Bill Text: TX SB1117 | 2019-2020 | 86th Legislature | Engrossed
Bill Title: Relating to the functions of certain urban land bank programs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2019-04-24 - Referred to Urban Affairs [SB1117 Detail]
Download: Texas-2019-SB1117-Engrossed.html
By: Lucio | S.B. No. 1117 |
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relating to the functions of certain urban land bank programs. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 379E.003, Local Government Code, is | ||
amended by amending Subdivision (3) and adding Subdivision (4-a) to | ||
read as follows: | ||
(3) "Land bank" means an entity established or | ||
approved by the governing body of a municipality to exercise [ |
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the powers [ |
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transferring [ |
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(4-a) "Moderate income household" means a household | ||
that: | ||
(A) requires assistance in securing sanitary, | ||
decent, and safe housing, considering: | ||
(i) the amount of the total income | ||
available for housing needs of the individuals or families who are | ||
members of the household; | ||
(ii) the size of the household; | ||
(iii) the cost and condition of available | ||
housing facilities; | ||
(iv) the ability of the individuals or | ||
families who are members of the household to compete successfully | ||
in the private housing market and to pay the amounts required by | ||
that market for sanitary, decent, and safe housing; and | ||
(v) standards that are established for the | ||
purpose of federal programs and that use income to determine | ||
eligibility for the programs; and | ||
(B) does not qualify as a low income household. | ||
SECTION 2. Section 379E.004(b), Local Government Code, is | ||
amended to read as follows: | ||
(b) The governing body of a municipality that adopts an | ||
urban land bank program shall establish or approve a land bank to | ||
exercise [ |
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developing, and transferring [ |
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chapter. | ||
SECTION 3. Section 379E.005, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 379E.005. QUALIFIED PARTICIPATING DEVELOPER. To | ||
qualify to participate in an urban land bank program, a developer | ||
other than the land bank must: | ||
(1) have developed three or more housing units within | ||
the three-year period preceding the submission of a proposal to the | ||
land bank seeking to acquire real property from the land bank; | ||
(2) have a development plan approved [ |
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municipality; and | ||
(3) meet any other requirements adopted by the | ||
municipality in the urban land bank plan. | ||
SECTION 4. Section 379E.006(c), Local Government Code, is | ||
amended to read as follows: | ||
(c) In developing the plan, the municipality shall consider | ||
any other housing plans adopted by the municipality, including any | ||
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policies adopted or agreed to by the municipality. | ||
SECTION 5. Section 379E.008(a), Local Government Code, is | ||
amended to read as follows: | ||
(a) Notwithstanding any other law and except as provided by | ||
Subsection (f), property that is ordered sold pursuant to | ||
foreclosure of a tax lien may be sold in a private sale to a land | ||
bank by the officer charged with the sale of the property without | ||
first offering the property for sale as otherwise provided by | ||
Section 34.01, Tax Code, if: | ||
(1) the market value of the property as specified in | ||
the judgment of foreclosure is less than the total amount due under | ||
the judgment, including all taxes, penalties, and interest, plus | ||
the value of nontax liens held by a taxing unit and awarded by the | ||
judgment, court costs, and the cost of the sale; | ||
(2) the property is not improved with a habitable | ||
building or buildings or an uninhabitable building or buildings | ||
that are occupied as a residence by an owner or tenant who is | ||
legally entitled to occupy the building or buildings; | ||
(3) there are delinquent taxes on the property for a | ||
total of at least five years; and | ||
(4) the municipality has executed with the other | ||
taxing units that are parties to the tax suit an interlocal | ||
agreement that enables those units to agree to participate in the | ||
program while retaining the right to withhold consent to the sale of | ||
specific properties to the land bank. | ||
SECTION 6. Section 379E.009, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 379E.009. SUBSEQUENT RESALE OR DEVELOPMENT BY LAND | ||
BANK. (a) Within the five-year period following the date [ |
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land bank, the land bank [ |
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[ |
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(1) sell the [ |
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developer for the purpose of construction or rehabilitation of | ||
affordable housing for sale or rent to low or moderate income | ||
households; or | ||
(2) develop the property for the purposes described by | ||
Subdivision (1). | ||
(b) If after five [ |
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developer has not purchased the property or the land bank has not | ||
developed the property, the property shall be transferred from the | ||
land bank to the taxing units who were parties to the judgment for | ||
disposition as otherwise allowed under the law. | ||
(c) Unless the municipality increases the amount in its | ||
plan, the number of properties acquired by a qualified | ||
participating developer under this section on which development has | ||
not been completed may not at any given time exceed three times the | ||
annual average residential production completed by the qualified | ||
participating developer during the preceding three-year [ |
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period as determined by the municipality. | ||
(d) The deed conveying a property sold by the land bank must | ||
include a right of reverter so that, if the qualified participating | ||
developer does not apply for a construction permit and close on any | ||
construction financing within the three-year [ |
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following the date of the conveyance of the property from the land | ||
bank to the qualified participating developer, the property will | ||
revert to the land bank for development by the land bank, subsequent | ||
resale to another qualified participating developer, or conveyance | ||
to the taxing units who were parties to the judgment for disposition | ||
as otherwise allowed under the law. | ||
(e) Each subsequent resale that a land bank makes to a | ||
qualified participating developer with respect to a property | ||
acquired by the land bank under this chapter must comply with the | ||
conditions of this section. | ||
SECTION 7. Sections 379E.010(a), (b), (c), and (d), Local | ||
Government Code, are amended to read as follows: | ||
(a) The land bank shall impose deed restrictions on property | ||
developed by the land bank or sold to qualified participating | ||
developers requiring the development and subsequent sale or rental | ||
of the property to low or moderate income households. | ||
(b) For land bank properties developed by the land bank for | ||
sale, and for [ |
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to a qualified participating developer for development for sale, in | ||
[ |
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(1) at least 45 percent of the properties must [ |
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deed restricted for sale [ |
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of [ |
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median family income, based on gross household income, adjusted for | ||
household size, for the metropolitan statistical area in which the | ||
properties are [ |
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the United States Department of Housing and Urban Development; | ||
(2) at least 25 percent of the properties must be deed | ||
restricted for sale to households with a household income of not | ||
more than 60 percent of the area median family income, based on | ||
gross household income, adjusted for household size, for the | ||
metropolitan statistical area in which the properties are located, | ||
as determined annually by the United States Department of Housing | ||
and Urban Development; and | ||
(3) the remaining properties must be deed restricted | ||
for sale to households with a household income of not more than 120 | ||
percent of the area median family income, based on gross household | ||
income, adjusted for household size, for the metropolitan | ||
statistical area in which the properties are located, as determined | ||
annually by the United States Department of Housing and Urban | ||
Development. | ||
(c) If property is developed and used for rental housing, | ||
the deed restrictions must be for a period of not less than 30 [ |
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years and must require that 100 percent of the units are occupied by | ||
and affordable to households with incomes not greater than 80 | ||
percent of area median family income, based on gross household | ||
income, adjusted for household size, for the metropolitan | ||
statistical area in which the units are located, as determined | ||
annually by the United States Department of Housing and Urban | ||
Development, and must also require that of those units: | ||
(1) at least 40 [ |
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greater than 60 percent of area median family income, based on gross | ||
household income, adjusted for household size, for the metropolitan | ||
statistical area in which the units are [ |
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as determined annually by the United States Department of Housing | ||
and Urban Development; and | ||
(2) at least 20 [ |
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occupied by and affordable to households with incomes not greater | ||
than 50 percent of area median family income, based on gross | ||
household income, adjusted for household size, for the metropolitan | ||
statistical area in which the units are [ |
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as determined annually by the United States Department of Housing | ||
and Urban Development[ |
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[ |
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(d) The deed restrictions under Subsection (c) must require | ||
the owner to file an annual occupancy report with the municipality | ||
on a reporting form provided by or acceptable to the | ||
municipality. The deed restrictions must also prohibit any | ||
exclusion of an individual or family from admission to the | ||
development based solely on the participation of the individual or | ||
family in the housing choice voucher program under Section 8, | ||
United States Housing Act of 1937 (42 U.S.C. Section 1437f), as | ||
amended. | ||
SECTION 8. Sections 379E.013(c) and (d), Local Government | ||
Code, are amended to read as follows: | ||
(c) For purposes of evaluating the effectiveness of the | ||
program, the land bank shall submit an annual performance report to | ||
the municipality not later than November 1 of each year in which the | ||
land bank acquires, develops, or sells property under this chapter. | ||
The performance report must include: | ||
(1) a complete and detailed written accounting of all | ||
money and properties received and disbursed by the land bank during | ||
the preceding fiscal year; | ||
(2) for each property acquired by the land bank during | ||
the preceding fiscal year: | ||
(A) the street address of the property; | ||
(B) the legal description of the property; | ||
(C) the date the land bank took title to the | ||
property; | ||
(D) the name and mailing address of the property | ||
owner of record at the time of the foreclosure; | ||
(E) the amount of taxes and other costs owed at | ||
the time of the foreclosure; and | ||
(F) the assessed value of the property on the tax | ||
roll at the time of the foreclosure; | ||
(3) for each property sold by the land bank during the | ||
preceding fiscal year to a qualified participating developer: | ||
(A) the street address of the property; | ||
(B) the legal description of the property; | ||
(C) the name and mailing address of the purchaser | ||
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(D) the [ |
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(E) the maximum incomes allowed for the | ||
households by the terms of the sale; and | ||
(F) the source and amount of any public subsidy | ||
provided by the municipality to facilitate the sale or rental of the | ||
property to a household within the targeted income levels; | ||
(4) for each property sold by the land bank or a | ||
qualified participating developer during the preceding fiscal | ||
year, the buyer's household income and a description of all use and | ||
sale restrictions; and | ||
(5) for each property developed for rental housing | ||
with an active deed restriction, a copy of the most recent annual | ||
report for [ |
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(d) The land bank shall maintain in its records for | ||
inspection a copy of the sale settlement statement for each | ||
property sold by the land bank or a qualified participating | ||
developer and a copy of the first page of the mortgage note with the | ||
interest rate and indicating the volume and page number of the | ||
instrument as filed with the county clerk. | ||
SECTION 9. Section 11.18(d), Tax Code, is amended to read as | ||
follows: | ||
(d) A charitable organization must be organized exclusively | ||
to perform religious, charitable, scientific, literary, or | ||
educational purposes and, except as permitted by Subsections (h) | ||
and (l), engage exclusively in performing one or more of the | ||
following charitable functions: | ||
(1) providing medical care without regard to the | ||
beneficiaries' ability to pay, which in the case of a nonprofit | ||
hospital or hospital system means providing charity care and | ||
community benefits in accordance with Section 11.1801; | ||
(2) providing support or relief to orphans, | ||
delinquent, dependent, or handicapped children in need of | ||
residential care, abused or battered spouses or children in need of | ||
temporary shelter, the impoverished, or victims of natural disaster | ||
without regard to the beneficiaries' ability to pay; | ||
(3) providing support without regard to the | ||
beneficiaries' ability to pay to: | ||
(A) elderly persons, including the provision of: | ||
(i) recreational or social activities; and | ||
(ii) facilities designed to address the | ||
special needs of elderly persons; or | ||
(B) the handicapped, including training and | ||
employment: | ||
(i) in the production of commodities; or | ||
(ii) in the provision of services under 41 | ||
U.S.C. Sections 8501-8506; | ||
(4) preserving a historical landmark or site; | ||
(5) promoting or operating a museum, zoo, library, | ||
theater of the dramatic or performing arts, or symphony orchestra | ||
or choir; | ||
(6) promoting or providing humane treatment of | ||
animals; | ||
(7) acquiring, storing, transporting, selling, or | ||
distributing water for public use; | ||
(8) answering fire alarms and extinguishing fires with | ||
no compensation or only nominal compensation to the members of the | ||
organization; | ||
(9) promoting the athletic development of boys or | ||
girls under the age of 18 years; | ||
(10) preserving or conserving wildlife; | ||
(11) promoting educational development through loans | ||
or scholarships to students; | ||
(12) providing halfway house services pursuant to a | ||
certification as a halfway house by the parole division of the Texas | ||
Department of Criminal Justice; | ||
(13) providing permanent housing and related social, | ||
health care, and educational facilities for persons who are 62 | ||
years of age or older without regard to the residents' ability to | ||
pay; | ||
(14) promoting or operating an art gallery, museum, or | ||
collection, in a permanent location or on tour, that is open to the | ||
public; | ||
(15) providing for the organized solicitation and | ||
collection for distributions through gifts, grants, and agreements | ||
to nonprofit charitable, education, religious, and youth | ||
organizations that provide direct human, health, and welfare | ||
services; | ||
(16) performing biomedical or scientific research or | ||
biomedical or scientific education for the benefit of the public; | ||
(17) operating a television station that produces or | ||
broadcasts educational, cultural, or other public interest | ||
programming and that receives grants from the Corporation for | ||
Public Broadcasting under 47 U.S.C. Section 396, as amended; | ||
(18) providing housing for low-income and | ||
moderate-income families, for unmarried individuals 62 years of age | ||
or older, for handicapped individuals, and for families displaced | ||
by urban renewal, through the use of trust assets that are | ||
irrevocably and, pursuant to a contract entered into before | ||
December 31, 1972, contractually dedicated on the sale or | ||
disposition of the housing to a charitable organization that | ||
performs charitable functions described by Subdivision (9); | ||
(19) providing housing and related services to persons | ||
who are 62 years of age or older in a retirement community, if the | ||
retirement community provides independent living services, | ||
assisted living services, and nursing services to its residents on | ||
a single campus: | ||
(A) without regard to the residents' ability to | ||
pay; or | ||
(B) in which at least four percent of the | ||
retirement community's combined net resident revenue is provided in | ||
charitable care to its residents; | ||
(20) providing housing on a cooperative basis to | ||
students of an institution of higher education if: | ||
(A) the organization is exempt from federal | ||
income taxation under Section 501(a), Internal Revenue Code of | ||
1986, as amended, by being listed as an exempt entity under Section | ||
501(c)(3) of that code; | ||
(B) membership in the organization is open to all | ||
students enrolled in the institution and is not limited to those | ||
chosen by current members of the organization; | ||
(C) the organization is governed by its members; | ||
and | ||
(D) the members of the organization share the | ||
responsibility for managing the housing; | ||
(21) acquiring, holding, and transferring unimproved | ||
real property under an urban land bank demonstration program | ||
established under Chapter 379C, Local Government Code, as or on | ||
behalf of a land bank; | ||
(22) acquiring, holding, and transferring | ||
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established under Chapter 379E, Local Government Code, as or on | ||
behalf of a land bank; | ||
(23) providing housing and related services to | ||
individuals who: | ||
(A) are unaccompanied and homeless and have a | ||
disabling condition; and | ||
(B) have been continuously homeless for a year or | ||
more or have had at least four episodes of homelessness in the | ||
preceding three years; | ||
(24) operating a radio station that broadcasts | ||
educational, cultural, or other public interest programming, | ||
including classical music, and that in the preceding five years has | ||
received or been selected to receive one or more grants from the | ||
Corporation for Public Broadcasting under 47 U.S.C. Section 396, as | ||
amended; or | ||
(25) providing, without regard to the beneficiaries' | ||
ability to pay, tax return preparation services and assistance with | ||
other financial matters. | ||
SECTION 10. The changes in law made by this Act to Chapter | ||
379E, Local Government Code, apply only to a property acquired by a | ||
land bank on or after the effective date of this Act. A property | ||
acquired by a land bank before the effective date of this Act is | ||
governed by the law in effect immediately before the effective date | ||
of this Act, and the former law is continued in effect for that | ||
purpose. | ||
SECTION 11. Section 11.18, Tax Code, as amended by this Act, | ||
applies only to an ad valorem tax year that begins on or after the | ||
effective date of this Act. | ||
SECTION 12. This Act takes effect September 1, 2019. |