Bill Text: TX SB1691 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the establishment of the rural housing land assemblage program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-23 - Referred to International Relations and Trade [SB1691 Detail]
Download: Texas-2011-SB1691-Introduced.html
82R1241 JAM-D | ||
By: Lucio | S.B. No. 1691 |
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relating to the establishment of the rural housing land assemblage | ||
program. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 12, Local Government Code, is | ||
amended by adding Chapter 394A to read as follows: | ||
CHAPTER 394A. RURAL HOUSING LAND ASSEMBLAGE PROGRAM | ||
Sec. 394A.001. SHORT TITLE. This chapter may be cited as | ||
the Rural Housing Land Assemblage Program Act. | ||
Sec. 394A.002. DEFINITIONS. In this chapter: | ||
(1) "Affordable" means that the monthly mortgage | ||
payment or contract rent does not exceed 30 percent of the | ||
applicable median income for that unit size, in accordance with the | ||
income and rent limit rules adopted by the department. | ||
(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 as a community housing | ||
development organization according to the requirements of federal | ||
law. | ||
(3) "Department" means the Texas Department of Housing | ||
and Community Affairs. | ||
(4) "Low-income household" means: | ||
(A) for rental housing, a household with a gross | ||
income not to exceed 60 percent of the greater of the area median | ||
income or national nonmetropolitan median income, adjusted for | ||
household size, as determined annually by the United States | ||
Department of Housing and Urban Development; or | ||
(B) for purchased housing, a household with a | ||
gross income not to exceed 80 percent of the greater of the area | ||
median income or the state median income, adjusted for household | ||
size, as determined annually by the United States Department of | ||
Housing and Urban Development or by the department based on data | ||
from the United States Department of Housing and Urban Development, | ||
as appropriate. | ||
(5) "Qualified participating developer" means a | ||
developer who meets the requirements of Section 394A.005 and | ||
includes a qualified organization under Section 394A.011. | ||
(6) "Rural county" means a county classified as a | ||
rural county by the United States Department of Agriculture for | ||
purposes of the rural housing loan programs authorized by the | ||
Housing Act of 1949 (42 U.S.C. Section 1471 et seq.). | ||
(7) "Rural housing land assemblage entity" or "entity" | ||
means an entity established or designated by the governing bodies | ||
of one or more rural municipalities or rural counties for the | ||
purpose of implementing and operating a rural housing land | ||
assemblage program. | ||
(8) "Rural housing land assemblage plan" or "plan" | ||
means a plan adopted and approved as provided by Section 394A.006. | ||
(9) "Rural housing land assemblage program" means a | ||
program to acquire, hold, and transfer real property under this | ||
chapter for the purpose of providing affordable housing for | ||
low-income households. | ||
(10) "Rural municipality" means a municipality | ||
classified as a rural municipality by the United States Department | ||
of Agriculture for purposes of the rural housing loan programs | ||
authorized by the Housing Act of 1949 (42 U.S.C. Section 1471 et | ||
seq.). | ||
Sec. 394A.003. RURAL HOUSING LAND ASSEMBLAGE PROGRAM. The | ||
governing bodies of one or more rural municipalities or rural | ||
counties may participate in a rural housing land assemblage | ||
program. As part of the program, a participating rural | ||
municipality or county shall: | ||
(1) with any other participating rural municipalities | ||
or counties, enter into interlocal agreements governing the scope | ||
and operation of the program, subject to the provisions of this | ||
chapter; and | ||
(2) establish or designate an entity to serve as the | ||
rural housing land assemblage entity in charge of implementing and | ||
operating the program. | ||
Sec. 394A.004. RURAL HOUSING LAND ASSEMBLAGE ENTITY. A | ||
rural housing land assemblage entity may acquire, hold, and | ||
transfer, for the purpose of providing affordable housing for | ||
low-income households, real property that is not improved with a | ||
habitable building or buildings and is otherwise unoccupied. | ||
Sec. 394A.005. QUALIFIED PARTICIPATING DEVELOPER. To | ||
qualify to participate in a rural housing land assemblage program, | ||
a developer must: | ||
(1) have built three or more housing units within the | ||
three-year period preceding the submission of a proposal to a rural | ||
housing land assemblage entity seeking to acquire real property | ||
from the entity; | ||
(2) have a development plan approved by the entity and | ||
each participating rural municipality or county for the property; | ||
and | ||
(3) meet any other requirements adopted by the entity | ||
in the rural housing land assemblage plan. | ||
Sec. 394A.006. RURAL HOUSING LAND ASSEMBLAGE PLAN. (a) A | ||
rural housing land assemblage entity that implements and operates a | ||
rural housing land assemblage program shall operate the program in | ||
conformance with a rural housing land assemblage plan. The entity | ||
shall adopt a plan annually and may amend the plan as necessary. | ||
The adoption of the plan and any amendments to the plan are subject | ||
to approval by the governing body of each participating rural | ||
municipality or county. | ||
(b) In developing the plan, a rural housing land assemblage | ||
entity shall consider housing plans adopted by each participating | ||
rural municipality or county, including comprehensive plans | ||
submitted to the United States Department of Housing and Urban | ||
Development and all fair housing plans and policies adopted or | ||
agreed to by the municipalities or counties. | ||
(c) The plan must include the following: | ||
(1) a list of qualified organizations eligible to | ||
participate in the right of first refusal provided by Section | ||
394A.011; | ||
(2) the amount of time, if any, that a property may be | ||
held by a rural housing land assemblage entity once an offer has | ||
been received and accepted from a qualified organization or other | ||
qualified participating developer; | ||
(3) a list of the parcels of real property that may | ||
become eligible for sale to the entity during the upcoming year; | ||
(4) the entity's plan for affordable housing | ||
development on those parcels of real property; and | ||
(5) the sources and amounts of funding anticipated to | ||
be available from each participating rural municipality or county | ||
for subsidies for development of affordable housing in the | ||
applicable rural municipality or county, including any money | ||
specifically available for housing developed under the program, as | ||
approved by the governing body of the applicable rural municipality | ||
or county before the plan is adopted by the entity. | ||
Sec. 394A.007. PUBLIC HEARING ON PROPOSED PLAN. (a) Before | ||
adopting a plan, a rural housing land assemblage entity shall hold a | ||
public hearing on the proposed plan. | ||
(b) The director of the rural housing land assemblage entity | ||
shall provide notice of the hearing to all community housing | ||
development organizations and to neighborhood associations | ||
identified by the entity as serving the areas in which properties | ||
anticipated to be available for sale to the entity under this | ||
chapter are located. | ||
(c) The director of the rural housing land assemblage entity | ||
shall make copies of the proposed plan available to the public not | ||
later than the 60th day before the date of the public hearing. | ||
Sec. 394A.008. PRIVATE SALE TO LAND ASSEMBLAGE ENTITY. (a) | ||
Notwithstanding any other law and except as provided by Subsection | ||
(f), real property that is ordered sold pursuant to foreclosure of a | ||
tax lien may be sold in a private sale to a rural housing land | ||
assemblage entity 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 property is used for the purpose of providing | ||
affordable housing as described by Section 394A.004; | ||
(2) 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; | ||
(3) the property is not improved with a habitable | ||
building or buildings and is otherwise unoccupied; | ||
(4) there are delinquent taxes on the property for a | ||
total of at least five years; and | ||
(5) each rural municipality or rural county that | ||
participates in the rural housing land assemblage program 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 entity. | ||
(b) A sale of property for use in connection with the rural | ||
housing land assemblage program is a sale for a public purpose. | ||
(c) If the person being sued in a suit for foreclosure of a | ||
tax 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 section, each person | ||
who was a defendant to the judgment, or that person's attorney, | ||
shall be given, not later than the 60th 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 shall 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 section. | ||
(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 section. However, the | ||
owner does not have any personal liability for a deficiency of the | ||
judgment as a result of a sale under this section. | ||
(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 rural housing land assemblage entity 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 rural | ||
housing land assemblage entity under this section conveys to the | ||
entity 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. | ||
Sec. 394A.009. EXEMPTION FROM AD VALOREM TAXATION. | ||
Property sold to and held by a rural housing land assemblage entity | ||
for subsequent resale is entitled to an exemption from ad valorem | ||
taxation for a period not to exceed three years from the date of | ||
acquisition. The exemption period may be renewed for a property for | ||
an additional period, not to exceed three years, on approval of the | ||
governing body of each participating rural municipality or county | ||
and any other taxing unit in which the property is located. Property | ||
is entitled to an exemption under this section only during the | ||
period the property is held by the entity. | ||
Sec. 394A.010. SUBSEQUENT RESALE BY LAND ASSEMBLAGE ENTITY. | ||
(a) Except as provided by Subsection (b), each subsequent resale of | ||
property acquired by a rural housing land assemblage entity under | ||
this chapter must comply with the conditions of this section. | ||
(b) Notwithstanding any other law, this section does not | ||
apply to property sold to an eligible adjacent property owner under | ||
Section 394A.012. | ||
(c) A rural housing land assemblage entity must sell a | ||
property to a qualified participating developer within the | ||
four-year period following the date of acquisition for the purpose | ||
of construction of affordable housing for sale or rent to | ||
low-income households. If after four years a qualified | ||
participating developer has not purchased the property, the | ||
property shall be transferred from the entity to the taxing units | ||
that were parties to the judgment for disposition as otherwise | ||
allowed under the law. | ||
(d) Unless a rural housing land assemblage entity 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 | ||
two-year period as determined by the entity. | ||
(e) The deed conveying a property sold by a rural housing | ||
land assemblage entity 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 period following the date of the conveyance of the | ||
property from the entity to the qualified participating developer, | ||
the property will revert to the entity for subsequent resale in | ||
accordance with this chapter or conveyance to the taxing units that | ||
were parties to the judgment for disposition as otherwise allowed | ||
under the law. | ||
Sec. 394A.011. RIGHT OF FIRST REFUSAL TO QUALIFIED | ||
ORGANIZATIONS. (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, a portion of the property that a rural housing land | ||
assemblage entity 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 two-year period has built or | ||
rehabilitated housing units within a one-half mile radius of the | ||
property that the entity is offering for sale. | ||
(b) Except as provided by Section 394A.012, a rural housing | ||
land assemblage entity shall first offer a property for sale to | ||
qualified organizations. | ||
(c) Notice must be provided to the qualified organizations | ||
by certified mail, return receipt requested. | ||
(d) A rural housing land assemblage entity shall specify in | ||
its plan that the period during which the right of first refusal | ||
provided by this section may be exercised by a qualified | ||
organization is six months from the date of the deed of conveyance | ||
of the property to the entity. | ||
(e) During the specified period, a rural housing land | ||
assemblage entity may not sell the property to a qualified | ||
participating developer other than a qualified organization. If | ||
all qualified organizations notify the entity 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 | ||
entity may sell the property to any other qualified participating | ||
developer at the same price that the entity offered the property to | ||
the qualified organizations. | ||
(f) 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. | ||
(g) In its plan, a rural housing land assemblage entity may | ||
provide for rights of second refusal for any other nonprofit | ||
corporation exempted from federal income tax under Section | ||
501(c)(3), Internal Revenue Code of 1986, as amended. The rights of | ||
second refusal permitted by this subsection must be exercised | ||
during the period described by Subsection (d). | ||
(h) A rural housing land assemblage entity is not required | ||
to provide a right of first refusal to qualified organizations | ||
under this section if the entity is selling property that reverted | ||
to the entity under Section 394A.010. | ||
Sec. 394A.012. PROPERTY DETERMINED TO BE INAPPROPRIATE FOR | ||
RESIDENTIAL DEVELOPMENT: PREEMINENT RIGHT OF FIRST REFUSAL. (a) | ||
In this section, "eligible adjacent property owner" means a person | ||
who: | ||
(1) owns property located adjacent to property owned | ||
by a rural housing land assemblage entity; | ||
(2) has owned the adjacent property and continuously | ||
occupied that property as a primary residence for the two-year | ||
period preceding the date of the sale; and | ||
(3) satisfies eligibility requirements specified by | ||
the entity in its annual plan. | ||
(b) Notwithstanding any other right of first refusal | ||
granted under this chapter, if a rural housing land assemblage | ||
entity determines that a property owned by the entity is not | ||
appropriate for residential development, the entity first shall | ||
offer the property for sale to an eligible adjacent property owner | ||
according to terms and conditions that are consistent with this | ||
chapter, as specified by the entity in its annual plan. | ||
(c) A rural housing land assemblage entity shall sell the | ||
property to an eligible adjacent property owner, at whichever value | ||
is lower: | ||
(1) the fair market value for the property as | ||
determined by the appraisal district in which the property is | ||
located; or | ||
(2) the sales price recorded in the entity's annual | ||
plan. | ||
(d) Except as provided by Subsection (e), an adjacent | ||
property owner that purchases property under this section may not | ||
lease, sell, or transfer that property to another person before the | ||
third anniversary of the date the adjacent property owner purchased | ||
that property from a rural housing land assemblage entity. | ||
(e) Subsection (d) does not apply to the transfer of | ||
property purchased under this section if the transfer: | ||
(1) is made according to a policy adopted by a rural | ||
housing land assemblage entity in its annual plan; and | ||
(2) is made to a family member of the eligible adjacent | ||
property owner or occurs as a result of the death of the eligible | ||
adjacent property owner. | ||
Sec. 394A.013. RESTRICTIONS ON OCCUPANCY AND USE OF | ||
PROPERTY. (a) A rural housing land assemblage entity shall impose | ||
deed restrictions on property sold to qualified participating | ||
developers requiring the development and sale, rental, or | ||
lease-purchase of the property to low-income households. | ||
(b) Each rural housing land assemblage entity property sold | ||
during any given fiscal year to be developed for sale must be | ||
deed-restricted for sale to low-income households. | ||
(c) If property is developed for rental housing, the deed | ||
restrictions must be for a period of not less than 15 years and must | ||
require that 100 percent of the rental units be occupied by | ||
low-income households. | ||
(d) The deed restrictions under Subsection (c) must require | ||
the owner to file an annual occupancy report with the rural housing | ||
land assemblage entity and with each participating rural | ||
municipality or county on a reporting form provided by the entity. | ||
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) A rural housing land assemblage entity may modify or add | ||
to the deed restrictions imposed under this section. Any | ||
modifications or additions must be adopted by the entity as part of | ||
its plan and must comply with the restrictions set forth in | ||
Subsections (b), (c), and (d). | ||
Sec. 394A.014. DEPARTMENT RULEMAKING AUTHORITY. The | ||
department shall develop and adopt guidelines and rules governing | ||
the operation of a rural housing land assemblage program, including | ||
reporting requirements for rural housing land assemblage entities | ||
and additional affordability terms and income targeting. | ||
Sec. 394A.015. OPEN RECORDS AND MEETINGS. A rural housing | ||
land assemblage entity is subject to Chapters 551 and 552, | ||
Government Code. | ||
Sec. 394A.016. RECORDS; AUDIT. (a) A rural housing land | ||
assemblage entity 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 entity and all transactions | ||
in relation to its property. | ||
(b) Not later than the 90th day after the close of a rural | ||
housing land assemblage entity's fiscal year, the entity shall file | ||
with each participating rural municipality or county annual audited | ||
financial statements prepared by a certified public accountant. | ||
The financial transactions of the entity are subject to audit by a | ||
participating rural municipality or county and by the department. | ||
SECTION 2. This Act takes effect September 1, 2011. |