SRC-ARR H.B. 1956 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1956
76R6304 PAM-FBy: Danburg (Gallegos)
Intergovernmental Relations
5/11/1999
Engrossed


DIGEST 

Houston Heights was established in 1891 and incorporated as an independent
village under Texas law in 1896. No restrictive covenants were included in
the initial subdivision map or individual deeds. In 1918, Houston Heights
was annexed by the City of Houston, which has no zoning. The Houston
Heights Association was incorporated as a Texas nonprofit corporation
dedicated to preserve the historic character of Houston Heights. H.B. 1956
would authorize the amendment or termination of restrictive covenants
affecting real property in certain historic neighborhoods.  

PURPOSE

As proposed, H.B. 1956 authorizes  the amendment or termination of
restrictive covenants affecting real property in certain historic
neighborhoods.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Sets forth the legislative purpose of this bill. 

SECTION 2. Amends Title 11, Property Code, by adding Chapter 207, as
follows: 

CHAPTER 207. AMENDMENT AND TERMINATION OF RESTRICTIVE COVENANTS IN HISTORIC
NEIGHBORHOODS 

Sec. 207.001. DEFINITIONS. Defines "owner," "real property," "dedicatory
instrument," "property owners' association," "petition," "restrictive
covenant," "regular assessment," "special assessment," "apartment complex,"
and "historic neighborhood."  

Sec. 207.002. APPLICABILITY. Provides that this chapter applies only to a
historic neighborhood that is located in whole or in part in a municipality
with a population of 1.6 million or more located in a county with a
population of 2.8 million or more. Provides that this chapter applies to a
restrictive covenant regardless of the date on which it was created.
Provides that this chapter applies to property in the area of a historic
neighborhood that is zoned for or that contains certain structures.  

Sec. 207.003. HISTORIC NEIGHBORHOOD PRESERVATION ASSOCIATION. Requires a
historic neighborhood preservation association (association) to take
certain action. Authorizes an association to be composed of only a portion
of the owners of property in the historic neighborhood. Authorizes the
association to be a property owners' association or an organization that is
qualified as a charitable organization under Section 501(c)(3) or the
International Revenue Code of 1986. Provides that a statement in the
articles of incorporation or association, bylaws, regulations, or operating
agreement of the historic neighborhood preservation association is prima
facie evidence of compliance with Subsection (a). 

Sec. 207.004. COMMON SCHEME FOR PRESERVATION OF PROPERTY IN HISTORIC
NEIGHBORHOOD. Provides that a common scheme for preservation of  historic
property exists in a historic neighborhood if certain conditions exist.
Provides that a common scheme for preservation of historic property does
not include property that is not subject to restrictive covenants that
authorize a historic neighborhood preservation association to enforce the
restrictive covenants. Provides that restrictive covenants included in a
common scheme for preservation of historic property exist for the benefit
of all owners of property subject to the common scheme for preservation as
if each owner were referenced in each dedicatory instrument. Authorizes
each owner of property  subject to a common scheme for preservation of
historic property to enforce restrictive covenants on other property
included in the common scheme for preservation.  

Sec. 207.005. AMENDMENT OR TERMINATION OF RESTRICTIVE COVENANTS UNDER
COMMON SCHEME FOR PRESERVATION. Prohibits a restrictive covenant applicable
to property that is included in a common scheme for preservation of
historic property from being amended or terminated except as provided by
this section. Authorizes an association to approve and submit to a vote of
the owners of property that is included in a common scheme for preservation
of historic property an amendment of the restrictive covenants included in
the common scheme for preservation of historic property. Provides that the
amendment or termination of a restrictive covenant is effective and applies
to each separately owned parcel or tract subject to the common scheme for
preservation of historic property if the owners of at least 75 percent of
the parcels or tracts who vote on the issue in accordance with Section
207.006 vote in favor of the amendment or termination of the restrictive
covenant. Provides that a document certifying that 75 percent of the owners
voting on the issue approved the amendment or termination of the
restrictive covenant to be recorded by the association in the real property
records of the county in which the association in the real property records
of the county in which the historic neighborhood is located. Provides that
the document is prima facie evidence that the requisite percentage of votes
was attained and the required formalities for the action were taken.  

Sec. 207.006. METHOD OF VOTING. Requires an amendment or termination of a
restrictive covenant to be voted on by certain methods. Requires the
association to take certain action, if the vote occurs at a meeting of the
association under Subsection (a)(2). Requires the association to provide
for the mailing to each owner, as applicable certain items. Authorizes the
vote of multiple owners of a property to be reflected by signature or vote
of one of the owners. Requires the association to record a copy of the
ballot or petition, as applicable, in the real property records of the
county in which the historic neighborhood is located before the vote of the
owners.  

Sec. 207.007. REGULAR AND SPECIAL ASSESSMENTS. Prohibits the procedure
established by this chapter for the amendment of restrictive covenants from
being used to establish a regular or special assessment.   

Sec. 207.008. BUILDING LINES. Prohibits the procedures established by this
chapter for the amendment of restrictive covenants from being used to
modify a building line established by a restrictive covenant, municipal
map, or subdivision plat.  

Sec. 207.009. DEFENSE TO ENFORCEMENT OF RESTRICTIVE COVENANT. Prohibits an
owner from asserting as a defense to the enforcement of restrictive
covenant that is part of a common scheme for preservation of historic
property that the owner or a predecessor in title signed a blank signature
page or similar procedural defect if the signature page was attached to a
dedicatory instrument adopted by a association and certain action was
taken. 

SECTION 3. Emergency clause.
                      Effective date: upon passage.