SLC H.B. 2339 75(R)BILL ANALYSIS LAND & RESOURCE MANAGEMENT H.B. 2339 By: Talton 4-22-97 Committee Report (Unamended) BACKGROUND In the year 2003, the Clear Lake Community Association's Service Charge document will run out with no provision for extension. The Service charge document is essential to fund deed restriction enforcement and to maintain association assets. However, the community's Deed restrictions document will run for 40 years with provision for extension. This community association, which is located in the Southeast portion of Harris County, consists of over 4,600 homes making it one of the largest within Texas. PURPOSE As proposed, HB 2339 will allow the association to extend the Service Charge document which is essential to fund deed restriction enforcement and maintain association assets. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 11, Property Code, by adding Chapter 206 as follows: CHAPTER 206. EXTENSION OF RESTRICTIONS IMPOSING REGULAR ASSESSMENTS IN CERTAIN SUBDIVISIONS Sec. 206.001. DEFINITIONS. Sec. 206.002. APPLICABILITY OF CHAPTER. This Chapter only applies to a residential real estate subdivision that: (1) consists of at least 4,600 homes. (2) is located in whole or part in a municipality with a population of more than 1.6 million in a county with a population of 2.8. million or more. (3) has restriction terms that are automatically extended but has a regular assessment established by another document. Sec. 206.003. EXTENSION OF RESTRICTION IMPOSING REGULAR ASSESSMENT. (a) This section states that the association may submit and approve a vote by the owners to extend a restriction imposing a regular assessment. (b) This section states the restriction imposing a regular assessment is approved if a majority of owners vote in favor according to Section 206.004. (c) The extension approved applies to all real property, residential and commercial, in the subdivision. (d) A document showing an approval of the extension of restriction must be recorded in the real property records of the county in which the subdivision is located. Sec. 206.004. METHOD OF VOTING. (a) An extension of a restriction that imposes a regular assessment must be voted on. Provides voting and election procedures. (b) States that the community association shall provide for mailing to each owner, as applicable. (c) In conjunction with the above stated provisions, the community association may provide for the circulation of a petition in the subdivision. (d) The vote of multiple owners of a property may be reflected by the signature or vote of one of the owners. SECTION 2. Emergency clause.