Memorandum I> wre December 15, 2016 CITY OF DALLAS +» Honorable Mayor and Members ofthe City Council weer Land Bank Program ‘Many of you have read recent articles inthe newspaper that have raised concerns regarding the Land Bank Program. The purpose of this memorandum is to provide accurate information and clarity misconceptions that were raised, The information below provides a more factual representation ofthe Land Bank Program. ‘The Land Bank Board reviews and approves qualified participating developers and sales prior to ity Counci actions. The Land Bank Board is made up of representatives of taxing entities (Le. City of Dallas, Dallas County, and Dallas Independent School District), the Real Estate Council, and a nonprofit representative. ‘in 2012, Mr. Santos Coria applied to participate inthe Land Bank program and provided the necessary information to support being a qualifed participating developer. Mr. Coria has Purchased a total of 36 properties from the Land Bank over the last five years, one property reverted due to flood plair determination. He paid the required $5,000 per lotto the Land Bank, ‘completed and sold 11 homes (lots purchased in 2012, 2013, and 2016) and has 24 properties to build upon. In accordance with HB Sec.378C.008, Mr. Coria has untl 2018 to build on these properties before reversion would occur. His current ownership holdings are 68 properties, 42 are non-Land Bank. Mr. Cora didnot receive any financial assistance from the Cy of Dallas to build the 11 homes. He presented income disciosure statements for each buyer and each buyer's income was below the 118% of AMF ‘The Land Bank Program is governed by State Law through House Bll (HR) #2801, Chapter 379C, including four amendments made since 2003, It was designed to address multiple issues: + Addressing bight in established neighborhoods ‘+ Providing a system to expedite reclamation of unproductive properties back to the tex rolls ‘+ Acquiring tax-delinquent, unproductive, vacant, end developable properties ‘+ Creating ownership choices for mixed income groups *‘Stabizing “at risk’ communities and enhance the quaity of fe‘The Land Bank Pian (the Policy document is formally adopted by the Cty Council on an annul basis and the in-house procedural manusl Is Updated regulary to address detired Council or legislative changes. it establishes specific guidelines that we must follow. The current Land Bank Plan wes briefed to the Housing Committee on September 19, 2016 and approved by the Cty Counel on October 11, 2016, Beginning wit the State defintons and requirements, the following sections are noted: HB Sec:379C,005 Qusified Participating Developer ‘To qual to participate n an Urban Land Bank Demonstration Program, a developer must (1) Have aut one oF more housing units within the three-year period preceding the ‘submission ofa proposal tothe Land Bank seeking to acquire real proerty; (2) Have a development plan approved by the municipality for the Land Bank property; and {@) Met any other requirements adopted by the municipally in he Urban Land Bank Demonstration Plan, HB Sec-379C.009 Subsequent Resale by Lend Bank (G) The ded conveying a property sold by the Land Bank must include aright of everter so that the qualified participating developer does not apply fr @ construction permit and close on any construction finencing with the three-year period fllowing the date ofthe conveyance of the property from the Land Bank to the qualified participating developer, the property wll revert to the Land Bank for subsequent resale n accordance with this, ‘chapter or conveyance to the taxing units who were parties to the judgement for disposition as otherwise allowed under the Iaw. HB Sec.379C.010 Restrictions on Occupancy and Use of Property (6) The Land Bank shall impose deed restricions on the property sold to cualified Participating developers requiring the development and sale or rental ct the property to low income households (©) Each Land Bank property sold during any given fiscal year to be developed for sale must be deed restricted for sale to low income households, and: (1) At east 25 percent of those Land Bank properies must be deed restcted for ‘ale to households with gross household incomes not greater than 60 percent of the area median family income, adjusted for household size; and (2) Not more than 30 percent of those Land Bank properties may be deed resticted for sale to households with gross household incomes greater than 80 to 115 percent of the erea median family income (AMF), adjusted for household size, HB Sec. 3790-00313) Low Income Household Definition Households wth a gross income of not grester than 118 percent of AMF forthe metropolitan Statistical aree in which the municipality is located, as determined annually by he United States Depariment of Housing and Urban Developmertis noted below: Family Sze [1 T 2 3 T 4 | Trcome at 115% | $67,718 | $66,964 374210 | 35.455)Households eaming income a this level coud be approved for a home valued at 2 ¥ times their income ora litle over $200,000 for a family of four. It should be noted thatthe State statute aso allows forthe sale of property to adjacent onners, allows for exchanges of property, and has a provision for commercial property. ove: ‘The following City of Dallas’ policies mirror the State statute In the noted section ‘+ No prohibition against selling property to ex-offenders, those suspected of a crime, of ‘egal immigrants (City Council has consistently supported many ex-ofenderireentry programs inthe past) ‘+ No prohibition against selling the constructed home to @ relative ‘+ No fist ime homebuyer or long term occupancy requirements ‘Income is determined by gross household income and does not include asset evaluation ‘The Gity of Dallas has set the price forall Land Bank properties at $5,000 and avalable properties are marketed through a private realestate agency who also assists interested parts in filing out the proposal and other paperwork. If you need addtional information, please let me know. His SL. Alan E. 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