Texas 2021 - 87th Regular

Texas House Bill HB4065 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	87R19484 JG-D
2		-	By: J. Johnson of Harris, Thompson of Harris, H.B. No. 4065
3		-	Morales of Harris, Hernandez, et al.
4		-	Substitute the following for H.B. No. 4065:
5		-	By: Bernal C.S.H.B. No. 4065
	1	+	87R10815 JG-F
	2	+	By: J. Johnson of Harris H.B. No. 4065
6	3
7	4
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10	7		relating to the creation of an urban land bank by certain
11	8		municipalities.
12	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	10		SECTION 1. Subtitle A, Title 12, Local Government Code, is
14	11		amended by adding Chapter 379H to read as follows:
15	12		CHAPTER 379H. URBAN LAND BANK PROGRAM IN MUNICIPALITY WITH
16	13		POPULATION OF TWO MILLION OR MORE
17	14		SUBCHAPTER A. GENERAL PROVISIONS
18	15		Sec. 379H.001. SHORT TITLE. This chapter may be cited as
19	16		the Urban Land Bank Program for a Municipality with a Population of
20	17		Two Million or More.
21	18		Sec. 379H.002. APPLICABILITY OF CHAPTER. This chapter
22	19		applies only to a municipality with a population of two million or
23	20		more.
24	21		Sec. 379H.003. DEFINITIONS. In this chapter:
25	22		(1) "Board" means the board of directors of a land
26	23		bank.
27	24		(2) "Land bank" means an entity established or
28	25		approved by the governing body of a municipality under this
29	26		chapter.
30	27		(3) "Non-qualifying municipality" means a
31	28		municipality to which this chapter does not apply and that is
32	29		located in the same county in which a municipality to which this
33	30		chapter does apply is predominantly located.
34	31		(4) "Real property" means land, land under water, and
35	32		any structure, easement, air rights, franchise, or incorporeal
36	33		hereditament, every estate, interest, and right therein, legal and
37	34		equitable, including terms for years and liens by way of judgment,
38	35		mortgage, or otherwise, and any fixture or improvement located
39	36		thereon.
40	37		Sec. 379H.004. APPLICABILITY OF OTHER LAW. A land bank
41	38		created under this chapter:
42	39		(1) is:
43	40		(A) a governmental unit, as defined by Section
44	41		101.001, Civil Practice and Remedies Code;
45	42		(B) a local government corporation, as defined by
46	43		Section 431.003, Transportation Code; and
47	44		(C) a public nonprofit corporation that has and
48	45		may exercise all of the rights, powers, privileges, authority, and
49	46		functions given by the general laws of this state to nonprofit
50	47		corporations in this state;
51	48		(2) is not:
52	49		(A) a program created or operating under Chapter
53	50		373 or 374; or
54	51		(B) a housing finance corporation created under
55	52		Chapter 394; and
56	53		(3) must comply with the requirements of Chapters 551
57	54		and 552, Government Code.
58	55		Sec. 379H.005. PURPOSE. A land bank created under this
59	56		chapter exists for the purpose of acquiring, managing, and
60	57		disposing of vacant, abandoned, deteriorated, non-revenue
61	58		generating, and non-tax producing properties and converting those
62	59		properties to productive uses. For purposes of this subsection,
63	60		productive uses of a property include the development of housing
64	61		that serves a wide range of local needs, including affordable
65	62		housing, long-term affordable housing, workforce housing, public
66	63		service housing, mixed-income housing, community-based economic
67	64		development, food desert solutions, parks and recreation, flood
68	65		reduction and storm resiliency, and other uses necessary and
69	66		appropriate to return properties to the tax rolls, stabilize
70	67		communities, improve living conditions, and protect against the
71	68		displacement of residents of the municipality served by the land
72	69		bank.
73	70		Sec. 379H.006. CONSTRUCTION. This chapter shall be
74	71		construed liberally to carry out the intended purposes as a
75	72		complete and independent authorization for the performance of each
76	73		and every act and thing authorized by this chapter, and all powers
77	74		granted shall be broadly interpreted to carry out the intended
78	75		purposes and not as a limitation of powers. Except as otherwise
79	76		provided by this chapter, a land bank, in the exercise of its powers
80	77		and duties under this chapter and with respect to real property held
81	78		by the land bank, has the same amount of control as if the land bank
82	79		represented a private property owner, and the land bank is not
83	80		subject to restrictions imposed by the charter, ordinances, or
84	81		resolutions of a local unit of government.
85	82		SUBCHAPTER B. BOARD OF DIRECTORS
86	83		Sec. 379H.051. COMPOSITION OF BOARD. The size, membership,
87	84		composition, and officers of the board of directors of a land bank,
88	85		and methods of appointment to the board, must be established by the
89	86		certificate of formation and the bylaws of the land bank.
90	87		Sec. 379H.052. ELIGIBILITY FOR MEMBERSHIP. (a) In this
91	88		section, "public officer" means an individual who is elected to a
92	89		municipal office.
93	90		(b) A municipal employee is eligible to serve as a member of
94	91		the board, and notwithstanding any law to the contrary, a public
95	92		officer is eligible to serve as a member of the board and acceptance
96	93		of the appointment will neither terminate nor impair service in the
97	94		public office.
98	95		Sec. 379H.053. MEETINGS; ATTENDANCE. (a) The board shall
99	96		meet in regular session according to a schedule adopted by the
100	97		board.
101	98		(b) The board may meet in a special session:
102	99		(1) convened by the president of the board in
103	100		accordance with the bylaws of the board; or
104	101		(2) on written notice signed by a majority of the board
105	102		members.
106	103		(c) The presence of a majority of the board's total
107	104		membership constitutes a quorum for any regular or special session.
108	105		(d) The board shall establish rules related to the
109	106		attendance and participation of members in regular or special
110	107		meetings of the board. Rules adopted under this subsection may
111	108		provide for the removal from office of a member for failure to
112	109		comply with the rules if a majority of the remaining members of the
113	110		board vote for the removal. Removal under this subsection takes
114	111		effect the first day of the calendar month following the date of the
115	112		vote. A person removed under this subsection is ineligible for
116	113		reappointment to the board unless reappointment is confirmed
117	114		unanimously by the board.
118	115		Sec. 379H.054. BOARD ACTIONS. (a) Subject to Subsection
119	116		(b), actions of the board must be approved by the affirmative vote
120	117		of a quorum of the board.
121	118		(b) Action on the following matters requires approval by a
122	119		majority of the total membership of the board:
123	120		(1) adoption of bylaws or rules for conduct of the
124	121		business of the land bank for which the board serves;
125	122		(2) hiring or firing of any employee or contractor of
126	123		the land bank for which the board serves;
127	124		(3) incurring debt;
128	125		(4) adoption or amendment of the annual budget; and
129	126		(5) sale, lease, encumbrance, or alienation of or
130	127		improvements to real or personal property with a value of more than
131	128		$50,000.
132	129		(c) By majority vote, the board may delegate the hiring and
133	130		firing of employees and contractors to a specific officer or
134	131		committee of the land bank for which the board serves, under terms
135	132		and to the extent specified by the board.
136	133		(d) A board member may not vote by proxy.
137	134		(e) A board member may request a recorded vote on any
138	135		resolution or action of the land bank.
139	136		Sec. 379H.055. CONFLICT OF INTEREST. (a) A board member or
140		-	employee of a land bank, or a relative of a member or employee
141		-	within the first degree of consanguinity or affinity, as determined
142		-	by Chapter 573, Government Code, may not:
	137	+	employee of a land bank may not:
143	138		(1) acquire any direct or indirect interest in real
144	139		property of the land bank, in any real property to be acquired by
145	140		the land bank, or in any real property to be acquired from the land
146	141		bank; or
147	142		(2) have any direct or indirect interest in any
148	143		contract or proposed contract for materials or services to be
149	144		furnished or used by the land bank.
150	145		(b) The provisions of the former Texas Non-Profit
151	146		Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
152	147		Statutes) related to powers, standards of conduct, and interests in
153	148		contracts apply to the directors and officers of the land bank.
154	149		(c) The board may adopt supplemental rules addressing
155	150		potential conflicts of interest and ethical guidelines for board
156	151		members and land bank employees.
157	152		Sec. 379H.056. COMPENSATION; REIMBURSEMENT. (a) Board
158	153		members serve without compensation.
159	154		(b) The board may reimburse a member for expenses actually
160	155		incurred in the performance of duties on behalf of the land bank.
161	156		SUBCHAPTER C. CREATION, OPERATION, AND DISSOLUTION OF LAND BANK
162	157		Sec. 379H.101. CREATION OF LAND BANK. (a) The governing
163	158		body of a municipality may create a land bank by the adoption of an
164	159		ordinance approving the land bank's certificate of formation and
165	160		bylaws.
166	161		(b) Approval by the governing body of a municipality of the
167	162		certificate of formation and bylaws of a corporation created under
168	163		Chapter 431, Transportation Code, that will serve as a land bank
169	164		under this chapter is sufficient to create a land bank under this
170	165		section.
171	166		(c) A land bank's certificate of formation and bylaws
172	167		approved under this section may not be changed or amended unless the
173	168		governing body of the municipality for which the land bank was
174	169		created approves the change or amendment by the adoption of an
175	170		ordinance.
176	171		Sec. 379H.102. GENERAL POWERS OF LAND BANK. (a) A land
177	172		bank has all powers necessary to carry out the purposes of this
178	173		chapter, including the power to:
179	174		(1) adopt, amend, and repeal bylaws for the regulation
180	175		of the land bank's affairs and the conduct of the land bank's
181	176		business;
182	177		(2) sue and be sued in the land bank's own name and
183	178		plead and be interpleaded in all civil actions, including actions
184	179		to clear title to real property of the land bank;
185	180		(3) adopt and alter a seal;
186	181		(4) borrow funds necessary for the operation of the
187	182		land bank from private lenders, municipalities, this state, and the
188	183		federal government;
189	184		(5) adopt any policy for procurement that is
190	185		recognized under state law and permitted for governmental entities,
191	186		including a policy recognized under Chapters 252 and 271 of this
192	187		code, Chapter 431, Transportation Code, and Chapters 2254 and 2269,
193	188		Government Code;
194	189		(6) procure insurance or guarantees from this state or
195	190		the federal government of the payments of any debts or parts of
196	191		debts incurred by the land bank and pay premiums in connection with
197	192		those debts;
198	193		(7) enter into contracts and other agreements
199	194		necessary, incidental, or convenient to the performance of the land
200	195		bank's duties and the exercise of the land bank's powers, including
201	196		governmental agreements under Subchapter D, Chapter 431,
202	197		Transportation Code, or interlocal contracts under Section
203	198		791.011, Government Code, for the joint exercise of powers under
204	199		this chapter;
205	200		(8) enter into contracts and other agreements with the
206	201		municipality that created the land bank for the performance of
207	202		services in accordance with Chapter 311, Tax Code;
208	203		(9) make and execute contracts and other instruments
209	204		necessary or convenient to the exercise of the land bank's powers;
210	205		(10) procure insurance against losses in connection
211	206		with the real property, assets, or activities of the land bank;
212	207		(11) invest money of the land bank, at the discretion
213	208		of the board, in instruments, obligations, securities, or property
214	209		determined proper by the board and name and use depositories for the
215	210		land bank's money;
216	211		(12) enter into contracts for the management of,
217	212		collection of rent from, or sale of real property of the land bank;
218	213		(13) design, develop, construct, demolish,
219	214		reconstruct, rehabilitate, renovate, relocate, or otherwise
220	215		improve real property of the land bank;
221	216		(14) set, charge, and collect rents, fees, and charges
222	217		for the use of real property of the land bank and for services
223	218		provided by the land bank;
224	219		(15) finance by loan, grant, lease, or otherwise
225	220		refinance, construct, erect, assemble, purchase, acquire, own,
226	221		repair, remodel, rehabilitate, modify, maintain, extend, improve,
227	222		install, sell, equip, expand, add to, operate, or manage real
228	223		property of the land bank and pay the costs of those activities from
229	224		the proceeds of loans by persons, corporations, limited or general
230	225		partnerships, and other entities;
231	226		(16) grant or acquire a license, easement, lease, as
232	227		lessor or lessee, or option with respect to real property of the
233	228		land bank;
234	229		(17) enter into partnerships, joint ventures, and
235	230		other collaborative relationships with the municipality that
236	231		created the land bank and other public and private entities for the
237	232		ownership, management, development, and disposition of real
238	233		property of the land bank;
239	234		(18) make application directly or indirectly to any
240	235		federal, state, county, or municipal government or agency or to any
241	236		other public or private source for loans, grants, guarantees, or
242	237		other financial assistance in furtherance of the land bank's public
243	238		purpose and accept and use the loans, grants, guarantees, or
244	239		financial assistance on terms prescribed by that federal, state,
245	240		county, or municipal government or agency or other source;
246	241		(19) as security for the repayment of any notes or
247	242		other obligations of the land bank, pledge, mortgage, convey,
248	243		assign, hypothecate, or otherwise encumber any property of the land
249	244		bank, including real property, fixtures, personal property,
250	245		revenue, and other funds, and execute any lease, trust indenture,
251	246		trust agreement, agreement for the sale of the land bank's notes of
252	247		other obligation, loan agreement, mortgage, security agreement, or
253	248		other agreement necessary or desirable as determined by the land
254	249		bank;
255	250		(20) hold title to real property for purposes of
256	251		establishing contracts with public and private nonprofit entities,
257	252		including long-term lease contracts; and
258	253		(21) perform any other appropriate action as necessary
259	254		to carry out the purposes of this chapter or to comply with a
260	255		requirement under other law.
261	256		(b) A land bank may not:
262	257		(1) exercise the power of eminent domain; or
263	258		(2) acquire real property outside the geographical
264	259		boundaries of the municipality that created the land bank.
265	260		Sec. 379H.103. RESOLUTION OF COMPLEX TITLE QUESTIONS. A
266	261		land bank may provide assistance and guidance to owners of real
267	262		property for which there are complex, highly divided fractional
268	263		interests in the real property because of multigenerational
269	264		intestate distributions, unknown heirs, and other interested
270	265		parties for whom accurate information cannot be ascertained.
271	266		Sec. 379H.104. INTERLOCAL CONTRACTS. (a) A land bank may
272	267		enter into an interlocal contract under Section 791.011, Government
273	268		Code, with:
274	269		(1) a municipality for a program created by the
275	270		municipality under Chapter 373 or 374; or
276	271		(2) a non-qualifying municipality for the purpose of
277	272		the land bank conducting land bank activities on behalf of and
278	273		within the geographical boundaries of the non-qualifying
279	274		municipality.
280	275		(b) Notwithstanding Section 379H.102(b)(2), a land bank may
281	276		acquire real property within the geographical boundaries of a
282	277		non-qualifying municipality with which it has entered into an
283	278		agreement under Subsection (a).
284	279		Sec. 379H.105. RECORDS AND REPORTS. (a) A land bank shall
285	280		keep accurate minutes of the land bank's meetings and shall keep
286	281		accurate records and books of account that conform with generally
287	282		accepted principles of accounting and that clearly reflect the
288	283		income and expenses of the land bank and all transactions in
289	284		relation to the land bank's real property.
290	285		(b) A land bank shall maintain and make available for public
291	286		review and inspection:
292	287		(1) an inventory of all real property held by the land
293	288		bank;
294	289		(2) a copy of the sale settlement statement for each
295	290		real property sold or transferred to a third party; and
296	291		(3) a copy of the performance report filed under
297	292		Subsection (e).
298	293		(c) Not later than the 90th day after the end of the fiscal
299	294		year of the municipality that created the land bank, the land bank
300	295		shall file with the municipality an annual audited financial
301	296		statement prepared by a certified public accountant.
302	297		(d) Financial transactions of a land bank are subject to
303	298		audit by the municipality that created the land bank.
304	299		(e) For purposes of evaluating the effectiveness of a land
305	300		bank created under this chapter, a land bank shall submit an annual
306	301		performance report to the municipality that created the land bank
307	302		not later than November 1 of each year in which the land bank
308	303		acquires or sells real property in accordance with this chapter.
309	304		Sec. 379H.106. STAFF. (a) A land bank may employ an
310	305		executive director, counsel and legal staff, technical experts, and
311	306		other agents and employees, permanent or temporary, that the land
312	307		bank may require and may determine the qualifications and set the
313	308		compensation and benefits of each of those persons.
314	309		(b) A land bank may enter into contracts and agreements with
315	310		municipalities for staffing services to be provided to the land
316	311		bank by those municipalities or for the land bank to provide such
317	312		staffing services to those municipalities.
318	313		Sec. 379H.107. ADVISORY COMMITTEE AND NEIGHBORHOOD
319	314		CONSULTATION. (a) A land bank shall create one or more advisory
320	315		committees to consult with and advise the land bank on:
321	316		(1) properties within the municipality served by the
322	317		land bank that are imposing the greatest harm on neighborhoods and
323	318		communities in the municipality;
324	319		(2) neighborhood priorities for new uses of those
325	320		properties; and
326	321		(3) the range of potential transferees of those
327	322		properties.
328	323		(b) As appropriate to the location of the real property of
329	324		the land bank, advisory committee membership and neighborhood
330	325		consultations shall include formal and informal
331	326		neighborhood-specific community associations, residents'
332	327		associations, faith communities, community development
333	328		corporations, and anchor institutions.
334	329		Sec. 379H.108. DISSOLUTION OF LAND BANK. (a) A land bank
335	330		may be dissolved not earlier than the 60th day after the date an
336	331		affirmative resolution to dissolve the land bank is approved by
337	332		two-thirds of the membership of the board and confirmed by
338	333		resolution of the municipality that created the land bank.
339	334		(b) Not less than 60 days before the consideration of a
340	335		resolution of dissolution by the board, the board shall:
341	336		(1) provide to the governing body of the municipality
342	337		that created the land bank written notice of the board's intent to
343	338		vote on a resolution for dissolution of the land bank; and
344	339		(2) publish the notice in a local newspaper of general
345	340		circulation.
346	341		(c) On dissolution of the land bank, all real property,
347	342		personal property, and other assets and obligations of the land
348	343		bank become the assets and obligations of the municipality that
349	344		created the land bank.
350	345		SUBCHAPTER D. ACQUISITION AND DISPOSITION OF PROPERTY
351	346		Sec. 379H.151. TAX EXEMPT STATUS OF LAND BANK PROPERTY. The
352	347		real property of a land bank, including real property held by a land
353	348		bank under a long-term lease contract with a community land trust,
354	349		and the land bank's income and operations are exempt as public
355	350		property used for public purposes from all license fees, recording
356	351		fees, and all other taxes imposed by this state or by political
357	352		subdivisions of this state.
358	353		Sec. 379H.152. TITLE HELD BY LAND BANK. All real property
359	354		acquired by a land bank must be held in the name of the land bank.
360	355		Sec. 379H.153. QUIET TITLE ACTIONS. (a) A land bank may
361	356		file an action to quiet title as to any real property in which the
362	357		land bank has an interest. For purposes of a quiet title action,
363	358		the land bank is considered to be the holder of sufficient legal and
364	359		equitable interests and possessory rights to qualify the land bank
365	360		as an adequate complainant in the action.
366	361		(b) Before filing an action to quiet title, the land bank
367	362		shall conduct an examination of title to determine the identity of
368	363		all persons and entities possessing a claim or interest in or to the
369	364		real property. Service of the complaint to quiet title shall be
370	365		provided to the interested parties by the following methods:
371	366		(1) by first class mail to an identity and address as
372	367		reasonably ascertainable by an inspection of public records;
373	368		(2) in the case of occupied real property, by
374	369		registered or certified mail addressed to "occupant";
375	370		(3) by posting a copy of the notice on the real
376	371		property;
377	372		(4) by publication in a newspaper of general
378	373		circulation in the municipality in which the property is located;
379	374		and
380	375		(5) by another method the court may order.
381	376		(c) As part of the complaint to quiet title, a land bank
382	377		shall file an affidavit identifying all parties potentially having
383	378		an interest in the real property and the form of notice provided.
384	379		(d) A court hearing an action under this section shall:
385	380		(1) schedule a hearing on the complaint not later than
386	381		the 90th day after the date of the filing of the affidavit under
387	382		Subsection (c); and
388	383		(2) issue a final judgment not later than the 120th day
389	384		after the date of the filing of the complaint for all matters on
390	385		which an answer was not filed by an interested party.
391	386		(e) A land bank may join in a single complaint to quiet title
392	387		for one or more parcels of real property.
393	388		Sec. 379H.154. ACQUISITION OF PROPERTY GENERALLY. (a) A
394	389		land bank may acquire real property by gift, devise, transfer,
395	390		exchange, foreclosure, purchase, purchase contracts, lease
396	391		purchase agreements, installment sales contracts, land contracts,
397	392		or transfers from a municipality on terms as agreed by the land bank
398	393		and the municipality, or through any other means on terms and in a
399	394		manner the land bank considers appropriate.
400	395		(b) Notwithstanding any other law to the contrary, a
401	396		municipality served by a land bank or a non-qualifying municipality
402	397		that has entered into an interlocal contract with a land bank under
403	398		Section 379H.104 may transfer to the land bank real property of the
404	399		municipality or non-qualifying municipality on terms and according
405	400		to procedures determined by the municipality or non-qualifying
406	401		municipality.
407	402		(c) A land bank may acquire real property from this state,
408	403		the municipality served by the land bank, the county in which that
409	404		municipality is located, a governmental entity within the county,
410	405		the federal government, or an agency or department of the federal
411	406		government.
412	407		(d) A land bank shall maintain all of its real property in
413	408		accordance with the laws and ordinances of the jurisdiction in
414	409		which the real property is located.
415	410		Sec. 379H.155. ACQUISITION OF FORECLOSED OR SEIZED
416	411		PROPERTY. (a) In this section, "taxing unit" has the meaning
417	412		assigned by Section 1.04, Tax Code.
418	413		(b) A land bank may submit a written bid to acquire real
419	414		property at a tax sale conducted in accordance with Section 34.01,
420	415		Tax Code. The bid:
421	416		(1) must be in an amount not less than the amount
422	417		calculated under Section 34.01(b), Tax Code; and
423	418		(2) may be submitted in writing in advance of the
424	419		auction or tendered in person at the auction.
425	420		(c) If the bid submitted under Subsection (b) is the highest
426	421		bid received at the sale, the land bank:
427	422		(1) shall:
428	423		(A) pay in cash the amount of the costs and
429	424		expenses as described by Section 33.48, Tax Code, and any penalties
430	425		described by Section 33.07 or 33.08, Tax Code; or
431	426		(B) remit payment of the amounts described by
432	427		Paragraph (A) to the selling officer by check or electronic funds
433	428		transfer not later than the seventh calendar day after the date of
434	429		the auction; and
435	430		(2) is entitled to credit bid that portion of the bid
436	431		amount consisting of the amount of the taxes, penalties, other than
437	432		penalties described by Sections 33.07 and 33.08, Tax Code, and
438	433		interest set forth in the judgment.
439	434		(d) A taxing unit that is a party to a judgment of
440	435		foreclosure for property sold at auction may request that the
441	436		selling officer bid off the property to the taxing unit in the
442	437		manner provided by Section 34.01(j), Tax Code, and, if the request
443	438		is granted, the transfer to the taxing unit prevails over a bid by
444	439		the land bank if the land bank's bid is the only bid sufficient to
445	440		satisfy the minimum bid described by Section 34.01(j), Tax Code.
446	441		(e) The aggregate amount of all credit bids in a calendar
447	442		year shall be considered satisfied by the aggregate expenditure in
448	443		that calendar year of an amount equal to or greater than the credit
449	444		bid amount, which expenditures are attributable directly and
450	445		indirectly to maintenance, rehabilitation, construction,
451	446		demolition, and remediation activities. As to any specific tract
452	447		of property acquired by the credit bid and transferred by a land
453	448		bank to a public entity described by Section 379H.158(a), the
454	449		credit bid shall be considered satisfied by that transfer.
455	450		(f) A land bank may submit a written request to a taxing unit
456	451		at any time for the commencement of tax foreclosure proceedings for
457	452		delinquent taxes on real property, other than residential real
458	453		property legally owned and occupied. A land bank may submit a
459	454		written request to a taxing unit under this subsection for legally
460	455		occupied residential real property only if the property is five or
461	456		more years delinquent.
462	457		(g) A request submitted under Subsection (f) must include a
463	458		commitment to tender a bid in the amount specified under Subsection
464	459		(b). On receipt of the written request, the taxing unit, or the
465	460		governmental office acting on behalf of the taxing unit, shall
466	461		commence enforcement proceedings in accordance with Section 33.41,
467	462		Tax Code.
468	463		(h) If there is no private third party bid in an amount more
469	464		than the bid of the land bank, the real property must be sold to the
470	465		land bank.
471	466		(i) A sale to a land bank under this section is not a sale to
472	467		a taxing unit under Section 34.01(j) or (p) or 34.21, Tax Code.
473	468		(j) A land bank may bid an amount higher than the amount
474	469		calculated under Section 34.01(b), Tax Code, and if that higher bid
475	470		amount is the highest successful bid, the land bank shall pay the
476	471		full amount of the bid in cash.
477	472		(k) The deed to a land bank vests good and perfect title in
478	473		the land bank to the right, title, and interest owned by the
479	474		defendants included in the foreclosure judgment, including the
480	475		defendants' right to the use and possession of the property,
481	476		subject only to the defendants' right of redemption, the terms of a
482	477		recorded restrictive covenant running with the land that was
483	478		recorded before January 1 of the year in which the tax lien on the
484	479		property arose, a recorded lien that arose under that restrictive
485	480		covenant that was not extinguished by the judgment foreclosing the
486	481		tax lien, and each easement of record as of the date of the sale that
487	482		was recorded before January 1 of the year the tax lien arose.
488	483		(l) A sale of real property to a land bank under this
489	484		section:
490	485		(1) extinguishes each lien securing payment of the
491	486		delinquent taxes, penalties, and interest against the property and
492	487		included in the judgment; and
493	488		(2) does not affect the personal liability of any
494	489		person for those taxes, penalties, and interest included in the
495	490		judgment that are not satisfied from the proceeds of the sale.
496	491		(m) A municipality, and any taxing unit levying property
497	492		taxes within the geographical jurisdiction of the municipality, may
498	493		convey tax foreclosed real property owned by the municipality or
499	494		the taxing unit to the land bank on terms and for an amount of
500	495		consideration determined by the transferor and the land bank.
501	496		(n) A bid submitted by a land bank in accordance with this
502	497		section is considered a bid for the amount calculated under Section
503	498		34.01(b), Tax Code, and received under Section 34.01(j), Tax Code.
504	499		Sec. 379H.156. REDEMPTION BY OWNER OF FORECLOSED PROPERTY.
505	500		(a) The owner of real property sold to a land bank under Section
506	501		379H.155 may redeem the property in the manner prescribed for
507	502		owners of real property sold at a tax sale to a purchaser other than
508	503		a taxing unit under Section 34.21, Tax Code.
509	504		(b) The price to be paid by the owner of real property sold
510	505		to a land bank under this section to redeem the property shall be in
511	506		the amounts set forth in Sections 34.21(a) and (e), Tax Code. For
512	507		the purposes of calculating the price, the bid paid by the land bank
513	508		shall be the aggregate amount of the land bank's bid as described by
514	509		Section 379H.155(b).
515	510		(c) If the owner of real property sold to a land bank under
516	511		Section 379H.155 redeems the property by paying to the land bank the
517	512		full amount required to redeem as set forth in Sections 34.21(a) and
518	513		(e), Tax Code, the land bank shall:
519	514		(1) retain an amount equal to the amount paid in cash
520	515		by the land bank in accordance with Section 379H.155;
521	516		(2) retain any redemption premium and any reasonable
522	517		costs the land bank may have expended on maintenance or
523	518		environmental remediation of the property being redeemed; and
524	519		(3) remit to the county assessor-collector any
525	520		remaining amounts to be distributed among the taxing units that
526	521		were parties to the judgment of foreclosure in an amount equal to
527	522		the proportion of each taxing unit's taxes, penalties, and interest
528	523		due in accordance with the judgment of foreclosure.
529	524		Sec. 379H.157. DISPOSITION OF PROPERTY GENERALLY. (a) A
530	525		land bank may convey, exchange, sell, transfer, lease as lessor,
531	526		grant, release and demise, pledge, or hypothecate any interest in,
532	527		on, or to real property of the land bank.
533		-	(b) For real property that a land bank holds fee simple
534		-	title to, the land bank must convey, exchange, sell, transfer, or
535		-	otherwise dispose of the fee simple interest in the property not
536		-	later than the last day of the fifth consecutive year during which
537		-	the land bank continuously holds the fee simple title. This
538		-	subsection does not apply to real property that a land bank holds
539		-	fee simple title to:
540		-	(1) that is subject to a long-term lease with:
541		-	(A) a nonprofit corporation that is incorporated
542		-	or holds a certificate of authority under Chapter 22, Business
543		-	Organizations Code;
544		-	(B) a local government corporation, as defined by
545		-	Section 431.003, Transportation Code; or
546		-	(C) a governmental unit, as defined by Section
547		-	101.001, Civil Practice and Remedies Code;
548		-	(2) for which the land bank is required, by the
549		-	municipality that created the land bank or an entity that funds the
550		-	land bank, to hold and assemble one or more parcels of real property
551		-	for a period that is longer than five years for the purpose of
552		-	fulfilling specific program or funding goals related to creating or
553		-	developing affordable housing, supporting community-based economic
554		-	development, creating parks and other public places, or supporting
555		-	other goals required by the municipality or entity described by
556		-	this subdivision;
557		-	(3) for which a determination has been made by the land
558		-	bank that the best use of the real property is for flood control or
559		-	storm water retention or drainage and the real property has not yet
560		-	been transferred to a public entity such as a flood control district
561		-	or a municipal parks and recreation department under Section
562		-	379H.158; or
563		-	(4) that is the subject of an active proceeding in a
564		-	court of competent jurisdiction or is subject to a court order that
565		-	conflicts with this subsection.
566		-	(c) A municipality may, in the ordinance creating a land
	528	+	(b) A municipality may, in the ordinance creating a land
567	529		bank, require that a particular form of disposition of real
568	530		property of the land bank, or any disposition of real property
569	531		located within a specified jurisdiction of the municipality, be
570	532		subject to specified voting and approval requirements of the board.
571	533		Unless restricted under this subsection, the board may delegate to
572	534		officers and employees the authority to enter into and execute
573	535		agreements, instruments of conveyance, and all other related
574	536		documents pertaining to the conveyance of real property by the land
575	537		bank.
576		-	(d) ~~Subject to Subsection (b),~~ a land bank shall determine
577		-	~~the terms, conditions, form,~~ and substance of consideration
578		-	~~necessary and appropriate to convey,~~ exchange, sell, transfer,
579		-	~~lease as lessor, grant, or mortgage as~~ mortgagor any interest in,
580		-	~~on, or to real property of the land bank.~~ Consideration may take
581		-	~~the form of monetary payments and secured~~ financial obligations,
582		-	~~covenants, and conditions related to the~~ present and future use of
583		-	~~the property, deed covenants and~~ limitations, contractual
584		-	~~commitments of the transferee, mortgage~~ financing, defeasible
585		-	~~fees, and other forms of consideration as~~ determined by the board to
586		-	~~be in the best interests of the land~~ bank. The board shall
587		-	~~determine and state in the land bank's~~ policies and procedures the
588		-	~~general terms for consideration to be~~ received by the land bank for
589		-	~~the transfer of real property of the~~ land bank.
590		-	(e) The board may authorize in the board's policies
	538	+	(c) A land bank shall determine the terms, conditions, form,
	539	+	and substance of consideration necessary and appropriate to convey,
	540	+	exchange, sell, transfer, lease as lessor, grant, or mortgage as
	541	+	mortgagor any interest in, on, or to real property of the land bank.
	542	+	Consideration may take the form of monetary payments and secured
	543	+	financial obligations, covenants, and conditions related to the
	544	+	present and future use of the property, deed covenants and
	545	+	limitations, contractual commitments of the transferee, mortgage
	546	+	financing, defeasible fees, and other forms of consideration as
	547	+	determined by the board to be in the best interests of the land
	548	+	bank. The board shall determine and state in the land bank's
	549	+	policies and procedures the general terms for consideration to be
	550	+	received by the land bank for the transfer of real property of the
	551	+	land bank.
	552	+	(d) The board may authorize in the board's policies
591	553		governing the disposition of land bank property a program for the
592	554		disposition of land bank property to owners of contiguous
593	555		properties.
594		-	(f) A municipality may recommend that a land bank created by
	556	+	(e) A municipality may recommend that a land bank created by
595	557		the municipality, and the land bank may in the land bank's own
596	558		policies and procedures, establish a hierarchical ranking of
597	559		priorities for the use of real property conveyed by the land bank,
598	560		including use for:
599	561		(1) production of housing, including affordable
600	562		housing, long-term affordable housing, workforce housing, public
601	563		service housing, and mixed-income housing;
602	564		(2) community-based economic development, including
603	565		retail, commercial, and industrial activities;
604	566		(3) parks and other purely public spaces and places;
605	567		(4) flood reduction, storm water retention and
606	568		drainage, and storm resiliency;
607	569		(5) food desert solutions;
608	570		(6) conservation areas; and
609	571		(7) other purposes necessary and appropriate to
610	572		convert properties to the tax rolls, stabilize communities, improve
611	573		living conditions, and protect against the displacement of
612	574		residents of the municipality served by the land bank.
613	575		Sec. 379H.158. DISPOSITION OF PROPERTY FOR FLOOD CONTROL
614	576		AND STORM WATER DRAINAGE AND PLANNING. (a) A land bank may convey
615	577		to a public entity such as a flood control district or a municipal
616	578		parks and recreation department real property held by the land
617	579		bank:
618	580		(1) for which the highest and best use is flood control
619	581		or storm water retention or drainage; and
620	582		(2) that, as a result of housing and building code
621	583		restrictions, flood plain elevations, other local, state, or
622	584		federal laws, or public or private agreements, conditions, and
623	585		limitations, is no longer capable of being developed or
624	586		redeveloped.
625	587		(b) The transfer of real property by a land bank under this
626	588		section may be:
627	589		(1) by grant, deed lease, or other conveyance and may
628	590		include additional limitations, restrictions, and conditions
629	591		determined by the land bank; and
630	592		(2) for nominal consideration, for consideration
631	593		consisting of contractual commitments, for an exchange of real
632	594		properties, or for other consideration determined by the land bank.
633	595		Sec. 379H.159. AFFORDABLE HOUSING POLICY. The board of a
634	596		land bank may adopt a policy requiring that a percentage, as
635	597		determined by the board based on local needs and available land bank
636	598		inventory, of residential units constructed on residential real
637	599		property conveyed by the land bank be deed restricted for housing
638	600		that is affordable to households with an income of not greater than
639	601		80 percent of the area median family income, adjusted for household
640	602		size, for the municipality, as determined annually by the United
641	603		States Department of Housing and Urban Development.
642	604		SUBCHAPTER E. FINANCING OF LAND BANK OPERATIONS
643	605		Sec. 379H.201. GENERAL FINANCING. (a) A land bank may
644	606		receive funding through grants and loans from the municipality that
645	607		created the land bank, other municipalities, this state, the
646	608		federal government, and other public or private sources.
647	609		(b) A land bank may receive and retain payments for services
648	610		rendered, for rents and leasehold payments received, for
649	611		consideration for disposition of real and personal property, for
650	612		proceeds of insurance coverage for losses incurred, for income from
651	613		investments, and for any other asset or activity permitted under
652	614		this chapter.
653	615		Sec. 379H.202. SALE OF LAND BANK PROPERTY. At the time a
654	616		land bank sells or otherwise disposes of real property, the
655	617		proceeds from the sale, if any, shall be allocated to operations and
656	618		expenses of the land bank.
657	619		Sec. 379H.203. COLLECTION OF TAXES ON PROPERTY CONVEYED BY
658	620		LAND BANK. Not more than 75 percent of the real property taxes the
659	621		municipality that created the land bank collected on real property,
660	622		excluding any school district or county ad valorem tax, conveyed by
661	623		a land bank under the laws of this state shall be remitted to the
662	624		land bank. The real property taxes of any other taxing unit, as to
663	625		real property of the land bank, may also be allocated to the land
664	626		bank in a similar manner under an interlocal agreement between the
665	627		other taxing unit and the land bank. The specific percentage of
666	628		those taxes to be remitted shall be established by ordinance,
667	629		resolution, or interlocal cooperation agreement of the land bank.
668	630		The allocation of property tax revenue shall begin with the first
669	631		taxable year following the date of conveyance and shall continue
670	632		for a period of five years. The funds shall be remitted to the land
671	633		bank in accordance with the administrative procedures established
672	634		by the assessor-collector of the county in which the land bank is
673	635		located. The allocation of property tax revenue may not occur if
674	636		those taxes have been previously allocated to a tax increment
675	637		reinvestment zone, or to secure a debt of the municipality or other
676	638		taxing unit, unless the municipality or other taxing unit enters
677	639		into an agreement with the land bank for the remittance of those
678	640		funds to the land bank. Any property tax revenue allocated to the
679	641		land bank under this subsection shall be excluded from the
680	642		calculation of ad valorem tax revenue under the municipality's
681	643		charter.
682	644		SECTION 2. Section 379E.002, Local Government Code, is
683	645		amended to read as follows:
684	646		Sec. 379E.002. APPLICABILITY; CONSTRUCTION WITH OTHER LAW.
685	647		This chapter applies only to a municipality:
686	648		(1) to which Chapter 379C or 379H [or 379D] does not
687	649		apply; and
688	650		(2) that has not ever adopted a homestead land bank
689	651		program under Subchapter E, Chapter 373A.
690	652		SECTION 3. Chapter 379D, Local Government Code, is
691	653		repealed.
692	654		SECTION 4. (a) A joint interim committee is created to
693	655		study land banks.
694	656		(b) The committee shall be composed of:
695	657		(1) four members appointed by the lieutenant governor;
696	658		(2) four members appointed by the speaker of the house
697	659		of representatives; and
698	660		(3) four members appointed by the governor, one of
699	661		whom the governor shall designate as the committee's presiding
700	662		officer.
701	663		(c) In making appointments under Subsection (b) of this
702	664		section, the appropriate appointing authority shall, if
703	665		practicable, prioritize appointing members who:
704	666		(1) serve in a leadership role of a municipality's
705	667		department of housing, housing and community development, or a
706	668		related department;
707	669		(2) are employed by a nonprofit or other organization
708	670		that advocates for or develops affordable housing;
709	671		(3) are employed by a nonprofit or other organization
710	672		that advocates for or supports long-term affordable housing,
711	673		including a community land trust;
712	674		(4) have expertise as a real estate agent,
713	675		particularly expertise or knowledge of neighborhoods impacted by
714	676		vacant and abandoned properties;
715	677		(5) have expertise in urban planning or a related
716	678		field;
717	679		(6) are licensed as an attorney and have expertise in
718	680		laws related to real estate, real estate finance, or development;
719	681		(7) are residents of or leaders of a community-based
720	682		organization that serves neighborhoods impacted by vacant,
721	683		abandoned, and deteriorated properties; or
722	684		(8) have expertise in the enforcement of unpaid taxes,
723	685		which may include leaders or representatives from a county tax
724	686		assessor-collector.
725	687		(d) The committee shall convene at the call of the presiding
726	688		officer.
727	689		(e) The committee has all other powers and duties provided
728	690		to a special or select committee by the rules of the senate and
729	691		house of representatives, by Subchapter B, Chapter 301, Government
730	692		Code, and by policies of the senate and house committees on
731	693		administration.
732	694		(f) The members of the committee are entitled to
733	695		reimbursement from the contingent expense fund of the senate and
734	696		the contingent expense fund of the house of representatives equally
735	697		for expenses incurred in carrying out the provisions of this
736	698		section in accordance with the rules of the senate and house of
737	699		representatives and the policies of the senate and house committees
738	700		on administration.
739	701		(g) Not later than the 60th day after the effective date of
740	702		this Act, the lieutenant governor, the speaker of the house of
741	703		representatives, and the governor shall appoint the members of the
742	704		interim committee created under this section.
743	705		(h) The committee shall study:
744	706		(1) powers of land banks to acquire and dispose of real
745	707		property;
746	708		(2) impacts of land banks on flood reduction, storm
747	709		water retention and drainage, and storm resiliency;
748	710		(3) impacts of land banks on affordable housing,
749	711		workforce housing, or public service housing;
750	712		(4) funding mechanisms of land banks;
751	713		(5) impacts of land banks on tax base from properties
752	714		conveyed by a land bank; and
753	715		(6) land banks, including land bank enabling
754	716		legislation, from other states.
755	717		(i) Not later than January 15, 2023, the committee shall
756	718		prepare and submit to the lieutenant governor, the speaker of the
757	719		house of representatives, and the governor a written report
758	720		summarizing the results of the study conducted under Subsection (h)
759	721		of this section, including any legislative recommendations for
760	722		changes to Chapter 379H, Local Government Code, as added by this
761	723		Act, that may appear necessary or advisable based on the results of
762	724		the study.
763	725		(j) The committee is abolished and this section expires
764	726		September 1, 2023.
765		-	SECTION 5. Notwithstanding Section 379H.157(b), Local
766		-	Government Code, as added by this Act, an urban land bank
767		-	established under Chapter 379H, Local Government Code, as added by
768		-	this Act, that holds fee simple title to real property before the
769		-	effective date of this Act is not required to convey, exchange,
770		-	sell, transfer, or otherwise dispose of the real property, as
771		-	required by that subsection, until the last day of the fifth
772		-	consecutive year during which the urban land bank holds the fee
773		-	simple title on and after the effective date of this Act.
774		-	SECTION 6. The Houston Land Bank, a public nonprofit
	727	+	SECTION 5. The Houston Land Bank, a public nonprofit
775	728		corporation evidenced by its amended and restated Certificate of
776	729		Formation dated September 26, 2018, as filed with the Secretary of
777	730		State under File No. 155688901, under ordinance dated HCD 18-51,
778	731		approved and adopted by the city council of the City of Houston on
779	732		July 25, 2018, and originally created as the Land Assemblage
780	733		Redevelopment Authority under Subchapter D, Chapter 431,
781	734		Transportation Code, is a land bank under 379H, Local Government
782	735		Code, as added by this Act, and shall continue to possess the
783	736		statutory authorization by which it was originally created under
784	737		Subchapter D, Chapter 431, Transportation Code. All actions of the
785	738		board of directors and employees of the Houston Land Bank, all
786	739		contracts, agreements, services, and real property acquisitions
787	740		and dispositions taken before the effective date of this Act shall
788	741		remain unaffected by the adoption of an ordinance under Chapter
789	742		379H, Local Government Code, as added by this Act.
790		-	SECTION 7. This Act takes effect September 1, 2021.
	743	+	SECTION 6. This Act takes effect September 1, 2021.