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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforcement of deed restrictions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (c), Section 202.004, Property Code, |
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is amended to read as follows: |
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(c) For a violation of a restrictive covenant of a planned |
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development governed by a property owners' association that existed |
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before January 1, 1974, and that does not have the authority under a |
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dedicatory instrument or other governing document to impose fines, |
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a [A] court may assess civil damages [for the violation of a
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restrictive covenant] in an amount not to exceed $200 for each day |
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of the violation. |
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SECTION 2. Chapter 209, Property Code, is amended by adding |
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Sections 209.0061 through 209.0064 to read as follows: |
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Sec. 209.0061. ASSESSMENT OF FINES. (a) A fine assessed |
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by the property owners' association must be reasonable in the |
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context of the nature, frequency, and effect of the violation. If |
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the association allows fines for a continuing violation to |
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accumulate against a lot or an owner, the association must |
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establish a maximum fine amount for a continuing violation, not to |
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exceed 10 times the amount of the initial fine, at which point the |
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total fine amount is capped. |
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(b) If a lot occupant other than the owner violates a |
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provision of the dedicatory instrument, the property owners' |
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association, in addition to exercising any of the association's |
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powers against the owner, may assess a fine directly against the |
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nonowner occupant in the same manner as provided for an owner but |
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may not require payment from both the owner and a nonowner occupant |
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for the same violation. |
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(c) If the property owners' association assesses a fine |
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against a nonowner occupant under this section, the notice |
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provisions of Section 209.006 and the hearing provisions of Section |
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209.007 apply to the nonowner occupant in the same manner as those |
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provisions apply to an owner. |
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Sec. 209.0062. ALTERNATIVE PAYMENT SCHEDULE FOR CERTAIN |
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ASSESSMENTS. (a) A property owners' association shall adopt |
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reasonable guidelines to establish an alternative payment schedule |
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by which an owner may make partial payments to the property owners' |
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association for delinquent regular or special assessments or any |
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other amount owed to the association. |
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(b) A property owners' association is not required to allow |
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a payment plan that extends more than 12 months from the date of the |
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owner's request for a payment plan or to enter into a payment plan |
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with an owner during the five years following the owner's failure to |
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honor the terms of a previous payment plan. |
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(c) The property owners' association shall file the |
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association's guidelines under this section in the real property |
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records of each county in which the subdivision is located. |
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Sec. 209.0063. PRIORITY OF PAYMENTS. Unless otherwise |
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provided in a writing by the property owner, a payment received by a |
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property owners' association from the owner shall be applied to the |
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owner's debt in the following order of priority: |
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(1) any delinquent assessment; |
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(2) any current assessment; |
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(3) any attorney's fees incurred by the association |
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associated solely with assessments or any other charge that could |
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provide the basis for foreclosure; |
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(4) any fines assessed by the association; |
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(5) any attorney's fees incurred by the association |
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that are not subject to Subdivision (3); and |
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(6) any other amount owed to the association. |
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Sec. 209.0064. COLLECTIONS. A property owners' association |
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must bring suit or otherwise initiate against an owner a collection |
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action authorized by the dedicatory instruments or other law on or |
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before the 10th anniversary of the date on which the cause of action |
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for collection of the debt accrues. Section 16.004, Civil Practice |
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and Remedies Code, does not apply to the collection of a debt owed |
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by an owner to a property owners' association. |
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SECTION 3. (a) Subsection (c), Section 202.004, Property |
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Code, as amended by this Act, applies only to an action filed on or |
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after the effective date of this Act. An action filed 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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(b) Sections 209.0061, 209.0062, and 209.0064, Property |
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Code, as added by this Act, apply only to an assessment or other |
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debt that becomes due on or after the effective date of this Act. An |
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assessment or other debt that becomes due before the effective date |
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of this Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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(c) Section 209.0063, Property Code, as added by this Act, |
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applies only to a payment received by a property owners' |
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association on or after the effective date of this Act. A payment |
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received by a property owners' association before the effective |
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date of this Act is governed by the law in effect immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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SECTION 4. This Act takes effect January 1, 2010. |
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