Bill Text: TX HB2197 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to the purchase of property as part of a homestead land bank program.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2011-05-18 - Left pending in committee [HB2197 Detail]

Download: Texas-2011-HB2197-Introduced.html

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82R1409 JAM-D
By: Rodriguez H.B. No. 2197

A BILL TO BE ENTITLED
AN ACT
relating to the purchase of property as part of a homestead land
bank program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 373A.208, Local Government Code, is
amended by amending Subsections (a), (g), and (h) and adding
Subsection (g-1) 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 appraised by
the local appraisal district and 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 with an uninhabitable building that is occupied as a
residence by an owner or tenant who is legally entitled to occupy
the building or buildings;
(2) [(3)] there are delinquent taxes on the property
for a total of at least five years; and
(3) [(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.
(g) The owner of the property subject to sale under this
subchapter [may not receive any proceeds of a sale under this
subchapter. However, the owner] does not have any personal
liability for a deficiency of the judgment as a result of the [a]
sale [under this subchapter].
(g-1) The owner may not receive any proceeds of a sale under
this subchapter unless the amount of sale proceeds exceeds 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, in which event the excess proceeds shall be distributed
in the manner provided for excess proceeds of a sale under Chapter
34, Tax Code, pursuant to the foreclosure of a tax lien.
(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. The taxing units may not consent to a sale for a
reduced amount as authorized by this subsection if the market value
of the property as appraised by the local appraisal district and as
specified in the judgment of foreclosure exceeds 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.
SECTION 2. Section 373A.211(e), Local Government Code, is
amended to read as follows:
(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 373A.208(a)(3) [373A.208(a)(4)] may provide
tax abatement for the property until the expiration of that period.
SECTION 3. Section 373A.208(c), Local Government Code, is
repealed.
SECTION 4. This Act takes effect September 1, 2011.