By Danburg H.B. No. 1956
76R6304 PAM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the amendment or termination of restrictive covenants
1-3 affecting real property in certain historic neighborhoods.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The purpose of this legislation is to assist
1-6 certain historic neighborhoods for which historic neighborhood
1-7 preservation associations exist in promoting a common scheme for
1-8 preservation of historic property by providing protection from the
1-9 piecemeal amendment and termination and establishing procedures for
1-10 the comprehensive amendment and termination of restrictive
1-11 covenants applicable to individual properties located in historic
1-12 neighborhoods.
1-13 SECTION 2. Title 11, Property Code, is amended by adding
1-14 Chapter 207 to read as follows:
1-15 CHAPTER 207. AMENDMENT AND TERMINATION OF RESTRICTIVE COVENANTS
1-16 IN HISTORIC NEIGHBORHOODS
1-17 Sec. 207.001. DEFINITIONS. In this chapter:
1-18 (1) "Owner" and "real property records" have the
1-19 meanings assigned by Section 201.003.
1-20 (2) "Dedicatory instrument," "property owners'
1-21 association," "petition," and "restrictive covenant" have the
1-22 meanings assigned by Section 202.001.
1-23 (3) "Regular assessment" and "special assessment" have
1-24 the meanings assigned by Section 204.001.
2-1 (4) "Apartment complex" has the meaning assigned by
2-2 Section 204.002(c).
2-3 (5) "Historic neighborhood" means:
2-4 (A) an area incorporated as a separate
2-5 municipality before 1900 and subsequently annexed into another
2-6 municipality;
2-7 (B) an area described by a municipal map or
2-8 subdivision plat filed in real property records of the county in
2-9 which the area is located before 1900; or
2-10 (C) an area designated as a historic district or
2-11 similar designation by the municipality in which the area is
2-12 located, the Texas Historical Commission, or the National Register
2-13 of Historic Places.
2-14 Sec. 207.002. APPLICABILITY. (a) This chapter applies only
2-15 to a historic neighborhood that is located in whole or in part in a
2-16 municipality with a population of 1.6 million or more located in a
2-17 county with a population of 2.8 million or more.
2-18 (b) This chapter applies to a restrictive covenant
2-19 regardless of the date on which it was created.
2-20 (c) This chapter applies to property in the area of a
2-21 historic neighborhood that is zoned for or that contains a
2-22 commercial structure, an industrial structure, an apartment
2-23 complex, or a condominium development covered by Title 7 only if
2-24 the owner of the property signed a restrictive covenant that
2-25 includes the property in a common scheme for preservation of
2-26 historic property as described by Section 207.004.
2-27 Sec. 207.003. HISTORIC NEIGHBORHOOD PRESERVATION
3-1 ASSOCIATION. (a) A historic neighborhood preservation association
3-2 must:
3-3 (1) be a Texas nonprofit corporation or limited
3-4 liability company organized, in part, to encourage the preservation
3-5 of property in a historic neighborhood; and
3-6 (2) open its membership to all owners of property in
3-7 the historic neighborhood.
3-8 (b) A historic neighborhood preservation association may be
3-9 composed of only a portion of the owners of property in the
3-10 historic neighborhood.
3-11 (c) A historic neighborhood preservation association may be
3-12 a property owners' association or an organization that is qualified
3-13 as a charitable organization under Section 501(c)(3) of the
3-14 Internal Revenue Code of 1986.
3-15 (d) A statement in the articles of incorporation or
3-16 association, bylaws, regulations, or operating agreement of the
3-17 historic neighborhood preservation association is prima facie
3-18 evidence of compliance with Subsection (a).
3-19 Sec. 207.004. COMMON SCHEME FOR PRESERVATION OF PROPERTY IN
3-20 HISTORIC NEIGHBORHOOD. (a) A common scheme for preservation of
3-21 historic property exists in a historic neighborhood if:
3-22 (1) the restrictive covenants were created by
3-23 individual dedicatory instruments signed by an owner of one or more
3-24 separately owned parcels or tracts in the historic neighborhood;
3-25 and
3-26 (2) the restrictive covenants authorize a historic
3-27 neighborhood preservation association to enforce the restrictive
4-1 covenants.
4-2 (b) A common scheme for preservation of historic property
4-3 does not include property that is not subject to restrictive
4-4 covenants that authorize a historic neighborhood preservation
4-5 association to enforce the restrictive covenants.
4-6 (c) Restrictive covenants included in a common scheme for
4-7 preservation of historic property exist for the benefit of all
4-8 owners of property subject to the common scheme for preservation as
4-9 if each owner were referenced in each dedicatory instrument.
4-10 (d) Each owner of property subject to a common scheme for
4-11 preservation of historic property may enforce restrictive covenants
4-12 on other property included in the common scheme for preservation.
4-13 Sec. 207.005. AMENDMENT OR TERMINATION OF RESTRICTIVE
4-14 COVENANTS UNDER COMMON SCHEME FOR PRESERVATION. (a) A restrictive
4-15 covenant applicable to property that is included in a common scheme
4-16 for preservation of historic property may not be amended or
4-17 terminated except as provided by this section.
4-18 (b) A historic neighborhood preservation association may
4-19 approve and submit to a vote of the owners of property that is
4-20 included in a common scheme for preservation of historic property
4-21 an amendment of the restrictive covenants or the termination of all
4-22 or part of the restrictive covenants included in the common scheme
4-23 for preservation of historic property.
4-24 (c) The amendment or termination of a restrictive covenant
4-25 is effective and applies to each separately owned parcel or tract
4-26 subject to the common scheme for preservation of historic property
4-27 if the owners of at least 75 percent of the parcels or tracts who
5-1 vote on the issue in accordance with Section 207.006 vote in favor
5-2 of the amendment or termination of the restrictive covenant.
5-3 (d) A document certifying that 75 percent of the owners
5-4 voting on the issue approved the amendment or termination of the
5-5 restrictive covenant must be recorded by the historic neighborhood
5-6 preservation association in the real property records of the county
5-7 in which the historic neighborhood is located. The document is
5-8 prima facie evidence that the requisite percentage of votes was
5-9 attained and the required formalities for the action were taken.
5-10 Sec. 207.006. METHOD OF VOTING. (a) An amendment or
5-11 termination of a restrictive covenant must be voted on:
5-12 (1) by a written ballot that states the substance of
5-13 the amendment or termination of the restrictive covenant and
5-14 specifies the date by which the historic neighborhood preservation
5-15 association must receive a ballot for the ballot to be counted;
5-16 (2) at a meeting of the historic neighborhood
5-17 preservation association;
5-18 (3) by circulation of a petition by the historic
5-19 neighborhood preservation association or a person authorized by the
5-20 historic neighborhood preservation association; or
5-21 (4) by any combination of methods described by this
5-22 subsection.
5-23 (b) If the vote occurs at a meeting of the historic
5-24 neighborhood preservation association under Subsection (a)(2), the
5-25 historic neighborhood preservation association shall:
5-26 (1) before the meeting, deliver written notice of the
5-27 meeting stating the purpose of the meeting to each owner of
6-1 property subject to the common scheme for preservation of historic
6-2 property; and
6-3 (2) provide each owner of property subject to the
6-4 common scheme for preservation with the opportunity to appear and
6-5 vote at the meeting.
6-6 (c) The historic neighborhood preservation association shall
6-7 provide for the mailing to each owner, as applicable:
6-8 (1) the ballot under Subsection (a)(1);
6-9 (2) notice of the meeting under Subsection (a)(2); or
6-10 (3) the petition under Subsection (a)(3).
6-11 (d) The vote of multiple owners of a property may be
6-12 reflected by signature or vote of one of the owners.
6-13 (e) The historic neighborhood preservation association shall
6-14 record a copy of the ballot or petition, as applicable, in the real
6-15 property records of the county in which the historic neighborhood
6-16 is located before the vote of the owners.
6-17 Sec. 207.007. REGULAR AND SPECIAL ASSESSMENTS. The
6-18 procedure established by this chapter for the amendment of
6-19 restrictive covenants may not be used to establish a regular or
6-20 special assessment.
6-21 Sec. 207.008. BUILDING LINES. The procedure established by
6-22 this chapter for the amendment of restrictive covenants may not be
6-23 used to modify a building line established by a restrictive
6-24 covenant, municipal map, or subdivision plat.
6-25 Sec. 207.009. DEFENSE TO ENFORCEMENT OF RESTRICTIVE
6-26 COVENANT. An owner may not assert as a defense to the enforcement
6-27 of a restrictive covenant that is part of a common scheme for
7-1 preservation of historic property that the owner or a predecessor
7-2 in title signed a blank signature page or similar procedural defect
7-3 if the signature page was attached to a dedicatory instrument
7-4 adopted by a historic neighborhood preservation association and:
7-5 (1) the dedicatory instrument has been recorded for
7-6 more than two years; or
7-7 (2) the restrictive covenant is referenced in the
7-8 owner's title insurance policy obtained by the owner when the
7-9 property was purchased.
7-10 SECTION 3. The importance of this legislation and the
7-11 crowded condition of the calendars in both houses create an
7-12 emergency and an imperative public necessity that the
7-13 constitutional rule requiring bills to be read on three several
7-14 days in each house be suspended, and this rule is hereby suspended,
7-15 and that this Act take effect and be in force from and after its
7-16 passage, and it is so enacted.