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.