| 1 | 1 | | 86R10652 JAM-D |
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| 2 | 2 | | By: Rose H.B. No. 4340 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the operation of certain urban land bank demonstration |
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| 8 | 8 | | programs. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 379C.009(b), (b-1), and (b-2), Local |
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| 11 | 11 | | Government Code, are amended to read as follows: |
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| 12 | 12 | | (b) Except as provided by Subsection (b-1), the land bank |
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| 13 | 13 | | must sell a property to a qualified participating developer within |
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| 14 | 14 | | the eight-year [four-year] period following the date of acquisition |
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| 15 | 15 | | for the purpose of construction of affordable housing for sale or |
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| 16 | 16 | | rent to low income households. |
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| 17 | 17 | | (b-1) Before the completion of the eight-year [four-year] |
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| 18 | 18 | | period described by Subsection (b), the land bank may, subject to |
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| 19 | 19 | | Section 379C.0106: |
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| 20 | 20 | | (1) transfer property that the land bank determines is |
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| 21 | 21 | | not appropriate for residential development to the taxing units |
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| 22 | 22 | | described by Subsection (b-2) [(b)]; or |
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| 23 | 23 | | (2) sell property described by Subdivision (1) to a |
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| 24 | 24 | | political subdivision or a nonprofit organization. |
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| 25 | 25 | | (b-2) If after eight [four] years a qualified participating |
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| 26 | 26 | | developer has not purchased the property, the property shall be |
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| 27 | 27 | | transferred from the land bank to the taxing units who were parties |
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| 28 | 28 | | to the judgment for disposition as otherwise allowed under the law. |
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| 29 | 29 | | SECTION 2. Section 379C.010(c), Local Government Code, is |
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| 30 | 30 | | amended to read as follows: |
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| 31 | 31 | | (c) If property is developed for rental housing, the deed |
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| 32 | 32 | | restrictions must be for a period of not less than 15 years and must |
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| 33 | 33 | | require that 20 [: |
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| 34 | 34 | | [(1) 100] percent of the rental units be occupied by |
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| 35 | 35 | | low income households [with incomes not greater than 60 percent of |
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| 36 | 36 | | area median family income, based on gross household income, |
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| 37 | 37 | | adjusted for household size, for the metropolitan statistical area |
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| 38 | 38 | | in which the municipality is located, as determined annually by the |
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| 39 | 39 | | United States Department of Housing and Urban Development; |
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| 40 | 40 | | [(2) 40 percent of the units be occupied by households |
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| 41 | 41 | | with incomes not greater than 50 percent of area median family |
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| 42 | 42 | | income, based on gross household income, adjusted for household |
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| 43 | 43 | | size, for the metropolitan statistical area in which the |
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| 44 | 44 | | municipality is located, as determined annually by the United |
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| 45 | 45 | | States Department of Housing and Urban Development; or |
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| 46 | 46 | | [(3) 20 percent of the units be occupied by households |
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| 47 | 47 | | with incomes not greater than 30 percent of area median family |
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| 48 | 48 | | income, based on gross household income, adjusted for household |
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| 49 | 49 | | size, for the metropolitan statistical area in which the |
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| 50 | 50 | | municipality is located, as determined annually by the United |
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| 51 | 51 | | States Department of Housing and Urban Development]. |
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| 52 | 52 | | SECTION 3. Section 379C.014(c), Local Government Code, is |
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| 53 | 53 | | amended to read as follows: |
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| 54 | 54 | | (c) A sale under this section within the eight-year |
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| 55 | 55 | | [four-year] period following the date of acquisition of the |
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| 56 | 56 | | property by the land bank is for a public purpose and satisfies the |
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| 57 | 57 | | requirement under Section 379C.009(b) that the property be sold |
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| 58 | 58 | | within the eight-year [four-year] period to a qualified |
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| 59 | 59 | | participating developer. |
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| 60 | 60 | | SECTION 4. Chapter 379C, Local Government Code, is amended |
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| 61 | 61 | | by adding Section 379C.016 to read as follows: |
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| 62 | 62 | | Sec. 379C.016. ALLOCATION AND USE OF AD VALOREM TAXES |
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| 63 | 63 | | COLLECTED ON PROPERTY DEVELOPED UNDER PROGRAM. An interlocal |
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| 64 | 64 | | agreement under Section 379C.008(a)(4) may provide that, for the |
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| 65 | 65 | | first five calendar years occurring after the date of completion of |
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| 66 | 66 | | the development of a property acquired by a qualified participating |
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| 67 | 67 | | developer under this chapter, 50 percent of the ad valorem taxes |
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| 68 | 68 | | collected on the property must be deposited to the credit of the |
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| 69 | 69 | | land bank for the use of the program. |
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| 70 | 70 | | SECTION 5. Section 379C.010(c), Local Government Code, as |
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| 71 | 71 | | amended by this Act, applies only to property purchased from a land |
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| 72 | 72 | | bank by a qualified participating developer on or after the |
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| 73 | 73 | | effective date of this Act. |
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| 74 | 74 | | SECTION 6. This Act takes effect September 1, 2019. |
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