SRC-SLL H.B. 2339 75(R)BILL ANALYSIS


Senate Research CenterH.B. 2339
By: Talton (Brown)
Jurisprudence
5-17-97
Committee Report (Amended)


DIGEST 

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 a provision for an extension.  This bill will
set forth regulations regarding the extension of restrictions imposing
regular assessments in certain residential real estate subdivisions. 

PURPOSE

As proposed, H.B. 2339 sets forth regulations regarding the extension of
restrictions imposing regular assessments in certain residential real
estate subdivisions. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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.  Defines "community association," "dedicatory
instrument," "restrictive covenant," "lienholder," "owner," "real property
records," "residential real estate subdivision," "restrictions," and
"regular assessment." 

Sec.  206.002.  APPLICABILITY OF CHAPTER.  Provides that this chapter
applies only to certain residential real estate subdivisions. 

Sec.  206.003.  EXTENSION OF RESTRICTION IMPOSING REGULAR ASSESSMENT.
Authorizes a community association to approve and submit to a vote of the
owners an extension of a restriction imposing a regular assessment.
Provides that the extension of a restriction imposing a regular assessment
is approved if a majority of the owners in the subdivision who vote on the
issue in accordance with Section 206.004 vote in favor of the extension.
Provides that an extension approved in accordance with this section and
Section 206.004 applies to all real property in the subdivision, including
residential and commercial property.  Requires a document certifying that
a majority of the owners voting on the issue approved the extension of the
restriction to be recorded in the real property records of the county in
which the subdivision is located. 

Sec.  206.004.  METHOD OF VOTING.  Sets forth regulations regarding a vote
on an extension of a restriction that imposes a regular assessment. 

SECTION 2. Emergency clause.
  Effective date: upon passage.

 SUMMARY OF COMMITTEE CHANGES

Amendment 1.

On page 3, after line 14 and before line 15, insert the following:

"(e) The community association shall record a copy of the ballot or
petition in the real property records in the county in which the
subdivision is located prior to submission of the extension to a vote of
the owners."