ORD 2011-23 - Housing- Bids low - Moderate Income 03-01-2011Agenda Item 5
ORDINANCE NO. 2011-23 - --
ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS ( "CITY ") FOR THE SALE TO THE
PUBLIC WITHOUT REQUIRING NOTICE OF BIDS AND FOR POSSIBLY LESS THAN MARKET
VALUE OF PROPERTY PURCHASED WITH GRANT FUNDS FOR USE IN LOW -TO-
MODERATE INCOME HOUSING PROJECTS.
WHEREAS, the City Charter Section 14.13(b) states:
"No sale or lease of real estate shall be made by the Council without first causing to be
advertised for bids by a notice in the official newspaper of the City for two consecutive
weeks setting out the property proposed to be sold or leased, the conditions under which
the bids would be received and the time and place they would be opened "; and
WHEREAS, the Local Government Code Chapter 272.001(a) states in part:
"NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION;
EXCEPTIONS. (a) Except for the types of land and interests covered by Subsection (b),
(g), (h), (i), or (j), and except as provided by Section 253.008, before land owned by a
political subdivision of the state may be sold or exchanged for other land, notice to the
general public of the offer of the land for sale or exchange must be published in a
newspaper of general circulation in either the county in which the land is located or, if
there is no such newspaper, in an adjoining county." and
WHEREAS, the Local Government Code Chapter 272.001(g) NOTICE OF SALE OR EXCHANGE OF
LAND BY POLITICAL SUBDIVISION; EXCEPTIONS (g) states:
"A political subdivision may acquire or assemble land or real property interest, except by
condemnation, and sell, exchange, or otherwise convey the land or interests to an entity
for the development of low- income or moderate - income housing. The political
subdivision shall determine the terms and conditions of the transactions so as to
effectuate and maintain the public purpose. If conveyance of land under this subsection
serves a public purpose, the land may be conveyed for less than its fair market value. In
this subsection, "entity" means an individual, corporation, partnership, or other legal
entity." and
WHEREAS, Article XI, Section 5 of the Texas Constitution provides in part:
"... no charter or any ordinance passed under said charter shall contain any provision
inconsistent with the Constitution of the State, or of the general laws enacted by the
Legislature of this State..." and
WHEREAS, the City Council of the City of Huntsville has the authority to interpret the provisions of the
City Charter; and
WHEREAS, the City Council of the City of Huntsville finds: (i) it is reasonable to determine that the intent
of Charter Section 14.13(b) was and is to apply to real estate purchased with City funds and to ensure
competition was given to obtain the best price and /or determine fair market value and to comply with fair
market value requirements as provided in the Local Government Code; and (ii) Charter Section 14.13(b)
was not intended to and does not govern real property purchased by the City with grant funds and to be
later resold for purposes of provision for low- income housing; and
WHEREAS, the City Council of the City of Huntsville, finds that providing for low- income housing serves
a public purpose and provides for the health, safety and welfare of its residents; and
WHEREAS, the City Council of the City of Huntsville find that it is a reasonable construction to leave both
the City Charter and the Section 272.001 of the Local Government in effect by allowing the City to sell
without bid and notice requirements real property either purchased with general funds and reimbursed in
entirety with grant funds or solely purchased with grant funds under the following conditions and only
under the following conditions; (i) the grant requires that the property be sold to only qualified recipients;
and (ii) that bid and notice requirements would defeat the ability of the City to use the grant funds; and (iii)
failure to sell the property to qualified recipients would result in a cancellation of the grant; and (iv) the
property is sold only for the purpose to provide for low income housing.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, THAT:
Section 1. The facts and matters set forth in the preamble of this Ordinance are found to be true and
correct and are hereby adopted, ratified, and confirmed.
Section 2. Real property purchased by the City entirely with grant funds may be sold pursuant to
and in accordance with Chapter 272.001(g) solely for the purposes to provide low- income
housing.
Section 3. This Ordinance shall become effective from and after its passage.
PARCFrI Amn APPPOVFr) this 13t Hav of March 9n11,
J T r, Mayor �`•
TO FORM:
, City Attorney