HBA-NLM H.J.R. 46 76(R) BILL ANALYSIS Office of House Bill AnalysisH.J.R. 46 By: Yarbrough Financial Institutions 4/11/1999 Introduced BACKGROUND AND PURPOSE 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 taxes, failure to pay a debt incurred to physically improve the property, and non-payment of a home equity loan. However, in a 1987 case (Homeowner' Association v. Harris, 736 S.W. 2nd 632), the Supreme Court ruled that homeowners' associations are able to place a lien and foreclose on a property for assessments. As proposed, H.J.R. 46 requires the submission to the voters of a constitutional amendment providing 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. 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 (c-1), as follows: (c-1) 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. Defines "dedicatory instrument" and "property owners' association." SECTION 2. Requires this proposed constitutional amendment to be submitted to the voters at an election to be held November 2, 1999. Sets forth the required language for the ballot.