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(a) Upon approval of a proposal under this division by the city council and the governing bodies of all other affected taxing units, the city manager is authorized to execute a quitclaim deed, approved as to form by the city attorney, quitclaiming the land to the nonprofit organization, subject to the possibility of reverter with right of reentry, deed restrictions, and the terms and conditions of this division and the proposal and subject to any redemption rights in the property provided by state law.
(b) The quitclaim deed to the land must contain all of the following:
(1) A copy or summary of the proposal from the nonprofit organization for the land and a requirement that the land be developed by the nonprofit organization in accordance with the proposal and the timetable specified in the proposal.
(2) A possibility of reverter with right of reentry providing that:
(A) the property may revert to the city of Dallas under the conditions set forth in Section 2-26.12 of this division; and
(B) the nonprofit organization and its successors and assigns shall be responsible for removal of all liens and encumbrances against the property that have occurred since the nonprofit organization received the quitclaim deed from the city.
(3) Deed restrictions that:
(A) restrict:
(i) the sale and resale of owner-occupied property to low-income individuals or families for five years after the date the deed from the nonprofit organization to the initial homebuyer is filed in the real property records of the county in which the property is located; and
(ii) the lease or occupancy of any rental property developed on the land to low-income individuals or families for 15 years after the date of initial occupancy of the property;
(B) require the nonprofit organization, for 15 years from the date of initial occupancy of rental property developed on the land, to maintain 50 percent of any multi-family housing units for occupancy by low-income individuals or families as affordable housing;
(C) require the nonprofit organization to develop all proposed housing units on the land in accordance with this code and all applicable city ordinances and state and federal laws within three years after receiving the quitclaim deed to the land, or by the end of any extended development period approved by the city council under Section 2-26.6(c), and to obtain inspections and approval of the housing units by the city before initial occupancy;
(D) require any low-income individual or family who purchases a housing unit on the land or, if a housing unit is not owner-occupied, the nonprofit organization that constructed the rental housing unit to maintain each housing unit and all improvements on the land in accordance with this code and all applicable city ordinances and state and federal laws during the five-year or 15-year affordability period, whichever applies;
(E) require the five-year and 15-year affordability restrictions of this division, whichever applies, to be enforced:
(i) in the case of the initial sale of owner-occupied property, by the nonprofit organization, which must submit to the director verification of income information for the purchasers of the housing unit at least 30 calendar days prior to closing and receive the director’s written approval of the low-income qualifications of that purchaser;
(ii) in the case of subsequent resales of owner-occupied property, by the owner of the housing unit, who must submit verification to the director of income information for a subsequent purchaser at least 30 calendar days prior to closing and receive the director’s written approval of the low-income qualifications of that purchaser; and
(iii) in the case of rental property, by the nonprofit organization, which must submit to the director monthly tenant income and rental information as specified and required by the director and permit the city to conduct annual inspections of rental property for compliance with this code and all applicable city ordinances and state and federal laws; and
(F) require the nonprofit organization to provide need-based social services to tenants of any rental property developed on the land that contains more than 25 housing units.
(4) An indemnification of the city and other affected taxing units by the nonprofit organization.
(5) A statement and acknowledgement that the property is quitclaimed subject to all redemption rights provided by state law.
(6) Such other terms and conditions as are required by the city for the resale of tax-foreclosed or seized property, whichever applies. (Ord. Nos. 23713; 24046; 25443)
(a) A nonprofit organization may sell or lease housing units developed on the property only to low-income individuals and families under the terms, conditions, and restrictions of this division and the nonprofit organization’s proposal and quitclaim deed.
(b) Land quitclaimed to a nonprofit organization under this division may be resold to another nonprofit organization prior to development without the property reverting to the city if:
(1) the city manager recommends the resale after reviewing the new proposal submitted in compliance with Section 2-26.7; and
(2) the resale is approved by the city council and the governing bodies of all other affected taxing units.
(c) Land quitclaimed to a nonprofit organization under this division may not otherwise be resold, conveyed, or transferred prior to completion of the development of affordable housing on the land and occupancy of the housing by low-income individuals and families, except that a nonprofit organization may grant a security interest in the property for purposes of developing the land, subject to the city’s possibility of reverter with right of reentry and the terms, conditions, and restrictions of this division and the nonprofit organization’s proposal and quitclaim deed. (Ord. 23713)
(a) Land acquired by a nonprofit organization under this division may revert to the city if the director determines that the nonprofit organization:
(1) has failed to take possession of the land within 90 calendar days after receiving the quitclaim deed to the land;
(2) has failed to complete construction of affordable housing on the land within three years after receiving the quitclaim deed to the land, or by the end of any extended development period approved by the city council under Section 2-26.6(c);
(3) is not developing the land in compliance with the timetable specified in the nonprofit organization’s proposal;
(4) is unable to develop the land in compliance with its proposal because a request for a zoning change has been denied;
(5) has incurred a lien on the property because of violations of this code or other city ordinances within three years after receiving the quitclaim deed to the land; or
(6) has sold, conveyed, or transferred the land without the consent of the city and other affected taxing units within three years after receiving the quitclaim deed to the land.
(b) Upon determination by the director that a condition described in Subsection (a) of this section has occurred, the city manager is authorized to execute an instrument, approved as to form by the city attorney, exercising against the land the city’s possibility of reverter with right to reentry.
(c) The director shall file notice of the reverter and reentry of the land by the city in the real property records of the county in which the land is located, which notice must specify the reason for the reverter and reentry. The director shall provide a copy of the notice to the nonprofit organization in person or by mailing the notice to the nonprofit organization’s post office address as shown on the tax rolls of the city or of the county in which the land is located. (Ord. Nos. 23713; 25443)
The city manager is authorized to execute instruments, approved as to form by the city attorney, releasing the city’s possibility of reverter with right of reentry and terminating the deed restrictions to the land upon compliance with all terms and conditions of this division and the nonprofit organization’s proposal. (Ord. 23713)
(a) A nonprofit organization may appeal a decision of the director rejecting the nonprofit organization’s proposal to purchase land under this division if the nonprofit organization requests an appeal in writing, delivered to the city manager not more than 10 calendar days after notice of the director’s decision is received.
(b) The city manager or a designated representative shall act as the appeal hearing officer in an appeal hearing under this section. The hearing officer shall give the appealing party an opportunity to present evidence and make argument. The formal rules of evidence do not apply to an appeal hearing under this section, and the hearing officer shall make a ruling based on a preponderance of the evidence presented at the hearing.
(c) The hearing officer may affirm, modify, or reverse all or part of the decision of the director being appealed. The decision of the hearing officer is final as to available administrative remedies. (Ord. 23713)