Council to Revist Rules for Foreclosed Lot Sales

The Olney City Council voted Sept. 8 to table the sale of a foreclosed lot after questions arose about the city’s requirements for prospective buyers. The debate, which centered on whether bidders must commit to building on a property within a year, revealed confusion over rules that have frustrated both council members and business owners.

The lot in question, 407 West Grove Street, had been bid on by the neighboring property owner, who offered $5,070—well above the $3,600 county appraisal value. According to City Secretary Tammy Hourigan, the buyer told Texas Communities Group (TCG)—the firm that manages Olney’s tax foreclosure sales—that he planned to clean up the lot and possibly add fencing, but did not commit to building a structure.

Mrs. Hourigan explained that TCG collects a cashier’s check from the bidder before presenting the offer to the city. If the Council approves, the paperwork is finalized; if not, the bidder’s money is refunded.

Councilmember Steven Nurre asked if the buyer had submitted a formal building plan, as required by rules he recalled seeing in past contracts. “Isn’t part of the contract about buying a tax lot that you have to build on it within 12 months?” he asked.

Mrs. Hourigan said the city has never enforced such a requirement, though TCG typically asks for a statement of intent. “They just wanted to enlarge their property,” she said of the current bidder.

That answer prompted pushback from both Mr. Nurre and local business owner Barry Hodges. Mr. Hodges said he had repeatedly tried to buy foreclosed properties but was told he couldn’t unless he planned to develop them within a year. “I’ve missed opportunities on multiple properties for that reason,” he said. “You can’t tell some people that you’ve got to build within 12 months and then let others extend their yards. It’s got to be one way or the other.”

Mr. Nurre echoed the concern, saying he too had passed on opportunities. “I couldn’t afford to build within 12 months, and that’s why I didn’t buy any lots,” he said. “I think we need to dig a little bit deeper in that.”

Mr. Hodges also raised questions about consistency. “Are we currently enforcing that?” he asked. “Because there are lots that were supposed to be developed under this program where nothing has been done— not even keeping the lot clean.”

Without clear rules, Mr. Hodges said, the city has “no leg to stand on” if it wants to hold buyers accountable.

The Council agreed to table the sale until it can review the city’s agreement with TCG and confirm what requirements should be enforced.