By Ellis S.B. No. 1864
75R5544 PAM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers of certain property owners' associations.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 204.008, Property Code, is amended to
1-5 read as follows:
1-6 Sec. 204.008. METHOD OF ADOPTION. An extension, addition
1-7 to, or modification of restrictions proposed by a property owners'
1-8 association may be adopted:
1-9 (1) by a written ballot that states the substance of
1-10 the amendment and specifies the date by which a ballot must be
1-11 received to be counted;
1-12 (2) at a meeting of the members represented by the
1-13 property owners' association if written notice of the meeting
1-14 stating the purpose of the meeting is delivered to each owner of
1-15 property in the subdivision not later than the 10th day before the
1-16 date the meeting is scheduled;
1-17 (3) by door-to-door circulation of a petition by the
1-18 property owners' association or a person authorized by the property
1-19 owners' association;
1-20 (4) by a method permitted by the existing
1-21 restrictions; or
1-22 (5) by a combination of the methods described by this
1-23 section.
1-24 SECTION 2. Section 204.010(a), Property Code, is amended to
2-1 read as follows:
2-2 (a) Unless otherwise provided by the restrictions or the
2-3 association's articles of incorporation or bylaws, the property
2-4 owners' association, acting through its board of directors or
2-5 trustees, may:
2-6 (1) adopt and amend bylaws;
2-7 (2) adopt and amend budgets for revenues,
2-8 expenditures, and reserves and collect regular assessments or
2-9 special assessments for common expenses from property owners;
2-10 (3) hire and terminate managing agents and other
2-11 employees, agents, and independent contractors;
2-12 (4) institute, defend, intervene in, settle, or
2-13 compromise litigation or administrative proceedings on matters
2-14 affecting the subdivision;
2-15 (5) make contracts and incur liabilities relating to
2-16 the operation of the subdivision and the property owners'
2-17 association;
2-18 (6) regulate the use, maintenance, repair,
2-19 replacement, modification, and appearance of the common areas of
2-20 the subdivision;
2-21 (7) make additional improvements to be included as a
2-22 part of the common area;
2-23 (8) grant easements, leases, licenses, and concessions
2-24 through or over the common area;
2-25 [(9) impose and receive payments, fees, or charges for
2-26 the use, rental, or operation of the common area and for services
2-27 provided to property owners;]
3-1 (9) [(10)] impose reasonable interest, late charges,
3-2 and, if applicable, returned check charges for late payments of
3-3 regular assessments or special assessments;
3-4 [(11) if notice and an opportunity to be heard are
3-5 given, collect reimbursement of actual attorney's fees and other
3-6 reasonable costs incurred by the property owners' association
3-7 relating to violations of the subdivision's restrictions or the
3-8 property owners' association's bylaws and rules;]
3-9 [(12) charge costs to an owner's assessment account
3-10 and collect the costs in any manner provided in the restrictions
3-11 for the collection of assessments;]
3-12 (10) [(13)] adopt and amend rules regulating the
3-13 collection of delinquent assessments and the application of
3-14 payments;
3-15 (11) [(14)] impose reasonable charges for preparing,
3-16 recording, or copying amendments to the restrictions, resale
3-17 certificates, or statements of unpaid assessments;
3-18 (12) [(15)] purchase insurance and fidelity bonds,
3-19 including directors' and officers' liability insurance, that the
3-20 board considers appropriate or necessary;
3-21 [(16) if the restrictions allow for an annual increase
3-22 in the maximum regular assessment without a vote of the membership,
3-23 assess the increase annually or accumulate and assess the increase
3-24 after a number of years;]
3-25 (13) [(17)] subject to the requirements of the Texas
3-26 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
3-27 Texas Civil Statutes) and by majority vote of its board of
4-1 directors, indemnify a director or officer of the property owners'
4-2 association who was, is, or may be made a named defendant or
4-3 respondent in a proceeding because the person is or was a director;
4-4 (14) [(18)] if the restrictions vest the architectural
4-5 control authority in the property owners' association or if the
4-6 authority is vested in the property owners' association under
4-7 Section 204.011:
4-8 (A) implement written architectural control
4-9 guidelines for its own use or record the guidelines in the real
4-10 property records of the applicable county; and
4-11 (B) modify the guidelines as the needs of the
4-12 subdivision change;
4-13 (15) [(19)] exercise other powers conferred by the
4-14 restrictions, its articles of incorporation, or its bylaws;
4-15 (16) [(20)] exercise other powers that may be
4-16 exercised in this state by a corporation of the same type as the
4-17 property owners' association; and
4-18 (17) [(21)] exercise other powers necessary and proper
4-19 for the governance and operation of the property owners'
4-20 association.
4-21 SECTION 3. This Act takes effect September 1, 1997.
4-22 SECTION 4. The importance of this legislation and the
4-23 crowded condition of the calendars in both houses create an
4-24 emergency and an imperative public necessity that the
4-25 constitutional rule requiring bills to be read on three several
4-26 days in each house be suspended, and this rule is hereby suspended.