1-1 By: Lindsay S.B. No. 1834 1-2 (In the Senate - Filed May 2, 2001; May 3, 2001, read first 1-3 time and referred to Committee on Intergovernmental Relations; 1-4 May 7, 2001, reported favorably by the following vote: Yeas 5, 1-5 Nays 0; May 7, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to reimbursements to property owners following foreclosure 1-9 sales by property owners' associations. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Chapter 51, Property Code, is amended by adding 1-12 Section 51.008 to read as follows: 1-13 Sec. 51.008. REIMBURSEMENT FOLLOWING FORECLOSURE OF LIEN FOR 1-14 NONPAYMENT OF ASSESSMENTS. (a) In this section: 1-15 (1) "Assessment" means a regular assessment or special 1-16 assessment as defined by Section 204.001. 1-17 (2) "Property owners' association" means an 1-18 incorporated or unincorporated association that: 1-19 (A) is designated as the representative of the 1-20 owners of property in a residential subdivision; 1-21 (B) has a membership primarily consisting of the 1-22 owners of the property covered by the dedicatory instrument for the 1-23 residential subdivision; and 1-24 (C) manages or regulates the residential 1-25 subdivision for the benefit of the owners of property in the 1-26 residential subdivision. 1-27 (b) This section applies to a property owners' association 1-28 that forecloses a lien on real property to secure payment of 1-29 assessments due the association by the property owner. 1-30 (c) If a property owners' association authorizes the sale of 1-31 property for a price less than the value of the property according 1-32 to the most recent appraisal by the local appraisal district, the 1-33 property owners' association shall reimburse the property owner for 1-34 the difference between the sale price and the value determined by 1-35 the appraisal district. 1-36 SECTION 2. This Act applies to a foreclosure sale conducted 1-37 on or after January 1, 2001. 1-38 SECTION 3. This Act takes effect immediately if it receives 1-39 a vote of two-thirds of all the members elected to each house, as 1-40 provided by Section 39, Article III, Texas Constitution. If this 1-41 Act does not receive the vote necessary for immediate effect, this 1-42 Act takes effect September 1, 2001. 1-43 * * * * *