88R13940 TJB-D
By: Thierry H.B. No. 3040
A BILL TO BE ENTITLED
AN ACT
relating to substandard residential building fines issued by
certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 214, Local Government
Code, is amended by adding Section 214.908 to read as follows:
Sec. 214.908. SUBSTANDARD RESIDENTIAL BUILDING FINE ISSUED
BY CERTAIN MUNICIPALITIES. (a) This section applies only to a
municipality located in a county with a population of 3.3 million or
more.
(b) In this section:
(1) "Residential building" means:
(A) a single-family residential building leased
or rented by the owner of the building to another person; or
(B) a multifamily residential building
containing more than one dwelling unit leased or rented by the owner
of the building to another person.
(2) "Substandard residential building" means a
residential building that is:
(A) dilapidated or unfit for human habitation;
and
(B) a hazard to the public health, safety, or
welfare.
(3) "Substandard residential building fine" means a
fine or penalty imposed by a municipality on the owner of a
substandard residential building under a municipal ordinance
applicable to the condition of the building.
(c) An owner of a substandard residential building is
personally liable for the payment of a substandard residential
building fine imposed for the owner's building.
(d) A municipality may file a lien in the manner prescribed
by this section on the property on which a substandard residential
building is located, and for which the owner has received a
substandard residential building fine, for the total amount of all
outstanding substandard residential building fines issued for the
property.
(e) Before a municipality may file a lien on property under
this section, the municipality shall provide written notice to the
owner of the property. The municipality must provide the notice not
earlier than the 30th day after the date the total amount of
outstanding substandard residential building fines issued for the
property first equals or exceeds $2,500. The municipality must
provide the notice in person or by mail or, if personal service
cannot be obtained and the address of the owner of the property is
not known, by posting a copy of the notice conspicuously at the
property. The notice must state:
(1) the total amount of unpaid substandard residential
building fines issued for the property;
(2) that the municipality will not file the lien
before the 31st day after the date the notice is provided under this
subsection; and
(3) that the property owner is entitled to submit a
written request for a hearing before the 31st day after the date the
notice is provided under this subsection.
(f) A hearing requested under Subsection (e) may be
conducted by the governing body of the municipality or by a board,
commission, or municipal officer designated by the governing body.
At the end of the hearing, the entity or officer that conducted the
hearing shall authorize the municipality to file the lien or
determine that the municipality may not file the lien. The
municipality may not file the lien if the entity or officer
determines that the municipality may not file the lien. If a
property owner does not request a hearing, the municipality may
file the lien on or after the 31st day after the date the
municipality provides the notice as required by Subsection (e).
(g) The lien arises and attaches to the property at the time
the notice of the lien is recorded and indexed in the office of the
county clerk in the county in which the property is located. The
notice must contain the name and address of the owner if that
information can be determined with reasonable effort, a legal
description of the property, and the amount of the unpaid balance of
the fine imposed by the municipality.
(h) The lien is extinguished if the property owner or
another person pays the fine. The lien is inferior to any
previously recorded bona fide mortgage lien attached to the
property to which the municipality's lien attaches if the mortgage
lien was filed for record in the office of the county clerk of the
county in which the property is located before the date the fine was
imposed by the municipality. The municipality's lien is superior to
all other previously recorded judgment liens.
SECTION 2. The change in law made by this Act applies only
to a substandard residential building fine, as defined by Section
214.908, Local Government Code, as added by this Act, that is issued
by a municipality on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2023.