86R10652 JAM-D
By: Rose H.B. No. 4340
A BILL TO BE ENTITLED
AN ACT
relating to the operation of certain urban land bank demonstration
programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 379C.009(b), (b-1), and (b-2), Local
Government Code, are amended to read as follows:
(b) Except as provided by Subsection (b-1), the land bank
must sell a property to a qualified participating developer within
the eight-year [four-year] period following the date of acquisition
for the purpose of construction of affordable housing for sale or
rent to low income households.
(b-1) Before the completion of the eight-year [four-year]
period described by Subsection (b), the land bank may, subject to
Section 379C.0106:
(1) transfer property that the land bank determines is
not appropriate for residential development to the taxing units
described by Subsection (b-2) [(b)]; or
(2) sell property described by Subdivision (1) to a
political subdivision or a nonprofit organization.
(b-2) If after eight [four] 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.
SECTION 2. Section 379C.010(c), Local Government Code, is
amended to read as follows:
(c) If property is developed for rental housing, the deed
restrictions must be for a period of not less than 15 years and must
require that 20 [:
[(1) 100] percent of the rental units be occupied by
low income households [with incomes not greater than 60 percent of
area median family income, based on gross household income,
adjusted for household size, for the metropolitan statistical area
in which the municipality is located, as determined annually by the
United States Department of Housing and Urban Development;
[(2) 40 percent of the units be occupied by households
with incomes not greater than 50 percent of area median family
income, based on gross household income, adjusted for household
size, for the metropolitan statistical area in which the
municipality is located, as determined annually by the United
States Department of Housing and Urban Development; or
[(3) 20 percent of the units be occupied by households
with incomes not greater than 30 percent of area median family
income, based on gross household income, adjusted for household
size, for the metropolitan statistical area in which the
municipality is located, as determined annually by the United
States Department of Housing and Urban Development].
SECTION 3. Section 379C.014(c), Local Government Code, is
amended to read as follows:
(c) A sale under this section within the eight-year
[four-year] period following the date of acquisition of the
property by the land bank is for a public purpose and satisfies the
requirement under Section 379C.009(b) that the property be sold
within the eight-year [four-year] period to a qualified
participating developer.
SECTION 4. Chapter 379C, Local Government Code, is amended
by adding Section 379C.016 to read as follows:
Sec. 379C.016. ALLOCATION AND USE OF AD VALOREM TAXES
COLLECTED ON PROPERTY DEVELOPED UNDER PROGRAM. An interlocal
agreement under Section 379C.008(a)(4) may provide that, for the
first five calendar years occurring after the date of completion of
the development of a property acquired by a qualified participating
developer under this chapter, 50 percent of the ad valorem taxes
collected on the property must be deposited to the credit of the
land bank for the use of the program.
SECTION 5. Section 379C.010(c), Local Government Code, as
amended by this Act, applies only to property purchased from a land
bank by a qualified participating developer on or after the
effective date of this Act.
SECTION 6. This Act takes effect September 1, 2019.