By:  Wentworth, Hinojosa                                          S.B. No. 244
	(In the Senate - Filed January 25, 2005; February 3, 2005, 
read first time and referred to Committee on Intergovernmental 
Relations; February 24, 2005, reported favorably by the following 
vote:  Yeas 4, Nays 0; February 24, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to priority of payment relating to property owners' 
association assessments.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 209.009, Property Code, is amended to 
read as follows:   
	Sec. 209.009.  FORECLOSURE SALE PROHIBITED IN CERTAIN 
CIRCUMSTANCES.  (a)  A property owners' association may not 
foreclose a property owners' association's assessment lien if the 
debt securing the lien consists solely of:
		(1)  fines assessed by the association; or                                    
		(2)  attorney's fees incurred by the association solely 
associated with fines assessed by the association.
	(b)  Unless otherwise provided in writing by the property 
owner, a payment received by a property owners' association from 
the owner shall be applied to the owner's debt in the following 
order of priority:
		(1)  any delinquent assessment;                                        
		(2)  any current assessment;                                           
		(3)  any fines assessed by the association; and                        
		(4)  any attorney's fees incurred by the association 
solely associated with fines assessed by the association.
	SECTION 2.  This Act applies to a payment received by a 
property owners' association on or after the effective date of this 
Act.  A payment received before the effective date of this Act is 
governed by the law in effect when the payment was received, and the 
former law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.                           



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