This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.
78R1733 QS-F
By: Berman H.B. No. 468
A BILL TO BE ENTITLED
AN ACT
relating to the extension, reinstatement, or modification of or
addition to residential restrictive covenants.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 11, Property Code, is amended by adding
Chapter 210 to read as follows:
CHAPTER 210. EXTENSION, REINSTATEMENT, OR MODIFICATION OF OR
ADDITION TO RESIDENTIAL RESTRICTIVE COVENANTS
Sec. 210.001. DEFINITIONS. In this chapter:
(1) "Dedicatory instrument" has the meaning assigned
by Section 202.001.
(2) "Owner" has the meaning assigned by Section
201.003.
(3) "Property owners' association" has the meaning
assigned by Section 202.001.
(4) "Residential real estate subdivision" or
"subdivision" has the meaning assigned by Section 201.003.
(5) "Restrictions" has the meaning assigned by Section
201.003.
Sec. 210.002. APPLICABILITY OF CHAPTER. This chapter
applies to all residential real estate subdivisions in this state
except subdivisions governed by Chapter 201 or 204.
Sec. 210.003. FINDINGS AND PURPOSE. (a) The legislature
finds that:
(1) the pending expiration of, and the inability of
owners to extend, reinstate, modify or add to, property
restrictions applicable to certain real estate subdivisions in this
state creates uncertainty in living conditions and discourages
investments in those subdivisions;
(2) owners of land in affected subdivisions are
reluctant or unable to provide proper maintenance, upkeep, and
repairs of structures because of the pending expiration of
restrictions;
(3) financial institutions cannot or will not lend
money for investments, maintenance, upkeep, or repairs in affected
subdivisions;
(4) these conditions cause dilapidation of housing and
other structures and cause unhealthful and unsanitary conditions in
affected subdivisions, contrary to the health, safety, and welfare
of the public; and
(5) the existence of race-related covenants in
restrictions, regardless of their unenforceability, is offensive,
repugnant, and harmful to members of racial or ethnic minority
groups and public policy requires that those covenants be removed.
(b) The purpose of this chapter is to provide a procedure
for extending, reinstating, modifying, or adding to residential
restrictions and to provide for the removal of any restriction or
other provision relating to race, religion, or national origin that
is void and unenforceable under either the United States
Constitution or Section 5.026.
Sec. 210.004. EXTENSION, REINSTATEMENT, OR MODIFICATION OF
OR ADDITION TO RESTRICTIONS. (a) A property owners' association,
or a petition committee comprised of at least three owners, may
circulate a petition proposing to extend, reinstate, modify, or add
to existing restrictions.
(b) A vote on a proposal may be taken by petition, at a
meeting, or by a combination of both methods, as determined by the
property owners' association or petition committee.
(c) An extension, reinstatement, or modification of or an
addition to existing restrictions that is approved by the owners
becomes effective when the resolution required by Section 210.008
is filed as a dedicatory instrument with the county clerk of each
county in which the subdivision is located.
(d) An extension, reinstatement, or modification of or
addition to existing restrictions that is approved by the owners is
binding on all properties in the subdivision.
Sec. 210.005. PETITION PROCEDURE. (a) The property
owners' association or petition committee shall deliver to each
record owner of property in the subdivision a petition describing
the exact terms of the proposed extension, reinstatement, or
modification of or addition to the existing restrictions.
(b) If the vote will be taken by petition, the petition must
state the date by which a response must be received in order to be
counted. If the vote will be taken at a meeting, the petition must
state the date, time, and location of the meeting.
(c) The petition may allow each owner to indicate approval
or disapproval of:
(1) the entire proposal; or
(2) specific provisions of the proposal.
(d) Separate signature pages may be circulated if the
proposed extension, reinstatement, modification, or addition is
stated fully or referenced on each signature page. A reference may
be made by the following or substantially similar wording: "We the
undersigned owners of property in the __________ Subdivision
indicate by our signatures on this document our approval or
disapproval of the proposal(s) circulated by __________ on or about
[date] to [extend, reinstate, modify, or add to] our restrictive
covenants. We acknowledge that we have fully reviewed the
proposal(s)."
(e) The petition may be hand-delivered to a residence in the
subdivision or sent by regular mail to the owner's last known
mailing address as reflected in the ownership records maintained by
the property owners' association.
(f) The signature of an owner on the petition or an owner's
appearance at a meeting to vote on the proposal conclusively
establishes that the owner received the petition.
Sec. 210.006. VOTE ON PROPOSAL. (a) If the petition allows
owners to indicate only approval or disapproval of the entire
proposal, the proposal is adopted if owners of at least 60 percent
of the real property in the subdivision vote in favor of the
proposal. If the petition allows owners to indicate approval or
disapproval of specific provisions of the proposal, a provision is
adopted if owners of at least 60 percent of the real property in the
subdivision vote in favor of the provision.
(b) The property owners' association or petition committee
shall exclude votes by lienholders, contract purchasers, and owners
of mineral interests.
(c) The approval or disapproval of multiple owners of a
property may be reflected by the signature or vote of a single
co-owner.
(d) An owner is considered to have cast a vote if the owner:
(1) signs the petition indicating approval or
disapproval of the proposal or one or more specific provisions of
the proposal; or
(2) appears at the meeting and votes for or against the
proposal or specific provisions of the proposal.
(e) The property owners' association or petition committee
may only count a vote cast by petition if the association or
committee receives the vote before the deadline stated in the
petition.
(f) An owner may not vote by proxy.
Sec. 210.007. SUBDIVISION CONSISTING OF MULTIPLE SECTIONS.
If a subdivision consisting of multiple sections, each with its own
restrictions, is represented by a single property owners'
association, a proposal or specific provision of a proposal is
adopted if owners of a least 60 percent of the total number of
properties in the subdivision vote in favor of the proposal or
provision.
Sec. 210.008. RESOLUTION CERTIFYING RESULTS OF VOTE. (a)
The property owners' association or petition committee shall
certify the results of a vote under this chapter by a written
resolution specifying the number of votes for and against the
proposal, or for and against each provision of the proposal, and
shall also certify that the petition was delivered to each record
owner of property in the subdivision as required by Section
210.005.
(b) The association or committee shall attach to the
resolution a statement of the exact terms of the proposed
extension, reinstatement, or modification of or addition to the
existing restrictions.
(c) The association or committee shall make the resolution,
petition, and any signature pages available to any owner on
request.
Sec. 210.009. ADDITIONAL PROCEDURES. The procedures
provided by this chapter are in addition to any procedures provided
in a subdivision's restrictions for the extension, reinstatement,
or modification of or addition to existing restrictions. The
property owners' association or petition committee may propose the
extension, reinstatement, or modification of or addition to
restrictions either in accordance with the procedures provided by
the subdivision's restrictions or the procedures provided by this
chapter.
SECTION 2. This Act takes effect September 1, 2003.