| 1 | 1 | | By: Bettencourt S.B. No. 2639 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the designation of a property as a historic landmark and |
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| 9 | 9 | | the inclusion of a property in a historic district or similar |
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| 10 | 10 | | preservation district by certain municipalities. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Sections 211.0165(a) and (d), Local Government |
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| 13 | 13 | | Code, are amended to read as follows: |
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| 14 | 14 | | (a) Except as provided by Subsection (b) and subject to |
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| 15 | 15 | | Section 211.01651, a municipality that has established a process |
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| 16 | 16 | | for designating places or areas of historical, cultural, or |
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| 17 | 17 | | architectural importance and significance through the adoption of |
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| 18 | 18 | | zoning regulations or zoning district boundaries may not designate |
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| 19 | 19 | | a property as a local historic landmark or include a property within |
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| 20 | 20 | | the boundaries of a local historic district unless: |
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| 21 | 21 | | (1) the owner of the property consents to the |
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| 22 | 22 | | designation or inclusion; or |
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| 23 | 23 | | (2) if the owner does not consent, the designation or |
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| 24 | 24 | | inclusion of the owner's property is approved by a three-fourths |
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| 25 | 25 | | vote of: |
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| 26 | 26 | | (A) the governing body of the municipality; and |
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| 27 | 27 | | (B) the zoning, planning, or historical |
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| 28 | 28 | | commission of the municipality, if any. |
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| 29 | 29 | | (d) The historic designation impact statement must include |
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| 30 | 30 | | lists of the: |
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| 31 | 31 | | (1) regulations that may be applied to any structure |
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| 32 | 32 | | on the property after the designation; |
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| 33 | 33 | | (2) procedures for the designation; |
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| 34 | 34 | | (3) tax benefits that may be applied to the property |
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| 35 | 35 | | after the designation; [and] |
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| 36 | 36 | | (4) rehabilitation or repair programs that the |
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| 37 | 37 | | municipality offers for a property designated as historic; |
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| 38 | 38 | | (5) code violations that would be required to bring |
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| 39 | 39 | | the property into compliance if the property was designated as |
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| 40 | 40 | | historic or included in a local historic district; |
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| 41 | 41 | | (6) estimated cost to repair or restore the property |
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| 42 | 42 | | if designated as historic prepared by an independent appraiser, |
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| 43 | 43 | | adjustor, and/or construction expert; and |
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| 44 | 44 | | (7) an independent appraisal of the value of the |
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| 45 | 45 | | property immediately before and immediately after the designation. |
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| 46 | 46 | | SECTION 2. Subchapter A, Chapter 211, Local Government |
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| 47 | 47 | | Code, is amended by adding Section 211.01651 to read as follows: |
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| 48 | 48 | | Sec. 211.01651. DESIGNATION OF HISTORIC LANDMARK OR |
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| 49 | 49 | | DISTRICT IN CERTAIN MUNICIPALITIES. (a) This section applies only |
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| 50 | 50 | | to a property located in a municipality with a population of 950,000 |
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| 51 | 51 | | or more. |
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| 52 | 52 | | (b) A municipality may not designate a property as a local |
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| 53 | 53 | | historic landmark or include a property within the boundaries of a |
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| 54 | 54 | | local historic district without the consent of the owner of the |
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| 55 | 55 | | property unless the municipality complies with: |
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| 56 | 56 | | (1) Section 211.0165; and |
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| 57 | 57 | | (2) the procedures in this section for assessing |
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| 58 | 58 | | damages and determining compensation to the property owner. |
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| 59 | 59 | | (c) If the governing body of a municipality approves the |
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| 60 | 60 | | designation of a property as a local historic landmark or inclusion |
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| 61 | 61 | | of the property within the boundaries of a local historic district |
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| 62 | 62 | | as provided by Section 211.0165(a) and the owner of the property |
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| 63 | 63 | | does not consent, the municipality must make a bona fide offer to |
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| 64 | 64 | | compensate the property owner for damages attributable to the |
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| 65 | 65 | | designation or inclusion. A municipality has made a bona fide offer |
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| 66 | 66 | | if the municipality: |
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| 67 | 67 | | (1) provides to the property owner in writing: |
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| 68 | 68 | | (A) an initial offer of compensation for damages |
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| 69 | 69 | | equal to or greater than the amount detailed in the historic |
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| 70 | 70 | | designation impact statement; and |
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| 71 | 71 | | (B) a final offer of compensation for damages, |
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| 72 | 72 | | equal to or greater than the amount detailed in the historic |
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| 73 | 73 | | designation impact statement, on or after the 30th day after the |
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| 74 | 74 | | date the municipality makes a written initial offer to the property |
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| 75 | 75 | | owner; and |
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| 76 | 76 | | (2) provides the property owner with at least 14 days |
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| 77 | 77 | | to respond to the final offer and the property owner does not agree |
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| 78 | 78 | | to the terms of the final offer within that period. |
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| 79 | 79 | | (d) If a municipality is unable to agree with a property |
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| 80 | 80 | | owner on the amount of damages under Subsection (c), the |
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| 81 | 81 | | municipality may bring an action to authorize the municipality to |
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| 82 | 82 | | designate a property as a local historic landmark or include a |
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| 83 | 83 | | property within the boundaries of a local historic district without |
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| 84 | 84 | | the consent of the property owner by filing in the proper court a |
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| 85 | 85 | | petition that includes: |
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| 86 | 86 | | (1) a description of the property; |
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| 87 | 87 | | (2) the name of the property owner if the owner is |
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| 88 | 88 | | known; and |
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| 89 | 89 | | (3) a statement: |
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| 90 | 90 | | (A) specifying the designation or inclusion that |
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| 91 | 91 | | the municipality seeks to authorize; |
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| 92 | 92 | | (B) that the municipality and the property owner |
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| 93 | 93 | | are unable to agree on the damages; and |
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| 94 | 94 | | (C) that the municipality made a bona fide offer |
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| 95 | 95 | | to compensate the property owner for damages as provided by |
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| 96 | 96 | | Subsection (c). |
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| 97 | 97 | | (e) A municipality that files a petition under Subsection |
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| 98 | 98 | | (d) shall provide a copy of the petition to the property owner by |
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| 99 | 99 | | certified mail, return receipt requested, and first class mail. If |
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| 100 | 100 | | the municipality has received written notice that the property |
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| 101 | 101 | | owner is represented by counsel, the municipality shall provide a |
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| 102 | 102 | | copy of the petition to the property owner's attorney by first class |
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| 103 | 103 | | mail, commercial delivery service, or e-mail. |
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| 104 | 104 | | (f) The court in which a petition is filed under this |
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| 105 | 105 | | section not later than the 30th day after the date the petition is |
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| 106 | 106 | | filed shall appoint three special commissioners, as provided by |
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| 107 | 107 | | Section 21.014, Property Code, to assess the damages of the owner of |
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| 108 | 108 | | the property that the municipality seeks to designate as a local |
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| 109 | 109 | | historic landmark or include within the boundaries of a local |
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| 110 | 110 | | historic district. |
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| 111 | 111 | | (g) The special commissioners appointed under Subsection |
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| 112 | 112 | | (f) shall: |
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| 113 | 113 | | (1) as soon as practicable but not later than the 20th |
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| 114 | 114 | | day after the date the special commissioners are appointed hold a |
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| 115 | 115 | | hearing to assess damages; and |
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| 116 | 116 | | (2) provide written notice of the hearing to the |
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| 117 | 117 | | municipality and the property owner as provided by Section 21.016, |
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| 118 | 118 | | Property Code. |
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| 119 | 119 | | (h) A municipality or property owner may: |
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| 120 | 120 | | (1) appeal the findings from the special commissioners |
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| 121 | 121 | | as provided by Section 21.018, Property Code; or |
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| 122 | 122 | | (2) move to dismiss the proceedings in an action filed |
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| 123 | 123 | | under Subsection (d), as provided by Section 21.019, Property Code. |
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| 124 | 124 | | (i) As the basis for assessing actual damages to a property |
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| 125 | 125 | | owner from a designation of a property as a local historic landmark |
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| 126 | 126 | | or inclusion of a property within the boundaries of a local historic |
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| 127 | 127 | | district, the special commissioners shall admit evidence on: |
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| 128 | 128 | | (1) the value of the property; |
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| 129 | 129 | | (2) the injury to the property owner; |
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| 130 | 130 | | (3) the benefit to the property owner's property; |
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| 131 | 131 | | (4) the use of the property for the purpose of the |
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| 132 | 132 | | designation or inclusion; |
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| 133 | 133 | | (5) the cost to repair the property; and |
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| 134 | 134 | | (6) any diminution in the value of the property due to |
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| 135 | 135 | | the designation or inclusion, including from restrictions on the |
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| 136 | 136 | | property owner's ability to demolish or develop the property. |
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| 137 | 137 | | (j) The special commissioners shall assess damages in a |
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| 138 | 138 | | proceeding under this section according to the evidence presented |
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| 139 | 139 | | at the hearing and as provided by Section 21.042, Property Code, as |
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| 140 | 140 | | applicable. |
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| 141 | 141 | | (k) The special commissioners in a proceeding under this |
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| 142 | 142 | | section shall adjudge the costs of the proceeding against a party as |
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| 143 | 143 | | follows: |
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| 144 | 144 | | (i) If the commissioners award greater damages than the |
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| 145 | 145 | | municipality offered to pay or a court on appeal awards greater |
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| 146 | 146 | | damages than the commissioners awarded, the municipality shall pay |
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| 147 | 147 | | all costs; including attorneys fees, expert fees, and costs of |
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| 148 | 148 | | court. |
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| 149 | 149 | | (ii) If the commissioners' award or the |
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| 150 | 150 | | court's determination of the damages is less than or equal to the |
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| 151 | 151 | | amount the municipality offered before proceedings began, the |
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| 152 | 152 | | property owner shall pay the costs of court. |
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| 153 | 153 | | (l) A municipality shall pay the initial cost of serving a |
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| 154 | 154 | | property owner with notice of a condemnation proceeding. If the |
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| 155 | 155 | | property owner is ordered to pay the costs of the proceeding, the |
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| 156 | 156 | | municipality may recover the expense of notice from the property |
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| 157 | 157 | | owner as part of the costs of court. |
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| 158 | 158 | | (m) If a court hearing a suit under this section determines |
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| 159 | 159 | | that a municipality did not make a bona fide offer to compensate the |
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| 160 | 160 | | property owner for damages as required by Subsection (c), the court |
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| 161 | 161 | | shall abate the suit, order the municipality to make a bona fide |
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| 162 | 162 | | offer, and order the municipality to pay: |
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| 163 | 163 | | (1) all costs as provided by Subsection (k); and |
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| 164 | 164 | | (2) any reasonable attorney's fees and other |
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| 165 | 165 | | professional fees incurred by the property owner that are directly |
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| 166 | 166 | | related to the violation. |
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| 167 | 167 | | (n) The special commissioners in a proceeding under this |
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| 168 | 168 | | section shall file with the court a written statement of damages and |
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| 169 | 169 | | costs as provided by Section 21.048, Property Code. |
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| 170 | 170 | | (o) The court in a proceeding under this section shall: |
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| 171 | 171 | | (1) send notice of a decision by the special |
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| 172 | 172 | | commissioners to the parties as provided by Section 21.049, |
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| 173 | 173 | | Property Code; and |
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| 174 | 174 | | (2) if no party files timely objections to the |
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| 175 | 175 | | findings of the special commissioners, adopt the commissioners' |
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| 176 | 176 | | findings as the judgment of the court, record the judgment in the |
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| 177 | 177 | | minutes of the court, and issue the process necessary to: |
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| 178 | 178 | | (A) enforce any judgment of damages awarded to |
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| 179 | 179 | | the property owner; and |
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| 180 | 180 | | (B) authorize the municipality to designate the |
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| 181 | 181 | | property owner's property as a local historic landmark or include |
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| 182 | 182 | | the property within the boundaries of a local historic district |
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| 183 | 183 | | under Section 211.0165. |
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| 184 | 184 | | SECTION 3. (a) Except as provided by Subsection (b) of this |
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| 185 | 185 | | section, the changes in law made by this Act apply only to a |
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| 186 | 186 | | designation of a property as a local historic landmark or inclusion |
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| 187 | 187 | | of a property within the boundaries of a local historic district |
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| 188 | 188 | | that is approved by the governing body of a municipality on or after |
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| 189 | 189 | | the effective date of this Act. A designation or inclusion approved |
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| 190 | 190 | | before the effective date of this Act is governed by the law as it |
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| 191 | 191 | | existed immediately before the effective date of this Act, and that |
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| 192 | 192 | | law is continued in effect for that purpose. |
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| 193 | 193 | | (b) If a property owner filed an action to challenge the |
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| 194 | 194 | | designation of the property owner's property as a local historic |
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| 195 | 195 | | landmark or the inclusion of the property within the boundaries of a |
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| 196 | 196 | | local historic district before the effective date of this Act and |
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| 197 | 197 | | the action is pending on the effective date of this Act, the |
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| 198 | 198 | | property owner may elect to dismiss the action and seek relief as |
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| 199 | 199 | | provided by Section 211.01651, Local Government Code, as added by |
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| 200 | 200 | | this Act. |
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| 201 | 201 | | SECTION 4. This Act takes effect immediately if it receives |
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| 202 | 202 | | a vote of two-thirds of all the members elected to each house, as |
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| 203 | 203 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 204 | 204 | | Act does not receive the vote necessary for immediate effect, this |
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| 205 | 205 | | Act takes effect September 1, 2025. |
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