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A BILL TO BE ENTITLED
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AN ACT
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relating to foreclosure of a property owners' association's |
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assessment lien. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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. PREREQUISITES TO FORECLOSURE OF ASSOCIATION |
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LIEN. (a) A property owners' association may not file suit to |
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foreclose an assessment lien or initiate foreclosure of the lien |
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under Section 51.002 unless: |
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(1) an assessment secured by the lien is overdue by at |
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least three months; and |
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(2) the property owners' association has complied with |
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this section. |
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(b) Not later than the 10th day before the end of the third |
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month in which the assessment is overdue, the property owners' |
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association must send the property owner written notice of the |
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delinquency by certified mail, return receipt requested. The |
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notice must also inform the owner of the owner's right to a hearing |
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under this section. |
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(c) The property owners' association must give the property |
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owner the opportunity to appear at a hearing before the association |
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board. Any hearing under this subsection must occur on or before |
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the 30th day after the date the owner receives the notice required |
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by this section. An owner is entitled to be represented by counsel |
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at any hearing under this subsection. |
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(d) If the association board determines after the hearing |
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that the owner has not paid the delinquent assessments, the |
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property owners' association shall offer the property owner the |
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opportunity to pay the delinquent assessments in monthly |
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installments for a period of 12 months. |
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(e) A property owners' association may file suit to |
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foreclose the assessment lien or initiate a foreclosure of the |
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assessment lien under Section 51.002 if: |
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(1) a property owner does not respond to a notice sent |
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under Subsection (b) before the period prescribed for holding a |
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hearing under Subsection (c) expires; or |
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(2) after a hearing under this section, a property |
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owner is delinquent in paying assessments for a fourth consecutive |
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month. |
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SECTION 2. The change in law made by this Act applies only |
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to an assessment that becomes delinquent on or after the effective |
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date of this Act. An assessment that becomes delinquent before the |
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effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |