By Bailey H.B. No. 2370 76R7683 PAM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to notice and hearing requirements relating to foreclosure 1-3 of real property under a property owners' association lien. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 51, Property Code, is amended by adding 1-6 Section 51.0021 to read as follows: 1-7 Sec. 51.0021. NOTICE AND HEARING REQUIREMENTS FOR SALE OF 1-8 REAL PROPERTY UNDER PROPERTY OWNERS' ASSOCIATION LIEN. (a) The 1-9 notice of sale required under Section 51.002(b)(3) for the sale of 1-10 real property under a power of sale conferred by a property owners' 1-11 association lien must be provided to each debtor in English and in 1-12 Spanish. 1-13 (b) Not later than the 21st day before the date of a sale 1-14 under Section 51.002 of real property under a power of sale 1-15 conferred by a property owners' association lien, the property 1-16 owners' association shall hold a hearing at which the debtor may 1-17 appear and make a statement regarding the indebtedness secured by 1-18 the real property that is the subject of the foreclosure 1-19 proceeding. Not later than the 10th day before the date of a 1-20 hearing under this subsection, the property owners' association 1-21 shall serve written notice of the hearing in English and in Spanish 1-22 on each debtor who, according to the records of the property 1-23 owners' association, is obligated to pay the debt. 1-24 (c) If at the hearing under Subsection (b) the property 2-1 owners' association finds that the debtor's failure to pay the 2-2 indebtedness is the result of financial circumstances, the property 2-3 owners' association shall allow the debtor a reasonable period, not 2-4 to exceed two years, in which to make payments to discharge the 2-5 indebtedness. 2-6 SECTION 2. (a) This Act takes effect September 1, 1999. 2-7 (b) The change in law made by this Act applies only to a 2-8 sale of real property under a power of sale conferred by a property 2-9 owners' association lien that occurs on or after October 1, 1999. 2-10 (c) A sale of real property under a power of sale conferred 2-11 by a property owners' association lien that occurs before October 2-12 1, 1999, is governed by the law in effect immediately preceding the 2-13 effective date of this Act, and the former law is continued in 2-14 effect for that purpose. 2-15 SECTION 3. The importance of this legislation and the 2-16 crowded condition of the calendars in both houses create an 2-17 emergency and an imperative public necessity that the 2-18 constitutional rule requiring bills to be read on three several 2-19 days in each house be suspended, and this rule is hereby suspended.