CHAPTER 379E. URBAN LAND BANK PROGRAM

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Texas > Local-government-code > Title-12-planning-and-development > Chapter-379e-urban-land-bank-program

LOCAL GOVERNMENT CODE

TITLE 12. PLANNING AND DEVELOPMENT

SUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENT

CHAPTER 379E. URBAN LAND BANK PROGRAM

Sec. 379E.001. SHORT TITLE. This chapter may be cited as the

Urban Land Bank Program Act.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.002. APPLICABILITY; CONSTRUCTION WITH OTHER LAW. This

chapter applies only to a municipality:

(1) to which Chapter 379C or 379D does not apply; and

(2) that has not ever adopted a homestead land bank program

under Subchapter E, Chapter 373A.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.003. DEFINITIONS. In this chapter:

(1) "Affordable" means that the monthly mortgage payment or

contract rent does not exceed 30 percent of the applicable median

family income for that unit size, in accordance with the income

and rent limit rules adopted by the Texas Department of Housing

and Community Affairs.

(2) "Community housing development organization" or

"organization" means an organization that:

(A) meets the definition of a community housing development

organization in 24 C.F.R. Section 92.2; and

(B) is certified by the municipality as a community housing

development organization.

(3) "Land bank" means an entity established or approved by the

governing body of a municipality for the purpose of acquiring,

holding, and transferring unimproved real property under this

chapter.

(4) "Low income household" means a household with a gross income

of not greater than 80 percent of the area median family income,

adjusted for household size, for the metropolitan statistical

area in which the municipality is located, as determined annually

by the United States Department of Housing and Urban Development.

(5) "Qualified participating developer" means a developer who

meets the requirements of Section 379E.005 and includes a

qualified organization under Section 379E.011.

(6) "Urban land bank plan" or "plan" means a plan adopted by the

governing body of a municipality as provided by Section 379E.006.

(7) "Urban land bank program" or "program" means a program

adopted under Section 379E.004.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.004. URBAN LAND BANK PROGRAM. (a) The governing body

of a municipality may adopt an urban land bank program in which

the officer charged with selling real property ordered sold

pursuant to foreclosure of a tax lien may sell certain eligible

real property by private sale for purposes of affordable housing

development as provided by this chapter.

(b) The governing body of a municipality that adopts an urban

land bank program shall establish or approve a land bank for the

purpose of acquiring, holding, and transferring unimproved real

property under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.005. QUALIFIED PARTICIPATING DEVELOPER. To qualify to

participate in an urban land bank program, a developer 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 by the municipality for the

land bank property; and

(3) meet any other requirements adopted by the municipality in

the urban land bank plan.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.006. URBAN LAND BANK PLAN. (a) A municipality that

adopts an urban land bank program shall operate the program in

conformance with an urban land bank plan.

(b) The governing body of a municipality that adopts an urban

land bank program shall adopt a plan annually. The plan may be

amended from time to time.

other housing plans adopted by the municipality, including the

comprehensive plan submitted to the United States Department of

Housing and Urban Development and all fair housing plans and

policies adopted or agreed to by the municipality.

(d) The plan must include the following:

(1) a list of community housing development organizations

eligible to participate in the right of first refusal provided by

Section 379E.011;

(2) a list of the parcels of real property that may become

eligible for sale to the land bank during the next year;

(3) the municipality's plan for affordable housing development

on those parcels of real property; and

(4) the sources and amounts of money anticipated to be available

from the municipality for subsidies for development of affordable

housing in the municipality, including any money specifically

available for housing developed under the program, as approved by

the governing body of the municipality at the time the plan is

adopted.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.007. PUBLIC HEARING ON PROPOSED PLAN. (a) Before

adopting a plan, a municipality shall hold a public hearing on

the proposed plan.

(b) The city manager or the city manager's designee shall

provide notice of the hearing to all community housing

development organizations and to neighborhood associations

identified by the municipality as serving the neighborhoods in

which properties anticipated to be available for sale to the land

bank under this chapter are located.

copies of the proposed plan available to the public not later

than the 60th day before the date of the public hearing.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.008. PRIVATE SALE TO LAND BANK. (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 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.

(b) A sale of property for use in connection with the program is

a sale for a public purpose.

lien does not contest the market value of the property in the

suit, the person waives the right to challenge the amount of the

market value determined by the court for purposes of the sale of

the property under Section 33.50, Tax Code.

(d) For any sale of property under this chapter, each person who

was a defendant to the judgment, or that person's attorney, shall

be given, not later than the 90th day before the date of sale,

written notice of the proposed method of sale of the property by

the officer charged with the sale of the property. Notice must be

given in the manner prescribed by Rule 21a, Texas Rules of Civil

Procedure.

(e) After receipt of the notice required by Subsection (d) and

before the date of the proposed sale, the owner of the property

subject to sale may file with the officer charged with the sale a

written request that the property not be sold in the manner

provided by this chapter.

(f) If the officer charged with the sale receives a written

request as provided by Subsection (e), the officer shall sell the

property as otherwise provided in Section 34.01, Tax Code.

(g) The owner of the property subject to sale may not receive

any proceeds of a sale under this chapter. However, the owner

does not have any personal liability for a deficiency of the

judgment as a result of a sale under this chapter.

(h) Notwithstanding any other law, if consent is given by the

taxing units that are a party to the judgment, property may be

sold to the land bank for less than the market value of the

property as specified in the judgment or less than the total of

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.

(i) The deed of conveyance of the property sold to a land bank

under this section conveys to the land bank the right, title, and

interest acquired or held by each taxing unit that was a party to

the judgment, subject to the right of redemption.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.009. SUBSEQUENT RESALE BY LAND BANK. (a) Each

subsequent resale of property acquired by a land bank under this

chapter must comply with the conditions of this section.

(b) Within the three-year period following the date of

acquisition, the land bank must sell a property to a qualified

participating developer for the purpose of construction of

affordable housing for sale or rent to low income households. If

after three years a qualified participating developer has not

purchased 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.

the number of properties acquired by a qualified participating

developer under this section on which development has not been

completed may not at any time exceed three times the annual

average residential production completed by the qualified

participating developer during the preceding two-year 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 two-year

period 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 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.010. RESTRICTIONS ON OCCUPANCY AND USE OF PROPERTY.

(a) The land bank shall impose deed restrictions on property

sold to qualified participating developers requiring the

development and sale or rental of the property to low income

households.

(b) At least 25 percent of the land bank properties sold during

any given fiscal year to be developed for sale shall be deed

restricted for sale to households with gross household incomes

not greater than 60 percent of the area median family income,

adjusted for household size, for the metropolitan statistical

area in which the municipality is located, as determined annually

by the United States Department of Housing and Urban Development.

restrictions must be for a period of not less than 20 years and

must require that:

(1) 100 percent of the rental units be occupied by and

affordable to households with incomes not 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 municipality is located, as determined annually

by the United States Department of Housing and Urban Development;

(2) 40 percent of the units be 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 municipality is located, as determined annually by the

United States Department of Housing and Urban Development; or

(3) 20 percent of the units be occupied by and affordable to

households with incomes not greater than 30 percent of area

median family income, based on gross household income, adjusted

for household size, for the metropolitan statistical area in

which the municipality is located, as determined annually by the

United States Department of Housing and Urban Development.

(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 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.

(e) Except as otherwise provided by this section, if the deed

restrictions imposed under this section are for a term of years,

the deed restrictions shall renew automatically.

(f) The land bank or the governing body of the municipality may

modify or add to the deed restrictions imposed under this

section. Any modifications or additions made by the governing

body of the municipality must be adopted by the municipality as

part of its plan and must comply with the restrictions set forth

in Subsections (b), (c), and (d).

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.011. RIGHT OF FIRST REFUSAL. (a) In this section,

"qualified organization" means a community housing development

organization that:

(1) contains within its designated geographical boundaries of

operation, as set forth in its application for certification

filed with and approved by the municipality, a portion of the

property that the land bank is offering for sale;

(2) has built at least three single-family homes or duplexes or

one multifamily residential dwelling of four or more units in

compliance with all applicable building codes within the

preceding two-year period and within the organization's

designated geographical boundaries of operation; and

(3) within the preceding three-year period has developed or

rehabilitated housing units within a two-mile radius of the

property that the land bank is offering for sale.

(b) The land bank shall first offer a property for sale to

qualified organizations.

certified mail, return receipt requested, not later than the 60th

day before the beginning of the period in which a right of first

refusal may be exercised.

(d) The municipality shall specify in its plan the period during

which the right of first refusal provided by this section may be

exercised by a qualified organization. That period must be at

least nine months but not more than 26 months from the date of

the deed of conveyance of the property to the land bank.

(e) If the land bank conveys the property to a qualified

organization before the expiration of the period specified by the

municipality under Subsection (d), the interlocal agreement

executed under Section 379E.008(a)(4) must provide tax abatement

for the property until the expiration of that period.

(f) During the specified period, the land bank may not sell the

property to a qualified participating developer other than a

qualified organization. If all qualified organizations notify

the land bank that they are declining to exercise their right of

first refusal during the specified period, or if an offer to

purchase the property is not received from a qualified

organization during that period, the land bank may sell the

property to any other qualified participating developer at the

same price that the land bank offered the property to the

qualified organizations.

(g) In its plan, the municipality shall establish the amount of

additional time, if any, that a property may be held in the land

bank once an offer has been received and accepted from a

qualified organization or other qualified participating

developer.

(h) If more than one qualified organization expresses an

interest in exercising its right of first refusal, the

organization that has designated the most geographically compact

area encompassing a portion of the property shall be given

priority.

(i) In its plan, the municipality may provide for other rights

of first refusal for any other nonprofit corporation exempted

from federal income tax under Section 501(c)(3), Internal Revenue

Code of 1986, as amended, provided that the preeminent right of

first refusal is provided to qualified organizations as provided

by this section.

(j) The land bank is not required to provide a right of first

refusal to qualified organizations under this section if the land

bank is selling property that reverted to the land bank under

Section 379E.009(d).

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.012. OPEN RECORDS AND MEETINGS. The land bank shall

comply with the requirements of Chapters 551 and 552, Government

Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

Sec. 379E.013. RECORDS; AUDIT; REPORT. (a) The land bank shall

keep accurate minutes of its meetings and shall keep accurate

records and books of account that conform with generally accepted

principles of accounting and that clearly reflect the income and

expenses of the land bank and all transactions in relation to its

property.

(b) The land bank shall file with the municipality not later

than the 90th day after the close of the fiscal year annual

audited financial statements prepared by a certified public

accountant. The financial transactions of the land bank are

subject to audit by the municipality.

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 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;

(D) the name and 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;

(D) the purchase price paid by the developer;

(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 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

filed by the owner with the land bank.

(d) The land bank shall maintain in its records for inspection a

copy of the sale settlement statement for each property sold by 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.

(e) The land bank shall provide copies of the performance report

to the taxing units who were parties to the judgment of

foreclosure and shall provide notice of the availability of the

performance report for review to the organizations and

neighborhood associations identified by the municipality as

serving the neighborhoods in which properties sold to the land

bank under this chapter are located.

(f) The land bank and the municipality shall maintain copies of

the performance report available for public review.

Added by Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 12, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 33, eff. September 1, 2007.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!