Texas 2009 - 81st Regular

Texas House Bill HB3240 Compare Versions

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Old	New	Differences
1	1	81R25125 JTS-D
2	2	By: Martinez H.B. No. 3240
3	3	Substitute the following for H.B. No. 3240:
4	4	By: Alvarado C.S.H.B. No. 3240
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a municipal program for foreclosure on and improvement
10	10	of certain property, and the subsequent sale of the property as
11	11	affordable housing.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle A, Title 8, Local Government Code, is
14	14	amended by adding Chapter 255 to read as follows:
15	15	CHAPTER 255. FORECLOSURE, IMPROVEMENT, AND SALE AS AFFORDABLE
16	16	HOUSING OF CERTAIN PROPERTIES BY MUNICIPALITY
17	17	Sec. 255.001. DEFINITION. In this chapter, "program" means
18	18	a program adopted by ordinance under Section 255.002 for the
19	19	foreclosure and improvement of a property and subsequent sale of
20	20	the property as affordable housing.
21	21	Sec. 255.002. ADOPTION OF PROGRAM BY ORDINANCE. A
22	22	municipality by ordinance may adopt a program to allow the
23	23	municipality to foreclose on certain properties and delay the
24	24	payment of back taxes to other taxing entities until the property
25	25	has been improved and sold as affordable housing.
26	26	Sec. 255.003. PROGRAM REQUIREMENTS. An ordinance adopted
27	27	under this chapter must:
28	28	(1) provide criteria for determining the kinds of
29	29	properties that would be eligible for the program, including a
30	30	requirement that a property be located in the municipality's
31	31	corporate boundaries;
32	32	(2) require the municipality to sell a property under
33	33	the program to a state or federally recognized affordable housing
34	34	program, except as provided by Section 255.007;
35	35	(3) require the municipality to make a reasonable
36	36	effort to maximize the sales price of the property;
37	37	(4) allow the municipality to negotiate with another
38	38	taxing entity to establish an amount to be paid for back taxes owed
39	39	to the other entity on the property;
40	40	(5) allow the municipality to retain proceeds from the
41	41	sale of the property after payment of taxes owed to the other taxing
42	42	entities; and
43	43	(6) allow the municipality to retain an amount from
44	44	the proceeds of the sale equal to the increase in the value of the
45	45	property due to the improvement, as authorized by Section 34.06(g),
46	46	Tax Code.
47	47	Sec. 255.004. MUNICIPALITY AS TRUSTEE. After foreclosure
48	48	of a property under the program, the municipality:
49	49	(1) has the sole authority to improve and sell the
50	50	property; and
51	51	(2) acts as a trustee of the property on behalf of the
52	52	other taxing entities.
53	53	Sec. 255.005. PAYMENT OF AMOUNTS OWED TO OTHER TAXING
54	54	ENTITIES. (a) Except as provided by Subsection (b), a municipality
55	55	that forecloses, converts, and sells a property under a program
56	56	shall pay to each other taxing entity owed taxes on the property an
57	57	amount equal to the amount negotiated by the municipality and the
58	58	entity on the sale of the property.
59	59	(b) Notwithstanding Section 34.06(e), Tax Code, a
60	60	municipality is not required to pay another taxing entity any
61	61	amount for penalties or interest associated with taxes owed on a
62	62	property sold under a program if the improvement and sale of the
63	63	property as affordable housing provides a public benefit to the
64	64	taxpayers of the other taxing entity.
65	65	Sec. 255.006. INTERLOCAL AGREEMENT. If a municipality
66	66	enters into an interlocal agreement with all of the other taxing
67	67	entities in the municipality for the foreclosure on and improvement
68	68	of property and subsequent sale of the property as affordable
69	69	housing, the interlocal agreement controls over this chapter.
70	70	Sec. 255.007. INABILITY TO SELL PROPERTY TO AFFORDABLE
71	71	HOUSING PROGRAM. (a) If a municipality has made reasonable efforts
72	72	to sell a property foreclosed on and improved under this chapter to
73	73	a state or federally recognized affordable housing program and is
74	74	unable to do so, the municipality may sell the property to another
75	75	purchaser. If the municipality sells the property to a purchaser
76	76	other than a state or federally recognized affordable housing
77	77	program:
78	78	(1) the municipality must pay to the other taxing
79	79	entities the negotiated amount of the taxes owed to the other entity
80	80	on the property, subject to Subsection (b), and may not retain an
81	81	amount under Section 34.06(g), Tax Code; and
82	82	(2) Section 255.005(b) does not apply and the
83	83	municipality must pay to the other taxing entities penalties and
84	84	interest owed on the taxes owed to the entity.
85	85	(b) If the proceeds of a sale of a property under this
86	86	section are not sufficient to cover the payment of taxes owed to
87	87	other taxing entities, the municipality shall make payments to the
88	88	other entities from the sales proceeds on a pro rata basis.
89	89	SECTION 2. Section 34.06, Tax Code, is amended by amending
90	90	Subsection (c) and adding Subsection (g) to read as follows:
91	91	(c) The purchasing taxing unit shall first retain an amount
92	92	from the proceeds to reimburse the unit for reasonable costs, as
93	93	defined by Section 34.21, incurred by the unit for:
94	94	(1) maintaining, preserving, and safekeeping the
95	95	property;
96	96	(2) marketing the property for resale; [and]
97	97	(3) costs described by Subsection (f); and
98	98	(4) improvement of the property under Subsection (g).
99	99	(g) If a municipality forecloses on a property, improves the
100	100	property, and sells the property to a state or federally recognized
101	101	affordable housing program under a program established under
102	102	Chapter 255, Local Government Code, the municipality may retain an
103	103	amount from the sale that is equal to the increase in value of the
104	104	property from improvements made by the municipality for the sale to
105	105	the affordable housing program.
106	106	SECTION 3. This Act takes effect September 1, 2009.