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                                  * * * * *