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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of property owners' associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 209.006, Property Code, is amended to |
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read as follows: |
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Sec. 209.006. NOTICE REQUIRED BEFORE ENFORCEMENT ACTION. |
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(a) Before a property owners' association may suspend an owner's |
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right to use a common area, file a suit against an owner [other than
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a suit to collect a regular or special assessment or foreclose under
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an association's lien], charge an owner for property damage, or |
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levy a fine for a violation of the restrictions, [or] bylaws, or |
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rules of the association, the association or its agent must give |
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written notice to the owner, in English and Spanish, by certified |
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mail, return receipt requested. |
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(b) The notice must: |
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(1) describe the violation or property damage that is |
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the basis for the suspension, suit, action, charge, or fine and |
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state any amount due the association from the owner; and |
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(2) inform the owner that: |
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(A) the owner[:
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[(A)] is entitled to a reasonable period to cure |
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the violation and avoid the suspension, suit, action, charge, or |
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fine [or suspension] unless the owner was given notice and a |
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reasonable opportunity to cure a similar violation within the |
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preceding six months; [and] |
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(B) the owner may request a hearing under Section |
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209.007 on or before the 30th day after the date the owner receives |
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the notice; and |
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(C) if the violation involves a delinquent |
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regular or special assessment, failure to pay the assessment may |
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result in foreclosure. |
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SECTION 2. Chapter 209, Property Code, is amended by adding |
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Section 209.0071 to read as follows: |
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Sec. 209.0071. ALTERNATIVE PAYMENT SCHEDULE FOR CERTAIN |
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ASSESSMENTS. A property owners' association shall adopt guidelines |
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to establish an alternative payment schedule by which an owner may, |
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at the owner's request, make partial payments to the property |
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owners' association for delinquent regular or special assessments. |
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SECTION 3. Section 209.008(b), Property Code, is amended to |
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read as follows: |
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(b) An owner is not liable for attorney's fees incurred by |
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the association relating to a matter described by the notice under |
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Section 209.006 if the attorney's fees are incurred before the |
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conclusion of the hearing under Section 209.007 or, if the owner |
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does not request a hearing under that section, before the date by |
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which the owner must request a hearing. The owner's presence is not |
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required to hold a hearing under Section 209.007. An owner is not |
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liable for attorney's fees incurred by the association relating to |
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delinquent assessments if the attorney's fees are incurred before |
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the owner is offered a payment schedule under Section 209.0071. |
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SECTION 4. Section 209.009, Property Code, is amended to |
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read as follows: |
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Sec. 209.009. FORECLOSURE SALE PROHIBITED IN CERTAIN |
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CIRCUMSTANCES. A property owners' association may not foreclose a |
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property owners' association's assessment lien unless: |
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(1) [if] the debt for which the lien secures payment |
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includes a mandatory regular or special assessment; and |
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(2) the owner has had an opportunity for a hearing |
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under Section 209.007 [securing the lien consists solely of:
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[(1)fines assessed by the association; or
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[(2) attorney's fees incurred by the association
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solely associated with fines assessed by the association]. |
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SECTION 5. Chapter 209, Property Code, is amended by adding |
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Section 209.0091 to read as follows: |
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Sec. 209.0091. JUDICIAL FORECLOSURE REQUIRED. Except as |
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provided by a restriction created before September 1, 2007, a |
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property owners' association may not foreclose a property owners' |
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association's assessment lien unless the association first obtains |
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a court judgment foreclosing the lien and providing for issuance of |
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an order of sale. |
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SECTION 6. Section 209.011(b), Property Code, is amended to |
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read as follows: |
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(b) The owner of property in a residential subdivision may |
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redeem the property from any purchaser at a sale foreclosing a |
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property owners' association's assessment lien not later than the |
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second anniversary of [180th day after] the date the association |
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mails written notice of the sale to the owner under Section 209.010. |
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SECTION 7. Section 551.0015(a), Government Code, is amended |
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to read as follows: |
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(a) A property owners' association is subject to this |
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chapter in the same manner as a governmental body if: |
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(1) membership in the property owners' association is |
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mandatory for owners or for a defined class of owners of private |
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real property in a defined geographic area [in a county with a
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population of 2.8 million or more or in a county adjacent to a
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county with a population of 2.8 million or more]; and |
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(2) the property owners' association has the power to |
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make mandatory special assessments for capital improvements or |
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mandatory regular assessments [; and
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[(3) the amount of the mandatory special or regular
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assessments is or has ever been based in whole or in part on the
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value at which the state or a local governmental body assesses the
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property for purposes of ad valorem taxation under Section 20,
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Article VIII, Texas Constitution]. |
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SECTION 8. Section 552.0036, Government Code, is amended to |
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read as follows: |
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Sec. 552.0036. CERTAIN PROPERTY OWNERS' ASSOCIATIONS |
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SUBJECT TO LAW. A property owners' association is subject to this |
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chapter in the same manner as a governmental body if: |
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(1) membership in the property owners' association is |
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mandatory for owners or for a defined class of owners of private |
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real property in a defined geographic area [in a county with a
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population of 2.8 million or more or in a county adjacent to a
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county with a population of 2.8 million or more]; and |
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(2) the property owners' association has the power to |
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make mandatory special assessments for capital improvements or |
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mandatory regular assessments [; and
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[(3) the amount of the mandatory special or regular
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assessments is or has ever been based in whole or in part on the
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value at which the state or a local governmental body assesses the
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property for purposes of ad valorem taxation under Section 20,
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Article VIII, Texas Constitution]. |
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SECTION 9. (a) Section 209.006, Property Code, as amended |
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by this Act, applies only to an enforcement action taken by a |
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property owners' association on or after the effective date of this |
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Act. An enforcement action taken before the effective date of this |
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Act is governed by the law in effect immediately before that date, |
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and that law is continued in effect for that purpose. |
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(b) Section 209.0071, Property Code, as added by this Act, |
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applies only to an assessment that becomes due on or after the |
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effective date of this Act. An assessment that becomes due before |
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the effective date of this Act is governed by the law in effect |
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immediately before that date, and that law is continued in effect |
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for that purpose. |
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(c) Section 209.008(b), Property Code, as amended by this |
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Act, applies only to a violation that occurs or arrearage that |
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accrues on or after the effective date of this Act. A violation |
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that occurred or arrearage that accrued before the effective date |
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of this Act is governed by the law in effect immediately before that |
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date, and that law is continued in effect for that purpose. |
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(d) Sections 209.009 and 209.011(b), Property Code, as |
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amended by this Act, and Section 209.0091, Property Code, as added |
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by this Act, apply only to foreclosure of a lien that attaches on or |
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after the effective date of this Act. Foreclosure of a lien that |
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attaches before the effective date of this Act is governed by the |
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law in effect immediately before that date, and that law is |
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continued in effect for that purpose. |
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SECTION 10. This Act takes effect September 1, 2007. |