Texas 2021 - 87th Regular

Texas Senate Bill SB1679 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1679
	1	+	By: Alvarado S.B. No. 1679
	2	+	(J. Johnson of Harris)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the creation of an urban land bank by certain
6	8		municipalities.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Subtitle A, Title 12, Local Government Code, is
9	11		amended by adding Chapter 379H to read as follows:
10	12		CHAPTER 379H. URBAN LAND BANK PROGRAM IN MUNICIPALITY WITH
11	13		POPULATION OF TWO MILLION OR MORE
12	14		SUBCHAPTER A. GENERAL PROVISIONS
13	15		Sec. 379H.001. SHORT TITLE. This chapter may be cited as
14	16		the Urban Land Bank Program for a Municipality with a Population of
15	17		Two Million or More.
16	18		Sec. 379H.002. APPLICABILITY OF CHAPTER. This chapter
17	19		applies only to a municipality with a population of two million or
18	20		more.
19	21		Sec. 379H.003. DEFINITIONS. In this chapter:
20	22		(1) "Board" means the board of directors of a land
21	23		bank.
22	24		(2) "Land bank" means an entity established or
23	25		approved by the governing body of a municipality under this
24	26		chapter.
25	27		(3) "Non-qualifying municipality" means a
26	28		municipality to which this chapter does not apply and that is
27	29		located in the same county in which a municipality to which this
28	30		chapter does apply is predominantly located.
29	31		(4) "Real property" means land, land under water, and
30	32		any structure, easement, air rights, franchise, or incorporeal
31	33		hereditament, every estate, interest, and right therein, legal and
32	34		equitable, including terms for years and liens by way of judgment,
33	35		mortgage, or otherwise, and any fixture or improvement located
34	36		thereon.
35	37		Sec. 379H.004. APPLICABILITY OF OTHER LAW. A land bank
36	38		created under this chapter:
37	39		(1) is:
38	40		(A) a governmental unit, as defined by Section
39	41		101.001, Civil Practice and Remedies Code;
40	42		(B) a local government corporation, as defined by
41	43		Section 431.003, Transportation Code; and
42	44		(C) a public nonprofit corporation that has and
43	45		may exercise all of the rights, powers, privileges, authority, and
44	46		functions given by the general laws of this state to nonprofit
45	47		corporations in this state;
46	48		(2) is not:
47	49		(A) a program created or operating under Chapter
48	50		373 or 374; or
49	51		(B) a housing finance corporation created under
50	52		Chapter 394; and
51	53		(3) must comply with the requirements of Chapters 551
52	54		and 552, Government Code.
53	55		Sec. 379H.005. PURPOSE. A land bank created under this
54	56		chapter exists for the purpose of acquiring, managing, and
55	57		disposing of vacant, abandoned, deteriorated, non-revenue
56	58		generating, and non-tax producing properties and converting those
57	59		properties to productive uses. For purposes of this subsection,
58	60		productive uses of a property include the development of housing
59	61		that serves a wide range of local needs, including affordable
60	62		housing, long-term affordable housing, workforce housing, public
61	63		service housing, mixed-income housing, community-based economic
62	64		development, food desert solutions, parks and recreation, flood
63	65		reduction and storm resiliency, and other uses necessary and
64	66		appropriate to return properties to the tax rolls, stabilize
65	67		communities, improve living conditions, and protect against the
66	68		displacement of residents of the municipality served by the land
67	69		bank.
68	70		Sec. 379H.006. CONSTRUCTION. This chapter shall be
69	71		construed liberally to carry out the intended purposes as a
70	72		complete and independent authorization for the performance of each
71	73		and every act and thing authorized by this chapter, and all powers
72	74		granted shall be broadly interpreted to carry out the intended
73	75		purposes and not as a limitation of powers. Except as otherwise
74	76		provided by this chapter, a land bank, in the exercise of its powers
75	77		and duties under this chapter and with respect to real property held
76	78		by the land bank, has the same amount of control as if the land bank
77	79		represented a private property owner, and the land bank is not
78	80		subject to restrictions imposed by the charter, ordinances, or
79	81		resolutions of a local unit of government.
80	82		SUBCHAPTER B. BOARD OF DIRECTORS
81	83		Sec. 379H.051. COMPOSITION OF BOARD. The size, membership,
82	84		composition, and officers of the board of directors of a land bank,
83	85		and methods of appointment to the board, must be established by the
84	86		certificate of formation and the bylaws of the land bank.
85	87		Sec. 379H.052. ELIGIBILITY FOR MEMBERSHIP. (a) In this
86	88		section, "public officer" means an individual who is elected to a
87	89		municipal office.
88	90		(b) A municipal employee is eligible to serve as a member of
89	91		the board, and notwithstanding any law to the contrary, a public
90	92		officer is eligible to serve as a member of the board and acceptance
91	93		of the appointment will neither terminate nor impair service in the
92	94		public office.
93	95		Sec. 379H.053. MEETINGS; ATTENDANCE. (a) The board shall
94	96		meet in regular session according to a schedule adopted by the
95	97		board.
96	98		(b) The board may meet in a special session:
97	99		(1) convened by the president of the board in
98	100		accordance with the bylaws of the board; or
99	101		(2) on written notice signed by a majority of the board
100	102		members.
101	103		(c) The presence of a majority of the board's total
102	104		membership constitutes a quorum for any regular or special session.
103	105		(d) The board shall establish rules related to the
104	106		attendance and participation of members in regular or special
105	107		meetings of the board. Rules adopted under this subsection may
106	108		provide for the removal from office of a member for failure to
107	109		comply with the rules if a majority of the remaining members of the
108	110		board vote for the removal. Removal under this subsection takes
109	111		effect the first day of the calendar month following the date of the
110	112		vote. A person removed under this subsection is ineligible for
111	113		reappointment to the board unless reappointment is confirmed
112	114		unanimously by the board.
113	115		Sec. 379H.054. BOARD ACTIONS. (a) Subject to Subsection
114	116		(b), actions of the board must be approved by the affirmative vote
115	117		of a quorum of the board.
116	118		(b) Action on the following matters requires approval by a
117	119		majority of the total membership of the board:
118	120		(1) adoption of bylaws or rules for conduct of the
119	121		business of the land bank for which the board serves;
120	122		(2) hiring or firing of any employee or contractor of
121	123		the land bank for which the board serves;
122	124		(3) incurring debt;
123	125		(4) adoption or amendment of the annual budget; and
124	126		(5) sale, lease, encumbrance, or alienation of or
125	127		improvements to real or personal property with a value of more than
126	128		$50,000.
127	129		(c) By majority vote, the board may delegate the hiring and
128	130		firing of employees and contractors to a specific officer or
129	131		committee of the land bank for which the board serves, under terms
130	132		and to the extent specified by the board.
131	133		(d) A board member may not vote by proxy.
132	134		(e) A board member may request a recorded vote on any
133	135		resolution or action of the land bank.
134	136		Sec. 379H.055. CONFLICT OF INTEREST. (a) A board member or
135	137		employee of a land bank, or a relative of a member or employee
136	138		within the first degree of consanguinity or affinity, as determined
137	139		by Chapter 573, Government Code, may not:
138	140		(1) acquire any direct or indirect interest in real
139	141		property of the land bank, in any real property to be acquired by
140	142		the land bank, or in any real property to be acquired from the land
141	143		bank; or
142	144		(2) have any direct or indirect interest in any
143	145		contract or proposed contract for materials or services to be
144	146		furnished or used by the land bank.
145	147		(b) The provisions of the former Texas Non-Profit
146	148		Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
147	149		Statutes) related to powers, standards of conduct, and interests in
148	150		contracts apply to the directors and officers of the land bank.
149	151		(c) The board may adopt supplemental rules addressing
150	152		potential conflicts of interest and ethical guidelines for board
151	153		members and land bank employees.
152	154		Sec. 379H.056. COMPENSATION; REIMBURSEMENT. (a) Board
153	155		members serve without compensation.
154	156		(b) The board may reimburse a member for expenses actually
155	157		incurred in the performance of duties on behalf of the land bank.
156	158		SUBCHAPTER C. CREATION, OPERATION, AND DISSOLUTION OF LAND BANK
157	159		Sec. 379H.101. CREATION OF LAND BANK. (a) The governing
158	160		body of a municipality may create a land bank by the adoption of an
159	161		ordinance approving the land bank's certificate of formation and
160	162		bylaws.
161	163		(b) Approval by the governing body of a municipality of the
162	164		certificate of formation and bylaws of a corporation created under
163	165		Chapter 431, Transportation Code, that will serve as a land bank
164	166		under this chapter is sufficient to create a land bank under this
165	167		section.
166	168		(c) A land bank's certificate of formation and bylaws
167	169		approved under this section may not be changed or amended unless the
168	170		governing body of the municipality for which the land bank was
169	171		created approves the change or amendment by the adoption of an
170	172		ordinance.
171	173		Sec. 379H.102. GENERAL POWERS OF LAND BANK. (a) A land
172	174		bank has all powers necessary to carry out the purposes of this
173	175		chapter, including the power to:
174	176		(1) adopt, amend, and repeal bylaws for the regulation
175	177		of the land bank's affairs and the conduct of the land bank's
176	178		business;
177	179		(2) sue and be sued in the land bank's own name and
178	180		plead and be interpleaded in all civil actions, including actions
179	181		to clear title to real property of the land bank;
180	182		(3) adopt and alter a seal;
181	183		(4) borrow funds necessary for the operation of the
182	184		land bank from private lenders, municipalities, this state, and the
183	185		federal government;
184	186		(5) adopt any policy for procurement that is
185	187		recognized under state law and permitted for governmental entities,
186	188		including a policy recognized under Chapters 252 and 271 of this
187	189		code, Chapter 431, Transportation Code, and Chapters 2254 and 2269,
188	190		Government Code;
189	191		(6) procure insurance or guarantees from this state or
190	192		the federal government of the payments of any debts or parts of
191	193		debts incurred by the land bank and pay premiums in connection with
192	194		those debts;
193	195		(7) enter into contracts and other agreements
194	196		necessary, incidental, or convenient to the performance of the land
195	197		bank's duties and the exercise of the land bank's powers, including
196	198		governmental agreements under Subchapter D, Chapter 431,
197	199		Transportation Code, or interlocal contracts under Section
198	200		791.011, Government Code, for the joint exercise of powers under
199	201		this chapter;
200	202		(8) enter into contracts and other agreements with the
201	203		municipality that created the land bank for the performance of
202	204		services in accordance with Chapter 311, Tax Code;
203	205		(9) make and execute contracts and other instruments
204	206		necessary or convenient to the exercise of the land bank's powers;
205	207		(10) procure insurance against losses in connection
206	208		with the real property, assets, or activities of the land bank;
207	209		(11) invest money of the land bank, at the discretion
208	210		of the board, in instruments, obligations, securities, or property
209	211		determined proper by the board and name and use depositories for the
210	212		land bank's money;
211	213		(12) enter into contracts for the management of,
212	214		collection of rent from, or sale of real property of the land bank;
213	215		(13) design, develop, construct, demolish,
214	216		reconstruct, rehabilitate, renovate, relocate, or otherwise
215	217		improve real property of the land bank;
216	218		(14) set, charge, and collect rents, fees, and charges
217	219		for the use of real property of the land bank and for services
218	220		provided by the land bank;
219	221		(15) finance by loan, grant, lease, or otherwise
220	222		refinance, construct, erect, assemble, purchase, acquire, own,
221	223		repair, remodel, rehabilitate, modify, maintain, extend, improve,
222	224		install, sell, equip, expand, add to, operate, or manage real
223	225		property of the land bank and pay the costs of those activities from
224	226		the proceeds of loans by persons, corporations, limited or general
225	227		partnerships, and other entities;
226	228		(16) grant or acquire a license, easement, lease, as
227	229		lessor or lessee, or option with respect to real property of the
228	230		land bank;
229	231		(17) enter into partnerships, joint ventures, and
230	232		other collaborative relationships with the municipality that
231	233		created the land bank and other public and private entities for the
232	234		ownership, management, development, and disposition of real
233	235		property of the land bank;
234	236		(18) make application directly or indirectly to any
235	237		federal, state, county, or municipal government or agency or to any
236	238		other public or private source for loans, grants, guarantees, or
237	239		other financial assistance in furtherance of the land bank's public
238	240		purpose and accept and use the loans, grants, guarantees, or
239	241		financial assistance on terms prescribed by that federal, state,
240	242		county, or municipal government or agency or other source;
241	243		(19) as security for the repayment of any notes or
242	244		other obligations of the land bank, pledge, mortgage, convey,
243	245		assign, hypothecate, or otherwise encumber any property of the land
244	246		bank, including real property, fixtures, personal property,
245	247		revenue, and other funds, and execute any lease, trust indenture,
246	248		trust agreement, agreement for the sale of the land bank's notes of
247	249		other obligation, loan agreement, mortgage, security agreement, or
248	250		other agreement necessary or desirable as determined by the land
249	251		bank;
250	252		(20) hold title to real property for purposes of
251	253		establishing contracts with public and private nonprofit entities,
252	254		including long-term lease contracts; and
253	255		(21) perform any other appropriate action as necessary
254	256		to carry out the purposes of this chapter or to comply with a
255	257		requirement under other law.
256	258		(b) A land bank may not:
257	259		(1) exercise the power of eminent domain; or
258	260		(2) acquire real property outside the geographical
259	261		boundaries of the municipality that created the land bank.
260	262		Sec. 379H.103. RESOLUTION OF COMPLEX TITLE QUESTIONS. A
261	263		land bank may provide assistance and guidance to owners of real
262	264		property for which there are complex, highly divided fractional
263	265		interests in the real property because of multigenerational
264	266		intestate distributions, unknown heirs, and other interested
265	267		parties for whom accurate information cannot be ascertained.
266	268		Sec. 379H.104. INTERLOCAL CONTRACTS. (a) A land bank may
267	269		enter into an interlocal contract under Section 791.011, Government
268	270		Code, with:
269	271		(1) a municipality for a program created by the
270	272		municipality under Chapter 373 or 374; or
271	273		(2) a non-qualifying municipality for the purpose of
272	274		the land bank conducting land bank activities on behalf of and
273	275		within the geographical boundaries of the non-qualifying
274	276		municipality.
275	277		(b) Notwithstanding Section 379H.102(b)(2), a land bank may
276	278		acquire real property within the geographical boundaries of a
277	279		non-qualifying municipality with which it has entered into an
278	280		agreement under Subsection (a).
279	281		Sec. 379H.105. RECORDS AND REPORTS. (a) A land bank shall
280	282		keep accurate minutes of the land bank's meetings and shall keep
281	283		accurate records and books of account that conform with generally
282	284		accepted principles of accounting and that clearly reflect the
283	285		income and expenses of the land bank and all transactions in
284	286		relation to the land bank's real property.
285	287		(b) A land bank shall maintain and make available for public
286	288		review and inspection:
287	289		(1) an inventory of all real property held by the land
288	290		bank;
289	291		(2) a copy of the sale settlement statement for each
290	292		real property sold or transferred to a third party; and
291	293		(3) a copy of the performance report filed under
292	294		Subsection (e).
293	295		(c) Not later than the 90th day after the end of the fiscal
294	296		year of the municipality that created the land bank, the land bank
295	297		shall file with the municipality an annual audited financial
296	298		statement prepared by a certified public accountant.
297	299		(d) Financial transactions of a land bank are subject to
298	300		audit by the municipality that created the land bank.
299	301		(e) For purposes of evaluating the effectiveness of a land
300	302		bank created under this chapter, a land bank shall submit an annual
301	303		performance report to the municipality that created the land bank
302	304		not later than November 1 of each year in which the land bank
303	305		acquires or sells real property in accordance with this chapter.
304	306		Sec. 379H.106. STAFF. (a) A land bank may employ an
305	307		executive director, counsel and legal staff, technical experts, and
306	308		other agents and employees, permanent or temporary, that the land
307	309		bank may require and may determine the qualifications and set the
308	310		compensation and benefits of each of those persons.
309	311		(b) A land bank may enter into contracts and agreements with
310	312		municipalities for staffing services to be provided to the land
311	313		bank by those municipalities or for the land bank to provide such
312	314		staffing services to those municipalities.
313	315		Sec. 379H.107. ADVISORY COMMITTEE AND NEIGHBORHOOD
314	316		CONSULTATION. (a) A land bank shall create one or more advisory
315	317		committees to consult with and advise the land bank on:
316	318		(1) properties within the municipality served by the
317	319		land bank that are imposing the greatest harm on neighborhoods and
318	320		communities in the municipality;
319	321		(2) neighborhood priorities for new uses of those
320	322		properties; and
321	323		(3) the range of potential transferees of those
322	324		properties.
323	325		(b) As appropriate to the location of the real property of
324	326		the land bank, advisory committee membership and neighborhood
325	327		consultations shall include formal and informal
326	328		neighborhood-specific community associations, residents'
327	329		associations, faith communities, community development
328	330		corporations, and anchor institutions.
329	331		Sec. 379H.108. DISSOLUTION OF LAND BANK. (a) A land bank
330	332		may be dissolved not earlier than the 60th day after the date an
331	333		affirmative resolution to dissolve the land bank is approved by
332	334		two-thirds of the membership of the board and confirmed by
333	335		resolution of the municipality that created the land bank.
334	336		(b) Not less than 60 days before the consideration of a
335	337		resolution of dissolution by the board, the board shall:
336	338		(1) provide to the governing body of the municipality
337	339		that created the land bank written notice of the board's intent to
338	340		vote on a resolution for dissolution of the land bank; and
339	341		(2) publish the notice in a local newspaper of general
340	342		circulation.
341	343		(c) On dissolution of the land bank, all real property,
342	344		personal property, and other assets and obligations of the land
343	345		bank become the assets and obligations of the municipality that
344	346		created the land bank.
345	347		SUBCHAPTER D. ACQUISITION AND DISPOSITION OF PROPERTY
346	348		Sec. 379H.151. TAX EXEMPT STATUS OF LAND BANK PROPERTY. The
347	349		real property of a land bank, including real property held by a land
348	350		bank under a long-term lease contract with a community land trust,
349	351		and the land bank's income and operations are exempt as public
350	352		property used for public purposes from all license fees, recording
351	353		fees, and all other taxes imposed by this state or by political
352	354		subdivisions of this state.
353	355		Sec. 379H.152. TITLE HELD BY LAND BANK. All real property
354	356		acquired by a land bank must be held in the name of the land bank.
355	357		Sec. 379H.153. QUIET TITLE ACTIONS. (a) A land bank may
356	358		file an action to quiet title as to any real property in which the
357	359		land bank has an interest. For purposes of a quiet title action,
358	360		the land bank is considered to be the holder of sufficient legal and
359	361		equitable interests and possessory rights to qualify the land bank
360	362		as an adequate complainant in the action.
361	363		(b) Before filing an action to quiet title, the land bank
362	364		shall conduct an examination of title to determine the identity of
363	365		all persons and entities possessing a claim or interest in or to the
364	366		real property. Service of the complaint to quiet title shall be
365	367		provided to the interested parties by the following methods:
366	368		(1) by first class mail to an identity and address as
367	369		reasonably ascertainable by an inspection of public records;
368	370		(2) in the case of occupied real property, by
369	371		registered or certified mail addressed to "occupant";
370	372		(3) by posting a copy of the notice on the real
371	373		property;
372	374		(4) by publication in a newspaper of general
373	375		circulation in the municipality in which the property is located;
374	376		and
375	377		(5) by another method the court may order.
376	378		(c) As part of the complaint to quiet title, a land bank
377	379		shall file an affidavit identifying all parties potentially having
378	380		an interest in the real property and the form of notice provided.
379	381		(d) A court hearing an action under this section shall:
380	382		(1) schedule a hearing on the complaint not later than
381	383		the 90th day after the date of the filing of the affidavit under
382	384		Subsection (c); and
383	385		(2) issue a final judgment not later than the 120th day
384	386		after the date of the filing of the complaint for all matters on
385	387		which an answer was not filed by an interested party.
386	388		(e) A land bank may join in a single complaint to quiet title
387	389		for one or more parcels of real property.
388	390		Sec. 379H.154. ACQUISITION OF PROPERTY GENERALLY. (a) A
389	391		land bank may acquire real property by gift, devise, transfer,
390	392		exchange, foreclosure, purchase, purchase contracts, lease
391	393		purchase agreements, installment sales contracts, land contracts,
392	394		or transfers from a municipality on terms as agreed by the land bank
393	395		and the municipality, or through any other means on terms and in a
394	396		manner the land bank considers appropriate.
395	397		(b) Notwithstanding any other law to the contrary, a
396	398		municipality served by a land bank or a non-qualifying municipality
397	399		that has entered into an interlocal contract with a land bank under
398	400		Section 379H.104 may transfer to the land bank real property of the
399	401		municipality or non-qualifying municipality on terms and according
400	402		to procedures determined by the municipality or non-qualifying
401	403		municipality.
402	404		(c) A land bank may acquire real property from this state,
403	405		the municipality served by the land bank, the county in which that
404	406		municipality is located, a governmental entity within the county,
405	407		the federal government, or an agency or department of the federal
406	408		government.
407	409		(d) A land bank shall maintain all of its real property in
408	410		accordance with the laws and ordinances of the jurisdiction in
409	411		which the real property is located.
410	412		Sec. 379H.155. ACQUISITION OF FORECLOSED OR SEIZED
411	413		PROPERTY. (a) In this section, "taxing unit" has the meaning
412	414		assigned by Section 1.04, Tax Code.
413	415		(b) A land bank may submit a written bid to acquire real
414	416		property at a tax sale conducted in accordance with Section 34.01,
415	417		Tax Code. The bid:
416	418		(1) must be in an amount not less than the amount
417	419		calculated under Section 34.01(b), Tax Code; and
418	420		(2) may be submitted in writing in advance of the
419	421		auction or tendered in person at the auction.
420	422		(c) If the bid submitted under Subsection (b) is the highest
421	423		bid received at the sale, the land bank:
422	424		(1) shall:
423	425		(A) pay in cash the amount of the costs and
424	426		expenses as described by Section 33.48, Tax Code, and any penalties
425	427		described by Section 33.07 or 33.08, Tax Code; or
426	428		(B) remit payment of the amounts described by
427	429		Paragraph (A) to the selling officer by check or electronic funds
428	430		transfer not later than the seventh calendar day after the date of
429	431		the auction; and
430	432		(2) is entitled to credit bid that portion of the bid
431	433		amount consisting of the amount of the taxes, penalties, other than
432	434		penalties described by Sections 33.07 and 33.08, Tax Code, and
433	435		interest set forth in the judgment.
434	436		(d) A taxing unit that is a party to a judgment of
435	437		foreclosure for property sold at auction may request that the
436	438		selling officer bid off the property to the taxing unit in the
437	439		manner provided by Section 34.01(j), Tax Code, and, if the request
438	440		is granted, the transfer to the taxing unit prevails over a bid by
439	441		the land bank if the land bank's bid is the only bid sufficient to
440	442		satisfy the minimum bid described by Section 34.01(j), Tax Code.
441	443		(e) The aggregate amount of all credit bids in a calendar
442	444		year shall be considered satisfied by the aggregate expenditure in
443	445		that calendar year of an amount equal to or greater than the credit
444	446		bid amount, which expenditures are attributable directly and
445	447		indirectly to maintenance, rehabilitation, construction,
446	448		demolition, and remediation activities. As to any specific tract
447	449		of property acquired by the credit bid and transferred by a land
448	450		bank to a public entity described by Section 379H.158(a), the
449	451		credit bid shall be considered satisfied by that transfer.
450	452		(f) A land bank may submit a written request to a taxing unit
451	453		at any time for the commencement of tax foreclosure proceedings for
452	454		delinquent taxes on real property, other than residential real
453	455		property legally owned and occupied. A land bank may submit a
454	456		written request to a taxing unit under this subsection for legally
455	457		occupied residential real property only if the property is five or
456	458		more years delinquent.
457	459		(g) A request submitted under Subsection (f) must include a
458	460		commitment to tender a bid in the amount specified under Subsection
459	461		(b). On receipt of the written request, the taxing unit, or the
460	462		governmental office acting on behalf of the taxing unit, shall
461	463		commence enforcement proceedings in accordance with Section 33.41,
462	464		Tax Code.
463	465		(h) If there is no private third party bid in an amount more
464	466		than the bid of the land bank, the real property must be sold to the
465	467		land bank.
466	468		(i) A sale to a land bank under this section is not a sale to
467	469		a taxing unit under Section 34.01(j) or (p) or 34.21, Tax Code.
468	470		(j) A land bank may bid an amount higher than the amount
469	471		calculated under Section 34.01(b), Tax Code, and if that higher bid
470	472		amount is the highest successful bid, the land bank shall pay the
471	473		full amount of the bid in cash.
472	474		(k) The deed to a land bank vests good and perfect title in
473	475		the land bank to the right, title, and interest owned by the
474	476		defendants included in the foreclosure judgment, including the
475	477		defendants' right to the use and possession of the property,
476	478		subject only to the defendants' right of redemption, the terms of a
477	479		recorded restrictive covenant running with the land that was
478	480		recorded before January 1 of the year in which the tax lien on the
479	481		property arose, a recorded lien that arose under that restrictive
480	482		covenant that was not extinguished by the judgment foreclosing the
481	483		tax lien, and each easement of record as of the date of the sale that
482	484		was recorded before January 1 of the year the tax lien arose.
483	485		(l) A sale of real property to a land bank under this
484	486		section:
485	487		(1) extinguishes each lien securing payment of the
486	488		delinquent taxes, penalties, and interest against the property and
487	489		included in the judgment; and
488	490		(2) does not affect the personal liability of any
489	491		person for those taxes, penalties, and interest included in the
490	492		judgment that are not satisfied from the proceeds of the sale.
491	493		(m) A municipality, and any taxing unit levying property
492	494		taxes within the geographical jurisdiction of the municipality, may
493	495		convey tax foreclosed real property owned by the municipality or
494	496		the taxing unit to the land bank on terms and for an amount of
495	497		consideration determined by the transferor and the land bank.
496	498		(n) A bid submitted by a land bank in accordance with this
497	499		section is considered a bid for the amount calculated under Section
498	500		34.01(b), Tax Code, and received under Section 34.01(j), Tax Code.
499	501		Sec. 379H.156. REDEMPTION BY OWNER OF FORECLOSED PROPERTY.
500	502		(a) The owner of real property sold to a land bank under Section
501	503		379H.155 may redeem the property in the manner prescribed for
502	504		owners of real property sold at a tax sale to a purchaser other than
503	505		a taxing unit under Section 34.21, Tax Code.
504	506		(b) The price to be paid by the owner of real property sold
505	507		to a land bank under this section to redeem the property shall be in
506	508		the amounts set forth in Sections 34.21(a) and (e), Tax Code. For
507	509		the purposes of calculating the price, the bid paid by the land bank
508	510		shall be the aggregate amount of the land bank's bid as described by
509	511		Section 379H.155(b).
510	512		(c) If the owner of real property sold to a land bank under
511	513		Section 379H.155 redeems the property by paying to the land bank the
512	514		full amount required to redeem as set forth in Sections 34.21(a) and
513	515		(e), Tax Code, the land bank shall:
514	516		(1) retain an amount equal to the amount paid in cash
515	517		by the land bank in accordance with Section 379H.155;
516	518		(2) retain any redemption premium and any reasonable
517	519		costs the land bank may have expended on maintenance or
518	520		environmental remediation of the property being redeemed; and
519	521		(3) remit to the county assessor-collector any
520	522		remaining amounts to be distributed among the taxing units that
521	523		were parties to the judgment of foreclosure in an amount equal to
522	524		the proportion of each taxing unit's taxes, penalties, and interest
523	525		due in accordance with the judgment of foreclosure.
524	526		Sec. 379H.157. DISPOSITION OF PROPERTY GENERALLY. (a) A
525	527		land bank may convey, exchange, sell, transfer, lease as lessor,
526	528		grant, release and demise, pledge, or hypothecate any interest in,
527	529		on, or to real property of the land bank.
528	530		(b) For real property that a land bank holds fee simple
529	531		title to, the land bank must convey, exchange, sell, transfer, or
530	532		otherwise dispose of the fee simple interest in the property not
531	533		later than the last day of the fifth consecutive year during which
532	534		the land bank continuously holds the fee simple title. This
533	535		subsection does not apply to real property that a land bank holds
534	536		fee simple title to:
535	537		(1) that is subject to a long-term lease with:
536	538		(A) a nonprofit corporation that is incorporated
537	539		or holds a certificate of authority under Chapter 22, Business
538	540		Organizations Code;
539	541		(B) a local government corporation, as defined by
540	542		Section 431.003, Transportation Code; or
541	543		(C) a governmental unit, as defined by Section
542	544		101.001, Civil Practice and Remedies Code;
543		-	(2) for which the land bank is required by the
	545	+	(2) for which the land bank is required, by the
544	546		municipality that created the land bank or an entity that funds the
545		-	land bank, either under an agreement with the municipality or
546		-	entity or to comply with an official action of the municipality or
547		-	entity, to hold and assemble one or more parcels of real property
	547	+	land bank, to hold and assemble one or more parcels of real property
548	548		for a period that is longer than five years for the purpose of
549	549		fulfilling specific program or funding goals related to creating or
550	550		developing affordable housing, supporting community-based economic
551	551		development, creating parks and other public places, or supporting
552	552		other goals required by the municipality or entity described by
553	553		this subdivision;
554	554		(3) for which a determination has been made by the land
555	555		bank that the best use of the real property is for flood control or
556	556		storm water retention or drainage and the real property has not yet
557	557		been transferred to a public entity such as a flood control district
558	558		or a municipal parks and recreation department under Section
559	559		379H.158; or
560	560		(4) that is the subject of an active proceeding in a
561	561		court of competent jurisdiction or is subject to a court order that
562	562		conflicts with this subsection.
563	563		(c) A municipality may, in the ordinance creating a land
564	564		bank, require that a particular form of disposition of real
565	565		property of the land bank, or any disposition of real property
566	566		located within a specified jurisdiction of the municipality, be
567	567		subject to specified voting and approval requirements of the board.
568	568		Unless restricted under this subsection, the board may delegate to
569	569		officers and employees the authority to enter into and execute
570	570		agreements, instruments of conveyance, and all other related
571	571		documents pertaining to the conveyance of real property by the land
572	572		bank.
573	573		(d) Subject to Subsection (b), a land bank shall determine
574	574		the terms, conditions, form, and substance of consideration
575	575		necessary and appropriate to convey, exchange, sell, transfer,
576	576		lease as lessor, grant, or mortgage as mortgagor any interest in,
577	577		on, or to real property of the land bank. Consideration may take
578	578		the form of monetary payments and secured financial obligations,
579	579		covenants, and conditions related to the present and future use of
580	580		the property, deed covenants and limitations, contractual
581	581		commitments of the transferee, mortgage financing, defeasible
582	582		fees, and other forms of consideration as determined by the board to
583	583		be in the best interests of the land bank. The board shall
584	584		determine and state in the land bank's policies and procedures the
585	585		general terms for consideration to be received by the land bank for
586	586		the transfer of real property of the land bank.
587	587		(e) The board may authorize in the board's policies
588	588		governing the disposition of land bank property a program for the
589	589		disposition of land bank property to owners of contiguous
590	590		properties.
591	591		(f) A municipality may recommend that a land bank created by
592	592		the municipality, and the land bank may in the land bank's own
593	593		policies and procedures, establish a hierarchical ranking of
594	594		priorities for the use of real property conveyed by the land bank,
595	595		including use for:
596	596		(1) production of housing, including affordable
597	597		housing, long-term affordable housing, workforce housing, public
598	598		service housing, and mixed-income housing;
599	599		(2) community-based economic development, including
600	600		retail, commercial, and industrial activities;
601	601		(3) parks and other purely public spaces and places;
602	602		(4) flood reduction, storm water retention and
603	603		drainage, and storm resiliency;
604	604		(5) food desert solutions;
605	605		(6) conservation areas; and
606	606		(7) other purposes necessary and appropriate to
607	607		convert properties to the tax rolls, stabilize communities, improve
608	608		living conditions, and protect against the displacement of
609	609		residents of the municipality served by the land bank.
610	610		Sec. 379H.158. DISPOSITION OF PROPERTY FOR FLOOD CONTROL
611	611		AND STORM WATER DRAINAGE AND PLANNING. (a) A land bank may convey
612	612		to a public entity such as a flood control district or a municipal
613	613		parks and recreation department real property held by the land
614	614		bank:
615	615		(1) for which the highest and best use is flood control
616	616		or storm water retention or drainage; and
617	617		(2) that, as a result of housing and building code
618	618		restrictions, flood plain elevations, other local, state, or
619	619		federal laws, or public or private agreements, conditions, and
620	620		limitations, is no longer capable of being developed or
621	621		redeveloped.
622	622		(b) The transfer of real property by a land bank under this
623	623		section may be:
624	624		(1) by grant, deed lease, or other conveyance and may
625	625		include additional limitations, restrictions, and conditions
626	626		determined by the land bank; and
627	627		(2) for nominal consideration, for consideration
628	628		consisting of contractual commitments, for an exchange of real
629	629		properties, or for other consideration determined by the land bank.
630	630		Sec. 379H.159. AFFORDABLE HOUSING POLICY. The board of a
631	631		land bank may adopt a policy requiring that a percentage, as
632	632		determined by the board based on local needs and available land bank
633	633		inventory, of residential units constructed on residential real
634	634		property conveyed by the land bank be deed restricted for housing
635	635		that is affordable to households with an income of not greater than
636	636		80 percent of the area median family income, adjusted for household
637	637		size, for the municipality, as determined annually by the United
638	638		States Department of Housing and Urban Development.
639	639		SUBCHAPTER E. FINANCING OF LAND BANK OPERATIONS
640	640		Sec. 379H.201. GENERAL FINANCING. (a) A land bank may
641	641		receive funding through grants and loans from the municipality that
642	642		created the land bank, other municipalities, this state, the
643	643		federal government, and other public or private sources.
644	644		(b) A land bank may receive and retain payments for services
645	645		rendered, for rents and leasehold payments received, for
646	646		consideration for disposition of real and personal property, for
647	647		proceeds of insurance coverage for losses incurred, for income from
648	648		investments, and for any other asset or activity permitted under
649	649		this chapter.
650	650		Sec. 379H.202. SALE OF LAND BANK PROPERTY. At the time a
651	651		land bank sells or otherwise disposes of real property, the
652	652		proceeds from the sale, if any, shall be allocated to operations and
653	653		expenses of the land bank.
654	654		Sec. 379H.203. COLLECTION OF TAXES ON PROPERTY CONVEYED BY
655	655		LAND BANK. Not more than 75 percent of the real property taxes the
656	656		municipality that created the land bank collected on real property,
657	657		excluding any school district or county ad valorem tax, conveyed by
658	658		a land bank under the laws of this state shall be remitted to the
659	659		land bank. The real property taxes of any other taxing unit, as to
660	660		real property of the land bank, may also be allocated to the land
661	661		bank in a similar manner under an interlocal agreement between the
662	662		other taxing unit and the land bank. The specific percentage of
663	663		those taxes to be remitted shall be established by ordinance,
664	664		resolution, or interlocal cooperation agreement of the land bank.
665	665		The allocation of property tax revenue shall begin with the first
666	666		taxable year following the date of conveyance and shall continue
667	667		for a period of five years. The funds shall be remitted to the land
668	668		bank in accordance with the administrative procedures established
669	669		by the assessor-collector of the county in which the land bank is
670	670		located. The allocation of property tax revenue may not occur if
671	671		those taxes have been previously allocated to a tax increment
672	672		reinvestment zone, or to secure a debt of the municipality or other
673	673		taxing unit, unless the municipality or other taxing unit enters
674	674		into an agreement with the land bank for the remittance of those
675		-	funds to the land bank.
	675	+	funds to the land bank. Any property tax revenue allocated to the
	676	+	land bank under this subsection shall be excluded from the
	677	+	calculation of ad valorem tax revenue under the municipality's
	678	+	charter.
676	679		SECTION 2. Section 379E.002, Local Government Code, is
677	680		amended to read as follows:
678	681		Sec. 379E.002. APPLICABILITY; CONSTRUCTION WITH OTHER LAW.
679	682		This chapter applies only to a municipality:
680	683		(1) to which Chapter 379C or 379H [or 379D] does not
681	684		apply; and
682	685		(2) that has not ever adopted a homestead land bank
683	686		program under Subchapter E, Chapter 373A.
684	687		SECTION 3. Chapter 379D, Local Government Code, is
685	688		repealed.
686	689		SECTION 4. (a) A joint interim committee is created to
687	690		study land banks.
688	691		(b) The committee shall be composed of:
689	692		(1) four members appointed by the lieutenant governor;
690	693		(2) four members appointed by the speaker of the house
691	694		of representatives; and
692	695		(3) four members appointed by the governor, one of
693	696		whom the governor shall designate as the committee's presiding
694	697		officer.
695	698		(c) In making appointments under Subsection (b) of this
696	699		section, the appropriate appointing authority shall, if
697	700		practicable, prioritize appointing members who:
698	701		(1) serve in a leadership role of a municipality's
699	702		department of housing, housing and community development, or a
700	703		related department;
701	704		(2) are employed by a nonprofit or other organization
702	705		that advocates for or develops affordable housing;
703	706		(3) are employed by a nonprofit or other organization
704	707		that advocates for or supports long-term affordable housing,
705	708		including a community land trust;
706	709		(4) have expertise as a real estate agent,
707	710		particularly expertise or knowledge of neighborhoods impacted by
708	711		vacant and abandoned properties;
709	712		(5) have expertise in urban planning or a related
710	713		field;
711	714		(6) are licensed as an attorney and have expertise in
712	715		laws related to real estate, real estate finance, or development;
713	716		(7) are residents of or leaders of a community-based
714	717		organization that serves neighborhoods impacted by vacant,
715	718		abandoned, and deteriorated properties; or
716	719		(8) have expertise in the enforcement of unpaid taxes,
717	720		which may include leaders or representatives from a county tax
718	721		assessor-collector.
719	722		(d) The committee shall convene at the call of the presiding
720	723		officer.
721	724		(e) The committee has all other powers and duties provided
722	725		to a special or select committee by the rules of the senate and
723	726		house of representatives, by Subchapter B, Chapter 301, Government
724	727		Code, and by policies of the senate and house committees on
725	728		administration.
726	729		(f) The members of the committee are entitled to
727	730		reimbursement from the contingent expense fund of the senate and
728	731		the contingent expense fund of the house of representatives equally
729	732		for expenses incurred in carrying out the provisions of this
730	733		section in accordance with the rules of the senate and house of
731	734		representatives and the policies of the senate and house committees
732	735		on administration.
733	736		(g) Not later than the 60th day after the effective date of
734	737		this Act, the lieutenant governor, the speaker of the house of
735	738		representatives, and the governor shall appoint the members of the
736	739		interim committee created under this section.
737	740		(h) The committee shall study:
738	741		(1) powers of land banks to acquire and dispose of real
739	742		property;
740	743		(2) impacts of land banks on flood reduction, storm
741	744		water retention and drainage, and storm resiliency;
742	745		(3) impacts of land banks on affordable housing,
743	746		workforce housing, or public service housing;
744	747		(4) funding mechanisms of land banks;
745	748		(5) impacts of land banks on tax base from properties
746	749		conveyed by a land bank; and
747	750		(6) land banks, including land bank enabling
748	751		legislation, from other states.
749	752		(i) Not later than January 15, 2023, the committee shall
750	753		prepare and submit to the lieutenant governor, the speaker of the
751	754		house of representatives, and the governor a written report
752	755		summarizing the results of the study conducted under Subsection (h)
753	756		of this section, including any legislative recommendations for
754	757		changes to Chapter 379H, Local Government Code, as added by this
755	758		Act, that may appear necessary or advisable based on the results of
756	759		the study.
757	760		(j) The committee is abolished and this section expires
758	761		September 1, 2023.
759	762		SECTION 5. Notwithstanding Section 379H.157(b), Local
760	763		Government Code, as added by this Act, an urban land bank
761	764		established under Chapter 379H, Local Government Code, as added by
762	765		this Act, that holds fee simple title to real property before the
763	766		effective date of this Act is not required to convey, exchange,
764	767		sell, transfer, or otherwise dispose of the real property, as
765	768		required by that subsection, until the last day of the fifth
766	769		consecutive year during which the urban land bank holds the fee
767	770		simple title on and after the effective date of this Act.
768	771		SECTION 6. The Houston Land Bank, a public nonprofit
769	772		corporation evidenced by its amended and restated Certificate of
770	773		Formation dated September 26, 2018, as filed with the Secretary of
771	774		State under File No. 155688901, under ordinance dated HCD 18-51,
772	775		approved and adopted by the city council of the City of Houston on
773	776		July 25, 2018, and originally created as the Land Assemblage
774	777		Redevelopment Authority under Subchapter D, Chapter 431,
775	778		Transportation Code, is a land bank under Chapter 379H, Local
776	779		Government Code, as added by this Act, and shall continue to possess
777	780		the statutory authorization by which it was originally created
778	781		under Subchapter D, Chapter 431, Transportation Code. All actions
779	782		of the board of directors and employees of the Houston Land Bank,
780	783		all contracts, agreements, services, and real property
781	784		acquisitions and dispositions taken before the effective date of
782	785		this Act shall remain unaffected by the adoption of an ordinance
783	786		under Chapter 379H, Local Government Code, as added by this Act.
784	787		SECTION 7. This Act takes effect September 1, 2021.
785		-	______________________________ ______________________________
786		-	President of the Senate Speaker of the House
787		-	I hereby certify that S.B. No. 1679 passed the Senate on
788		-	April 23, 2021, by the following vote: Yeas 31, Nays 0; and that
789		-	the Senate concurred in House amendments on May 27, 2021, by the
790		-	following vote: Yeas 31, Nays 0.
791		-	______________________________
792		-	Secretary of the Senate
793		-	I hereby certify that S.B. No. 1679 passed the House, with
794		-	amendments, on May 24, 2021, by the following vote: Yeas 77,
795		-	Nays 65, one present not voting.
796		-	______________________________
797		-	Chief Clerk of the House
798		-	Approved:
799		-	______________________________
800		-	Date
801		-	______________________________
802		-	Governor