HBA-TBM H.B. 3349 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3349 By: Ehrhardt Urban Affairs 3/26/2001 Introduced 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, the nonprofit organizations may have 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 received 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 On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.