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.