Texas 2021 - 87th Regular

Texas Senate Bill SB1569 Compare Versions

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1	1	87R1515 JAM-F
2	2	By: Lucio S.B. No. 1569
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the functions of certain urban land bank programs.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 379E.003, Local Government Code, is
10	10	amended by amending Subdivision (3) and adding Subdivision (4-a) to
11	11	read as follows:
12	12	(3) "Land bank" means an entity established or
13	13	approved by the governing body of a municipality to exercise [for]
14	14	the powers [purpose] of acquiring, holding, developing, and
15	15	transferring [unimproved] real property under this chapter.
16	16	(4-a) "Moderate income household" means a household
17	17	that:
18	18	(A) requires assistance in securing sanitary,
19	19	decent, and safe housing, considering:
20	20	(i) the amount of the total income
21	21	available for housing needs of the individuals or families who are
22	22	members of the household;
23	23	(ii) the size of the household;
24	24	(iii) the cost and condition of available
25	25	housing facilities;
26	26	(iv) the ability of the individuals or
27	27	families who are members of the household to compete successfully
28	28	in the private housing market and to pay the amounts required by
29	29	that market for sanitary, decent, and safe housing; and
30	30	(v) standards that are established for the
31	31	purpose of federal programs and that use income to determine
32	32	eligibility for the programs; and
33	33	(B) does not qualify as a low income household.
34	34	SECTION 2. Section 379E.004(b), Local Government Code, is
35	35	amended to read as follows:
36	36	(b) The governing body of a municipality that adopts an
37	37	urban land bank program shall establish or approve a land bank to
38	38	exercise [for] the powers [purpose] of acquiring, holding,
39	39	developing, and transferring [unimproved] real property under this
40	40	chapter.
41	41	SECTION 3. Section 379E.005, Local Government Code, is
42	42	amended to read as follows:
43	43	Sec. 379E.005. QUALIFIED PARTICIPATING DEVELOPER. To
44	44	qualify to participate in an urban land bank program, a developer
45	45	other than the land bank must:
46	46	(1) have developed three or more housing units within
47	47	the three-year period preceding the submission of a proposal to the
48	48	land bank seeking to acquire real property from the land bank;
49	49	(2) have a development plan approved [by the
50	50	municipality] for the land bank property by the land bank or the
51	51	municipality; and
52	52	(3) meet any other requirements adopted by the
53	53	municipality in the urban land bank plan.
54	54	SECTION 4. Section 379E.006(c), Local Government Code, is
55	55	amended to read as follows:
56	56	(c) In developing the plan, the municipality shall consider
57	57	any other housing plans adopted by the municipality, including any
58	58	[the comprehensive plan submitted to the United States Department
59	59	of Housing and Urban Development and all] fair housing plans and
60	60	policies adopted or agreed to by the municipality.
61	61	SECTION 5. Section 379E.008(a), Local Government Code, is
62	62	amended to read as follows:
63	63	(a) Notwithstanding any other law and except as provided by
64	64	Subsection (f), property that is ordered sold pursuant to
65	65	foreclosure of a tax lien may be sold in a private sale to a land
66	66	bank by the officer charged with the sale of the property without
67	67	first offering the property for sale as otherwise provided by
68	68	Section 34.01, Tax Code, if:
69	69	(1) the market value of the property as specified in
70	70	the judgment of foreclosure is less than the total amount due under
71	71	the judgment, including all taxes, penalties, and interest, plus
72	72	the value of nontax liens held by a taxing unit and awarded by the
73	73	judgment, court costs, and the cost of the sale;
74	74	(2) the property is not improved with a habitable
75	75	building or buildings or an uninhabitable building or buildings
76	76	that are occupied as a residence by an owner or tenant who is
77	77	legally entitled to occupy the building or buildings;
78	78	(3) there are delinquent taxes on the property for a
79	79	total of at least five years; and
80	80	(4) the municipality has executed with the other
81	81	taxing units that are parties to the tax suit an interlocal
82	82	agreement that enables those units to agree to participate in the
83	83	program while retaining the right to withhold consent to the sale of
84	84	specific properties to the land bank.
85	85	SECTION 6. Section 379E.009, Local Government Code, is
86	86	amended to read as follows:
87	87	Sec. 379E.009. SUBSEQUENT RESALE OR DEVELOPMENT BY LAND
88	88	BANK. (a) Within the five-year period following the date [Each
89	89	subsequent resale] of acquisition of a property [acquired] by a
90	90	land bank, the land bank [under this chapter must comply with the
91	91	conditions of this section.
92	92	[(b) Within the three-year period following the date of
93	93	acquisition, the land bank] must:
94	94	(1) sell the [a] property to a qualified participating
95	95	developer for the purpose of construction or rehabilitation of
96	96	affordable housing for sale or rent to low or moderate income
97	97	households; or
98	98	(2) develop the property for the purposes described by
99	99	Subdivision (1).
100	100	(b) If after five [three] years a qualified participating
101	101	developer has not purchased the property or the land bank has not
102	102	developed the property, the property shall be transferred from the
103	103	land bank to the taxing units who were parties to the judgment for
104	104	disposition as otherwise allowed under the law.
105	105	(c) Unless the municipality increases the amount in its
106	106	plan, the number of properties acquired by a qualified
107	107	participating developer under this section on which development has
108	108	not been completed may not at any given time exceed three times the
109	109	annual average residential production completed by the qualified
110	110	participating developer during the preceding three-year [two-year]
111	111	period as determined by the municipality.
112	112	(d) The deed conveying a property sold by the land bank must
113	113	include a right of reverter so that, if the qualified participating
114	114	developer does not apply for a construction permit and close on any
115	115	construction financing within the three-year [two-year] period
116	116	following the date of the conveyance of the property from the land
117	117	bank to the qualified participating developer, the property will
118	118	revert to the land bank for development by the land bank, subsequent
119	119	resale to another qualified participating developer, or conveyance
120	120	to the taxing units who were parties to the judgment for disposition
121	121	as otherwise allowed under the law.
122	122	(e) Each subsequent resale that a land bank makes to a
123	123	qualified participating developer with respect to a property
124	124	acquired by the land bank under this chapter must comply with the
125	125	conditions of this section.
126	126	SECTION 7. Sections 379E.010(a), (b), (c), and (d), Local
127	127	Government Code, are amended to read as follows:
128	128	(a) The land bank shall impose deed restrictions on property
129	129	developed by the land bank or sold to qualified participating
130	130	developers requiring the development and subsequent sale or rental
131	131	of the property to low or moderate income households.
132	132	(b) For land bank properties developed by the land bank for
133	133	sale, and for [At least 25 percent of the] land bank properties sold
134	134	to a qualified participating developer for development for sale, in
135	135	[during] any given fiscal year:
136	136	(1) at least 45 percent of the properties must [to] be
137	137	deed restricted for sale [developed for sale shall be deed
138	138	restricted for sale] to households with a [gross] household income
139	139	of [incomes] not more [greater] than 80 [60] percent of the area
140	140	median family income, based on gross household income, adjusted for
141	141	household size, for the metropolitan statistical area in which the
142	142	properties are [municipality is] located, as determined annually by
143	143	the United States Department of Housing and Urban Development;
144	144	(2) at least 25 percent of the properties must be deed
145	145	restricted for sale to households with a household income of not
146	146	more than 60 percent of the area median family income, based on
147	147	gross household income, adjusted for household size, for the
148	148	metropolitan statistical area in which the properties are located,
149	149	as determined annually by the United States Department of Housing
150	150	and Urban Development; and
151	151	(3) the remaining properties must be deed restricted
152	152	for sale to households with a household income of not more than 120
153	153	percent of the area median family income, based on gross household
154	154	income, adjusted for household size, for the metropolitan
155	155	statistical area in which the properties are located, as determined
156	156	annually by the United States Department of Housing and Urban
157	157	Development.
158	158	(c) If property is developed and used for rental housing,
159	159	the deed restrictions must be for a period of not less than 30 [20]
160	160	years and must require that 100 percent of the units are occupied by
161	161	and affordable to households with incomes not greater than 80
162	162	percent of area median family income, based on gross household
163	163	income, adjusted for household size, for the metropolitan
164	164	statistical area in which the units are located, as determined
165	165	annually by the United States Department of Housing and Urban
166	166	Development, and must also require that of those units:
167	167	(1) at least 40 [100] percent are [of the rental units
168	168	be] occupied by and affordable to households with incomes not
169	169	greater than 60 percent of area median family income, based on gross
170	170	household income, adjusted for household size, for the metropolitan
171	171	statistical area in which the units are [municipality is] located,
172	172	as determined annually by the United States Department of Housing
173	173	and Urban Development; and
174	174	(2) at least 20 [40] percent are [of the units be]
175	175	occupied by and affordable to households with incomes not greater
176	176	than 50 percent of area median family income, based on gross
177	177	household income, adjusted for household size, for the metropolitan
178	178	statistical area in which the units are [municipality is] located,
179	179	as determined annually by the United States Department of Housing
180	180	and Urban Development[; or
181	181	[(3) 20 percent of the units be occupied by and
182	182	affordable to households with incomes not greater than 30 percent
183	183	of area median family income, based on gross household income,
184	184	adjusted for household size, for the metropolitan statistical area
185	185	in which the municipality is located, as determined annually by the
186	186	United States Department of Housing and Urban Development].
187	187	(d) The deed restrictions under Subsection (c) must require
188	188	the owner to file an annual occupancy report with the municipality
189	189	on a reporting form provided by or acceptable to the
190	190	municipality. The deed restrictions must also prohibit any
191	191	exclusion of an individual or family from admission to the
192	192	development based solely on the participation of the individual or
193	193	family in the housing choice voucher program under Section 8,
194	194	United States Housing Act of 1937 (42 U.S.C. Section 1437f), as
195	195	amended.
196	196	SECTION 8. Sections 379E.013(c) and (d), Local Government
197	197	Code, are amended to read as follows:
198	198	(c) For purposes of evaluating the effectiveness of the
199	199	program, the land bank shall submit an annual performance report to
200	200	the municipality not later than November 1 of each year in which the
201	201	land bank acquires, develops, or sells property under this
202	202	chapter. The performance report must include:
203	203	(1) a complete and detailed written accounting of all
204	204	money and properties received and disbursed by the land bank during
205	205	the preceding fiscal year;
206	206	(2) for each property acquired by the land bank during
207	207	the preceding fiscal year:
208	208	(A) the street address of the property;
209	209	(B) the legal description of the property;
210	210	(C) the date the land bank took title to the
211	211	property;
212	212	(D) the name and mailing address of the property
213	213	owner of record at the time of the foreclosure;
214	214	(E) the amount of taxes and other costs owed at
215	215	the time of the foreclosure; and
216	216	(F) the assessed value of the property on the tax
217	217	roll at the time of the foreclosure;
218	218	(3) for each property sold by the land bank during the
219	219	preceding fiscal year to a qualified participating developer:
220	220	(A) the street address of the property;
221	221	(B) the legal description of the property;
222	222	(C) the name and mailing address of the purchaser
223	223	[developer];
224	224	(D) the [purchase] price paid by the purchaser
225	225	[developer];
226	226	(E) the maximum incomes allowed for the
227	227	households by the terms of the sale; and
228	228	(F) the source and amount of any public subsidy
229	229	provided by the municipality to facilitate the sale or rental of the
230	230	property to a household within the targeted income levels;
231	231	(4) for each property sold by the land bank or a
232	232	qualified participating developer during the preceding fiscal
233	233	year, the buyer's household income and a description of all use and
234	234	sale restrictions; and
235	235	(5) for each property developed for rental housing
236	236	with an active deed restriction, a copy of the most recent annual
237	237	report for [filed by] the property [owner with the land bank].
238	238	(d) The land bank shall maintain in its records for
239	239	inspection a copy of the sale settlement statement for each
240	240	property sold by the land bank or a qualified participating
241	241	developer and a copy of the first page of the mortgage note with the
242	242	interest rate and indicating the volume and page number of the
243	243	instrument as filed with the county clerk.
244	244	SECTION 9. Section 11.18(d), Tax Code, is amended to read as
245	245	follows:
246	246	(d) A charitable organization must be organized exclusively
247	247	to perform religious, charitable, scientific, literary, or
248	248	educational purposes and, except as permitted by Subsections (h)
249	249	and (l), engage exclusively in performing one or more of the
250	250	following charitable functions:
251	251	(1) providing medical care without regard to the
252	252	beneficiaries' ability to pay, which in the case of a nonprofit
253	253	hospital or hospital system means providing charity care and
254	254	community benefits in accordance with Section 11.1801;
255	255	(2) providing support or relief to orphans,
256	256	delinquent, dependent, or handicapped children in need of
257	257	residential care, abused or battered spouses or children in need of
258	258	temporary shelter, the impoverished, or victims of natural disaster
259	259	without regard to the beneficiaries' ability to pay;
260	260	(3) providing support without regard to the
261	261	beneficiaries' ability to pay to:
262	262	(A) elderly persons, including the provision of:
263	263	(i) recreational or social activities; and
264	264	(ii) facilities designed to address the
265	265	special needs of elderly persons; or
266	266	(B) the handicapped, including training and
267	267	employment:
268	268	(i) in the production of commodities; or
269	269	(ii) in the provision of services under 41
270	270	U.S.C. Sections 8501-8506;
271	271	(4) preserving a historical landmark or site;
272	272	(5) promoting or operating a museum, zoo, library,
273	273	theater of the dramatic or performing arts, or symphony orchestra
274	274	or choir;
275	275	(6) promoting or providing humane treatment of
276	276	animals;
277	277	(7) acquiring, storing, transporting, selling, or
278	278	distributing water for public use;
279	279	(8) answering fire alarms and extinguishing fires with
280	280	no compensation or only nominal compensation to the members of the
281	281	organization;
282	282	(9) promoting the athletic development of boys or
283	283	girls under the age of 18 years;
284	284	(10) preserving or conserving wildlife;
285	285	(11) promoting educational development through loans
286	286	or scholarships to students;
287	287	(12) providing halfway house services pursuant to a
288	288	certification as a halfway house by the parole division of the Texas
289	289	Department of Criminal Justice;
290	290	(13) providing permanent housing and related social,
291	291	health care, and educational facilities for persons who are 62
292	292	years of age or older without regard to the residents' ability to
293	293	pay;
294	294	(14) promoting or operating an art gallery, museum, or
295	295	collection, in a permanent location or on tour, that is open to the
296	296	public;
297	297	(15) providing for the organized solicitation and
298	298	collection for distributions through gifts, grants, and agreements
299	299	to nonprofit charitable, education, religious, and youth
300	300	organizations that provide direct human, health, and welfare
301	301	services;
302	302	(16) performing biomedical or scientific research or
303	303	biomedical or scientific education for the benefit of the public;
304	304	(17) operating a television station that produces or
305	305	broadcasts educational, cultural, or other public interest
306	306	programming and that receives grants from the Corporation for
307	307	Public Broadcasting under 47 U.S.C. Section 396, as amended;
308	308	(18) providing housing for low-income and
309	309	moderate-income families, for unmarried individuals 62 years of age
310	310	or older, for handicapped individuals, and for families displaced
311	311	by urban renewal, through the use of trust assets that are
312	312	irrevocably and, pursuant to a contract entered into before
313	313	December 31, 1972, contractually dedicated on the sale or
314	314	disposition of the housing to a charitable organization that
315	315	performs charitable functions described by Subdivision (9);
316	316	(19) providing housing and related services to persons
317	317	who are 62 years of age or older in a retirement community, if the
318	318	retirement community provides independent living services,
319	319	assisted living services, and nursing services to its residents on
320	320	a single campus:
321	321	(A) without regard to the residents' ability to
322	322	pay; or
323	323	(B) in which at least four percent of the
324	324	retirement community's combined net resident revenue is provided in
325	325	charitable care to its residents;
326	326	(20) providing housing on a cooperative basis to
327	327	students of an institution of higher education if:
328	328	(A) the organization is exempt from federal
329	329	income taxation under Section 501(a), Internal Revenue Code of
330	330	1986, as amended, by being listed as an exempt entity under Section
331	331	501(c)(3) of that code;
332	332	(B) membership in the organization is open to all
333	333	students enrolled in the institution and is not limited to those
334	334	chosen by current members of the organization;
335	335	(C) the organization is governed by its members;
336	336	and
337	337	(D) the members of the organization share the
338	338	responsibility for managing the housing;
339	339	(21) acquiring, holding, and transferring unimproved
340	340	real property under an urban land bank demonstration program
341	341	established under Chapter 379C, Local Government Code, as or on
342	342	behalf of a land bank;
343	343	(22) acquiring, holding, and transferring
344	344	[unimproved] real property under an urban land bank program
345	345	established under Chapter 379E, Local Government Code, as or on
346	346	behalf of a land bank;
347	347	(23) providing housing and related services to
348	348	individuals who:
349	349	(A) are unaccompanied and homeless and have a
350	350	disabling condition; and
351	351	(B) have been continuously homeless for a year or
352	352	more or have had at least four episodes of homelessness in the
353	353	preceding three years;
354	354	(24) operating a radio station that broadcasts
355	355	educational, cultural, or other public interest programming,
356	356	including classical music, and that in the preceding five years has
357	357	received or been selected to receive one or more grants from the
358	358	Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
359	359	amended; or
360	360	(25) providing, without regard to the beneficiaries'
361	361	ability to pay, tax return preparation services and assistance with
362	362	other financial matters.
363	363	SECTION 10. The changes in law made by this Act to Chapter
364	364	379E, Local Government Code, apply only to a property acquired by a
365	365	land bank on or after the effective date of this Act. A property
366	366	acquired by a land bank before the effective date of this Act is
367	367	governed by the law in effect immediately before the effective date
368	368	of this Act, and the former law is continued in effect for that
369	369	purpose.
370	370	SECTION 11. Section 11.18, Tax Code, as amended by this Act,
371	371	applies only to an ad valorem tax year that begins on or after the
372	372	effective date of this Act.
373	373	SECTION 12. This Act takes effect September 1, 2021.