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Amend HB 3674 by adding the following appropriately numbered
SECTIONS and renumbering subsequent SECTIONS accordingly:
SECTION __. Section 201.001(b), Property Code, is amended
to read as follows:
(b) The provisions of this chapter relating to extension of
the term of, renewal of, or creation of restrictions do not apply to
a subdivision if, by the express terms of the instrument creating
existing restrictions, some or all of the restrictions affecting
the real property within the subdivision provide:
(1) for automatic extensions of the term of the
restrictions for an indefinite number of successive specified
periods of at least 10 years subject to a right of waiver or
termination, in whole or in part, by a specified percentage of less
than 50 percent plus one of the owners of real property interests in
the subdivision, as set forth in the instrument creating the
restrictions; or
(2) for an indefinite number of successive extensions
of at least 10 years of the term of the restrictions by written and
filed agreement of a specified percentage of less than 50 percent
plus one of the owners of real property interests in the
subdivision, as authorized by the instrument creating the
restrictions.
SECTION __. Section 201.004(a), Property Code, is amended
to read as follows:
(a) A petition may be filed under this chapter to:
(1) extend or renew an unexpired restriction;
(2) [, to] create a restriction;
(3) [, or to] add to or modify an existing restriction;
or
(4) modify an existing provision in an instrument
creating a restriction that provides for extension of those
restrictions.
SECTION __. Section 204.003, Property Code, is amended to
read as follows:
Sec. 204.003. APPLICATION OF PROVISIONS OF RESTRICTIVE
COVENANTS [PREVAIL] IN CERTAIN CIRCUMSTANCES. (a) An express
designation in a document creating restrictions applicable to a
residential real estate subdivision that provides for the extension
of, addition to, or modification of existing restrictions by a
designated number of owners of real property in the subdivision
prevails over the provisions of this chapter.
(b) A document creating restrictions that provides for the
extension or renewal of restrictions and does not provide for
modification or amendment of restrictions may be modified under
this chapter, including modifying the provision that provides for
extension or renewal of the restrictions.