CHAPTER 314. PURCHASE OR CONDEMNATION OF PROPERTY FOR HIGHWAYS BY CERTAIN MUNICIPALITIES

TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE E. MUNICIPAL STREETS

CHAPTER 314. PURCHASE OR CONDEMNATION OF PROPERTY FOR HIGHWAYS BY

CERTAIN MUNICIPALITIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 314.001. APPLICABILITY. This chapter applies only to a

municipality with a population of more than 1,000.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER B. AUTHORITY TO PURCHASE OR CONDEMN PROPERTY

Sec. 314.011. ACQUISITION OF PROPERTY FOR HIGHWAY IMPROVEMENTS

BY MUNICIPALITY. (a) The governing body of a municipality may

purchase or condemn property to lay out, construct, improve, or

extend any highway within its boundaries.

(b) Costs incurred in making improvements, including the costs

of purchase or condemnation of or damage to property and the

costs of making assessments or issuing certificates under this

chapter, may be paid from any municipal fund available for that

purpose.

(c) A municipality may sell property originally purchased for

improvements but not used for the improvements on the terms it

considers appropriate. The proceeds from the sale shall be

deposited in a fund that may be used only to pay for costs

described by Subsection (b).

(d) In this section, "highway" includes any street, alley,

public place, or square dedicated to public use.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.012. RESOLUTION. (a) A governing body that determines

to proceed under this chapter shall declare its determination by

resolution that may:

(1) state the nature, extent, and limits of the improvement to

be made; and

(2) describe the real property proposed to be condemned by:

(A) the lot or block number;

(B) the number of front feet;

(C) the name of the owner; or

(D) any other description that substantially identifies the

property.

(b) A mistake or omission in the resolution does not invalidate

it.

(c) Passage of the resolution is conclusive evidence of the

public use and necessity of the proposed improvement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.013. SURVEY. (a) On passage of the resolution, the

municipal engineer or engineer designated by the governing body

shall prepare and submit to the governing body:

(1) a plat showing:

(A) the nature and limits of the proposed improvements;

(B) the location of the proposed improvements; and

(C) the property through which the improvements are to be

extended and that is to be condemned for the improvements; and

(2) a written estimate of the total cost of:

(A) the improvements; and

(B) each parcel of property to be condemned.

(b) The governing body shall examine the plat and report and

correct any errors. An error or omission does not invalidate the

plat or report or a subsequent proceeding held under the plat or

report.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER C. PROCEDURE

Sec. 314.021. APPOINTMENT OF CONDEMNATION COMMISSION. (a) In

addition to qualifying under Section 21.014(a), Property Code, a

member of a condemnation commission must be a qualified voter.

(b) If a commissioner dies, becomes disabled, refuses to act,

becomes incapacitated, or is absent for more than 30 days from

the county, the judge shall promptly, in term time or vacation,

appoint a new commissioner having the qualifications prescribed

by Subsection (a). An action of the commission taken before the

vacancy is valid. After the vacancy is filled, the commission

shall proceed and take all actions provided by this chapter as if

a vacancy had not occurred.

(c) A commissioner is entitled to receive as compensation not

more than $10 for each day the commissioner is employed in the

performance of the commissioner's duties.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.022. NOTICE OF CONDEMNATION. (a) The commission or

the clerk, secretary, or recording officer of a municipality

shall give written notice of a hearing before the commission to:

(1) each owner of property proposed to be condemned or damaged;

and

(2) each person with an interest in or lien on the property.

(b) In addition to the requirements of Section 21.016(a),

Property Code, the notice may contain:

(1) a brief statement of the nature and extent of the proposed

improvement; and

(2) a description of the property proposed to be condemned.

(c) The description provided by Subsection (b)(2) may be by:

(1) lot and block number;

(2) front feet;

(3) the name of each owner; or

(4) any other description that substantially identifies the

property.

(d) Notice of the hearing shall be given by publication for not

less than three days in a newspaper of general circulation in the

county in which the property is located beginning not later than

the 10th day before the date of the hearing.

(e) Notice by publication is valid and binding on each owner or

other person with an interest in or lien on the property if it

generally notifies the person to appear and be heard without

specifically designating the person by name. An error in the name

of a person to whom the notice is directed does not invalidate

the notice.

(f) A copy of the notice shall be delivered to:

(1) each owner, lienholder, or interested party who is a

resident of the county where the property is located;

(2) the agent or attorney of a person described by Paragraph

(1); or

(3) the guardian of the owner if the owner is a minor.

(g) The person serving the notice shall make a written return on

the notice stating when and how the person served the notice.

(h) The governing body may provide for additional notice, but

notice by publication is valid and binding regardless of whether

any other notice is given.

(i) The governing body may provide for as many hearings in the

course of condemnation proceedings as it determines necessary for

whatever purposes it determines necessary.

(j) A notice and a return of a notice shall be filed with the

municipality.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.023. HEARING ON CONDEMNATION. (a) Each owner,

lienholder, or other interested party is entitled to appear at

the hearing in person or by agent and be heard regarding:

(1) the value of the property proposed to be condemned;

(2) the damages to property not condemned resulting from the

improvement;

(3) the legality of the proceedings; or

(4) any right of the owner or other party.

(b) An objection must be in writing and filed with the

commission.

(c) The commission may not close the hearing until all

interested parties appearing have been heard. At the conclusion

of the hearing, the commission shall:

(1) determine the damages due the owners, lienholders, or other

interested parties for property taken or damaged;

(2) apportion the damages determined under Subdivision (1) among

the owners, lienholders, or other interested parties;

(3) date and sign two copies of a written report; and

(4) file one copy of the report with the clerk, secretary, or

recording officer of the municipality and the second copy with

the clerk of the court that appointed the commission.

(d) The governing body may record in its minutes the following

items relating to a condemnation proceeding:

(1) proceedings of the governing body;

(2) notices issued and returns of the notices;

(3) orders, reports, and other proceedings of the commission;

and

(4) certified copies of all orders or proceedings of a court.

(e) A record made under Subsection (d) or a certified copy of

the record is prima facie evidence of the facts in the record.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.024. OBJECTIONS. (a) Not later than the 10th day

after the date the commission files a report under Section

314.023 with the court, a party affected by the decision of the

commission may file with the court an objection to the decision.

(b) If an objection is not timely filed:

(1) the determinations of the commission become final and

binding on the parties and their heirs, successors, and assigns

and may not subsequently be questioned in any proceeding; and

(2) the judge shall enter the report in the records of the court

and adopt the report as the court's.

(c) The judge may issue process as necessary to enforce a

judgment under Subsection (b)(2).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.025. LAW APPLICABLE. Except as otherwise provided by

this chapter, Chapter 21, Property Code, applies to proceedings

under this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.026. ERRORS. The governing body, the condemnation

commission, and the judge before whom a condemnation proceeding

is pending shall take all appropriate actions to correct any

error or invalidity in the proceeding. An error or omission in a

proceeding does not invalidate the proceeding, but a proceeding

may be corrected, repeated, or adjourned until the correction is

made or omission supplied.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER D. ASSESSMENTS

Sec. 314.041. ASSESSMENTS. (a) Except as provided by this

section, the governing body may by resolution order an assessment

to pay all or part of the costs of making an improvement as

described by Section 314.011(b), with reasonable attorney's fees

and the costs incurred in making the assessment, against the

owner and property if the property is:

(1) adjacent to or in the vicinity of an improvement; and

(2) specially benefited by the improvement.

(b) In its resolution, the governing body may designate:

(1) the property to be assessed; or

(2) a district containing property to be assessed.

(c) The governing body may apportion the costs of the assessment

among the owners of the property assessed.

(d) In making an assessment, the governing body may not include

the cost of property purchased but not actually used for making

the improvement.

(e) An assessment may not be made against:

(1) property or its owner in excess of the special benefit to

the property in the enhanced value of the property resulting from

the improvement; or

(2) property that is exempt from execution.

(f) The owner of property exempt from assessment under

Subsection (e)(2):

(1) shall be assessed an amount equal to the amount the

assessment would have been if the property were not exempt; and

(2) is personally liable for the assessment.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.042. NOTICE TO OWNER OF ASSESSMENT. (a) An assessment

may not be made against the property benefited or the owners of

the property until after the owners, lienholders, and other

interested parties are given a reasonable opportunity to be heard

before the governing body or before the commission as provided by

Section 314.047.

(b) The governing body or commission shall publish three times

before the hearing reasonable notice of the hearing in a

newspaper of general circulation in the municipality beginning

not later than the 10th day before the date of the hearing.

(c) If an owner is a railway or street railway, the governing

body or commission shall also give, not later than the 10th day

before the date of the hearing, written notice:

(1) in person to the owner's local agent; or

(2) by mailing the notice through the post office in the

municipality to the address of the office of the railway or

street railway as it appears on the most recent tax roll of the

municipality.

(d) The name of an owner, lienholder, or other interested party

need not be specifically set out in the notice required by

Subsection (b) or (c), but the real property proposed to be

assessed shall be briefly described in the notice by:

(1) lot and block;

(2) number;

(3) front feet;

(4) reference to a plat, report, or record filed in connection

with the proceedings; or

(5) any other description reasonably identifying the property.

(e) The governing body or commission may give notice in addition

to the notice required by Subsections (b) and (c), but the notice

required by those subsections is sufficient.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.043. NOTICE TO COUNTY CLERK OF ASSESSMENT. (a) A

governing body that proposes to assess property abutting an

improvement shall file notice with the county clerk of each

county in which the property is located. The notice must be

signed in the name of the municipality by its clerk, secretary,

or mayor or the officer performing the duties of the clerk,

secretary, or mayor.

(b) The notice required by Subsection (a) must:

(1) show substantially that the governing body has determined it

necessary that the street be improved;

(2) give the name of:

(A) the street and the names of the two cross streets or other

approximate lengthwise limits between which the street is to be

or has been improved or otherwise identify or designate the

street and the portion of the street to be improved; and

(B) the subdivision and affected blocks if the street abuts a

subdivision for which a plat has been recorded in the county

clerk's office; and

(3) state that a portion of the cost of the improvement is to be

or has been specifically assessed as a lien on property abutting

the street.

(c) A notice filed under Subsection (a) may include one or more

streets or improvements.

(d) A governing body that proposes to assess property not

abutting the improvement shall file a notice signed as required

by Subsection (a) with the clerk of each county where the

property is located.

(e) The notice required by Subsection (d) must:

(1) designate the property proposed to be assessed or the

district within which assessments have been or may be made; or

(2) otherwise identify the property against which a lien is

proposed to be assessed.

(f) A notice required by Subsection (a) or (d) need not give

details or be sworn to or acknowledged. The notice may be filed

at any time, and the county clerk with whom the notice is filed

shall:

(1) record the notice in the same class of records as a mortgage

or deed of trust; and

(2) index the notice in the name of the municipality and in the

name or other designation of the street to which the notice

relates.

(g) Substantial compliance with this section is sufficient.

(h) In this section, "street" includes any part of a street,

alley, highway, public place, or square.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 827, Sec. 3, eff. Sept. 1,

2001.

Sec. 314.044. HEARING ON ASSESSMENT. (a) At a hearing under

Section 314.042(a), an owner, lienholder, or other interested

party may:

(1) object in writing to an assessment, special benefit to the

property, invalidity of the assessment, or any prerequisite to

the assessment; and

(2) present testimony in support of the objection.

(b) The governing body or the commission shall determine the

amounts, if any, to be assessed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.045. LIEN. (a) An assessment creates a lien on

property prior to all other liens except a lien for ad valorem

taxes.

(b) The lien takes effect on the filing of the notice provided

by Section 314.043(a) or (d).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.046. ASSESSMENTS LEVIED. (a) The governing body may

make an assessment only by ordinance.

(b) An assessment may:

(1) be made payable in not more than 16 installments maturing

within 15 years; and

(2) bear interest at not more than eight percent a year.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.047. HEARING ON ASSESSMENT BEFORE CONDEMNATION

COMMISSION. (a) The governing body may provide that the

condemnation commissioners hold the hearing required under

Section 314.042(a).

(b) The commission that holds the hearing:

(1) shall give notice as required by Section 314.042; and

(2) has the powers and duties conferred by this chapter on the

governing body except as otherwise provided by this chapter.

(c) At the conclusion of the hearing, the commission shall

report in writing its findings to the governing body. The

governing body shall:

(1) examine the report and, if it finds the report to be

correct, approve the report; and

(2) make an assessment in the proper amount against property and

the owner of property found to be benefited by the improvement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.048. CERTIFICATES. The municipality may:

(1) issue assignable certificates payable to the municipality or

the purchaser of the certificates stating the liability of the

property and the owner of the property for the payment of

assessments; and

(2) set the terms of the certificates, including the time of

payment, conditions of default, and date of maturity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.049. ENFORCEMENT OF ASSESSMENT. An assessment may be

enforced by:

(1) suit brought by the municipality for the benefit of a holder

and owner of an assessment or a certificate issued on the

assessment;

(2) suit brought by a holder and owner of an assessment or a

certificate issued on the assessment; or

(3) sale of the assessed property in the same manner as nearly

as possible as the sale of real property for municipal taxes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.050. SUIT ON CERTIFICATE. In a suit to enforce a

certificate issued under Section 314.048, the recitals of the

certificate are sufficient to allege the proceedings of the

governing body in making the improvements, the assessment for the

improvements, and all prerequisites to the assessment. The

allegations contained in the recitals need not be stated in the

pleadings.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.051. REASSESSMENTS. (a) An error in a proceeding

under this chapter, the description of property, or the name of

the owner does not invalidate an assessment, and an assessment is

in effect against the property and the owner of the property.

(b) A governing body that is advised of an error shall correct

the error.

(c) At the request of an interested party, the governing body

shall, after notice and hearing that comply with this chapter,

reassess an owner or property erroneously assessed in accordance

with special benefits as provided by this chapter as to original

assessments. The governing body may set the terms of payment of a

reassessment and may issue assignable certificates evidencing the

reassessment in the same manner as for an original assessment.

(d) The governing body may not make a reassessment later than

six years after the date of the ordinance making the original

assessment. If the reassessment is contested in an action at law,

the time consumed in the action is not included in computing the

six years.

(e) In making a reassessment, the governing body is not required

to repeat an action relating to the original assessment, except

as required by Subsection (c).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.052. DEFICIENCY ASSESSMENTS. (a) If, after an

assessment is made under this chapter, the amount assessed and

apportioned is insufficient to defray all the costs of an

improvement:

(1) the governing body may assess the deficiency against

property specially benefited and the owners of the property and

apportion the deficiency among them, after notice and hearing as

provided by this chapter and after complying with each provision

of this chapter applicable to original assessments; or

(2) a deficiency assessment may be made after notice and hearing

before the commission in the manner provided by Section 314.047.

(b) A municipality may issue assignable certificates evidencing

the deficiency assessment.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.053. SUIT TO SET ASIDE OR CORRECT ASSESSMENT OR

REASSESSMENT. (a) A suit to set aside or correct an assessment

or reassessment or a proceeding relating to the assessment or

reassessment because of an error or invalidity in the assessment

or reassessment must be brought by a property owner against whom

or whose property an assessment or reassessment has been made not

later than the 10th day after the date of the assessment or

reassessment.

(b) After the deadline prescribed by Subsection (a), the owner

and the owner's heirs, successors, and assigns are barred from

bringing an action described by that subsection or objecting to

the validity of an assessment, reassessment, or proceeding.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 314.054. VALIDITY OF ASSESSMENT. An assessment or

reassessment is valid and binding without regard to:

(1) an error, omission, or invalidity in a proceeding of the

municipality under this chapter with reference to:

(A) the making of an improvement provided by this chapter;

(B) the taking or condemnation of property for an improvement;

or

(C) the determination and payment of damages for property taken

or damaged; or

(2) whether as of the date of the assessments the improvement

was completed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.