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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1114 By: Stewart
AS INTRODUCED
An Act relating to cities and towns; providing
definitions; permitting municipalities to adopt a
municipal land bank program; directing governing
bodies to establish or approve a land bank; providing
qualifications for a developer to participate in land
bank program; mandating municipalities operate the
program in conformance with land bank plan; requiring
plans be adopted annually; permitting amendments to
plan; requiring consideration of other housing plans
and policies; providing required content of plan;
requiring a public hearing; requiring city manager
provide notice to certain parties; requiring copies
of proposed plan be made available to the public;
providing procedure for sale of property to land
bank; clarifying sale of property is for a public
purpose; clarifying no contest is a waiver of
challenge; requiring written notice of sale;
permitting owner of property to request property not
be sold in manner provided in this act; requiring
officer sell in accordance with certain procedures;
permitting taxing units to sale property for less
than market value; clarifying what the deed of
conveyance includes; providing conditions for
subsequent resale of property; requiring sale of
property within certain time frame; limiting number
of properties a land bank may own; requiring deed of
property sold by land bank include right of reverter;
requiring certain deed restrictions; clarifying that
certain deed restrictions automatically renew;
permitting modification and addition of deed
restrictions; requiring compliance with open meetings
and open records acts; directing land bank to keep
accurate minutes of meetings, records, accounts;
directing land bank to file annual audited financial
statements; directing land bank file annual
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performance report; providing requiring content of
performance report; requiring land bank to maintain
certain records; requiring land bank and municipality
maintain copies of performance report for public
review; providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-101 of Title 11, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. "Affordable" means that the monthly mortgage payment or
contract rent does not exceed thirty percent (30%) of the applicable
median family income for that unit size, in accordance with the
income and rent limit rules adopted by the Oklahoma Housing Finance
Agency;
2. "Community housing development organization" or
"organization" means an organization that:
a. meets the definition of a community housing
development organization in 24 C.F.R., Section 92.2,
and
b. is certified by the municipality as a community
housing development organization;
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3. "Land bank" means an entity established or approved by the
governing body of a municipality for the purpose of acquiring,
holding, and transferring unimproved real property under this act;
4. "Low income household" means a household with a gross income
of not greater than eighty percent (80%) of the area median family
income, adjusted for household size, for the metropolitan
statistical area in which the municipality is located, as determined
annually by the United States Department of Housing and Urban
Development;
5. "Qualified participating developer" means a developer who
meets the requirements of Section 3 of this act and includes a
qualified organization under Section 9 of this act;
6. "Municipal land bank plan" or "plan" means a plan adopted by
the governing body of a municipality as provided by Section 4 of
this act; and
7. "Municipal land bank program" or "program" means a program
adopted under Section 2 of this act.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-102 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. The governing body of a municipality may adopt a municipal
land bank program in which the officer charged with selling real
property ordered sold pursuant to foreclosure of a tax lien may sell
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certain eligible real property by private sale for purposes of
affordable housing development as provided by this act.
B. The governing body of a municipality that adopts a municipal
land bank program shall establish or approve a land bank for the
purpose of acquiring, holding, and transferring unimproved real
property under this act.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-103 of Title 11, unless there
is created a duplication in numbering, reads as follows:
To qualify to participate in a municipal land bank program, a
developer must:
1. Have developed three or more housing units within the three-
year period preceding the submission of a proposal to the land bank
seeking to acquire real property from the land bank;
2. Have a development plan approved by the municipality for the
land bank property; and
3. Meet any other requirements adopted by the municipality in
the municipal land bank plan.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-104 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. A municipality that adopts a municipal land bank program
shall operate the program in conformance with a municipal land bank
plan.
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B. The governing body of a municipality that adopts a municipal
land bank program shall adopt a plan annually. The plan may be
amended from time to time.
C. In developing the plan, the municipality shall consider
other housing plans adopted by the municipality, including the
comprehensive plan submitted to the United States Department of
Housing and Urban Development and all fair housing plans and
policies adopted or agreed to by the municipality.
D. The plan must include the following:
1. A list of community housing development organizations
eligible to participate in the right of first refusal provided by
Section 9 of this act;
2. A list of the parcels of real property that may become
eligible for sale to the land bank during the next year;
3. The municipality's plan for affordable housing development
on those parcels of real property; and
4. The sources and amounts of money anticipated to be available
from the municipality for subsidies for development of affordable
housing in the municipality, including any money specifically
available for housing developed under the program, as approved by
the governing body of the municipality at the time the plan is
adopted.
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SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-105 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. Before adopting a plan, a municipality shall hold a public
hearing on the proposed plan.
B. The city manager or the city manager's designee shall
provide notice of the hearing to all community housing development
organizations and to neighborhood associations identified by the
municipality as serving the neighborhoods in which properties
anticipated to be available for sale to the land bank under this
chapter are located.
C. The city manager or the city manager's designee shall make
copies of the proposed plan available to the public not later than
the sixtieth day before the date of the public hearing.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-106 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. Notwithstanding any other law and except as provided by
subsection F of this section, property that is ordered sold pursuant
to foreclosure of a tax lien may be sold in a private sale to a land
bank by the officer charged with the sale of the property without
first offering the property for sale as otherwise provided by
Section 231 of Title 68 of the Oklahoma Statutes, if:
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1. The market value of the property as specified in the
judgment of foreclosure is less than the total amount due under the
judgment, including all taxes, penalties, and interest, plus the
value of nontax liens held by a taxing unit and awarded by the
judgment, court costs, and the cost of the sale;
2. The property is not improved with a building or buildings;
3. There are delinquent taxes on the property for a total of at
least five (5) years; and
4. The municipality has executed with the other taxing units
that are parties to the tax suit an interlocal agreement that
enables those units to agree to participate in the program while
retaining the right to withhold consent to the sale of specific
properties to the land bank.
B. A sale of property for use in connection with the program is
a sale for a public purpose.
C. If the person being sued in a suit for foreclosure of a tax
lien does not contest the market value of the property in the suit,
the person waives the right to challenge the amount of the market
value determined by the court for purposes of the sale of the
property.
D. For any sale of property under this act, each person who was
a defendant to the judgment, or that person's attorney, shall be
given, not later than the ninetieth day before the date of sale,
written notice of the proposed method of sale of the property by the
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officer charged with the sale of the property. Notice must be given
in the manner prescribed in Section 2004 of Title 12 of the Oklahoma
Statutes.
E. After receipt of the notice required by subsection D of this
section and before the date of the proposed sale, the owner of the
property subject to sale may file with the officer charged with the
sale a written request that the property not be sold in the manner
provided by this act.
F. If the officer charged with the sale receives a written
request as provided by subsection E of this section, the officer
shall sell the property as otherwise provided in Section 231 of
Title 68 of the Oklahoma Statutes.
G. The owner of the property subject to sale may not receive
any proceeds of a sale under this act. However, the owner does not
have any personal liability for a deficiency of the judgment as a
result of a sale under this act.
H. Notwithstanding any other law, if consent is given by the
taxing units that are a party to the judgment, property may be sold
to the land bank for less than the market value of the property as
specified in the judgment or less than the total of all taxes,
penalties, and interest, plus the value of nontax liens held by a
taxing unit and awarded by the judgment, court costs, and the cost
of the sale.
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I. The deed of conveyance of the property sold to a land bank
under this section conveys to the land bank the right, title, and
interest acquired or held by each taxing unit that was a party to
the judgment, subject to the right of redemption.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-107 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. Each subsequent resale of property acquired by a land bank
under this act must comply with the conditions of this section.
B. Within the three-year period following the date of
acquisition, the land bank must sell a property to a qualified
participating developer for the purpose of construction of
affordable housing for sale or rent to low-income households. If,
after three (3) years, a qualified participating developer has not
purchased the property, the property shall be transferred from the
land bank to the taxing units who were parties to the judgment for
disposition as otherwise allowed under the law.
C. Unless the municipality increases the amount in its plan,
the number of properties acquired by a qualified participating
developer under this section on which development has not been
completed may not at any time exceed three times the annual average
residential production completed by the qualified participating
developer during the preceding two-year period as determined by the
municipality.
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D. The deed conveying a property sold by the land bank must
include a right of reverter so that, if the qualified participating
developer does not apply for a construction permit and close on any
construction financing within the two-year period following the date
of the conveyance of the property from the land bank to the
qualified participating developer, the property will revert to the
land bank for subsequent resale to another qualified participating
developer or conveyance to the taxing units who were parties to the
judgment for disposition as otherwise allowed under the law.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-108 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. The land bank shall impose deed restrictions on property
sold to qualified participating developers requiring the development
and sale or rental of the property to low-income households.
B. At least twenty-five percent (25%) of the land bank
properties sold during any given fiscal year to be developed for
sale shall be deed restricted for sale to households with gross
household incomes not greater than sixty percent (60%) of the area
median family income, adjusted for household size, for the
metropolitan statistical area in which the municipality is located,
as determined annually by the United States Department of Housing
and Urban Development.
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C. If property is developed for rental housing, the deed
restrictions must be for a period of not less than twenty (20) years
and must require that:
1. One hundred percent (100%) of the rental units be occupied
by and affordable to households with incomes not greater than sixty
percent (60%) of area median family income, based on gross household
income, adjusted for household size, for the metropolitan
statistical area in which the municipality is located, as determined
annually by the United States Department of Housing and Urban
Development;
2. Forty percent (40%) of the units be occupied by and
affordable to households with incomes not greater than fifty percent
(50%) of area median family income, based on gross household income,
adjusted for household size, for the metropolitan statistical area
in which the municipality is located, as determined annually by the
United States Department of Housing and Urban Development; or
3. Twenty percent (20%) of the units be occupied by and
affordable to households with incomes not greater than thirty
percent (30%) of area median family income, based on gross household
income, adjusted for household size, for the metropolitan
statistical area in which the municipality is located, as determined
annually by the United States Department of Housing and Urban
Development.
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D. The deed restrictions under subsection C of this section
must require the owner to file an annual occupancy report with the
municipality on a reporting form provided by the municipality. The
deed restrictions must also prohibit any exclusion of an individual
or family from admission to the development based solely on the
participation of the individual or family in the housing choice
voucher program under Section 8, United States Housing Act of 1937
(42 U.S.C. Section 1437f), as amended.
E. Except as otherwise provided by this section, if the deed
restrictions imposed under this section are for a term of years, the
deed restrictions shall renew automatically.
F. The land bank or the governing body of the municipality may
modify or add to the deed restrictions imposed under this section.
Any modifications or additions made by the governing body of the
municipality must be adopted by the municipality as part of its plan
and must comply with the restrictions set forth in subsections B, C,
and D of this section.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-109 of Title 11, unless there
is created a duplication in numbering, reads as follows:
The land bank shall comply with the requirements of the Oklahoma
Open Meetings Act in Title 25 of the Oklahoma Statutes and the
Oklahoma Open Records Act in Title 51 of the Oklahoma Statutes.
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SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 57-110 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. The land bank shall keep accurate minutes of its meetings
and shall keep accurate records and books of account that conform
with generally accepted principles of accounting and that clearly
reflect the income and expenses of the land bank and all
transactions in relation to its property.
B. The land bank shall file with the municipality not later
than the ninetieth (90th) day after the close of the fiscal year
annual audited financial statements prepared by a certified public
accountant. The financial transactions of the land bank are subject
to audit by the municipality.
C. For purposes of evaluating the effectiveness of the program,
the land bank shall submit an annual performance report to the
municipality not later than November 1 of each year in which the
land bank acquires or sells property under this act. The
performance report must include:
1. A complete and detailed written accounting of all money and
properties received and disbursed by the land bank during the
preceding fiscal year;
2. For each property acquired by the land bank during the
preceding fiscal year:
a. the street address of the property,
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b. the legal description of the property,
c. the date the land bank took title to the property,
d. the name and address of the property owner of record
at the time of the foreclosure,
e. the amount of taxes and other costs owed at the time
of the foreclosure, and
f. the assessed value of the property on the tax roll at
the time of the foreclosure;
3. For each property sold by the land bank during the preceding
fiscal year to a qualified participating developer:
a. the street address of the property,
b. the legal description of the property,
c. the name and mailing address of the developer,
d. the purchase price paid by the developer,
e. the maximum incomes allowed for the households by the
terms of the sale, and
f. the source and amount of any public subsidy provided
by the municipality to facilitate the sale or rental
of the property to a household within the targeted
income levels;
4. For each property sold by a qualified participating
developer during the preceding fiscal year, the buyer's household
income and a description of all use and sale restrictions; and
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5. For each property developed for rental housing with an
active deed restriction, a copy of the most recent annual report
filed by the owner with the land bank.
D. The land bank shall maintain in its records for inspection a
copy of the sale settlement statement for each property sold by a
qualified participating developer and a copy of the first page of
the mortgage note with the interest rate and indicating the volume
and page number of the instrument as filed with the county clerk.
E. The land bank shall provide copies of the performance report
to the taxing units who were parties to the judgment of foreclosure
and shall provide notice of the availability of the performance
report for review to the organizations and neighborhood associations
identified by the municipality as serving the neighborhoods in which
properties sold to the land bank under this chapter are located.
F. The land bank and the municipality shall maintain copies of
the performance report available for public review.
SECTION 11. This act shall become effective November 1, 2025.
60-1-11760 MJ 01/06/25