QUITCLAIM DEED.
Dallas City Code § 2-26.10
in effectSEC. 2-26.10. QUITCLAIM DEED.
(a) Upon approval of a proposal under this division by the city council and the governing bodies of all other affected taxing units, the city manager is authorized to execute a quitclaim deed, approved as to form by the city attorney, quitclaiming the land to the nonprofit organization, subject to the possibility of reverter with right of reentry, deed restrictions, and the terms and conditions of this division and the proposal and subject to any redemption rights in the property provided by state law.
(b) The quitclaim deed to the land must contain all of the following:
(1) A copy or summary of the proposal from the nonprofit organization for the land and a requirement that the land be developed by the nonprofit organization in accordance with the proposal and the timetable specified in the proposal.
(2) A possibility of reverter with right of reentry providing that:
(A) the property may revert to the city of Dallas under the conditions set forth in Section 2-26.12 of this division; and
(B) the nonprofit organization and its successors and assigns shall be responsible for removal of all liens and encumbrances against the property that have occurred since the nonprofit organization received the quitclaim deed from the city.
(3) Deed restrictions that:
(A) restrict:
(i) the sale and resale of owner-occupied property to low-income individuals or families for five years after the date the deed from the nonprofit organization to the initial homebuyer is filed in the real property records of the county in which the property is located; and
(ii) the lease or occupancy of any rental property developed on the land to low-income individuals or families for 15 years after the date of initial occupancy of the property;
(B) require the nonprofit organization, for 15 years from the date of initial occupancy of rental property developed on the land, to maintain 50 percent of any multi-family housing units for occupancy by low-income individuals or families as affordable housing;
(C) require the nonprofit organization to develop all proposed housing units on the land in accordance with this code and all applicable city ordinances and state and federal laws within three years after receiving the quitclaim deed to the land, or by the end of any extended development period approved by the city council under Section 2-26.6(c), and to obtain inspections and approval of the housing units by the city before initial occupancy;
(D) require any low-income individual or family who purchases a housing unit on the land or, if a housing unit is not owner-occupied, the nonprofit organization that constructed the rental housing unit to maintain each housing unit and all improvements on the land in accordance with this code and all applicable city ordinances and state and federal laws during the five-year or 15-year affordability period, whichever applies;
(E) require the five-year and 15-year affordability restrictions of this division, whichever applies, to be enforced:
(i) in the case of the initial sale of owner-occupied property, by the nonprofit organization, which must submit to the director verification of income information for the purchasers of the housing unit at least 30 calendar days prior to closing and receive the director’s written approval of the low-income qualifications of that purchaser;
(ii) in the case of subsequent resales of owner-occupied property, by the owner of the housing unit, who must submit verification to the director of income information for a subsequent purchaser at least 30 calendar days prior to closing and receive the director’s written approval of the low-income qualifications of that purchaser; and
(iii) in the case of rental property, by the nonprofit organization, which must submit to the director monthly tenant income and rental information as specified and required by the director and permit the city to conduct annual inspections of rental property for compliance with this code and all applicable city ordinances and state and federal laws; and
(F) require the nonprofit organization to provide need-based social services to tenants of any rental property developed on the land that contains more than 25 housing units.
(4) An indemnification of the city and other affected taxing units by the nonprofit organization.
(5) A statement and acknowledgement that the property is quitclaimed subject to all redemption rights provided by state law.
(6) Such other terms and conditions as are required by the city for the resale of tax-foreclosed or seized property, whichever applies. (Ord. Nos. 23713; 24046; 25443)
Source: City of Dallas, Dallas City Code and City Charter (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/dallas/latest/dallas_tx/0-0-0-134094Fetched: 10/26/2026