Texas 2025 - 89th Regular

Texas House Bill HB1608 Compare Versions

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Old	New	Differences
1	1	89R5991 JAM-D
2	2	By: Garcia of Bexar H.B. No. 1608
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the adoption of a veterans' land bank program by the
10	10	Texas State Affordable Housing Corporation.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter Y, Chapter 2306, Government Code, is
13	13	amended by adding Section 2306.5622 to read as follows:
14	14	Sec. 2306.5622. VETERANS' LAND BANK PROGRAM. (a) In this
15	15	section:
16	16	(1) "Affordable" means that the monthly mortgage
17	17	payment or contract rent does not exceed 30 percent of the
18	18	applicable median family income for that housing unit size, in
19	19	accordance with the income and rent limit rules adopted by the
20	20	department.
21	21	(2) "Low-income household" means a household with an
22	22	income of not greater than 80 percent of the area median family
23	23	income, based on gross household income, adjusted for household
24	24	size, for a municipality or, if located in an area that is not part
25	25	of a municipality, a county, as determined annually by the United
26	26	States Department of Housing and Urban Development.
27	27	(3) "Veteran" has the meaning provided by Section
28	28	161.001, Natural Resources Code.
29	29	(4) "Veterans' land bank plan" or "plan" means a plan
30	30	adopted by the corporation as provided by Subsection (f).
31	31	(5) "Veterans' land bank program" or "program" means a
32	32	program adopted under Subsection (c).
33	33	(b) This section controls to the extent of any conflict
34	34	between this section and another provision of this chapter.
35	35	(c) The corporation shall establish a veterans' land bank
36	36	program for the purpose of acquiring, holding, and transferring
37	37	real property under this section to provide affordable housing for
38	38	veterans who are members of low-income households.
39	39	(d) Property held by the corporation under the program may
40	40	include:
41	41	(1) property acquired in the manner provided by
42	42	Subsection (g); and
43	43	(2) other property acquired by or transferred to the
44	44	corporation.
45	45	(e) A sale or other transfer of property to the corporation
46	46	for use in connection with the program is a sale for a public
47	47	purpose.
48	48	(f) The corporation shall operate the program in
49	49	conformance with a veterans' land bank plan. The corporation shall
50	50	adopt a plan annually. The plan may be amended from time to time.
51	51	In developing the plan, the corporation shall consider any other
52	52	housing plans adopted by a municipality or county in which the
53	53	corporation intends to implement the program.
54	54	(g) Property that is ordered sold pursuant to foreclosure of
55	55	a tax lien may be sold to the corporation for the purpose of the
56	56	program in the manner provided by Section 34.01, Tax Code.
57	57	(h) Notwithstanding any other law, if consent is given by
58	58	the taxing units that are a party to the judgment, property may be
59	59	sold to the corporation for the program for less than the market
60	60	value of the property as specified in the judgment or less than the
61	61	total of all taxes, penalties, and interest, plus the value of
62	62	nontax liens held by a taxing unit and awarded by the judgment,
63	63	court costs, and the cost of the sale.
64	64	(i) The deed of conveyance of the property sold to the
65	65	corporation under Subsection (g) conveys to the corporation the
66	66	right, title, and interest acquired or held by each taxing unit that
67	67	was a party to the judgment, subject to the right of redemption.
68	68	(j) Each subsequent resale or rental of a property owned by
69	69	the corporation under the program must comply with the conditions
70	70	of this subsection. Within the 10-year period following the date of
71	71	acquisition, the corporation must sell or rent a property to a
72	72	veteran who is a member of a low-income household. If after 10
73	73	years a property has not been purchased by a qualified veteran or
74	74	has not been leased to a qualified veteran within the preceding six
75	75	months, the property shall be transferred from the corporation to
76	76	the taxing units who were parties to the judgment for disposition as
77	77	otherwise allowed under the law.
78	78	(k) The corporation shall impose, in accordance with this
79	79	subsection, deed restrictions on property sold or rented to
80	80	veterans through the program requiring the subsequent sale or
81	81	rental of the property to veterans who are members of low-income
82	82	households. Except as otherwise provided by this subsection, if
83	83	the deed restrictions imposed under this subsection are for a term
84	84	of years, the deed restrictions renew automatically. The
85	85	corporation may modify or add to the deed restrictions imposed
86	86	under this subsection. Any modifications or additions made by the
87	87	corporation must be adopted by the corporation as part of its plan
88	88	and must comply with the minimum requirements provided under this
89	89	subsection.
90	90	(l) For purposes of evaluating the effectiveness of the
91	91	program, the corporation shall prepare an annual performance report
92	92	not later than November 1 of each year. The performance report must
93	93	include:
94	94	(1) for the preceding state fiscal year, a complete
95	95	and detailed written accounting of all money received and disbursed
96	96	by the corporation under the program and of all properties managed
97	97	by the corporation under the program;
98	98	(2) for each property acquired by the corporation for
99	99	the program during the preceding state fiscal year:
100	100	(A) the street address of the property;
101	101	(B) the legal description of the property;
102	102	(C) the date the corporation took title to the
103	103	property;
104	104	(D) the name and mailing address of the property
105	105	owner of record at the time of the acquisition;
106	106	(E) the amount of taxes and other costs owed at
107	107	the time of the foreclosure if the property was acquired under
108	108	Subsection (g); and
109	109	(F) the assessed value of the property on the tax
110	110	roll at the time of the foreclosure if the property was acquired
111	111	under Subsection (g); and
112	112	(3) for each property that the corporation sold or
113	113	rented to a qualified veteran under the program during the
114	114	preceding state fiscal year:
115	115	(A) the street address of the property;
116	116	(B) the legal description of the property; and
117	117	(C) the purchase price or amount of contract rent
118	118	paid by the veteran.
119	119	(m) The corporation shall provide copies of the performance
120	120	report to any taxing units who were parties to a sale of property
121	121	under Subsection (g). The corporation shall maintain copies of the
122	122	performance report available for public review.
123	123	(n) The corporation shall maintain in its records for
124	124	inspection a copy of the sale settlement statement for each
125	125	property sold through the veterans' land bank program.
126	126	SECTION 2. Section 2306.566(c), Government Code, is amended
127	127	to read as follows:
128	128	(c) The corporation's plan must include:
129	129	(1) specific proposals to help serve rural and other
130	130	underserved areas of the state; and
131	131	(2) the veterans' land bank plan developed under
132	132	Section 2306.5622.
133	133	SECTION 3. Sections 11.18(d) and (o), Tax Code, are amended
134	134	to read as follows:
135	135	(d) A charitable organization must be organized exclusively
136	136	to perform religious, charitable, scientific, literary, or
137	137	educational purposes and, except as permitted by Subsections (h)
138	138	and (l), engage exclusively in performing one or more of the
139	139	following charitable functions:
140	140	(1) providing medical care without regard to the
141	141	beneficiaries' ability to pay, which in the case of a nonprofit
142	142	hospital or hospital system means providing charity care and
143	143	community benefits in accordance with Section 11.1801;
144	144	(2) providing support or relief to orphans, delinquent
145	145	or dependent children in need of residential care, children with
146	146	disabilities in need of residential care, abused or battered
147	147	spouses or children in need of temporary shelter, the impoverished,
148	148	or victims of natural disaster without regard to the beneficiaries'
149	149	ability to pay;
150	150	(3) providing support without regard to the
151	151	beneficiaries' ability to pay to:
152	152	(A) elderly persons, including the provision of:
153	153	(i) recreational or social activities; and
154	154	(ii) facilities designed to address the
155	155	special needs of elderly persons; or
156	156	(B) persons with disabilities, including
157	157	training and employment:
158	158	(i) in the production of commodities; or
159	159	(ii) in the provision of services under 41
160	160	U.S.C. Sections 8501-8506;
161	161	(4) preserving a historical landmark or site;
162	162	(5) promoting or operating a museum, zoo, library,
163	163	theater of the dramatic or performing arts, or symphony orchestra
164	164	or choir;
165	165	(6) promoting or providing humane treatment of
166	166	animals;
167	167	(7) acquiring, storing, transporting, selling, or
168	168	distributing water for public use;
169	169	(8) answering fire alarms and extinguishing fires with
170	170	no compensation or only nominal compensation to the members of the
171	171	organization;
172	172	(9) promoting the athletic development of boys or
173	173	girls under the age of 18 years;
174	174	(10) preserving or conserving wildlife;
175	175	(11) promoting educational development through loans
176	176	or scholarships to students;
177	177	(12) providing halfway house services pursuant to a
178	178	certification as a halfway house by the parole division of the Texas
179	179	Department of Criminal Justice;
180	180	(13) providing permanent housing and related social,
181	181	health care, and educational facilities for persons who are 62
182	182	years of age or older without regard to the residents' ability to
183	183	pay;
184	184	(14) promoting or operating an art gallery, museum, or
185	185	collection, in a permanent location or on tour, that is open to the
186	186	public;
187	187	(15) providing for the organized solicitation and
188	188	collection for distributions through gifts, grants, and agreements
189	189	to nonprofit charitable, education, religious, and youth
190	190	organizations that provide direct human, health, and welfare
191	191	services;
192	192	(16) performing biomedical or scientific research or
193	193	biomedical or scientific education for the benefit of the public;
194	194	(17) operating a television station that produces or
195	195	broadcasts educational, cultural, or other public interest
196	196	programming and that receives grants from the Corporation for
197	197	Public Broadcasting under 47 U.S.C. Section 396, as amended;
198	198	(18) providing housing for low-income and
199	199	moderate-income families, for unmarried individuals 62 years of age
200	200	or older, for individuals with disabilities, and for families
201	201	displaced by urban renewal, through the use of trust assets that are
202	202	irrevocably and, pursuant to a contract entered into before
203	203	December 31, 1972, contractually dedicated on the sale or
204	204	disposition of the housing to a charitable organization that
205	205	performs charitable functions described by Subdivision (9);
206	206	(19) providing housing and related services to persons
207	207	who are 62 years of age or older in a retirement community, if the
208	208	retirement community provides independent living services,
209	209	assisted living services, and nursing services to its residents on
210	210	a single campus:
211	211	(A) without regard to the residents' ability to
212	212	pay; or
213	213	(B) in which at least four percent of the
214	214	retirement community's combined net resident revenue is provided in
215	215	charitable care to its residents;
216	216	(20) providing housing on a cooperative basis to
217	217	students of an institution of higher education if:
218	218	(A) the organization is exempt from federal
219	219	income taxation under Section 501(a), Internal Revenue Code of
220	220	1986, as amended, by being listed as an exempt entity under Section
221	221	501(c)(3) of that code;
222	222	(B) membership in the organization is open to all
223	223	students enrolled in the institution and is not limited to those
224	224	chosen by current members of the organization;
225	225	(C) the organization is governed by its members;
226	226	and
227	227	(D) the members of the organization share the
228	228	responsibility for managing the housing;
229	229	(21) acquiring, holding, and transferring unimproved
230	230	real property under an urban land bank demonstration program
231	231	established under Chapter 379C, Local Government Code, as or on
232	232	behalf of a land bank;
233	233	(22) acquiring, holding, and transferring unimproved
234	234	real property under an urban land bank program established under
235	235	Chapter 379E, Local Government Code, as or on behalf of a land bank;
236	236	(22-a) acquiring, holding, and transferring
237	237	unimproved real property under a veterans' land bank program
238	238	established under Section 2306.5622, Government Code, as or on
239	239	behalf of the Texas State Affordable Housing Corporation;
240	240	(23) providing housing and related services to
241	241	individuals who:
242	242	(A) are unaccompanied and homeless and have a
243	243	disabling condition; and
244	244	(B) have been continuously homeless for a year or
245	245	more or have had at least four episodes of homelessness in the
246	246	preceding three years;
247	247	(24) operating a radio station that broadcasts
248	248	educational, cultural, or other public interest programming,
249	249	including classical music, and that in the preceding five years has
250	250	received or been selected to receive one or more grants from the
251	251	Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
252	252	amended;
253	253	(25) providing, without regard to the beneficiaries'
254	254	ability to pay, tax return preparation services and assistance with
255	255	other financial matters; or
256	256	(26) providing services related to planning for the
257	257	placement of or placing children in foster or adoptive homes or
258	258	providing support or relief to women who are or may be pregnant and
259	259	who are considering placing their unborn children for adoption.
260	260	(o) For purposes of Subsection (a)(2), real property
261	261	acquired, held, and transferred by an organization that performs
262	262	the function described by Subsection (d)(21), [or] (22), or (22-a)
263	263	is considered to be used exclusively by the qualified charitable
264	264	organization to perform that function.
265	265	SECTION 4. Section 11.18, Tax Code, as amended by this Act,
266	266	applies only to an ad valorem tax year that begins on or after the
267	267	effective date of this Act.
268	268	SECTION 5. This Act takes effect September 1, 2025.