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.