Texas 2009 - 81st Regular

Texas House Bill HB3160 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R4732 ACP-F
2	2	By: Davis of Dallas H.B. No. 3160
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the urban land bank demonstration program in certain
8	8	municipalities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 379C.008(a), Local Government Code, is
11	11	amended to read as follows:
12	12	(a) Notwithstanding any other law and except as provided by
13	13	Subsection (f), property that is ordered sold pursuant to
14	14	foreclosure of a tax lien may be sold in a private sale to a land
15	15	bank by the officer charged with the sale of the property without
16	16	first offering the property for sale as otherwise provided by
17	17	Section 34.01, Tax Code, if:
18	18	(1) the market value of the property as specified in
19	19	the judgment of foreclosure is less than the total amount due under
20	20	the judgment, including all taxes, penalties, and interest, plus
21	21	the value of nontax liens held by a taxing unit and awarded by the
22	22	judgment, court costs, and the cost of the sale;
23	23	(2) the property is not improved with a habitable
24	24	building or buildings or an uninhabitable building or buildings
25	25	that are occupied or claimed as a residence by an owner or tenant
26	26	who is legally entitled to occupy the building or buildings;
27	27	(3) there are delinquent taxes on the property for a
28	28	total of at least five years; [and]
29	29	(4) the municipality has executed with the other
30	30	taxing units that are parties to the tax suit an interlocal
31	31	agreement that enables those units to agree to participate in the
32	32	program while retaining the right to withhold consent to the sale of
33	33	specific properties to the land bank; and
34	34	(5) the property:
35	35	(A) is located in an area that is not zoned for
36	36	residential housing; and
37	37	(B) on development, will be zoned for more than
38	38	one use that includes residential housing.
39	39	SECTION 2. Sections 379C.009(b) and (d), Local Government
40	40	Code, are amended to read as follows:
41	41	(b) The land bank must sell a property to a qualified
42	42	participating developer within the four-year [three-year] period
43	43	following the date of acquisition for the purpose of construction
44	44	of affordable housing for sale or rent to low income households. If
45	45	after four [three] years a qualified participating developer has
46	46	not purchased the property, the property shall be transferred from
47	47	the land bank to the taxing units who were parties to the judgment
48	48	for disposition as otherwise allowed under the law.
49	49	(d) The deed conveying a property sold by the land bank must
50	50	include a right of reverter so that if the qualified participating
51	51	developer does not apply for a construction permit and close on any
52	52	construction financing within the three-year [two-year] period
53	53	following the date of the conveyance of the property from the land
54	54	bank to the qualified participating developer, the property will
55	55	revert to the land bank for subsequent resale to another qualified
56	56	participating developer or conveyance to the taxing units who were
57	57	parties to the judgment for disposition as otherwise allowed under
58	58	the law.
59	59	SECTION 3. Section 379C.010(a), Local Government Code, is
60	60	amended to read as follows:
61	61	(a) The land bank shall impose deed restrictions on property
62	62	sold to qualified participating developers requiring the
63	63	development and sale, [or] rental, or lease-purchase of the
64	64	property to low income households.
65	65	SECTION 4. Chapter 379C, Local Government Code, is amended
66	66	by adding Section 379C.0105 to read as follows:
67	67	Sec. 379C.0105. LOT EXCHANGE PERMITTED. (a)
68	68	Notwithstanding Section 379C.010, the land bank may permit a
69	69	qualified participating developer to exchange a property purchased
70	70	from the land bank with any other property purchased by the
71	71	developer if:
72	72	(1) the developer agrees to construct on the property
73	73	affordable housing for low income households as provided by this
74	74	chapter; and
75	75	(2) the property will be located in:
76	76	(A) the planned development incorporating the
77	77	property originally purchased from the land bank; or
78	78	(B) another location as approved by the land
79	79	bank.
80	80	(b) The land bank shall adjust the deed restrictions under
81	81	Section 379C.010 for each of the properties exchanged by the
82	82	developer under this section.
83	83	SECTION 5. Chapter 379C, Local Government Code, is amended
84	84	by adding Section 379C.0106 to read as follows:
85	85	Sec. 379C.0106. RIGHT OF FIRST REFUSAL FOR PROPERTY
86	86	DETERMINED TO BE INAPPROPRIATE FOR RESIDENTIAL DEVELOPMENT. (a)
87	87	In this section, "eligible adjacent property owner" means a person
88	88	who:
89	89	(1) owns property located adjacent to property owned
90	90	by the land bank;
91	91	(2) has owned the adjacent property and continuously
92	92	occupied that property as a primary residence for the two-year
93	93	period preceding the date of the sale; and
94	94	(3) satisfies eligibility requirements adopted by the
95	95	land bank.
96	96	(b) Notwithstanding any other right of first refusal
97	97	granted under this chapter, if the land bank determines that a
98	98	property owned by the land bank is not appropriate for residential
99	99	development, the land bank first shall offer the property for sale
100	100	to an eligible adjacent property owner according to terms and
101	101	conditions developed by the land bank that are consistent with this
102	102	chapter.
103	103	(c) The land bank shall sell the property to an eligible
104	104	adjacent property owner, at whichever value is lower:
105	105	(1) the fair market value for the property as
106	106	determined by the appraisal district in which the property is
107	107	located; or
108	108	(2) the sales price recorded in the annual plan.
109	109	(d) Except as provided by Subsection (e), an adjacent
110	110	property owner that purchases property under this section may not
111	111	lease, sell, or transfer that property to another person before the
112	112	third anniversary of the date the adjacent property owner purchased
113	113	that property from the land bank.
114	114	(e) Subsection (d) does not apply to the transfer of
115	115	property purchased under this section if the transfer:
116	116	(1) is made according to a policy adopted by the land
117	117	bank; and
118	118	(2) is made to a family member of the eligible adjacent
119	119	property owner or occurs as a result of the death of the eligible
120	120	adjacent property owner.
121	121	SECTION 6. Sections 379C.009(b) and (d), Local Government
122	122	Code, as amended by this Act, and Section 379C.0105, Local
123	123	Government Code, as added by this Act, apply to property purchased
124	124	from a land bank by a qualified participating developer without
125	125	regard to whether the purchase was made before, on, or after the
126	126	effective date of this Act.
127	127	SECTION 7. This Act takes effect immediately if it receives
128	128	a vote of two-thirds of all the members elected to each house, as
129	129	provided by Section 39, Article III, Texas Constitution. If this
130	130	Act does not receive the vote necessary for immediate effect, this
131	131	Act takes effect September 1, 2009.