Amend SB 1834 in SECTION 1 of the bill by striking added
Subsection (c), Section 51.008, Property Code (senate committee
printing, page 1, lines 30-35), and substituting the following:
(c) If a property owners' association authorizes the sale of
real property, the property owners' association shall establish a
minimum bid price and may not sell the property for less than the
minimum bid price. The minimum bid price shall be the greater of:
(1) the value of the property according to the most
recent appraisal by the appraisal district established for the
county in which the property is located, minus:
(A) the amount owing on any liens of record
against the property; and
(B) the amount of any taxes owing on the
property, whether or not the taxes are delinquent; or
(2) the amount owed on the debt for which the sale is
authorized plus any expenses expected to be attributed to the sale.
(d) In establishing the minimum bid price under Subsection
(c), the property owners' association may use any amount applicable
under Subsection (c) on or after the 20th day before the date the
property owners' association mails notice of sale to the property
owner.
(e) The property owners' association shall mail a
preforeclosure notice to the property owner not later than the 60th
day before the date the notice of sale under Subsection (d) is
mailed to the property owner. The preforeclosure notice must:
(1) inform the property owner that the property
owners' association:
(A) intends to foreclose the association's lien
on the property; and
(B) will establish a minimum bid price for the
foreclosure sale;
(2) request the property owner to provide documentary
evidence to the property owners' association regarding the
existence and amount of any lien on the property;
(3) state that if the requested documentary evidence
is provided on or before the 40th day after the date the notice is
mailed, the minimum bid price will be the greater of:
(A) the value of the property according to the
most recent appraisal by the appraisal district established for the
county in which the property is located, minus:
(i) the amount owing on any liens of record
against the property; and
(ii) the amount of any taxes owing on the
property, whether or not the taxes are delinquent; or
(B) the amount owed on the debt for which the
sale is authorized plus any expenses expected to be attributed to
the sale;
(4) state that if the property owner does not provide
the requested documentary evidence on or before the 40th day after
the date the notice is mailed or provides incomplete information
and there are any liens of record against the property, the
property owners' association may establish a minimum bid price that
is the amount owed for the debt for which the sale is authorized
plus any expenses expected to be attributed to the sale;
(5) provide the name and address of the person to whom
the requested documentary evidence may be provided; and
(6) state the amount the property owners' association
claims is owed on the debt for which the foreclosure sale will be
authorized and the amount the property owners' association will add
for expenses.
(f) The property owner has the burden of ensuring that any
documentary evidence reaches the person designated in the
preforeclosure notice within the period prescribed by Subsection
(e).
(g) The property owners' association has the burden of:
(1) checking the real property records of the county
in which all or part of the property is located to determine
whether a lien of record has been filed on the property; and
(2) obtaining a statement of the appraised value of
the property from the appraisal district established for the county
in which the property is located.
(h) If the real property to be sold under this section is
the principal residence of the property owner, not later than the
20th day after the date the preforeclosure notice is mailed, the
property owners' association shall make a reasonable attempt to
contact the property owner in person to advise the property owner
regarding the information required to be in the preforeclosure
notice. An attempt to contact the property owner must be made by a
member of the governing body of the property owners' association.
If no contact is made, the property owners' association must make
at least three attempts to contact the property owner by telephone
and three attempts to contact the owner in person at the owner's
residence. If the attempts to contact the property owner by
telephone and in person are not successful, a member of the
governing body of the property owners' association shall leave an
additional copy of the preforeclosure notice affixed to the front
door of the residence.
(i) If the property owners' association finds no liens of
record filed on the property to be sold, the minimum bid price is
the appraised value of the property according to the most recent
appraisal by the appraisal district established for the county in
which the property is located. If the property owners' association
finds a lien of record filed on the property and provides a
preforeclosure notice as prescribed by this section, and the
property owner fails to respond to the notice in the period
prescribed by Subsection (e):
(1) it is conclusively presumed that the amount owed
on the lien equals or exceeds the difference between the appraised
value of the property and the amount owed on the debt for which the
sale is authorized plus any expenses expected to be attributed to
the sale; and
(2) the minimum bid price may be established as the
amount owed on the debt for which the sale is authorized plus any
expenses expected to be attributed to the sale.
(j) A person does not have a cause of action against a
property owners' association for the property owners' association's
failure to establish a lower minimum bid price.
(k) The property owner has a cause of action against the
property owners' association for damages caused by the property
owners' association's failure to set a greater minimum bid price as
prescribed by this section. Damages under this subsection are
limited to the difference between the greater minimum bid price
that the property owners' association should have established under
this section and the amount owed on the debt for which the sale is
authorized plus the expenses of the sale. The property owner is
also entitled to recover reasonable attorney's fees.
(l) If no other bidder bids the minimum bid price, the
property owners' association may hold the property and must resell
the property for a price that equals or exceeds the minimum bid
price. If the property is held by the property owners' association
as provided by this subsection and the property was the principal
residence of the property owner at the time the preforeclosure
notice was mailed, the property owner may continue to reside on the
property until the closing on the resale of the property if all
mortgage or other lien payments are current and no taxes owed on
the property are delinquent.
(m) If the property owner continues to reside on the
property after the foreclosure sale, the property owners'
association may charge a reasonable rent to be deducted from the
amount owed the property owner at the time of the resale. If the
property owner does not pay all mortgage and other lien payments
and taxes when due, the property owners' association may evict the
property owner.
(n) When the property is sold to a buyer other than the
property owners' association, the proceeds shall be applied in the
following priority:
(1) expenses of the sale;
(2) the amount owed on the debt for which the sale was
authorized;
(3) any assessments that accrued against the property
after the sale was authorized;
(4) the remainder, if any, to be paid to the property
owner.
(o) Assessments continue to accrue against the property
after a foreclosure sale, regardless of who owns the property.
(p) If the property owner continues to live on the property
after a foreclosure sale as provided by Subsection (l), the
property owner is responsible for reasonable maintenance of the
property. The property owners' association is entitled to make an
inspection of the property at a reasonable time on or before the
10th day after the date of the foreclosure sale and once every 60
days thereafter. If a property owner does not reasonably maintain
the property in a condition as good as or better than the condition
of the property on the date of the foreclosure sale, the property
owners' association may make the needed repairs or maintenance and
deduct the reasonable cost of the repairs or maintenance from the
amount due the property owner at the time of resale.
(q) If the property is held by the property owners'
association as provided by Subsection (l) and the property is the
principal residence of the property owner at the time the
preforeclosure notice is mailed and the property owner is evicted
from the property, on or before the first anniversary of the date
the property owner moved from the property, the property owners'
association shall pay the property owner:
(1) the full amount due the property owner from a
resale; or
(2) if the property is not resold, the full amount
that would have been due the property owner if a resale had been
made for the minimum bid price.