H.B. No. 2840

	AN ACT
	relating to the urban land bank demonstration program in certain
	municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 379C.005, Local Government Code, is
	amended to read as follows:
	Sec. 379C.005.  QUALIFIED PARTICIPATING DEVELOPER. To
	qualify to participate in an urban land bank demonstration program,
	a developer must:
	(1)  have built one [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 demonstration plan.
	SECTION 2.  Section 379C.009, Local Government Code, is
	amended by amending Subsection (b) and adding Subsections (b-1) and
	(b-2) to read as follows:
	(b)  Except as provided by Subsection (b-1), the [The] land
	bank 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.
	(b-1)  Before the completion of the four-year period
	described by Subsection (b), the land bank may, subject to Section
	379C.0106:
	(1)  transfer property that the land bank determines is
	not appropriate for residential development to the taxing units
	described by Subsection (b); or
	(2)  sell property described by Subdivision (1) to a
	political subdivision or a nonprofit organization.
	(b-2)  If after four 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.
	SECTION 3.  Section 379C.0106(a), Local Government Code, is
	amended to read as follows:
	(a)  In this section, "eligible adjacent property owner"
	means a person who:
	(1)  owns property located adjacent to property owned
	by the land bank; and
	(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 adopted by
	the land bank.
	SECTION 4.  Chapter 379C, Local Government Code, is amended
	by adding Section 379C.014 to read as follows:
	Sec. 379C.014.  ADDITIONAL AUTHORIZED USE OF LAND BANK
	PROPERTY. (a)  Notwithstanding the other provisions of this
	chapter, the land bank may sell property to a developer to allow the
	construction of a grocery store that has at least 6,000 square feet
	of enclosed space and that offers for sale fresh produce and other
	food items for home consumption.
	(b)  To qualify to purchase property from the land bank under
	this section, a developer is not required to be a qualified
	participating developer but must obtain the municipality's
	approval of a development plan for the land bank property and must
	develop the property in accordance with the approved development
	plan.
	(c)  A sale under this section within the four-year period
	following the date of acquisition of the property by the land bank
	satisfies the requirement under Section 379C.009(b) that the
	property be sold within that period to a qualified participating
	developer.
	(d)  The land bank may sell property as provided by this
	section only after granting any rights of first refusal otherwise
	required by this chapter, and any completed sale under this section
	remains subject to the right of reverter provided by Section
	379C.009(d).
	SECTION 5.  This Act takes effect September 1, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2840 was passed by the House on May 4,
	2013, by the following vote:  Yeas 118, Nays 11, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 2840 on May 21, 2013, by the following vote:  Yeas 81, Nays 64,
	3 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2840 was passed by the Senate, with
	amendments, on May 17, 2013, by the following vote:  Yeas 28, Nays
	2.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor