or unit of property
111111 [an area] that presents four or more of the following conditions for
112112 at least one year after the date on which notice of the conditions
113113 is provided to the property owner as required by Section
114114 374.018(a)(1) or (b):
115115 (A) the property contains uninhabitable, unsafe,
116116 or abandoned structures;
117117 (B) the property has inadequate provisions for
118118 sanitation;
119119 (C) there exists on the property an imminent
120120 danger to life or other property caused by fire, flood, hurricane,
121121 tornado, earthquake, storm, or other natural catastrophe declared
122122 to be a disaster under Section 418.014, Government Code, or
123123 certified as a disaster for federal assistance under Section
124124 418.021, Government Code;
125125 (D) the property has been identified by the
126126 United States Environmental Protection Agency as a superfund site
127127 under the federal Comprehensive Environmental Response,
128128 Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et
129129 seq.) or as environmentally contaminated to an extent that the
130130 property requires remedial investigation or a feasibility study;
131131 (E) the property has been the location of
132132 substantiated and repeated illegal activity of which the property
133133 owner knew or should have known;
134134 (F) the maintenance of the property is below
135135 county or municipal standards;
136136 (G) the property is abandoned and contains a
137137 structure that is not fit for its intended use because the
138138 utilities, sewerage, plumbing, or heating or a similar service or
139139 facility of the structure has been disconnected, destroyed,
140140 removed, or rendered ineffective; or
141141 (H) the property presents an economic liability
142142 to the immediate area because of deteriorating structures or
143143 hazardous conditions [is not a slum area, but that, because of
144144 deteriorating buildings, structures, or other improvements;
145145 defective or inadequate streets, street layout, or accessibility;
146146 unsanitary conditions; or other hazardous conditions, adversely
147147 affects the public health, safety, morals, or welfare of the
148148 municipality and its residents, substantially retards the
149149 provision of a sound and healthful housing environment, or results
150150 in an economic or social liability to the municipality. The term
151151 includes an area certified as a disaster area as provided by Section
152152 374.903].
153153 (18) "Rehabilitation" means the restoration of
154154 buildings or other structures to prevent deterioration of an area
155155 that is tending to become a blighted area [or a slum area].
156156 (25) "Urban renewal activities" includes [slum
157157 clearance,] redevelopment, rehabilitation, and conservation
158158 activities to prevent further deterioration of an area that is
159159 tending to become a blighted [or slum] area. The term includes:
160160 (A) the acquisition of all or part of a [slum area
161161 or] blighted area or the acquisition of land that is predominantly
162162 open and that, because of obsolete platting, diversity of
163163 ownership, deterioration of structures or site improvements, or for
164164 other reasons, substantially impairs or arrests the sound growth of
165165 the community;
166166 (B) the demolition and removal of buildings and
167167 improvements;
168168 (C) the installation, construction, or
169169 reconstruction of streets, utilities, parks, playgrounds, and
170170 other improvements necessary to fulfill urban renewal objectives in
171171 accordance with an urban renewal plan;
172172 (D) the disposition by the municipality of
173173 property acquired in an urban renewal area for use in accordance
174174 with an urban renewal plan, including the sale or initial lease of
175175 the property at its fair value or the retention of the property;
176176 (E) the implementation of plans for a program of
177177 voluntary repair and rehabilitation of buildings or improvements in
178178 accordance with an urban renewal plan; and
179179 (F) the acquisition of real property in an urban
180180 renewal area as necessary to remove or prevent the spread of blight
181181 or deterioration or to provide land for needed public facilities.
182182 (26) "Urban renewal area" means a [slum area,]
183183 blighted area[, or a combination of those areas] that the governing
184184 body of a municipality designates as appropriate for an urban
185185 renewal project.
186186 (28) "Urban renewal project" includes any of the
187187 following activities undertaken in accordance with an urban renewal
188188 plan:
189189 (A) municipal activities in an urban renewal area
190190 that are designed to eliminate or to prevent the development or
191191 spread of [slums and] blighted areas;
192192 (B) [slum clearance and redevelopment in an urban
193193 renewal area;
194194 [(C)] rehabilitation or conservation in an urban
195195 renewal area;
196196 (C) [(D)] development of open land that, because
197197 of location or situation, is necessary for sound community growth
198198 and that is to be developed, by replatting and planning, for
199199 predominantly residential uses; or
200200 (D) [(E)] any combination or part of the
201201 activities described by Paragraphs (A)-(C) [(A)-(D)].
202202 SECTION 6. Section 374.011, Local Government Code, is
203203 amended by amending Subsection (a) and adding Subsection (d) to
204204 read as follows:
205205 (a) Except as provided by Section 374.012, a municipality
206206 may not exercise a power granted under this chapter unless:
207207 (1) the governing body of the municipality adopts a
208208 resolution that finds that a [slum area or] blighted area exists in
209209 the municipality and that the rehabilitation, the conservation, or
210210 the [slum clearance and] redevelopment of the area is necessary for
211211 the public health, safety, morals, or welfare of the residents of
212212 the municipality; and
213213 (2) a majority of the municipality's voters voting in
214214 an election held as provided by Subsection (b) favor adoption of the
215215 resolution.
216216 (d) The governing body of the municipality must determine
217217 that each unit of real property included in a resolution under
218218 Subsection (a) has the characteristics of blight.
219219 SECTION 7. Section 374.012(c), Local Government Code, is
220220 amended to read as follows:
221221 (c) The resolution ordering the election and the notice of
222222 the election must contain:
223223 (1) a complete legal description of each unit of
224224 property [the area] included in the proposed project;
225225 (2) a statement of the nature of the proposed project;
226226 [and]
227227 (3) a statement of the total amount of local funds to
228228 be spent on the proposed project; and
229229 (4) a statement that each unit of property has the
230230 characteristics of blight.
231231 SECTION 8. Section 374.013(a), Local Government Code, is
232232 amended to read as follows:
233233 (a) To further the urban renewal objectives of this chapter,
234234 a municipality may formulate a workable program to use appropriate
235235 private and public resources, including the resources specified by
236236 Subsection (b), to encourage urban rehabilitation, to provide for
237237 the redevelopment of [slum and] blighted areas, or to undertake
238238 those activities or other feasible municipal activities as may be
239239 suitably employed to achieve the objective of the program. The
240240 program must specifically include provisions relating to:
241241 (1) prevention, through diligent enforcement of
242242 housing and occupancy controls and standards, of the expansion of
243243 blight into areas of the municipality that are free from blight; and
244244 (2) rehabilitation or conservation of [slum and]
245245 blighted areas as far as practicable to areas that are free from
246246 blight through replanning, removing congestion, providing parks,
247247 playgrounds, and other public improvements, and encouraging
248248 voluntary rehabilitation and requiring the repair and
249249 rehabilitation of deteriorated or deteriorating structures[, and
250250 the clearance and redevelopment of slum areas].
251251 SECTION 9. Section 374.014(a), Local Government Code, is
252252 amended to read as follows:
253253 (a) A municipality may not prepare an urban renewal plan for
254254 an area unless the governing body of the municipality has, by
255255 resolution, declared the area to be a [slum area, a] blighted area[,
256256 or both,] and has designated the area as appropriate for an urban
257257 renewal project. The governing body may not approve an urban
258258 renewal plan until a general plan has been prepared for the
259259 municipality. A municipality may not acquire real property for an
260260 urban renewal project until the governing body has approved the
261261 urban renewal plan as provided by Subsection (d).
262262 SECTION 10. Sections 374.015(a) and (d), Local Government
263263 Code, are amended to read as follows:
264264 (a) A municipality may exercise all powers necessary or
265265 convenient to carry out the purposes of this chapter, including the
266266 power to:
267267 (1) conduct preliminary surveys to determine if
268268 undertaking an urban renewal project is feasible;
269269 (2) conduct urban renewal projects within its area of
270270 operation;
271271 (3) execute contracts and other instruments necessary
272272 or convenient to the exercise of its powers under this chapter;
273273 (4) provide, arrange, or contract for the furnishing
274274 or repair by any person of services, privileges, works, streets,
275275 roads, public utilities, or other facilities in connection with an
276276 urban renewal project, including installation, construction, and
277277 reconstruction of streets, utilities, parks, playgrounds, and
278278 other public improvements necessary to carry out an urban renewal
279279 project;
280280 (5) acquire any real property, including
281281 improvements, and any personal property necessary for
282282 administrative purposes, that is necessary or incidental to an
283283 urban renewal project, hold, improve, clear, or prepare the
284284 property for redevelopment, mortgage or otherwise encumber or
285285 dispose of the real property, insure or provide for the insurance of
286286 real or personal property or municipal operations against any risk
287287 or hazard and to pay premiums on that insurance, and enter any
288288 necessary contracts;
289289 (6) invest urban renewal project funds held in
290290 reserves or sinking funds, or not required for immediate
291291 disbursement, in property or securities in which banks may legally
292292 invest funds subject to their control, redeem bonds issued under
293293 Section 374.026 at the redemption price established in the bond, or
294294 purchase those bonds at less than the redemption price, and cancel
295295 the bonds redeemed or purchased;
296296 (7) borrow money and apply for and accept advances,
297297 loans, grants, contributions, and other forms of financial
298298 assistance from the federal, state, or county government, other
299299 public body, or other public or private sources for the purposes of
300300 this chapter, give any required security, and make and carry out any
301301 contracts in connection with the financial assistance;
302302 (8) make plans necessary to carry out this chapter in
303303 its area of operation, contract with any person in making and
304304 carrying out the plans, and adopt, approve, modify or amend the
305305 plans;
306306 (9) develop, test, and report methods and techniques
307307 for the prevention of [slums and] urban blight, conduct
308308 demonstrations and other activities in connection with those
309309 methods and techniques, and apply for, accept, and use federal
310310 grants made for those purposes;
311311 (10) prepare plans and provide reasonable assistance
312312 for the relocation of persons displaced from an urban renewal
313313 project area, including families, business concerns, and others, as
314314 necessary to acquire possession and to clear the area in order to
315315 conduct the urban renewal project;
316316 (11) appropriate funds and make expenditures as
317317 necessary to implement this chapter and, subject to Subsection (c),
318318 levy taxes and assessments for that purpose;
319319 (12) close, vacate, plan, or replan streets, roads,
320320 sidewalks, ways, or other places, plan, replan, zone, or rezone any
321321 part of the municipality and make exceptions from building
322322 regulations, and enter agreements with an urban renewal agency
323323 vested with urban renewal powers under Subchapter C, which may
324324 extend over any period, restricting action to be taken by the
325325 municipality under any of the powers granted under this chapter;
326326 (13) organize, coordinate, and direct the
327327 administration of this chapter within the area of operation as
328328 those provisions apply to the municipality to most effectively
329329 promote and achieve the purposes of this chapter and establish new
330330 municipal offices or reorganize existing offices as necessary to
331331 most effectively implement those purposes; and
332332 (14) issue tax increment bonds.
333333 (d) A [Except as provided by Section 374.016, a]
334334 municipality may acquire by condemnation any interest in real
335335 property, including a fee simple interest, that the municipality
336336 considers necessary for or in connection with an urban renewal
337337 project. Property dedicated to a public use may be acquired in that
338338 manner, except that property belonging to the state or to a
339339 political subdivision of the state may not be acquired without the
340340 consent of the state or political subdivision.
341341 SECTION 11. Section 374.017(d), Local Government Code, is
342342 amended to read as follows:
343343 (d) Real property or an interest in real property subject to
344344 this section may only be sold, leased, or otherwise transferred or
345345 retained at not less than the fair value of the property for uses in
346346 accordance with the urban renewal plan. In determining the fair
347347 value, the municipality shall consider:
348348 (1) the uses provided in the urban renewal plan;
349349 (2) any restrictions on and any covenants, conditions,
350350 and obligations assumed by the purchaser, lessee, or municipality
351351 in retaining the property;
352352 (3) the objectives of the plan for the prevention of
353353 the recurrence of [slums or] blighted areas; and
354354 (4) any other matters that the municipality specifies
355355 as appropriate.
356356 SECTION 12. Subchapter B, Chapter 374, Local Government
357357 Code, is amended by adding Sections 374.018 and 374.019 to read as
358358 follows:
359359 Sec. 374.018. LIMITATIONS ON CHARACTERIZATIONS OF BLIGHT.
360360 (a) Notwithstanding any other law, an area may not be considered a
361361 blighted area based on a condition described by Section 374.003
362362 unless:
363363 (1) the municipality has given notice in writing to
364364 the property owner by first class mail regarding the condition to
365365 the:
366366 (A) last known address of the property owner; and
367367 (B) physical address of the property; and
368368 (2) the property owner fails to take reasonable
369369 measures to remedy the condition.
370370 (b) If a mailing address for the property owner cannot be
371371 determined, the municipality shall post notice in writing regarding
372372 the condition in a conspicuous place on the property.
373373 (c) An area may not be considered a blighted area solely for
374374 an aesthetic reason.
375375 (d) A determination by a municipality that a unit of real
376376 property has the characteristics of blight is valid for two years.
377377 (e) After the two-year period prescribed by Subsection (d),
378378 a municipality may make a new determination that the unit of real
379379 property has the characteristics of blight and redesignate the unit
380380 of real property as a blighted area for another two-year period.
381381 (f) A municipality may remove a determination of blight
382382 under this chapter if the municipality finds that the property
383383 owner has remedied the condition that was the basis for the
384384 determination.
385385 Sec. 374.019. COMMON OWNER PROPERTY. For the purposes of
386386 this chapter and Chapter 21, Property Code, if a municipality
387387 determines that two or more contiguous units of real property that
388388 are owned by the same person have the characteristics of blight, the
389389 municipality may treat those units of property as one unit of
390390 property.
391391 SECTION 13. Section 374.021(b), Local Government Code, is
392392 amended to read as follows:
393393 (b) In this section, "urban renewal project powers"
394394 includes the rights, powers, functions, and duties of a
395395 municipality under this chapter. The term does not include the
396396 power to:
397397 (1) determine an area as a [slum area,] blighted
398398 area[, or both] and to designate that area as appropriate for an
399399 urban renewal project;
400400 (2) approve and amend urban renewal plans and hold
401401 public hearings relating to those plans;
402402 (3) establish a general plan for the locality as a
403403 whole;
404404 (4) establish a workable program under Section
405405 374.013;
406406 (5) make determinations and findings under Section
407407 374.011(a), 374.013(b), or 374.014(d);
408408 (6) issue general obligation bonds; and
409409 (7) appropriate funds, levy taxes and assessments, and
410410 exercise other functions under Subdivisions (11) and (12) of
411411 Section 374.015(a).
412412 SECTION 14. Section 2206.001(b), Government Code, is
413413 amended to read as follows:
414414 (b) A governmental or private entity may not take private
415415 property through the use of eminent domain if the taking:
416416 (1) confers a private benefit on a particular private
417417 party through the use of the property;
418418 (2) is for a public use that is merely a pretext to
419419 confer a private benefit on a particular private party; or
420420 (3) is for economic development purposes, unless the
421421 economic development results [is a secondary purpose resulting]
422422 from municipal community development or municipal urban renewal
423423 activities to eliminate an existing affirmative harm on society
424424 from [slum or] blighted areas under:
425425 (A) Chapter 373 or 374, Local Government Code,
426426 other than an activity described by Section 373.002(b)(5), Local
427427 Government Code; or
428428 (B) Section 311.005(a)(1)(I), Tax Code.
429429 SECTION 15. Section 21.041, Property Code, is amended to
430430 read as follows:
431431 Sec. 21.041. EVIDENCE. As the basis for assessing actual
432432 damages to a property owner from a condemnation, the special
433433 commissioners shall admit evidence on:
434434 (1) the value of the property being condemned;
435435 (2) the injury to the property owner, including, if
436436 the condemnation makes relocation of a homestead or farm necessary,
437437 the financial damages associated with the cost of relocating from
438438 the condemned property to another property that allows the property
439439 owner, without the necessity of incurring an amount of debt, debt
440440 service, or total projected interest obligation that is higher than
441441 the property owner was subject to immediately before the
442442 condemnation, to:
443443 (A) have a standard of living comparable to the
444444 property owner's standard of living immediately before the
445445 condemnation, if the condemned property is a homestead that is
446446 habitable; or
447447 (B) operate a comparable farm, if the condemned
448448 property is a farm;
449449 (3) the benefit to the property owner's remaining
450450 property; and
451451 (4) the use of the property for the purpose of the
452452 condemnation.
453453 SECTION 16. Section 21.042(d), Property Code, is amended to
454454 read as follows:
455455 (d) In estimating injury or benefit under Subsection (c),
456456 the special commissioners shall consider an injury or benefit that
457457 is peculiar to the property owner, including the property owner's
458458 financial damages described by Section 21.041(2), and that relates
459459 to the property owner's ownership, use, or enjoyment of the
460460 particular parcel of real property, but they may not consider an
461461 injury or benefit that the property owner experiences in common
462462 with the general community.
463463 SECTION 17. Sections 21.046(a) and (b), Property Code, are
464464 amended to read as follows:
465465 (a) A department, agency, instrumentality, or political
466466 subdivision of this state shall [may] provide a relocation advisory
467467 service for an individual, a family, a business concern, a farming
468468 or ranching operation, or a nonprofit organization that [if the
469469 service] is compatible with the federal [Federal] Uniform
470470 Relocation Assistance and Real Property Acquisition Policies Act of
471471 1970 (42 U.S.C. Section 4601 et seq.) [Advisory Program, 23
472472 U.S.C.A. 501, et seq].
473473 (b) This state or a political subdivision of this state
474474 shall [may], as a cost of acquiring real property, pay moving
475475 expenses and rental supplements, make relocation payments, provide
476476 financial assistance to acquire replacement housing, and
477477 compensate for expenses incidental to the transfer of the property
478478 if an individual, a family, the personal property of a business, a
479479 farming or ranching operation, or a nonprofit organization is
480480 displaced in connection with the acquisition.
481481 SECTION 18. The following provisions of the Local
482482 Government Code are repealed:
483483 (1) Section 374.003(19); and
484484 (2) Section 374.016.
485485 SECTION 19. The changes in law made by this Act to Sections
486486 21.041 and 21.042, Property Code, apply only to a condemnation
487487 proceeding in which the petition is filed on or after the effective
488488 date of this Act. A condemnation proceeding in which the petition
489489 is filed before the effective date of this Act is governed by the
490490 law in effect immediately before the effective date of this Act, and
491491 that law is continued in effect for that purpose.
492492 SECTION 20. This Act takes effect immediately if it
493493 receives a vote of two-thirds of all the members elected to each
494494 house, as provided by Section 39, Article III, Texas Constitution.
495495 If this Act does not receive the vote necessary for immediate
496496 effect, this Act takes effect September 1, 2009.