82R13675 NC-D
 
  By: Solomons, et al. H.B. No. 565
 
  Substitute the following for H.B. No. 565:
 
  By:  Orr C.S.H.B. No. 565
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the procedures required for the foreclosure of a
  property owners' association's assessment lien.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 209, Property Code, is amended by adding
  Section 209.0091 to read as follows:
         Sec. 209.0091.  JUDICIAL FORECLOSURE REQUIRED. (a) Except
  as provided by Subsection (d), a property owners' association may
  not foreclose a property owners' association assessment lien unless
  the association first obtains a court order in an application for
  expedited foreclosure under the rules adopted by the supreme court
  under Subsection (b).
         (b)  The supreme court, as an exercise of the court's
  authority under Section 74.024, Government Code, shall adopt rules
  establishing expedited foreclosure proceedings for use by a
  property owners' association in foreclosing an assessment lien of
  the association. Except as provided by this section, the rules
  adopted under this subsection must be substantially similar to the
  rules adopted by the supreme court under Section 50(r), Article
  XVI, Texas Constitution.
         (c)  Rules adopted under Subsection (b) must require service
  on the record owners of the property of a copy of the notice and
  application for foreclosure of the lien by the same methods of
  service prescribed for service of citation under Rules 106 through
  119, Texas Rules of Civil Procedure.
         (d)  Expedited foreclosure is not required under this
  section if the owner of the property that is subject to foreclosure
  agrees in writing at the time the foreclosure is sought to waive
  expedited foreclosure under this section. A waiver under this
  subsection may not be required as a condition of the transfer of
  title to real property.
         SECTION 2.  (a)  Section 209.0091, Property Code, as added
  by this Act, applies only to a foreclosure sale that occurs after
  January 1, 2012. A foreclosure sale that occurs on or before
  January 1, 2012, is governed by the law in effect immediately before
  the effective date of this Act, and that law is continued in effect
  for that purpose.
         (b)  Not later than January 1, 2012, the Supreme Court of
  Texas shall adopt rules of civil procedure under Section 209.0091,
  Property Code, as added by this Act.
         SECTION 3.  This Act takes effect September 1, 2011.