Title
A resolution authorizing the sale of three tax-foreclosed properties located at 1004 Grande Drive, 907 Jardin Drive and 810 Leyenda Drive in Mesquite, Texas (the “Properties”); accepting the offers from Hossain Dezham (the “Purchaser”) to purchase the Properties; ratifying and approving the Offer and Purchase Agreements executed by the Purchaser setting forth the terms and conditions of the sale of the Properties; consenting to the termination, release and discharge of certain covenants, conditions and restrictions imposed on the Properties; authorizing the City Manager to execute a Release of Deed Restrictions and a Quitclaim Deed with respect to each of the Properties; and authorizing the City Manager to take all actions and execute all other documents necessary or requested to complete the closing and sale of the properties.
Body
A list of tax-foreclosed properties available for sale was listed on the City’s website. The City received offers of $30,000.00 each for three vacant lots located at 1004 Grande Drive, 907 Jardin Drive and 810 Leyenda Drive.
The offer for 810 Leyenda Drive fell under V.T.C.A., Tax Code § 34.05(h) and requires the Purchaser to pay post-judgment taxes, penalties and interest as well as prorated taxes for the year of closing.
The offers for 1004 Grande Drive and 907 Jardin Drive fell under V.T.C.A., Tax Code § 34.05(j), which discharges and extinguishes all liens foreclosed by the judgment and all post-judgment taxes, penalties, and interest, except for prorated taxes for the year of closing, and requires the consent of all taxing entities entitled to proceeds of the sale.
Mesquite Independent School District’s Board of Trustees consented to the sale of the properties on April 12, 2021, and Dallas County Commissioners’ Court consented to the sale of the properties with the passage of Court Orders 2021-0406, 2021-0407 and 2021-0408 on April 20, 2021.
Background
On September 11, 2013, City staff met with representatives from Dallas Area Habitat for Humanity, Inc. about the possibility of building Habitat homes on vacant City-owned residential properties acquired through tax foreclosure sales. The City Council was subsequently brief about the Habitat opportunity on September 16, 2013, and later on November 15, 2013, at a special Neighborhood Revitalization workshop.
Based on Council direction, staff began development of a formal plan to dispose of tax foreclosed properties and to address blighted or nuisance properties through other means such as condemnation and demolition. On March 16, 2015, the City Council passed Ordinance No. 4354 adopting a Neighborhood Revitalization and Redevelopment Plan element as part of the Comprehensive Plan. Under a “backfill, infill and redevelopment strategy” detailed in the Neighborhood Plan, tax foreclosed property could be sold at a reduced price to qualified home entities to rehabilitate or demolish them and reconstruct new homes on the vacant lots.
On November 16, 2015, the City Council approved sales contracts for thetax foreclosed vacant properties located at 810 Leyenda Drive, 907 Jardin Drive and 1004 Grande Drive to Dallas Area Habitat for Humanity, Inc. in the amount of $1,500.00 each. The sales transactions were later authorized by the MISD Board of Trustees on October 12, 2015, and by Dallas County Commissioners’ Court on November 17, 2015. As part of the sales agreement, Habitat was to construct new homes on the three vacant lots which they would in turn sell to qualified buyers who would occupy the homes.
On June 1, 2017, Habitat notified the City that they would not pursue construction of Habitat homes due to higher projected costs and budgetary issues. The property deeds contained a provision that if Habitat failed to build within three years that the properties would revert back to the City. The deeds were recorded on December 23, 2015, so ownership of the three tracts automatically reverted back to the City on December 23, 2018. The reversions were memorialized in the Dallas County Deed of Records and the properties were then placed on the City’s website for sale to the public.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Location Map
Resolution
Drafter
Brenda Hood
Head of Department
Ted Chinn