Texas Senate Bill SB1570

Texas 2021 - 87th Regular

Caption

Relating to the authority of a county to adopt a land bank program.

Impact

The bill mandates that any land bank program must operate under an annual plan that includes details on the properties eligible for sale, the resources available for subsidies, and the intended use of the properties acquired. By enforcing the sale of property to qualified participating developers, SB1570 seeks to ensure that a significant proportion of any resulting housing developments remains affordable, specifically targeting low-income families. The bill requires that at least 25% of properties sold during a fiscal year must be deed-restricted to ensure affordability for households earning 60% or less of the area median family income.

Summary

SB1570 establishes a framework for counties in Texas to adopt land bank programs for the purpose of acquiring, holding, and transferring unimproved real property. It aims to facilitate the development of affordable housing by allowing counties to sell properties ordered for foreclosure to these land banks at potentially reduced prices, promoting better utilization of unproductive or abandoned properties in the process. This legislation is a direct response to the ongoing housing crisis, particularly aimed at increasing the availability of affordable housing for low-income households.

Contention

While proponents of SB1570 argue that it will streamline the process of creating more affordable housing options, critics express concern over the ability of land banks to adequately manage properties and ensure effective development. Additionally, there are fears that the mechanisms set forth could lead to potential abuses or mismanagement of public assets, questioning whether the governance frameworks provided are robust enough to handle the responsibilities imposed by the bill. Debate continues on how effectively these measures might balance the urgency for affordable housing against the potential risks of privatization of public resources.