1-1 AN ACT 1-2 relating to the extension of restrictions imposing regular 1-3 assessments in certain residential real estate subdivisions. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 11, Property Code, is amended by adding 1-6 Chapter 206 to read as follows: 1-7 CHAPTER 206. EXTENSION OF RESTRICTIONS IMPOSING REGULAR 1-8 ASSESSMENTS IN CERTAIN SUBDIVISIONS 1-9 Sec. 206.001. DEFINITIONS. In this chapter: 1-10 (1) "Community association" means an incorporated 1-11 association created to enforce restrictions. 1-12 (2) "Dedicatory instrument" and "restrictive covenant" 1-13 have the meanings assigned by Section 202.001. 1-14 (3) "Lienholder," "owner," "real property records," 1-15 "residential real estate subdivision," and "restrictions" have the 1-16 meanings assigned by Section 201.003. 1-17 (4) "Regular assessment" means an assessment, charge, 1-18 fee, or dues that each owner is required to pay to the community 1-19 association on a regular basis and that is to be used by the 1-20 association for the benefit of the subdivision in accordance with 1-21 the original, extended, added, or modified restrictions. 1-22 Sec. 206.002. APPLICABILITY OF CHAPTER. This chapter 1-23 applies only to a residential real estate subdivision that: 1-24 (1) consists of at least 4,600 homes; 2-1 (2) is located in whole or in part in a municipality 2-2 with a population of more than 1.6 million located in a county with 2-3 a population of 2.8 million or more; and 2-4 (3) has restrictions the terms of which are 2-5 automatically extended but has a regular assessment that is 2-6 established by a separate document that permits the assessment to 2-7 expire and does not provide for extension of the term of the 2-8 assessment. 2-9 Sec. 206.003. EXTENSION OF RESTRICTION IMPOSING REGULAR 2-10 ASSESSMENT. (a) A community association may approve and submit to 2-11 a vote of the owners an extension of a restriction imposing a 2-12 regular assessment. 2-13 (b) The extension of a restriction imposing a regular 2-14 assessment is approved if a majority of the owners in the 2-15 subdivision who vote on the issue in accordance with Section 2-16 206.004 vote in favor of the extension. 2-17 (c) An extension approved in accordance with this section 2-18 and Section 206.004 applies to all real property in the 2-19 subdivision, including residential and commercial property. 2-20 (d) A document certifying that a majority of the owners 2-21 voting on the issue approved the extension of the restriction must 2-22 be recorded in the real property records of the county in which the 2-23 subdivision is located. 2-24 Sec. 206.004. METHOD OF VOTING. (a) An extension of a 2-25 restriction that imposes a regular assessment must be voted on: 2-26 (1) by a written ballot that states the substance of 2-27 the amendment extending the restriction and specifies the date by 3-1 which the community association must receive a ballot for the 3-2 ballot to be counted; or 3-3 (2) at a meeting of the property owners in the 3-4 subdivision. 3-5 (b) The community association shall provide for mailing to 3-6 each owner, as applicable: 3-7 (1) the ballot under Subsection (a)(1); or 3-8 (2) notice of the meeting under Subsection (a)(2) that 3-9 states the purpose of the meeting. 3-10 (c) In conjunction with a vote by ballot or at a meeting 3-11 under Subsection (a), the community association may provide for 3-12 circulation of a petition in the subdivision. 3-13 (d) The vote of multiple owners of a property may be 3-14 reflected by the signature or vote of one of the owners. 3-15 (e) The community association shall record a copy of the 3-16 ballot or petition in the real property records in the county in 3-17 which the subdivision is located prior to submission of the 3-18 extension to a vote of the owners. 3-19 SECTION 2. The importance of this legislation and the 3-20 crowded condition of the calendars in both houses create an 3-21 emergency and an imperative public necessity that the 3-22 constitutional rule requiring bills to be read on three several 3-23 days in each house be suspended, and this rule is hereby suspended, 3-24 and that this Act take effect and be in force from and after its 3-25 passage, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2339 was passed by the House on May 2, 1997, by a non-record vote; that the House refused to concur in Senate amendments to H.B. No. 2339 on May 24, 1997, and requested the appointment of a conference committee to consider the differences between the two houses; and that the House adopted the conference committee report on H.B. No. 2339 on May 30, 1997, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2339 was passed by the Senate, with amendments, on May 22, 1997, by the following vote: Yeas 30, Nays 0; at the request of the House, the Senate appointed a conference committee to consider the differences between the two houses; and that the Senate adopted the conference committee report on H.B. No. 2339 on May 31, 1997, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor