81R4732 ACP-F
By: Davis of Dallas H.B. No. 3160
A BILL TO BE ENTITLED
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.008(a), Local Government Code, is
amended to read as follows:
(a) Notwithstanding any other law and except as provided by
Subsection (f), property that is ordered sold pursuant to
foreclosure of a tax lien may be sold in a private sale to a land
bank by the officer charged with the sale of the property without
first offering the property for sale as otherwise provided by
Section 34.01, Tax Code, if:
(1) the market value of the property as specified in
the judgment of foreclosure is less than the total amount due under
the judgment, including all taxes, penalties, and interest, plus
the value of nontax liens held by a taxing unit and awarded by the
judgment, court costs, and the cost of the sale;
(2) the property is not improved with a habitable
building or buildings or an uninhabitable building or buildings
that are occupied or claimed as a residence by an owner or tenant
who is legally entitled to occupy the building or buildings;
(3) there are delinquent taxes on the property for a
total of at least five years; [and]
(4) the municipality has executed with the other
taxing units that are parties to the tax suit an interlocal
agreement that enables those units to agree to participate in the
program while retaining the right to withhold consent to the sale of
specific properties to the land bank; and
(5) the property:
(A) is located in an area that is not zoned for
residential housing; and
(B) on development, will be zoned for more than
one use that includes residential housing.
SECTION 2. Sections 379C.009(b) and (d), Local Government
Code, are amended to read as follows:
(b) The land bank must sell a property to a qualified
participating developer within the four-year [three-year] period
following the date of acquisition for the purpose of construction
of affordable housing for sale or rent to low income households. If
after four [three] 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.
(d) The deed conveying a property sold by the land bank must
include a right of reverter so that if the qualified participating
developer does not apply for a construction permit and close on any
construction financing within the three-year [two-year] period
following the date of the conveyance of the property from the land
bank to the qualified participating developer, the property will
revert to the land bank for subsequent resale to another qualified
participating developer or conveyance to the taxing units who were
parties to the judgment for disposition as otherwise allowed under
the law.
SECTION 3. Section 379C.010(a), Local Government Code, is
amended to read as follows:
(a) The land bank shall impose deed restrictions on property
sold to qualified participating developers requiring the
development and sale, [or] rental, or lease-purchase of the
property to low income households.
SECTION 4. Chapter 379C, Local Government Code, is amended
by adding Section 379C.0105 to read as follows:
Sec. 379C.0105. LOT EXCHANGE PERMITTED. (a)
Notwithstanding Section 379C.010, the land bank may permit a
qualified participating developer to exchange a property purchased
from the land bank with any other property purchased by the
developer if:
(1) the developer agrees to construct on the property
affordable housing for low income households as provided by this
chapter; and
(2) the property will be located in:
(A) the planned development incorporating the
property originally purchased from the land bank; or
(B) another location as approved by the land
bank.
(b) The land bank shall adjust the deed restrictions under
Section 379C.010 for each of the properties exchanged by the
developer under this section.
SECTION 5. Chapter 379C, Local Government Code, is amended
by adding Section 379C.0106 to read as follows:
Sec. 379C.0106. RIGHT OF FIRST REFUSAL FOR PROPERTY
DETERMINED TO BE INAPPROPRIATE FOR RESIDENTIAL DEVELOPMENT. (a)
In this section, "eligible adjacent property owner" means a person
who:
(1) owns property located adjacent to property owned
by the land bank;
(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.
(b) Notwithstanding any other right of first refusal
granted under this chapter, if the land bank determines that a
property owned by the land bank is not appropriate for residential
development, the land bank first shall offer the property for sale
to an eligible adjacent property owner according to terms and
conditions developed by the land bank that are consistent with this
chapter.
(c) The land bank shall sell the property to an eligible
adjacent property owner, at whichever value is lower:
(1) the fair market value for the property as
determined by the appraisal district in which the property is
located; or
(2) the sales price recorded in the annual plan.
(d) Except as provided by Subsection (e), an adjacent
property owner that purchases property under this section may not
lease, sell, or transfer that property to another person before the
third anniversary of the date the adjacent property owner purchased
that property from the land bank.
(e) Subsection (d) does not apply to the transfer of
property purchased under this section if the transfer:
(1) is made according to a policy adopted by the land
bank; and
(2) is made to a family member of the eligible adjacent
property owner or occurs as a result of the death of the eligible
adjacent property owner.
SECTION 6. Sections 379C.009(b) and (d), Local Government
Code, as amended by this Act, and Section 379C.0105, Local
Government Code, as added by this Act, apply to property purchased
from a land bank by a qualified participating developer without
regard to whether the purchase was made before, on, or after the
effective date of this Act.
SECTION 7. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.