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79R7996 AJA-F
By: Davis of Harris H.B. No. 2539
A BILL TO BE ENTITLED
AN ACT
relating to permitting a community association to increase regular
assessments on a majority vote of affected property owners.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 206, Property Code, is
amended to read as follows:
CHAPTER 206. EXTENSION OF OR AMENDMENT TO RESTRICTIONS IMPOSING
REGULAR ASSESSMENTS IN CERTAIN SUBDIVISIONS
SECTION 2. Sections 206.003 and 206.004, Property Code, are
amended to read as follows:
Sec. 206.003. EXTENSION OF OR AMENDMENT TO RESTRICTION
IMPOSING REGULAR ASSESSMENT. (a) A community association may
approve and submit to a vote of the owners:
(1) an extension of a restriction imposing a regular
assessment; or
(2) an amendment to an existing restriction that
increases the amount of a regular assessment imposed under the
restriction on residential property, commercial property, or all
real property in the subdivision.
(b) The extension of a restriction imposing a regular
assessment is approved if a majority of the owners in the
subdivision who vote on the issue in accordance with Section
206.004 vote in favor of the extension.
[(c)] An extension approved in accordance with this section
and Section 206.004 applies to all real property in the
subdivision, including residential and commercial property.
(c) An amendment of a restriction under Subsection (a)(2)
may be submitted to a vote of only those owners of property in the
subdivision to whom the proposed increase would apply. The
amendment of the restriction is approved if a majority of those
owners who vote on the issue in accordance with Section 206.004 vote
in favor of the amendment.
(d) A document certifying that a majority of the affected
owners voting on the issue approved the extension of or amendment to
the restriction must be recorded in the real property records of the
county in which the subdivision is located.
Sec. 206.004. METHOD OF VOTING. (a) An extension of or
amendment to a restriction submitted to a vote of the owners under
Section 206.003(a) [that imposes a regular assessment] must be
voted on:
(1) by a written ballot that states the substance of
the amendment extending the restriction or increasing the regular
assessment and specifies the date by which the community
association must receive a ballot for the ballot to be counted; or
(2) at an election held by the community association
[a meeting of the property owners in the subdivision].
(b) The community association shall provide for mailing to
each owner eligible to vote in the election, as applicable:
(1) the ballot under Subsection (a)(1); or
(2) notice of the election [meeting] under Subsection
(a)(2) that states the purpose of the election [meeting].
(c) [In conjunction with a vote by ballot or at a meeting
under Subsection (a), the community association may provide for
circulation of a petition in the subdivision.
[(d)] The vote of multiple owners of a property may be
reflected by the signature or vote of one of the owners.
(d) [(e)] The community association shall record a copy of
the ballot [or petition] in the real property records in the county
in which the subdivision is located prior to submission of the
extension or amendment to a vote of the owners.
SECTION 3. The change in law made by this Act applies only
to an amendment to an existing restriction described by Section
206.003, Property Code, submitted to a vote of the property owners
by a community association on or after the effective date of this
Act. An amendment to a restriction submitted to a vote of the
property owners by a community association before the effective
date of this Act is governed by the law in effect at the time the
amendment was submitted, and the former law is continued in effect
for that purpose.
SECTION 4. This Act takes effect September 1, 2005.