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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the foreclosure of property owners' |
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association assessment liens for a certain period. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 11, Property Code, is amended by adding |
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Chapter 209A to read as follows: |
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CHAPTER 209A. FORECLOSURE OF CERTAIN ASSESSMENT LIENS |
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Sec. 209A.001. DEFINITIONS. In this section: |
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(1) "Assessment" means a regular assessment, special |
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assessment, or other amount a property owner is required to pay a |
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property owners' association or condominium owners' association |
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under a dedicatory instrument or declaration or by law. |
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(2) "Condominium owners' association" means a council |
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of owners of a condominium regime governed by Chapter 81, or a unit |
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owners' association governed by Chapter 82. |
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(3) "Property owners' association" has the meaning |
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assigned by Section 209.002. |
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Sec. 209A.002. OPERABILITY OF CHAPTER; EXPIRATION. (a) |
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This chapter is operable only if the federal Act known as the |
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"Homeowner Affordability and Stability Plan" becomes law. If this |
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chapter becomes operable, the operability date of this chapter is |
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the date the federal Act takes effect, and this chapter is no longer |
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operable on the date on which the federal Act expires. If the |
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federal Act does not become law, this chapter is not operable and |
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has no effect. |
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(b) Notwithstanding Subsection (a), this chapter expires |
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September 1, 2013. |
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Sec. 209A.003. FORECLOSURE OF ASSESSMENT LIENS PROHIBITED. |
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(a) A property owners' association or condominium owners' |
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association may not foreclose the association's assessment lien on |
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residential real property during the period this chapter is |
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operable. Delinquent assessments, regardless of whether the |
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assessments became due before or after the operability date of this |
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chapter, may not accrue penalties during the period this chapter is |
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operable. |
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(b) Subsection (a) applies to a property for which a notice |
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of sale is given under Section 51.002 before the operability date of |
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this chapter or a property for which an action for judicial |
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foreclosure is filed before the operability date of this chapter if |
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a sale of the property has not been completed before the operability |
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date of this chapter. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |