| Vote Recommendation | Economic Freedom | Property Rights | Personal Responsibility | Limited Government | Individual Liberty |
|---|---|---|---|---|---|
| No | Negative | Negative | Negative | Negative | Negative |
Relating to the adoption of a land bank program by the Texas State Affordable Housing Corporation.
No significant fiscal implication to the State is anticipated.
HB 1795 would require the Texas State Affordable Housing Corporation to adopt a veterans' land bank program. This program would be designed to help veterans in low-income households find affordable housing.
This program would allow property that is sold pursuant to foreclosure of a tax lien to be sold in a private sale to the veterans' land bank without first offering the property for any other type of sale. This would allow the property to be sold below the market value and the proceeds would go toward the tax structure.
HB 1795 would further require these developers to follow strict regulations, adapt their business plans to fit the program, and impose deed restrictions. These developers would then be able to sell or rent out the property to qualifying veterans in low-income houses. First priority in the sale would be given to qualifying veterans organizations who provide services to veterans. These organizations too would have to follow and meet the guidelines/organizational standards for the land bank.
HB 1795 allows for the purchasing of vast sums of undeveloped land for the purpose of developing it cheaply to provide affordable housing to low-income veterans. While this is designed to solve the homeless veterans population in Texas, (a good goal) it creates the following problems:
HB 1795 allows houses to be sold at a rate under the market just to cover liens, taxes, or other penalties for home ownership. This would enable large developers to buy family homes, homes of people on a fixed income, or homes in areas that have been gentrified and the cost of living has risen to such an extent that they cannot pay the taxes on their property. Then, instead of selling their homes to the competitive market, we are allowing the government to step in, seize the home, and sell it for just enough money to cover the debts associated with the house, while the homeowner gets nothing. This is asset forfeiture by any other name, and it will hurt normal people. This goes against the free market, individual liberty, and limited government.
HB 1795 would then only allow certain developers to participate and then it prescribes a certain order on who gets priority when it comes to selling the land. The first offer would be to take care of veterans, and those organizations would have to meet a litany of requirements from the commission on how they are to operate their organization. This is anti-individual liberty and personal responsibility because they do not help everyone but single out one group for preferential treatment. Veterans should be honored, not made a preferred class of citizens given preferential treatment in public policy.
For these reasons Texas Action opposes HB 1795.