By Bailey H.B. No. 707 77R1289 AJA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the purchase or lease of a residence purchased by a 1-3 property owners' association at the foreclosure sale of the 1-4 association's lien. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 202, Property Code, is amended by adding 1-7 Section 202.007 to read as follows: 1-8 Sec. 202.007. PURCHASE OR LEASE OF CERTAIN RESIDENTIAL 1-9 PROPERTY BY CERTAIN MEMBERS OF PROPERTY OWNERS' ASSOCIATION 1-10 PROHIBITED. (a) Except as provided by Subsection (b), a person may 1-11 not purchase or lease a residence or participate financially, as a 1-12 partner or otherwise, in the purchase or lease of a residence if: 1-13 (1) the residence was purchased by a property owners' 1-14 association at the foreclosure sale of the association's lien; and 1-15 (2) the person was a member of the governing body of 1-16 the association at the time of the foreclosure sale. 1-17 (b) A person described by Subsection (a) may purchase, 1-18 lease, or participate financially in the purchase or lease of a 1-19 residence if: 1-20 (1) the person purchases or leases the residence from 1-21 a person who purchased the residence after the foreclosure sale; 1-22 and 1-23 (2) the agreement to purchase or lease is entered into 1-24 on or after the third anniversary of the date the association 2-1 purchased the residence. 2-2 SECTION 2. This Act takes effect September 1, 2001, and 2-3 applies only to a residence purchased by a property owners' 2-4 association at the foreclosure sale of the association's lien on or 2-5 after that date.