HBA-TBM H.B. 3349 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3349
By: Ehrhardt
Urban Affairs
7/25/2001
Enrolled



BACKGROUND AND PURPOSE 

Vacant inner city land could be used by community-based nonprofit
organizations to provide safe, decent, and reasonably priced housing for
low-income residents.  However, prior to the 77th Legislature, nonprofit
organizations may have had difficulty obtaining a clear title to the land
due to complex ownership issues. House Bill 3349 provides a judicial
mechanism by which a community-based nonprofit organization can obtain
clear title to land for the development of low-income housing.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3349 amends the Property Code to provide that the forced sale of
real property applies to property that is not exempt from forced sale under
the constitution or laws of this state and is owned in part by a nonprofit
organization.   The nonprofit organization must: 

 _have been incorporated in this state for at least one year; 

 _have a corporate purpose to develop affordable housing that is stated in
the articles of incorporation or charter;  

 _have at least one-fourth of its board of directors residing in the county
in which the property is located; and  

 _engage primarily in building, repair, rental, or sale of housing for low
income individuals or families.   

The bill authorizes a nonprofit organization that owns an undivided
interest in real property, and has paid another owner's share of ad valorem
taxes imposed on the property for any two years in a three year period to
file in the district court in a county in which the property is located a
petition for a court order to require the other owner to sell the owner's
interest in the property.   

If the address or identity of a defendant is unknown, the demand of the
petitioner for reimbursement from the defendant may be met by publication
in a newspaper in the county in which the property is located once each
week for four consecutive weeks, with the final publication occurring not
later than the 30th day before the date on which the petition is filed.  

EFFECTIVE DATE

September 1, 2001.