AN ACT

 1-1     relating to the creation, extension, renewal, or modification of

 1-2     deed restrictions applicable to certain residential real estate

 1-3     subdivisions.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subsection (a), Section 201.001, Property Code,

 1-6     is amended to read as follows:

 1-7           (a)  This chapter applies to a residential real estate

 1-8     subdivision that is located in whole or in part:

 1-9                 (1)  within a city that has a population of more than

1-10     100,000 [1,600,000], or within the extraterritorial jurisdiction of

1-11     such a city; or

1-12                 (2)  in the unincorporated area of:

1-13                       (A)  a county having a population of 2,400,000 or

1-14     more; or

1-15                       (B)  a county having a population of 190,000 or

1-16     more that is adjacent to a county having a population of 2,400,000

1-17     or more.

1-18           SECTION 2.  Subsection (c), Section 201.001, Property Code,

1-19     is amended to read as follows:

1-20           (c)  The provisions of this chapter relating to addition to

1-21     or modification of existing restrictions do not apply to a

1-22     subdivision if, by the express terms of the instrument creating the

1-23     restrictions, the restrictions affecting the real property within

 2-1     the subdivision provide for addition to or modification of the

 2-2     restrictions by written and filed agreement of a specified

 2-3     percentage of less than 75 percent of the owners of real property

 2-4     interests in the subdivision, as set forth in the instrument

 2-5     creating the restrictions.  A subdivision is excluded under this

 2-6     subsection regardless of whether a provision in the restrictions

 2-7     requires the consent of the developer of the subdivision or an

 2-8     architectural control committee for an addition to or modification

 2-9     of the restrictions.

2-10           SECTION 3.  Chapter 201, Property Code, is amended by adding

2-11     Section 201.0051 to read as follows:

2-12           Sec. 201.0051.  SPECIAL PETITION APPROVAL REQUIRED FOR

2-13     CERTAIN RESTRICTIONS.  A right created or an obligation imposed by

2-14     an existing restriction that relates to the developer of the

2-15     subdivision or an architectural control committee established by

2-16     the instrument creating the restriction cannot be altered unless

2-17     the person who has the right or obligation signs and acknowledges

2-18     the petition.

2-19           SECTION 4.  Section 205.001, Property Code, is amended to

2-20     read as follows:

2-21           Sec. 205.001.  DEFINITIONS.  In this chapter:

2-22                 (1)  "Restrictions"[, "restrictions"] and "subdivision"

2-23     have the meanings assigned by Section 201.003.

2-24                 (2)  "Property owners' association" has the meaning

2-25     assigned by Section 202.001.

 3-1           SECTION 5.  Chapter 205, Property Code, is amended by adding

 3-2     Section 205.004 to read as follows:

 3-3           Sec. 205.004.  AMENDMENT OF RESTRICTIONS BY GOVERNING BODY OF

 3-4     PROPERTY OWNERS' ASSOCIATION.  (a)  The governing body of a

 3-5     property owners' association may amend the restrictions for the

 3-6     limited purpose of complying with United States Department of

 3-7     Housing and Urban Development or United States Department of

 3-8     Veterans Affairs requirements for subdivision property to qualify

 3-9     for insured or guaranteed mortgage loans.

3-10           (b)  An amendment adopted under this section must:

3-11                 (1)  indicate that the amendment is adopted under

3-12     authority of this section by specifically referencing this section;

3-13                 (2)  be signed by a majority of the governing body; and

3-14                 (3)  be filed in the real property records of the

3-15     county in which the subdivision is located.

3-16           SECTION 6.  The importance of this legislation and the

3-17     crowded condition of the calendars in both houses create an

3-18     emergency and an imperative public necessity that the

3-19     constitutional rule requiring bills to be read on three several

3-20     days in each house be suspended, and this rule is hereby suspended,

3-21     and that this Act take effect and be in force from and after its

3-22     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 94 passed the Senate on

         March 11, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendments on May 15, 1997, by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 94 passed the House, with

         amendments, on May 13, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor