Texas 2021 - 87th Regular

Texas House Bill HB1795 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~87R16098~~ JAM-D
	1	+	87R7119 JAM-D
2	2		By: Dominguez H.B. No. 1795
3		-	Substitute the following for H.B. No. 1795:
4		-	By: Buckley C.S.H.B. No. 1795
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9		-	relating to the adoption of a ~~veterans'~~ land bank program by the
10		-	~~Texas State~~ Affordable Housing Corporation.
	7	+	relating to the adoption of a land bank program by the Texas State
	8	+	Affordable Housing Corporation.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12		-	SECTION 1. Section 2306.566(c), Government Code, is amended
13		-	to read as follows:
14		-	(c) The corporation's plan must include:
15		-	(1) specific proposals to help serve rural and other
16		-	underserved areas of the state; and
17		-	(2) the veterans' land bank plan developed under
18		-	Section 2306.5622.
19		-	SECTION 2. Subchapter Y, Chapter 2306, Government Code, is
20		-	amended by adding Section 2306.5622 to read as follows:
21		-	Sec. 2306.5622. VETERANS' LAND BANK PROGRAM. (a) In this
22		-	section:
	10	+	SECTION 1. Chapter 2306, Government Code, is amended by
	11	+	adding Subchapter PP to read as follows:
	12	+	SUBCHAPTER PP. VETERANS' LAND BANK PROGRAM
	13	+	Sec. 2306.1151. DEFINITIONS. In this subchapter:
23	14		(1) "Affordable" means that the monthly mortgage
24	15		payment or contract rent does not exceed 30 percent of the
25	16		applicable median family income for that unit size, in accordance
26	17		with the income and rent limit rules adopted by the Texas Department
27	18		of Housing and Community Affairs.
28	19		(2) "Community housing development organization" or
29	20		"organization" means an organization that:
30	21		(A) meets the definition of a community housing
31	22		development organization in 24 C.F.R. Section 92.2; and
32	23		(B) is certified by a municipality or county as a
33	24		community housing development organization.
34		-	(3) "Low-income household" means a household with an
	25	+	(3) "Corporation" means the Texas State Affordable
	26	+	Housing Corporation.
	27	+	(4) "Land bank" means an entity established or
	28	+	approved by the corporation for the purpose of acquiring, holding,
	29	+	and transferring unimproved real property under this subchapter to
	30	+	provide affordable housing for veterans who are members of
	31	+	low-income households.
	32	+	(5) "Land bank plan" or "plan" means a plan adopted by
	33	+	the corporation as provided by Section 2306.1155.
	34	+	(6) "Land bank program" or "program" means a program
	35	+	adopted under Section 2306.1153.
	36	+	(7) "Low-income household" means a household with an
35	37		income of not greater than 80 percent of the area median family
36	38		income, based on gross household income, adjusted for household
37	39		size, for a municipality or, if located in an area that is not part
38	40		of a municipality, a county, as determined annually by the United
39	41		States Department of Housing and Urban Development.
40		-	(4) "Qualified participating developer" means a
41		-	developer who meets the requirements of ~~Subsection (f)~~ and ~~includes~~
42		-	a qualified organization under ~~Subsection (s)~~.
43		-	(5) "Veteran" has the meaning provided by Section
	42	+	(8) "Qualified participating developer" means a
	43	+	developer who meets the requirements of Section 2306.1154 and
	44	+	includes a qualified organization under Section 2306.1160.
	45	+	(9) "Veteran" has the meaning provided by Section
44	46		161.001, Natural Resources Code.
45		-	(6) "Veterans' land bank" means an entity established
46		-	or approved by the corporation for the purpose of acquiring,
47		-	holding, and transferring unimproved real property under this
48		-	section to provide affordable housing for veterans who are members
49		-	of low-income households.
50		-	(7) "Veterans' land bank plan" or "plan" means a plan
51		-	adopted by the corporation as provided by Subsection (g).
52		-	(8) "Veterans' land bank program" or "program" means a
53		-	program adopted under Subsection (c).
54		-	(b) This section controls to the extent of any conflict
55		-	between this section and another provision of this chapter.
56		-	(c) The corporation shall adopt a veterans' land bank
57		-	program and establish or approve a veterans' land bank for the
58		-	purpose of acquiring, holding, and transferring unimproved real
59		-	property under this section to provide affordable housing for
60		-	veterans who are members of low-income households.
61		-	(d) Property held by the veterans' land bank must include
62		-	property acquired in the manner provided by Subsection (i) and may
63		-	include other property acquired by or transferred to the veterans'
64		-	land bank.
65		-	(e) A sale or other transfer of property for use in
	47	+	Sec. 2306.1152. APPLICABILITY OF OTHER LAW. This
	48	+	subchapter controls to the extent of any conflict between this
	49	+	subchapter and another provision of this chapter.
	50	+	Sec. 2306.1153. LAND BANK PROGRAM. (a) The corporation
	51	+	shall adopt a land bank program and establish or approve a land bank
	52	+	for the purpose of acquiring, holding, and transferring unimproved
	53	+	real property under this subchapter to provide affordable housing
	54	+	for veterans who are members of low-income households.
	55	+	(b) Property held by the land bank must include property
	56	+	acquired in the manner provided by Section 2306.1157 and may
	57	+	include other property acquired by or transferred to the land bank.
	58	+	(c) A sale or other transfer of property for use in
66	59		connection with the program is a sale for a public purpose.
67		-	~~(f) To qualify~~ to ~~participate in the program, a developer~~
68		-	must:
	60	+	Sec. 2306.1154. QUALIFIED PARTICIPATING DEVELOPER. To
	61	+	qualify to participate in the program, a developer must:
69	62		(1) have developed three or more housing units within
70	63		the three-year period preceding the submission of a proposal to the
71		-	veterans' land bank seeking to acquire real property from the
72		-	veterans' land bank;
	64	+	land bank seeking to acquire real property from the land bank;
73	65		(2) have a development plan approved by the
74		-	corporation for the ~~veterans'~~ land bank property; and
	66	+	corporation for the land bank property; and
75	67		(3) meet any other requirements adopted by the
76		-	corporation in the veterans' land bank plan.
77		-	(g) The corporation shall operate the program in
78		-	conformance with a veterans' land bank plan. The corporation shall
79		-	adopt a plan annually. The plan may be amended from time to time.
80		-	In developing the plan, the corporation shall consider any other
81		-	housing plans adopted by a municipality or county in which the
82		-	corporation intends to implement the program. The plan must
83		-	include the corporation's plan for affordable housing development
84		-	on parcels of real property.
85		-	(h) Before adopting a plan, the corporation shall hold a
86		-	public hearing on the proposed plan. The corporation shall provide
87		-	notice of the hearing to all community housing development
88		-	organizations and to neighborhood associations identified by the
89		-	corporation as serving the neighborhoods in which properties
90		-	anticipated to be available for sale or transfer to the veterans'
91		-	land bank under this section are located. The corporation shall
92		-	make copies of the proposed plan available to the public not later
93		-	than the 30th day before the date of the public hearing.
94		-	(i) Notwithstanding any other law and except as provided by
95		-	Subsection (m), property that is ordered sold pursuant to
96		-	foreclosure of a tax lien may be sold in a private sale to a
97		-	veterans' land bank by the officer charged with the sale of the
98		-	property without first offering the property for sale as otherwise
99		-	provided by Section 34.01, Tax Code, if:
	68	+	corporation in the land bank plan.
	69	+	Sec. 2306.1155. LAND BANK PLAN. (a) The corporation shall
	70	+	operate the program in conformance with a land bank plan.
	71	+	(b) The corporation shall adopt a plan annually. The plan
	72	+	may be amended from time to time.
	73	+	(c) In developing the plan, the corporation shall consider
	74	+	any other housing plans adopted by a municipality or county in which
	75	+	the corporation intends to implement the program.
	76	+	(d) The plan must include the following:
	77	+	(1) a list of community housing development
	78	+	organizations eligible to participate in the right of first refusal
	79	+	provided by Section 2306.1160;
	80	+	(2) a list of the parcels of real property that may
	81	+	become eligible for sale or transfer to the land bank during the
	82	+	next year;
	83	+	(3) the corporation's plan for affordable housing
	84	+	development on those parcels of real property; and
	85	+	(4) the sources and amounts of public subsidies
	86	+	anticipated to be available for affordable housing development
	87	+	previously approved by the corporation at the time of the plan.
	88	+	Sec. 2306.1156. PUBLIC HEARING ON PROPOSED PLAN. (a)
	89	+	Before adopting a plan, the corporation shall hold a public hearing
	90	+	on the proposed plan.
	91	+	(b) The corporation shall provide notice of the hearing to
	92	+	all community housing development organizations and to
	93	+	neighborhood associations identified by the corporation as serving
	94	+	the neighborhoods in which properties anticipated to be available
	95	+	for sale or transfer to the land bank under this subchapter are
	96	+	located.
	97	+	(c) The corporation shall make copies of the proposed plan
	98	+	available to the public not later than the 60th day before the date
	99	+	of the public hearing.
	100	+	Sec. 2306.1157. PRIVATE SALE TO LAND BANK. (a)
	101	+	Notwithstanding any other law and except as provided by Subsection
	102	+	(e), property that is ordered sold pursuant to foreclosure of a tax
	103	+	lien may be sold in a private sale to a land bank by the officer
	104	+	charged with the sale of the property without first offering the
	105	+	property for sale as otherwise provided by Section 34.01, Tax Code,
	106	+	if:
100	107		(1) the market value of the property as specified in
101	108		the judgment of foreclosure is less than the total amount due under
102	109		the judgment, including all taxes, penalties, and interest, plus
103	110		the value of nontax liens held by a taxing unit and awarded by the
104	111		judgment, court costs, and the cost of the sale;
105	112		(2) the property is not improved with a building or
106	113		buildings;
107	114		(3) there are delinquent taxes on the property for a
108	115		total of at least five years; and
109	116		(4) all taxing units that are parties to the tax suit
110	117		have executed an interlocal agreement that enables those units to
111	118		agree to participate in the program while retaining the right to
112		-	withhold consent to the sale of specific properties to the
113		-	~~veterans' land~~ bank.
114		-	(j) If the person being sued in a suit for foreclosure of a
	119	+	withhold consent to the sale of specific properties to the land
	120	+	bank.
	121	+	(b) If the person being sued in a suit for foreclosure of a
115	122		tax lien does not contest the market value of the property in the
116	123		suit, the person waives the right to challenge the amount of the
117	124		market value determined by the court for purposes of the sale of the
118	125		property under Section 33.50, Tax Code.
119		-	(k) For any sale of property under ~~Subsection (i)~~, each
120		-	~~person~~ who was a defendant to the judgment, or that person's
121		-	~~attorney,~~ shall be given, not later than the 90th day before the
122		-	~~date of sale,~~ written notice of the proposed method of sale of the
123		-	~~property by the~~ officer charged with the sale of the property.
124		-	~~Notice shall be~~ given in the manner prescribed by Rule 21a, Texas
125		-	~~Rules of Civil~~ Procedure.
126		-	(l) After receipt of the notice required by Subsection (k)
	126	+	(c) For any sale of property under this section, each person
	127	+	who was a defendant to the judgment, or that person's attorney,
	128	+	shall be given, not later than the 90th day before the date of sale,
	129	+	written notice of the proposed method of sale of the property by the
	130	+	officer charged with the sale of the property. Notice shall be
	131	+	given in the manner prescribed by Rule 21a, Texas Rules of Civil
	132	+	Procedure.
	133	+	(d) After receipt of the notice required by Subsection (c)
127	134		and before the date of the proposed sale, the owner of the property
128	135		subject to sale may file with the officer charged with the sale a
129	136		written request that the property not be sold in the manner provided
130		-	by ~~Subsection (i)~~.
131		-	(m) If the officer charged with the sale receives a written
132		-	request as provided by Subsection (l), the officer shall sell the
	137	+	by this section.
	138	+	(e) If the officer charged with the sale receives a written
	139	+	request as provided by Subsection (d), the officer shall sell the
133	140		property as otherwise provided in Section 34.01, Tax Code.
134		-	(n) The owner of the property subject to sale may not
	141	+	(f) The owner of the property subject to sale may not
135	142		receive any proceeds of a sale under this section. However, the
136	143		owner does not have any personal liability for a deficiency of the
137	144		judgment as a result of a sale under this section.
138		-	(o) Notwithstanding any other law, if consent is given by
	145	+	(g) Notwithstanding any other law, if consent is given by
139	146		the taxing units that are a party to the judgment, property may be
140		-	sold to the veterans' land bank for less than the market value of
141		-	the property as specified in the judgment or less than the total of
142		-	all taxes, penalties, and interest, plus the value of nontax liens
143		-	held by a taxing unit and awarded by the judgment, court costs, and
144		-	the cost of the sale.
145		-	(p) The deed of conveyance of the property sold to a
146		-	veterans' land bank under Subsection (i) conveys to the veterans'
147		-	land bank the right, title, and interest acquired or held by each
148		-	taxing unit that was a party to the judgment, subject to the right
149		-	of redemption.
150		-	(q) Each subsequent resale by a veterans' land bank of
151		-	property acquired by the veterans' land bank under Subsection (i)
152		-	must comply with the conditions of this subsection. Within the
153		-	10-year period following the date of acquisition, the veterans'
154		-	land bank must sell a property to a qualified participating
155		-	developer for the purpose of construction of affordable housing for
156		-	sale or rent to veterans who are members of low-income households.
157		-	If after 10 years a qualified participating developer has not
158		-	purchased the property, the property shall be transferred from the
159		-	veterans' land bank to the taxing units who were parties to the
160		-	judgment for disposition as otherwise allowed under the law. The
161		-	deed conveying a property sold by the veterans' land bank must
	147	+	sold to the land bank for less than the market value of the property
	148	+	as specified in the judgment or less than the total of all taxes,
	149	+	penalties, and interest, plus the value of nontax liens held by a
	150	+	taxing unit and awarded by the judgment, court costs, and the cost
	151	+	of the sale.
	152	+	(h) The deed of conveyance of the property sold to a land
	153	+	bank under this section conveys to the land bank the right, title,
	154	+	and interest acquired or held by each taxing unit that was a party
	155	+	to the judgment, subject to the right of redemption.
	156	+	Sec. 2306.1158. SUBSEQUENT RESALE BY LAND BANK. (a) Each
	157	+	subsequent resale by a land bank of property acquired by the land
	158	+	bank under Section 2306.1157 must comply with the conditions of
	159	+	this section.
	160	+	(b) Within the three-year period following the date of
	161	+	acquisition, the land bank must sell a property to a qualified
	162	+	participating developer for the purpose of construction of
	163	+	affordable housing for sale or rent to veterans who are members of
	164	+	low-income households.
	165	+	(c) If after three years a qualified participating
	166	+	developer has not purchased the property, the property shall be
	167	+	transferred from the land bank to the taxing units who were parties
	168	+	to the judgment for disposition as otherwise allowed under the law.
	169	+	(d) Unless the corporation increases the amount in its plan,
	170	+	the number of properties acquired by a qualified participating
	171	+	developer under this section on which development has not been
	172	+	completed may not at any given time exceed three times the annual
	173	+	average residential production completed by the qualified
	174	+	participating developer during the preceding two-year period as
	175	+	determined by the corporation.
	176	+	(e) The deed conveying a property sold by the land bank must
162	177		include a right of reverter so that if the qualified participating
163	178		developer does not apply for a construction permit and close on any
164	179		construction financing within the two-year period following the
165		-	date of the conveyance of the property from the ~~veterans'~~ land bank
166		-	~~to the~~ qualified participating developer, the property will revert
167		-	~~to the veterans'~~ land bank for subsequent resale to another
168		-	~~qualifying participating~~ developer or conveyance to the taxing
169		-	~~units who were parties to the~~ judgment for disposition as otherwise
170		-	~~allowed under the law.~~
171		-	(r) The ~~veterans'~~ land bank shall impose, in accordance with
172		-	~~this subsection~~, deed restrictions on property sold to qualified
	180	+	date of the conveyance of the property from the land bank to the
	181	+	qualified participating developer, the property will revert to the
	182	+	land bank for subsequent resale to another qualifying participating
	183	+	developer or conveyance to the taxing units who were parties to the
	184	+	judgment for disposition as otherwise allowed under the law.
	185	+	Sec. 2306.1159. RESTRICTIONS ON OCCUPANCY AND USE OF
	186	+	PROPERTY. (a) The land bank shall impose, in accordance with this
	187	+	section, deed restrictions on property sold to qualified
173	188		participating developers requiring the development and subsequent
174	189		sale or rental of the property to veterans who are members of
175		-	low-income households. At least 25 percent of the veterans' land
176		-	bank properties sold during any given state fiscal year to be
177		-	developed for sale shall be deed restricted for sale to households
178		-	with incomes not greater than 80 percent of the area median family
179		-	income, based on gross household income, adjusted for household
180		-	size, for the applicable municipality or, if located in an area that
181		-	is not part of a municipality, the applicable county, as determined
182		-	annually by the United States Department of Housing and Urban
183		-	Development. If property is developed for rental housing, the deed
	190	+	low-income households.
	191	+	(b) At least 25 percent of the land bank properties sold
	192	+	during any given state fiscal year to be developed for sale shall be
	193	+	deed restricted for sale to households with incomes not greater
	194	+	than 60 percent of the area median family income, based on gross
	195	+	household income, adjusted for household size, for the applicable
	196	+	municipality or, if located in an area that is not part of a
	197	+	municipality, the applicable county, as determined annually by the
	198	+	United States Department of Housing and Urban Development.
	199	+	(c) If property is developed for rental housing, the deed
184	200		restrictions must be for a period of not less than 20 years and must
185		-	require that 100 percent of the rental units be occupied by and
	201	+	require that:
	202	+	(1) 100 percent of the rental units be occupied by and
186	203		affordable to households with incomes not greater than 60 percent
187	204		of area median family income, based on gross household income,
188	205		adjusted for household size, for the applicable municipality or, if
189	206		located in an area that is not part of a municipality, the
190	207		applicable county, as determined annually by the United States
191		-	Department of Housing and Urban Development. The deed restrictions
192		-	relating to rental housing under this subsection must require the
193		-	owner to file an annual occupancy report with the corporation on a
194		-	reporting form provided by the corporation. The deed restrictions
195		-	must also prohibit any exclusion of an individual or family from
196		-	admission to the development based solely on the participation of
197		-	the individual or family in the housing choice voucher program
198		-	under Section 8, United States Housing Act of 1937 (42 U.S.C.
199		-	Section 1437f), as amended. Except as otherwise provided by this
200		-	subsection, if the deed restrictions imposed under this subsection
201		-	are for a term of years, the deed restrictions renew automatically.
202		-	The veterans' land bank or the corporation may modify or add to the
203		-	deed restrictions imposed under this subsection. Any modifications
204		-	or additions made by the corporation must be adopted by the
	208	+	Department of Housing and Urban Development;
	209	+	(2) 40 percent of the units be occupied by and
	210	+	affordable to households with incomes not greater than 50 percent
	211	+	of area median family income, based on gross household income,
	212	+	adjusted for household size, for the applicable municipality or, if
	213	+	located in an area that is not part of a municipality, the
	214	+	applicable county, as determined annually by the United States
	215	+	Department of Housing and Urban Development; or
	216	+	(3) 20 percent of the units be occupied by and
	217	+	affordable to households with incomes not greater than 30 percent
	218	+	of area median family income, based on gross household income,
	219	+	adjusted for household size, for the applicable municipality or, if
	220	+	located in an area that is not part of a municipality, the
	221	+	applicable county, as determined annually by the United States
	222	+	Department of Housing and Urban Development.
	223	+	(d) The deed restrictions under Subsection (c) must require
	224	+	the owner to file an annual occupancy report with the corporation on
	225	+	a reporting form provided by the corporation. The deed
	226	+	restrictions must also prohibit any exclusion of an individual or
	227	+	family from admission to the development based solely on the
	228	+	participation of the individual or family in the housing choice
	229	+	voucher program under Section 8, United States Housing Act of 1937
	230	+	(42 U.S.C. Section 1437f), as amended.
	231	+	(e) Except as otherwise provided by this section, if the
	232	+	deed restrictions imposed under this section are for a term of
	233	+	years, the deed restrictions renew automatically.
	234	+	(f) The land bank or the corporation may modify or add to the
	235	+	deed restrictions imposed under this section. Any modifications or
	236	+	additions made by the corporation must be adopted by the
205	237		corporation as part of its plan and must comply with the
206		-	restrictions set forth in this subsection.
207		-	(s) The veterans' land bank shall first offer for sale to
208		-	qualified organizations any property acquired by the veterans' land
209		-	bank under Subsection (i). Notice must be provided to the qualified
210		-	organizations by certified mail, return receipt requested, not
211		-	later than the 60th day before the beginning of the period in which
212		-	a right of first refusal may be exercised. The corporation shall
213		-	specify in its plan the period during which the right of first
214		-	refusal provided by this subsection may be exercised by a qualified
215		-	organization. That period must be at least nine months but not more
216		-	than 26 months from the date of the deed of conveyance of the
217		-	property to the veterans' land bank. If the veterans' land bank
218		-	conveys the property to a qualified organization before the
219		-	expiration of the period specified by the corporation under this
220		-	subsection, the interlocal agreement executed under Subsection
221		-	(i)(4) must provide tax abatement for the property until the
222		-	expiration of that period. During the specified period, the
223		-	veterans' land bank may not sell the property to a qualified
224		-	participating developer other than a qualified organization. If
225		-	all qualified organizations notify the veterans' land bank that
226		-	they are declining to exercise their right of first refusal during
227		-	the specified period, or if an offer to purchase the property is not
228		-	received from a qualified organization during that period, the
229		-	veterans' land bank may sell the property to any other qualified
230		-	participating developer at the same price that the veterans' land
231		-	bank offered the property to the qualified organizations. In its
232		-	plan, the corporation shall establish the additional period, if
233		-	any, that a property may be held in the veterans' land bank once an
234		-	offer has been received and accepted from a qualified organization
235		-	or other qualified participating developer. If more than one
236		-	qualified organization expresses an interest in exercising its
237		-	right of first refusal, the organization that has designated the
238		-	most geographically compact area encompassing a portion of the
239		-	property shall be given priority. In its plan, the corporation may
240		-	provide for other rights of first refusal for any other nonprofit
241		-	corporation exempted from federal income tax under Section
242		-	501(c)(3), Internal Revenue Code of 1986, as amended, provided that
243		-	the preeminent right of first refusal is provided to qualified
244		-	organizations as provided by this subsection. The veterans' land
245		-	bank is not required to provide a right of first refusal to
246		-	qualified organizations under this subsection if the veterans' land
247		-	bank is selling property that reverted to the veterans' land bank
248		-	under Subsection (q) or was acquired by the veterans' land bank in a
249		-	manner other than that provided by Subsection (i). In this
250		-	subsection, "qualified organization" means a community housing
	238	+	restrictions set forth in Subsections (b), (c), and (d).
	239	+	Sec. 2306.1160. RIGHT OF FIRST REFUSAL. (a) In this
	240	+	section, "qualified organization" means a community housing
251	241		development organization that:
252	242		(1) contains within its designated geographical
253	243		boundaries of operation, as set forth in its application for
254	244		certification filed with and approved by the municipality or county
255	245		certifying the organization, a portion of the property that the
256		-	~~veterans'~~ land bank is offering for sale;
	246	+	land bank is offering for sale;
257	247		(2) has built at least three single-family homes or
258	248		duplexes or one multifamily residential dwelling of four or more
259	249		units in compliance with all applicable building codes within the
260	250		preceding two-year period and within the organization's designated
261	251		geographical boundaries of operation; and
262	252		(3) within the preceding three-year period has
263	253		developed or rehabilitated housing units within a two-mile radius
264		-	of the property that the veterans' land bank is offering for sale.
265		-	(t) The veterans' land bank shall comply with the
266		-	requirements of Chapters 551 and 552. The veterans' land bank shall
267		-	keep accurate minutes of its meetings and shall keep accurate
	254	+	of the property that the land bank is offering for sale.
	255	+	(b) The land bank shall first offer for sale to qualified
	256	+	organizations any property acquired by the land bank under Section
	257	+	2306.1157.
	258	+	(c) Notice must be provided to the qualified organizations
	259	+	by certified mail, return receipt requested, not later than the
	260	+	60th day before the beginning of the period in which a right of
	261	+	first refusal may be exercised.
	262	+	(d) The corporation shall specify in its plan the period
	263	+	during which the right of first refusal provided by this section may
	264	+	be exercised by a qualified organization. That period must be at
	265	+	least nine months but not more than 26 months from the date of the
	266	+	deed of conveyance of the property to the land bank.
	267	+	(e) If the land bank conveys the property to a qualified
	268	+	organization before the expiration of the period specified by the
	269	+	corporation under Subsection (d), the interlocal agreement
	270	+	executed under Section 2306.1157(a)(4) must provide tax abatement
	271	+	for the property until the expiration of that period.
	272	+	(f) During the specified period, the land bank may not sell
	273	+	the property to a qualified participating developer other than a
	274	+	qualified organization. If all qualified organizations notify the
	275	+	land bank that they are declining to exercise their right of first
	276	+	refusal during the specified period, or if an offer to purchase the
	277	+	property is not received from a qualified organization during that
	278	+	period, the land bank may sell the property to any other qualified
	279	+	participating developer at the same price that the land bank
	280	+	offered the property to the qualified organizations.
	281	+	(g) In its plan, the corporation shall establish the
	282	+	additional period, if any, that a property may be held in the land
	283	+	bank once an offer has been received and accepted from a qualified
	284	+	organization or other qualified participating developer.
	285	+	(h) If more than one qualified organization expresses an
	286	+	interest in exercising its right of first refusal, the organization
	287	+	that has designated the most geographically compact area
	288	+	encompassing a portion of the property shall be given priority.
	289	+	(i) In its plan, the corporation may provide for other
	290	+	rights of first refusal for any other nonprofit corporation
	291	+	exempted from federal income tax under Section 501(c)(3), Internal
	292	+	Revenue Code of 1986, as amended, provided that the preeminent
	293	+	right of first refusal is provided to qualified organizations as
	294	+	provided by this section.
	295	+	(j) The land bank is not required to provide a right of first
	296	+	refusal to qualified organizations under this section if the land
	297	+	bank is selling property that reverted to the land bank under
	298	+	Section 2306.1158(e) or was acquired by the land bank in a manner
	299	+	other than that provided by Section 2306.1157.
	300	+	Sec. 2306.1161. OPEN RECORDS AND MEETINGS. The land bank
	301	+	shall comply with the requirements of Chapters 551 and 552.
	302	+	Sec. 2306.1162. RECORDS; AUDIT; REPORT. (a) The land bank
	303	+	shall keep accurate minutes of its meetings and shall keep accurate
268	304		records and books of account that conform with generally accepted
269	305		principles of accounting and that clearly reflect the income and
270		-	expenses of the veterans' land bank and all transactions in
271		-	relation to its property.
272		-	(u) For purposes of evaluating the effectiveness of the
273		-	program, the veterans' land bank shall submit an annual performance
274		-	report to the corporation not later than November 1 of each year in
275		-	which the veterans' land bank acquires or sells property under this
276		-	section. The performance report must include:
	306	+	expenses of the land bank and all transactions in relation to its
	307	+	property.
	308	+	(b) The land bank shall file with the corporation not later
	309	+	than the 90th day after the close of the state fiscal year annual
	310	+	audited financial statements prepared by a certified public
	311	+	accountant. The financial transactions of the land bank are
	312	+	subject to audit by the corporation.
	313	+	(c) For purposes of evaluating the effectiveness of the
	314	+	program, the land bank shall submit an annual performance report to
	315	+	the corporation not later than November 1 of each year in which the
	316	+	land bank acquires or sells property under this subchapter. The
	317	+	performance report must include:
277	318		(1) a complete and detailed written accounting of all
278		-	money and properties received and disbursed by the ~~veterans' land~~
279		-	~~bank during~~ the preceding state fiscal year;
280		-	(2) for each property acquired by the ~~veterans' land~~
281		-	~~bank during~~ the preceding state fiscal year:
	319	+	money and properties received and disbursed by the land bank during
	320	+	the preceding state fiscal year;
	321	+	(2) for each property acquired by the land bank during
	322	+	the preceding state fiscal year:
282	323		(A) the street address of the property;
283	324		(B) the legal description of the property;
284		-	(C) the date the ~~veterans'~~ land bank took title
285		-	~~to the~~ property;
	325	+	(C) the date the land bank took title to the
	326	+	property;
286	327		(D) the name and mailing address of the property
287	328		owner of record at the time of the acquisition;
288	329		(E) the amount of taxes and other costs owed at
289	330		the time of the foreclosure if the property was acquired under
290		-	~~Subsection (i)~~; and
	331	+	Section 2306.1157; and
291	332		(F) the assessed value of the property on the tax
292	333		roll at the time of the foreclosure if the property was acquired
293		-	under Subsection (i);
294		-	(3) for each property sold by the veterans' land bank
295		-	during the preceding state fiscal year to a qualified participating
296		-	developer:
	334	+	under Section 2306.1157;
	335	+	(3) for each property sold by the land bank during the
	336	+	preceding state fiscal year to a qualified participating developer:
297	337		(A) the street address of the property;
298	338		(B) the legal description of the property;
299	339		(C) the name and mailing address of the
300	340		purchaser;
301	341		(D) the price paid by the purchaser;
302	342		(E) the maximum incomes allowed for the
303	343		households by the terms of the sale; and
304	344		(F) the source and amount of any public subsidy
305	345		made available to facilitate the sale or rental of the property to a
306	346		veteran who is a member of a household within the targeted income
307	347		levels;
308	348		(4) for each property sold by a qualified
309	349		participating developer during the preceding state fiscal year, the
310	350		buyer's household income and a description of all use and sale
311	351		restrictions; and
312	352		(5) for each property developed for rental housing
313	353		with an active deed restriction, a copy of the most recent annual
314		-	report filed by the owner with the veterans' land bank.
315		-	(v) The veterans' land bank shall provide copies of the
316		-	performance report to any taxing units who were parties to a sale of
317		-	property under Subsection (i). The veterans' land bank shall
318		-	provide notice of the availability of the performance report for
319		-	review to the organizations and neighborhood associations
320		-	identified by the corporation as serving the neighborhoods in which
321		-	are located properties sold or transferred to the veterans' land
322		-	bank under this section. The veterans' land bank and the
323		-	corporation shall maintain copies of the performance report
324		-	available for public review.
325		-	(w) The veterans' land bank shall maintain in its records
326		-	for inspection a copy of the sale settlement statement for each
	354	+	report filed by the owner with the land bank.
	355	+	(d) The land bank shall maintain in its records for
	356	+	inspection a copy of the sale settlement statement for each
327	357		property sold by a qualified participating developer and a copy of
328	358		the first page of the mortgage note with the interest rate and
329	359		indicating the volume and page number of the instrument as filed
330	360		with the county clerk.
331		-	SECTION 3. Sections 11.18(d) and (o), Tax Code, are amended
	361	+	(e) The land bank shall provide copies of the performance
	362	+	report to any taxing units who were parties to a sale of property
	363	+	under Section 2306.1157. The land bank shall provide notice of the
	364	+	availability of the performance report for review to the
	365	+	organizations and neighborhood associations identified by the
	366	+	corporation as serving the neighborhoods in which are located
	367	+	properties sold or transferred to the land bank under this
	368	+	subchapter.
	369	+	(f) The land bank and the corporation shall maintain copies
	370	+	of the performance report available for public review.
	371	+	SECTION 2. Sections 11.18(d) and (o), Tax Code, are amended
332	372		to read as follows:
333	373		(d) A charitable organization must be organized exclusively
334	374		to perform religious, charitable, scientific, literary, or
335	375		educational purposes and, except as permitted by Subsections (h)
336	376		and (l), engage exclusively in performing one or more of the
337	377		following charitable functions:
338	378		(1) providing medical care without regard to the
339	379		beneficiaries' ability to pay, which in the case of a nonprofit
340	380		hospital or hospital system means providing charity care and
341	381		community benefits in accordance with Section 11.1801;
342	382		(2) providing support or relief to orphans,
343	383		delinquent, dependent, or handicapped children in need of
344	384		residential care, abused or battered spouses or children in need of
345	385		temporary shelter, the impoverished, or victims of natural disaster
346	386		without regard to the beneficiaries' ability to pay;
347	387		(3) providing support without regard to the
348	388		beneficiaries' ability to pay to:
349	389		(A) elderly persons, including the provision of:
350	390		(i) recreational or social activities; and
351	391		(ii) facilities designed to address the
352	392		special needs of elderly persons; or
353	393		(B) the handicapped, including training and
354	394		employment:
355	395		(i) in the production of commodities; or
356	396		(ii) in the provision of services under 41
357	397		U.S.C. Sections 8501-8506;
358	398		(4) preserving a historical landmark or site;
359	399		(5) promoting or operating a museum, zoo, library,
360	400		theater of the dramatic or performing arts, or symphony orchestra
361	401		or choir;
362	402		(6) promoting or providing humane treatment of
363	403		animals;
364	404		(7) acquiring, storing, transporting, selling, or
365	405		distributing water for public use;
366	406		(8) answering fire alarms and extinguishing fires with
367	407		no compensation or only nominal compensation to the members of the
368	408		organization;
369	409		(9) promoting the athletic development of boys or
370	410		girls under the age of 18 years;
371	411		(10) preserving or conserving wildlife;
372	412		(11) promoting educational development through loans
373	413		or scholarships to students;
374	414		(12) providing halfway house services pursuant to a
375	415		certification as a halfway house by the parole division of the Texas
376	416		Department of Criminal Justice;
377	417		(13) providing permanent housing and related social,
378	418		health care, and educational facilities for persons who are 62
379	419		years of age or older without regard to the residents' ability to
380	420		pay;
381	421		(14) promoting or operating an art gallery, museum, or
382	422		collection, in a permanent location or on tour, that is open to the
383	423		public;
384	424		(15) providing for the organized solicitation and
385	425		collection for distributions through gifts, grants, and agreements
386	426		to nonprofit charitable, education, religious, and youth
387	427		organizations that provide direct human, health, and welfare
388	428		services;
389	429		(16) performing biomedical or scientific research or
390	430		biomedical or scientific education for the benefit of the public;
391	431		(17) operating a television station that produces or
392	432		broadcasts educational, cultural, or other public interest
393	433		programming and that receives grants from the Corporation for
394	434		Public Broadcasting under 47 U.S.C. Section 396, as amended;
395	435		(18) providing housing for low-income and
396	436		moderate-income families, for unmarried individuals 62 years of age
397	437		or older, for handicapped individuals, and for families displaced
398	438		by urban renewal, through the use of trust assets that are
399	439		irrevocably and, pursuant to a contract entered into before
400	440		December 31, 1972, contractually dedicated on the sale or
401	441		disposition of the housing to a charitable organization that
402	442		performs charitable functions described by Subdivision (9);
403	443		(19) providing housing and related services to persons
404	444		who are 62 years of age or older in a retirement community, if the
405	445		retirement community provides independent living services,
406	446		assisted living services, and nursing services to its residents on
407	447		a single campus:
408	448		(A) without regard to the residents' ability to
409	449		pay; or
410	450		(B) in which at least four percent of the
411	451		retirement community's combined net resident revenue is provided in
412	452		charitable care to its residents;
413	453		(20) providing housing on a cooperative basis to
414	454		students of an institution of higher education if:
415	455		(A) the organization is exempt from federal
416	456		income taxation under Section 501(a), Internal Revenue Code of
417	457		1986, as amended, by being listed as an exempt entity under Section
418	458		501(c)(3) of that code;
419	459		(B) membership in the organization is open to all
420	460		students enrolled in the institution and is not limited to those
421	461		chosen by current members of the organization;
422	462		(C) the organization is governed by its members;
423	463		and
424	464		(D) the members of the organization share the
425	465		responsibility for managing the housing;
426	466		(21) acquiring, holding, and transferring unimproved
427	467		real property under an urban land bank demonstration program
428	468		established under Chapter 379C, Local Government Code, as or on
429	469		behalf of a land bank;
430	470		(22) acquiring, holding, and transferring unimproved
431	471		real property under an urban land bank program established under
432	472		Chapter 379E, Local Government Code, as or on behalf of a land bank;
433	473		(22-a) acquiring, holding, and transferring
434		-	unimproved real property under a ~~veterans'~~ land bank program
435		-	~~established~~ under ~~Section~~ 2306~~.5622~~, Government Code, as or on
436		-	~~behalf~~ of a ~~veterans'~~ land bank;
	474	+	unimproved real property under a land bank program established
	475	+	under Subchapter PP, Chapter 2306, Government Code, as or on behalf
	476	+	of a land bank;
437	477		(23) providing housing and related services to
438	478		individuals who:
439	479		(A) are unaccompanied and homeless and have a
440	480		disabling condition; and
441	481		(B) have been continuously homeless for a year or
442	482		more or have had at least four episodes of homelessness in the
443	483		preceding three years;
444	484		(24) operating a radio station that broadcasts
445	485		educational, cultural, or other public interest programming,
446	486		including classical music, and that in the preceding five years has
447	487		received or been selected to receive one or more grants from the
448	488		Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
449	489		amended; or
450	490		(25) providing, without regard to the beneficiaries'
451	491		ability to pay, tax return preparation services and assistance with
452	492		other financial matters.
453	493		(o) For purposes of Subsection (a)(2), real property
454	494		acquired, held, and transferred by an organization that performs
455	495		the function described by Subsection (d)(21), [or] (22), or (22-a)
456	496		is considered to be used exclusively by the qualified charitable
457	497		organization to perform that function.
458		-	SECTION 4. Section 11.18, Tax Code, as amended by this Act,
	498	+	SECTION 3. Section 11.18, Tax Code, as amended by this Act,
459	499		applies only to an ad valorem tax year that begins on or after the
460	500		effective date of this Act.
461		-	SECTION 5. This Act takes effect September 1, 2021.
	501	+	SECTION 4. This Act takes effect September 1, 2021.