SPECIFIC EXPLANATION: The General Services Department recommends approval to acquire Lot 11, Block 10, Highland Acre Homes Annex 3, known as 0 Lucky Street, through a Harris County Tax Sale for the Houston Parks and Recreation Department (HPARD). HPARD desires to purchase the vacant property to enlarge the east boundary of Sylvester Turner Park.
The appraised market value of the vacant property is estimated at $17,000.00. The Harris County Appraisal District has estimated the market value at $12,478.00. The minimum bid at the tax sale will be $12,478.00 and the maximum bid will be $20,000.00. Pursuant to Texas Tax Code, Chapter 34, Tax Sales and Redemption, a tax sale of the property is subject to the former owner’s right to redeem the property. If the former owner used the property as the residential homestead, pursuant to §34.21(a), the former owner may redeem the property on or before the second anniversary of the date on which the purchaser's deed is filed for record. If the former owner used the property for a purpose other than as the residential homestead, pursuant to §34.21(e), the former owner may redeem the property during the six month period following the date on which the purchaser’s deed is filed for record. There is no way to establish the applicable redemption period because the location of the owners or their lawful heirs or successors is unknown. Therefore, if the City is successful with its bid to purchase the property for $20,000 or less, it is appropriate to apply the longer redemption period that could be applicable before HPARD expends any funds on improvements. The tax sale is scheduled for October 3, 2016.
The following is a breakdown of expected costs:
$20,000.00 Maximum tax sale price
1,200.00 Post-judgment taxes for 2015 and 2016
1,000.00 Title policy to be purchased after redemption period
1,400.00 Contingency for filing and/or other fees
$23,600.00 Estimated Total
OPERATING BUDGET FISCAL NOTE: Funding for this item is included in HPARD’s FY 2017 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ordinance No. 2014-1078.