Bill Text: TX HB3993 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to certain programs established by a municipality to provide affordable housing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-23 - Referred to Urban Affairs [HB3993 Detail]
Download: Texas-2015-HB3993-Introduced.html
84R11990 KJE-D | ||
By: Rose | H.B. No. 3993 |
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relating to certain programs established by a municipality to | ||
provide affordable housing. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 374.003, Local Government Code, is | ||
amended by adding Subdivision (1-a) and amending Subdivision (25) | ||
to read as follows: | ||
(1-a) "Affordable housing" means housing that is | ||
affordable to households earning 70 percent or less of the area | ||
median family income, adjusted for household size, as determined | ||
annually by the United States Department of Housing and Urban | ||
Development. | ||
(25) "Urban renewal activities" includes slum | ||
clearance, redevelopment, rehabilitation, and conservation | ||
activities to prevent further deterioration of an area that is | ||
tending to become a blighted or slum area. The term includes: | ||
(A) the acquisition of all or part of a slum area | ||
or blighted area or the acquisition of land that is predominantly | ||
open and that, because of obsolete platting, diversity of | ||
ownership, deterioration of structures or site improvements, or for | ||
other reasons, substantially impairs or arrests the sound growth of | ||
the community; | ||
(B) the demolition and removal of buildings and | ||
improvements; | ||
(C) the installation, construction, or | ||
reconstruction of streets, utilities, parks, playgrounds, and | ||
other improvements necessary to fulfill urban renewal objectives in | ||
accordance with an urban renewal plan; | ||
(D) the disposition by the municipality of | ||
property acquired in an urban renewal area for use in accordance | ||
with an urban renewal plan, including: | ||
(i) the sale or initial lease of the | ||
property at its fair value; | ||
(ii) [ |
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and | ||
(iii) the transfer of the property to a | ||
nonprofit corporation or foundation to be operated exclusively as | ||
affordable housing; | ||
(E) the implementation of plans for a program of | ||
voluntary repair and rehabilitation of buildings or improvements in | ||
accordance with an urban renewal plan; and | ||
(F) the acquisition of real property in an urban | ||
renewal area as necessary to remove or prevent the spread of blight | ||
or deterioration or to provide land for needed public facilities. | ||
SECTION 2. Section 374.017, Local Government Code, is | ||
amended by amending Subsections (c) and (d) and adding Subsection | ||
(d-1) to read as follows: | ||
(c) The purchaser, [ |
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transferred under this section, and a successor in interest to such | ||
a person, including an assignee, must devote the property to the | ||
uses specified in the urban renewal plan and may be obligated to | ||
comply with conditions specified in the deed of conveyance, | ||
including the requirement to begin any improvements required by the | ||
urban renewal plan within a reasonable time. | ||
(d) Except as provided by Subsection (d-1), real [ |
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property or an interest in real property subject to this section may | ||
only be sold, leased, or otherwise transferred or retained at not | ||
less than the fair value of the property for uses in accordance with | ||
the urban renewal plan. In determining the fair value, the | ||
municipality shall consider: | ||
(1) the uses provided in the urban renewal plan; | ||
(2) any restrictions on and any covenants, conditions, | ||
and obligations assumed by the purchaser, lessee, or municipality | ||
in retaining the property; | ||
(3) the objectives of the plan for the prevention of | ||
the recurrence of slums or blighted areas; and | ||
(4) any other matters that the municipality specifies | ||
as appropriate. | ||
(d-1) A municipality may transfer to a public or private | ||
nonprofit corporation or foundation real property or an interest in | ||
real property subject to this section for less than fair market | ||
value, but only if the deed of conveyance includes a right of | ||
reverter so that the property will revert to the municipality if the | ||
property is not used exclusively for the provision of affordable | ||
housing. | ||
SECTION 3. Section 380.001(a), Local Government Code, is | ||
amended to read as follows: | ||
(a) The governing body of a municipality may establish and | ||
provide for the administration of one or more programs, including | ||
programs for making loans and grants of public money or real | ||
property and providing personnel and services of the municipality, | ||
to promote state or local economic development, [ |
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business and commercial activity in the municipality, and to | ||
provide affordable housing in the municipality. For purposes of | ||
this subsection, a municipality includes an area that: | ||
(1) has been annexed by the municipality for limited | ||
purposes; or | ||
(2) is in the extraterritorial jurisdiction of the | ||
municipality. | ||
SECTION 4. Section 380.002(a), Local Government Code, is | ||
amended to read as follows: | ||
(a) A home-rule municipality with a population of more than | ||
100,000 may create programs for the grant of public money to any | ||
organization exempt from taxation under Section 501(a) of the | ||
Internal Revenue Code of 1986 as an organization described in | ||
Section 501(c)(3) of that code for the public purposes of | ||
development and diversification of the economy of the state, | ||
elimination of unemployment or underemployment in the state, and | ||
development or expansion of commerce in the state. The | ||
municipality may also create programs for the grant of real | ||
property owned by the municipality to such an organization for the | ||
public purpose of providing affordable housing in the municipality. | ||
The grants must be in furtherance of those public purposes and shall | ||
be used by the recipient as determined by the recipient's governing | ||
board for programs found by the municipality to be in furtherance of | ||
this section and under conditions prescribed by the municipality. | ||
SECTION 5. This Act takes effect September 1, 2015. |