PROPERTY DETERMINED TO BE INAPPROPRIATE FOR RESIDENTIAL DEVELOPMENT: RIGHT OF FIRST REFUSAL

(a) In this section, "eligible adjacent property owner" means a person who: (1) owns property located adjacent to property owned by the land bank; and (2) satisfies eligibility requirements adopted by the land bank. (b) Notwithstanding any other right of first refusal granted under this chapter, if the land bank determines that a property owned by the land bank is not appropriate for residential development, the land bank first shall offer the property for sale to an eligible adjacent property owner according to terms and conditions developed by the land bank that are consistent with this chapter. (c) The land bank shall sell the property to an eligible adjacent property owner, at whichever value is lower: (1) the fair market value for the property as determined by the appraisal district in which the property is located; or (2) the sales price recorded in the annual plan. (d) Except as provided by Subsection (e), an adjacent property owner that purchases property under this section may not lease, sell, or transfer that property to another person before the third anniversary of the date the adjacent property owner purchased that property from the land bank. (e) Subsection (d) does not apply to the transfer of property purchased under this section if the transfer: (1) is made according to a policy adopted by the land bank; and (2) is made to a family member of the eligible adjacent property owner or occurs as a result of the death of the eligible adjacent property owner.