By Talton H.B. No. 2339
75R7448 CAS-F
A BILL TO BE ENTITLED
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 SECTION 2. The importance of this legislation and the
3-16 crowded condition of the calendars in both houses create an
3-17 emergency and an imperative public necessity that the
3-18 constitutional rule requiring bills to be read on three several
3-19 days in each house be suspended, and this rule is hereby suspended,
3-20 and that this Act take effect and be in force from and after its
3-21 passage, and it is so enacted.