HBA-TYH H.J.R. 37 76(R) BILL ANALYSIS Office of House Bill AnalysisH.J.R. 37 By: Dutton Financial Institutions 3/31/1999 Introduced BACKGROUND AND PURPOSE Recently, there have been some instances in which Texas homeowners associations have abused their powers, including their ability to foreclose on private property against members who fail to pay certain fees or citations. As proposed, H.J.R. 37 requires the submission to the voters of a constitutional amendment permitting an encumbrance to be fixed on homestead property for property owners' association fees, without permitting the forced sale of the homestead. 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 50, Article XVI, Texas Constitution, by adding Subsection (t), as follows: (t) Provides that an obligation to pay property owners' association fees for maintenance and ownership of common facilities and services is a debt for which an encumbrance may be fixed on homestead property. Provides that the homestead is protected from forced sale for the payment of a debt described by this subsection. SECTION 2. Requires this proposed constitutional amendment be submitted to the voters at an election to be held November 2, 1999. Sets forth the required language for the ballot.