HBA-TYH H.B. 1299 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1299 By: Yarbrough Financial Institutions 4/12/1999 Introduced BACKGROUND AND PURPOSE Homesteads in Texas have been protected since the Texas Homestead Act of 1839. Currently, the Texas Constitution specifies that a home cannot be foreclosed upon for any reason other than failure to pay the mortgage used to buy the home, failure to pay property tax, failure to pay a debt incurred to physically improve the property, and non-payment of a home equity loan. In 1987, the Texas Supreme Court created an additional situation in which homeowners' associations are able to place a lien and foreclose on a property for an obligation to pay property owners' association fees. H.B. 1299 prohibits an encumbrance being placed on a homestead property for an obligation to pay property owners' association fees. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 41.001, Property Code, by adding Subsection (d), as follows: (d) Provides that an obligation to pay property owners' association fees for maintenance and ownership of common facilities and services is not an encumbrance that may be properly fixed on or executed against homestead property. Provides that in this subsection, "property owners' association" has the meaning assigned by Section 202.001 (Definitions). SECTION 2. Makes application of this Act prospective. SECTION 3. Emergency clause. Effective date: upon passage.