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A BILL TO BE ENTITLED
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AN ACT
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relating to real property that is subject to restrictive covenants, |
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including the operation of property owners' associations of |
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subdivisions that are subject to restrictive covenants, and to |
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certain foreclosure actions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 5.006, Property Code, is |
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amended to read as follows: |
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(a) In an action based on breach of a restrictive covenant |
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pertaining to real property, the court shall allow to a prevailing |
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party [who asserted the action] reasonable attorney's fees in |
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addition to the party's costs and claim. |
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SECTION 2. Section 5.012, Property Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1), (f), and (g) |
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to read as follows: |
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(a) A seller of residential real property that is subject to |
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membership in a property owners' association and that comprises not |
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more than one dwelling unit located in this state shall give to the |
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purchaser of the property a written notice that reads substantially |
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similar to the following: |
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NOTICE OF MEMBERSHIP IN PROPERTY OWNERS' ASSOCIATION CONCERNING THE |
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PROPERTY AT (street address) (name of residential community) |
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As a purchaser of property in the residential community in |
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which this property is located, you are obligated to be a member of |
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a property owners' association. Restrictive covenants governing |
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the use and occupancy of the property and all [a] dedicatory |
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instruments [instrument] governing the establishment, maintenance, |
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or [and] operation of this residential community have been or will |
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be recorded in the Real Property Records of the county in which the |
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property is located. Copies of the restrictive covenants and |
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dedicatory instruments [instrument] may be obtained from the county |
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clerk. |
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You are obligated to pay assessments to the property owners' |
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association. The amount of the assessments is subject to change. |
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Your failure to pay the assessments could result in enforcement of |
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the association's [a] lien on and the foreclosure of your property. |
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Section 207.003, Property Code, entitles an owner to receive |
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copies of any document that governs the establishment, maintenance, |
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or operation of a subdivision, including, but not limited to, |
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restrictions, bylaws, rules and regulations, and a resale |
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certificate from a property owners' association. A resale |
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certificate contains information including, but not limited to, |
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statements specifying the amount and frequency of regular |
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assessments and the style and cause number of lawsuits to which the |
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property owners' association is a party, other than lawsuits |
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relating to unpaid ad valorem taxes of an individual member of the |
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association. These documents must be made available to you by the |
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property owners' association or the association's agent on your |
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request. |
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Date: ____________________________________________ |
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Signature of Purchaser |
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(a-1) The second paragraph of the notice prescribed by |
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Subsection (a) must be in bold print and underlined. |
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(f) On the purchaser's request for a resale certificate from |
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the property owners' association or the association's agent, the |
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association or its agent shall promptly deliver a copy of the most |
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recent resale certificate issued for the property under Chapter 207 |
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so long as the resale certificate was prepared not earlier than the |
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60th day before the date the resale certificate is delivered to the |
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purchaser and reflects any special assessments approved before and |
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due after the resale certificate is delivered. If a resale |
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certificate that meets the requirements of this subsection has not |
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been issued for the property, the seller shall request the |
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association or its agent to issue a resale certificate under |
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Chapter 207, and the association or its agent shall promptly |
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prepare and deliver a copy of the resale certificate to the |
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purchaser. |
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(g) The purchaser shall pay the fee to the property owners' |
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association or its agent for issuing the resale certificate unless |
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otherwise agreed by the purchaser and seller of the property. The |
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property owners' association may not process a payment for a resale |
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certificate requested under Chapter 207 until the certificate is |
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available for delivery. The association may not charge a fee if the |
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certificate is not provided in the time prescribed by Section |
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207.003(a). |
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SECTION 3. Section 51.002, Property Code, is amended by |
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adding Subsection (i) to read as follows: |
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(i) Notice served under Subsection (b)(3) or (d) must state |
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the name and address of the sender of the notice and contain a |
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statement that is conspicuous, printed in boldface or underlined |
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type, and substantially similar to the following: "Assert and |
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protect your rights as a member of the armed forces of the United |
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States. If you are or your spouse is serving on active military |
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duty, including active military duty as a member of the Texas |
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National Guard or the National Guard of another state or as a member |
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of a reserve component of the armed forces of the United States, |
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please send written notice of the active duty military service to |
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the sender of this notice immediately." |
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SECTION 4. Subsection (a), Section 51.015, Property Code, |
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is amended by adding Subdivision (1-a) to read as follows: |
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(1-a) "Assessment" and "assessments" have the |
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meanings assigned by Sections 82.113(a) and 209.002, as applicable. |
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SECTION 5. Subsection (b), Section 51.015, Property Code, |
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is amended to read as follows: |
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(b) This section applies only to an obligation: |
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(1) that is secured by a mortgage, deed of trust, or |
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other contract lien, including a lien securing payment of an |
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assessment or assessments, as applicable, on real property or |
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personal property that is a dwelling owned by a military |
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servicemember; |
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(2) that originates before the date on which the |
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servicemember's active duty military service commences; and |
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(3) for which the servicemember is still obligated. |
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SECTION 6. Subdivision (1), Section 202.001, Property Code, |
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is amended to read as follows: |
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(1) "Dedicatory instrument" means each document |
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governing [instrument covering] the establishment, maintenance, or |
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[and] operation of a residential subdivision, planned unit |
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development, condominium or townhouse regime, or any similar |
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planned development. The term includes a declaration or similar |
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instrument subjecting real property to: |
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(A) restrictive covenants, bylaws, or similar |
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instruments governing the administration or operation of a property |
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owners' association; |
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(B)[, to] properly adopted rules and regulations |
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of the property owners' association; or |
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(C)[, or to] all lawful amendments to the |
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covenants, bylaws, instruments, rules, or regulations. |
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SECTION 7. 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 property |
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owners' association that is a mixed-use master association that |
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existed before January 1, 1974, and that does not have the authority |
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under a dedicatory instrument or other governing document to impose |
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fines, 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 8. Section 202.006, Property Code, is amended to |
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read as follows: |
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Sec. 202.006. PUBLIC RECORDS. (a) A property owners' |
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association shall file all [the] dedicatory instruments |
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[instrument] in the real property records of each county in which |
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the property to which the dedicatory instruments relate [instrument
|
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relates] is located. |
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(b) A dedicatory instrument has no effect until the |
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instrument is filed in accordance with this section. |
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SECTION 9. Chapter 202, Property Code, is amended by adding |
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Sections 202.011, 202.012, and 202.013 to read as follows: |
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Sec. 202.011. RIGHT OF FIRST REFUSAL PROHIBITED. (a) In |
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this section, "development period" means a period stated in a |
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declaration during which a declarant reserves: |
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(1) a right to facilitate the development, |
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construction, and marketing of the subdivision; and |
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(2) a right to direct the size, shape, and composition |
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of the subdivision. |
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(b) To the extent a restrictive covenant provides a right of |
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first refusal for the sale or lease of a residential unit or |
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residential lot in favor of the property owners' association or the |
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association's members, the covenant is void. |
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(c) This section does not apply to a restrictive covenant |
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that provides a right of first refusal in favor of a developer or |
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builder during the development period. |
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Sec. 202.012. REGULATION OF SOLAR ENERGY DEVICES. (a) In |
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this section, "solar energy device" has the meaning assigned by |
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Section 171.107, Tax Code. |
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(b) Except as otherwise provided by this section, a property |
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owners' association may not include or enforce a provision in a |
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dedicatory instrument that prohibits or restricts a property owner |
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from installing a solar energy device. |
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(c) A provision that violates Subsection (b) is void. |
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(d) A property owners' association may include or enforce a |
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provision in a dedicatory instrument that prohibits a solar energy |
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device that: |
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(1) as adjudicated by a court: |
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(A) threatens the public health or safety; or |
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(B) violates a law; |
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(2) is located on property owned or maintained by the |
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property owners' association; |
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(3) is located on property owned in common by the |
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members of the property owners' association; |
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(4) is located in an area on the property owner's |
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property other than: |
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(A) on the roof of the home or of another |
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structure allowed under a dedicatory instrument; or |
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(B) in a fenced yard or patio owned and |
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maintained by the property owner; |
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(5) if mounted on the roof of the home: |
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(A) extends higher than or beyond the roofline; |
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(B) is located in an area other than an area |
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designated by the property owners' association, unless the |
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alternate location increases the estimated annual energy |
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production of the device, as determined by using a publicly |
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available modeling tool provided by the National Renewable Energy |
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Laboratory, by more than 10 percent above the energy production of |
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the device if located in an area designated by the property owners' |
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association; |
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(C) does not conform to the slope of the roof and |
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has a top edge that is not parallel to the roofline; or |
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(D) has a frame, a support bracket, or visible |
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piping or wiring that is not in a silver, bronze, or black tone |
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commonly available in the marketplace; |
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(6) if located in a fenced yard or patio, is taller |
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than the fence line; |
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(7) as installed, voids material warranties; or |
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(8) was installed without prior approval by the |
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property owners' association or by a committee created in a |
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dedicatory instrument for such purposes that provides decisions |
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within a reasonable period or within a period specified in the |
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dedicatory instrument. |
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(e) A property owners' association or the association's |
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architectural review committee may not withhold approval for |
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installation of a solar energy device if the provisions of the |
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dedicatory instruments, to the extent authorized by this section, |
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are met or exceeded, unless the association or committee, as |
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applicable, determines in writing that placement of the device as |
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proposed by the property owner constitutes a condition that |
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substantially interferes with the use and enjoyment of land by |
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causing unreasonable discomfort or annoyance to persons of ordinary |
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sensibilities. |
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Sec. 202.013. RESTRICTIONS REQUIRING CAPITAL IMPROVEMENTS. |
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(a) A dedicatory instrument may not be amended to retroactively |
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require a person who owns property subject to the dedicatory |
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instrument at the time the amendment is adopted to make a capital |
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improvement to the owner's property that is not required before the |
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amendment. |
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(b) For the purposes of this section, "capital improvement" |
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means items such as additional tree plantings, additional sodding, |
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fence construction, hardscape installation, new construction, or |
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any similar capital improvement. The term does not include repair |
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or maintenance of existing improvements or the removal of |
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conditions that are in violation of a dedicatory instrument. |
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SECTION 10. Subsections (a), (b), and (c), Section 207.003, |
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Property Code, are amended to read as follows: |
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(a) Not later than the 10th day after the date a written |
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request for subdivision information is received from an owner, |
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owner's agent, or title insurance company or its agent acting on |
|
behalf of the owner, the property owners' association shall deliver |
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to the owner, owner's agent, or title insurance company or its |
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agent: |
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(1) a current copy of the restrictions applying to the |
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subdivision; |
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(2) a current copy of the bylaws and rules of the |
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property owners' association; and |
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(3) a resale certificate prepared not earlier than the |
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60th day before the date the certificate is delivered that complies |
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with Subsection (b). |
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(b) A resale certificate under Subsection (a) must contain: |
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(1) a statement of any right of first refusal, other |
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than a right of first refusal that is prohibited by statute, and any |
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[or] other restraint contained in the restrictions or restrictive |
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covenants that restricts the owner's right to transfer the owner's |
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property; |
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(2) the frequency and amount of any regular |
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assessments; |
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(3) the amount and purpose of any special assessment |
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that has been approved before and is due after [the date] the resale |
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certificate is delivered [prepared]; |
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(4) the total of all amounts due and unpaid to the |
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property owners' association that are attributable to the owner's |
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property; |
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(5) capital expenditures, if any, approved by the |
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property owners' association for the property owners' association's |
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current fiscal year; |
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(6) the amount of reserves, if any, for capital |
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expenditures; |
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(7) the property owners' association's current |
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operating budget and balance sheet; |
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(8) the total of any unsatisfied judgments against the |
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property owners' association; |
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(9) the style and cause number of any pending lawsuit |
|
in which the property owners' association is a party, other than a |
|
lawsuit relating to unpaid ad valorem taxes of an individual member |
|
of the association [defendant]; |
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(10) a copy of a certificate of insurance showing the |
|
property owners' association's property and liability insurance |
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relating to the common areas and common facilities; |
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(11) a description of any conditions on the owner's |
|
property that the property owners' association board has actual |
|
knowledge are in violation of the restrictions applying to the |
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subdivision or the bylaws or rules of the property owners' |
|
association; |
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(12) a summary or copy of notices received by the |
|
property owners' association from any governmental authority |
|
regarding health or housing code violations existing on the |
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preparation date of the certificate relating to the owner's |
|
property or any common areas or common facilities owned or leased by |
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the property owners' association; |
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(13) the amount of any administrative transfer fee |
|
charged by the property owners' association for a change of |
|
ownership of property in the subdivision; |
|
(14) the name, mailing address, and telephone number |
|
of the property owners' association's managing agent, if any; [and] |
|
(15) a statement indicating whether the restrictions |
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allow foreclosure of a property owners' association's lien on the |
|
owner's property for failure to pay assessments; and |
|
(16) a statement of all fees associated with the |
|
transfer of ownership, including a description of each fee, to whom |
|
each fee is paid, and the amount of each fee. |
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(c) A property owners' association may charge a reasonable |
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fee to assemble, copy, and deliver the information required by this |
|
section and may charge a reasonable fee to prepare and deliver an |
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update of a resale certificate under Subsection (f). A purchaser |
|
requesting a resale certificate under Section 5.012 or on whose |
|
behalf the resale certificate is requested shall pay the fees |
|
charged under this subsection unless otherwise agreed by the |
|
purchaser and seller of the property. |
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SECTION 11. Chapter 207, Property Code, is amended by |
|
adding Section 207.006 to read as follows: |
|
Sec. 207.006. ONLINE SUBDIVISION INFORMATION REQUIRED. A |
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property owners' association shall make dedicatory instruments |
|
relating to the association or subdivision and filed in the county |
|
deed records available on a website if the association has, or a |
|
management company on behalf of the association maintains, a |
|
publicly accessible website. |
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SECTION 12. Section 209.003, Property Code, is amended by |
|
adding Subsection (e) to read as follows: |
|
(e) The following provisions of this chapter do not apply to |
|
a property owners' association that is a mixed-use master |
|
association that existed before January 1, 1974, and that does not |
|
have the authority under a dedicatory instrument or other governing |
|
document to impose fines: |
|
(1) Section 209.005(c); |
|
(2) Section 209.0056; |
|
(3) Section 209.0057; |
|
(4) Section 209.0058; |
|
(5) Section 209.00592; and |
|
(6) Section 209.0062. |
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SECTION 13. Chapter 209, Property Code, is amended by |
|
adding Section 209.0041 to read as follows: |
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Sec. 209.0041. ADOPTION OR AMENDMENT OF CERTAIN DEDICATORY |
|
INSTRUMENTS. (a) This section applies to a residential |
|
subdivision in which property owners are subject to mandatory |
|
membership in a property owners' association. |
|
(b) This section does not apply to a property owners' |
|
association that is subject to Chapter 552, Government Code, by |
|
application of Section 552.0036, Government Code. |
|
(c) This section does not apply to the amendment of a |
|
declaration during a development period, as defined by Section |
|
202.011. |
|
(d) This section applies to a dedicatory instrument |
|
regardless of the date on which the dedicatory instrument was |
|
created. |
|
(e) This section supersedes any contrary requirement in a |
|
dedicatory instrument. |
|
(f) To the extent of any conflict with another provision of |
|
this title, this section prevails. |
|
(g) Except as provided by this subsection, a declaration may |
|
be amended only by a vote of 67 percent of the total votes allocated |
|
to property owners in the property owners' association, in addition |
|
to any governmental approval required by law. If the declaration |
|
contains a lower percentage, the percentage in the declaration |
|
controls. |
|
(h) A bylaw may not be amended to conflict with the |
|
declaration. |
|
SECTION 14. Section 209.005, Property Code, is amended to |
|
read as follows: |
|
Sec. 209.005. ASSOCIATION RECORDS. (a) Except as provided |
|
by Subsection (b), this section applies to all property owners' |
|
associations and controls over other law not specifically |
|
applicable to a property owners' association. |
|
(b) This section does not apply to a property owners' |
|
association that is subject to Chapter 552, Government Code, by |
|
application of Section 552.0036, Government Code. |
|
(c) Notwithstanding a provision in a dedicatory instrument, |
|
a [A] property owners' association shall make the books and records |
|
of the association, including financial records, open to and |
|
reasonably available for examination by [to] an owner, or a person |
|
designated in a writing signed by the owner as the owner's agent, |
|
attorney, or certified public accountant, in accordance with this |
|
section. An owner is entitled to obtain from the association copies |
|
of information contained in the books and records [Section B,
|
|
Article 2.23, Texas Non-Profit Corporation Act (Article 1396-2.23,
|
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Vernon's Texas Civil Statutes)]. |
|
(d) Except as provided by this subsection, an [(a-1)
A
|
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property owners' association described by Section 552.0036(2),
|
|
Government Code, shall make the books and records of the
|
|
association, including financial records, reasonably available to
|
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any person requesting access to the books or records in accordance
|
|
with Chapter 552, Government Code.
Subsection (a) does not apply to
|
|
a property owners' association to which this subsection applies.
|
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[(b) An] attorney's files and records relating to the |
|
property owners' association, excluding invoices requested by an |
|
owner under Section 209.008(d), are not[:
|
|
[(1)] records of the association and are not[;
|
|
[(2)] subject to inspection by the owner[;] or |
|
[(3) subject to] production in a legal proceeding. If |
|
a document in an attorney's files and records relating to the |
|
association would be responsive to a legally authorized request to |
|
inspect or copy association documents, the document shall be |
|
produced by using the copy from the attorney's files and records if |
|
the association has not maintained a separate copy of the document. |
|
This subsection does not require production of a document that |
|
constitutes attorney work product or that is privileged as an |
|
attorney-client communication. |
|
(e) An owner or the owner's authorized representative |
|
described by Subsection (c) must submit a written request for |
|
access or information under Subsection (c) by certified mail, with |
|
sufficient detail describing the property owners' association's |
|
books and records requested, to the mailing address of the |
|
association or authorized representative as reflected on the most |
|
current management certificate filed under Section 209.004. The |
|
request must contain an election either to inspect the books and |
|
records before obtaining copies or to have the property owners' |
|
association forward copies of the requested books and records and: |
|
(1) if an inspection is requested, the association, on |
|
or before the 10th business day after the date the association |
|
receives the request, shall send written notice of dates during |
|
normal business hours that the owner may inspect the requested |
|
books and records to the extent those books and records are in the |
|
possession, custody, or control of the association; or |
|
(2) if copies of identified books and records are |
|
requested, the association shall, to the extent those books and |
|
records are in the possession, custody, or control of the |
|
association, produce the requested books and records for the |
|
requesting party on or before the 10th business day after the date |
|
the association receives the request, except as otherwise provided |
|
by this section. |
|
(f) If the property owners' association is unable to produce |
|
the books or records requested under Subsection (e) on or before the |
|
10th business day after the date the association receives the |
|
request, the association must provide to the requestor written |
|
notice that: |
|
(1) informs the requestor that the association is |
|
unable to produce the information on or before the 10th business day |
|
after the date the association received the request; and |
|
(2) states a date by which the information will be sent |
|
or made available for inspection to the requesting party that is not |
|
later than the 15th business day after the date notice under this |
|
subsection is given. |
|
(g) If an inspection is requested or required, the |
|
inspection shall take place at a mutually agreed on time during |
|
normal business hours, and the requesting party shall identify the |
|
books and records for the property owners' association to copy and |
|
forward to the requesting party. |
|
(h) A property owners' association may produce books and |
|
records requested under this section in hard copy, electronic, or |
|
other format reasonably available to the association. |
|
(i) A property owners' association board must adopt a |
|
records production and copying policy that prescribes the costs the |
|
association will charge for the compilation, production, and |
|
reproduction of information requested under this section. The |
|
prescribed charges may include all reasonable costs of materials, |
|
labor, and overhead but may not exceed costs that would be |
|
applicable for an item under Section 552.261, Government Code. The |
|
policy required by this subsection must be recorded as a dedicatory |
|
instrument in accordance with Section 202.006. An association may |
|
not charge an owner for the compilation, production, or |
|
reproduction of information requested under this section unless the |
|
policy prescribing those costs has been recorded as required by |
|
this subsection. An owner is responsible for costs related to the |
|
compilation, production, and reproduction of the requested |
|
information in the amounts prescribed by the policy adopted under |
|
this subsection. The association may require advance payment of |
|
the estimated costs of compilation, production, and reproduction of |
|
the requested information. If the estimated costs are lesser or |
|
greater than the actual costs, the association shall submit a final |
|
invoice to the owner on or before the 30th business day after the |
|
date the information is delivered. If the final invoice includes |
|
additional amounts due from the owner, the additional amounts, if |
|
not reimbursed to the association before the 30th business day |
|
after the date the invoice is sent to the owner, may be added to the |
|
owner's account as an assessment. If the estimated costs exceeded |
|
the final invoice amount, the owner is entitled to a refund, and the |
|
refund shall be issued to the owner not later than the 30th business |
|
day after the date the invoice is sent to the owner. |
|
(j) A property owners' association must estimate costs |
|
under this section using amounts prescribed by the policy adopted |
|
under Subsection (i). |
|
(k) Except as provided by Subsection (l) and to the extent |
|
the information is provided in the meeting minutes, the property |
|
owners' association is not required to release or allow inspection |
|
of any books or records that identify the dedicatory instrument |
|
violation history of an individual owner of an association, an |
|
owner's personal financial information, including records of |
|
payment or nonpayment of amounts due the association, an owner's |
|
contact information, other than the owner's address, or information |
|
related to an employee of the association, including personnel |
|
files. Information may be released in an aggregate or summary |
|
manner that would not identify an individual property owner. |
|
(l) The books and records described by Subsection (k) shall |
|
be released or made available for inspection if: |
|
(1) the express written approval of the owner whose |
|
records are the subject of the request for inspection is provided to |
|
the property owners' association; or |
|
(2) a court orders the release of the books and records |
|
or orders that the books and records be made available for |
|
inspection. |
|
(m) A property owners' association composed of more than 14 |
|
lots shall adopt and comply with a document retention policy that |
|
includes, at a minimum, the following requirements: |
|
(1) certificates of formation, bylaws, restrictive |
|
covenants, and all amendments to the certificates of formation, |
|
bylaws, and covenants shall be retained permanently; |
|
(2) financial books and records shall be retained for |
|
seven years; |
|
(3) account records of current owners shall be |
|
retained for five years; |
|
(4) contracts with a term of one year or more shall be |
|
retained for four years after the expiration of the contract term; |
|
(5) minutes of meetings of the owners and the board |
|
shall be retained for seven years; and |
|
(6) tax returns and audit records shall be retained |
|
for seven years. |
|
(n) A member of a property owners' association who is denied |
|
access to or copies of association books or records to which the |
|
member is entitled under this section may file a petition with the |
|
justice of the peace of a justice precinct in which all or part of |
|
the property that is governed by the association is located |
|
requesting relief in accordance with this subsection. If the |
|
justice of the peace finds that the member is entitled to access to |
|
or copies of the records, the justice of the peace may grant one or |
|
more of the following remedies: |
|
(1) a judgment ordering the property owners' |
|
association to release or allow access to the books or records; |
|
(2) a judgment against the property owners' |
|
association for court costs and attorney's fees incurred in |
|
connection with seeking a remedy under this section; or |
|
(3) a judgment authorizing the owner or the owner's |
|
assignee to deduct the amounts awarded under Subdivision (2) from |
|
any future regular or special assessments payable to the property |
|
owners' association. |
|
(o) If the property owners' association prevails in an |
|
action under Subsection (n), the association is entitled to a |
|
judgment for court costs and attorney's fees incurred by the |
|
association in connection with the action. |
|
(p) On or before the 10th business day before the date a |
|
person brings an action against a property owners' association |
|
under this section, the person must send written notice to the |
|
association of the person's intent to bring the action. The notice |
|
must: |
|
(1) be sent certified mail, return receipt requested, |
|
or delivered by the United States Postal Service with signature |
|
confirmation service; and |
|
(2) describe with sufficient detail the books and |
|
records being requested. |
|
(q) For the purposes of this section, "business day" means a |
|
day other than Saturday, Sunday, or a state or federal holiday. |
|
SECTION 15. Chapter 209, Property Code, is amended by |
|
adding Sections 209.0051, 209.0056, 209.0057, 209.0058, 209.0059, |
|
209.00591, 209.00592, and 209.00593 to read as follows: |
|
Sec. 209.0051. OPEN BOARD MEETINGS. (a) This section does |
|
not apply to a property owners' association that is subject to |
|
Chapter 551, Government Code, by application of Section 551.0015, |
|
Government Code. |
|
(b) In this section, "board meeting" means a deliberation |
|
between a quorum of the voting board of the property owners' |
|
association, or between a quorum of the voting board and another |
|
person, during which property owners' association business is |
|
considered and the board takes formal action. The term does not |
|
include the gathering of a quorum of the board at a social function |
|
unrelated to the business of the association or the attendance by a |
|
quorum of the board at a regional, state, or national convention, |
|
ceremonial event, or press conference, if formal action is not |
|
taken and any discussion of association business is incidental to |
|
the social function, convention, ceremonial event, or press |
|
conference. |
|
(c) Regular and special board meetings must be open to |
|
owners, subject to the right of the board to adjourn a board meeting |
|
and reconvene in closed executive session to consider actions |
|
involving personnel, pending or threatened litigation, contract |
|
negotiations, enforcement actions, confidential communications |
|
with the property owners' association's attorney, matters involving |
|
the invasion of privacy of individual owners, or matters that are to |
|
remain confidential by request of the affected parties and |
|
agreement of the board. Following an executive session, any |
|
decision made in the executive session must be summarized orally |
|
and placed in the minutes, in general terms, without breaching the |
|
privacy of individual owners, violating any privilege, or |
|
disclosing information that was to remain confidential at the |
|
request of the affected parties. The oral summary must include a |
|
general explanation of expenditures approved in executive session. |
|
(c-1) Except for a meeting held by electronic or telephonic |
|
means under Subsection (h), a board meeting must be held in a county |
|
in which all or part of the property in the subdivision is located |
|
or in a county adjacent to that county. |
|
(d) The board shall keep a record of each regular or special |
|
board meeting in the form of written minutes of the meeting. The |
|
board shall make meeting records, including approved minutes, |
|
available to a member for inspection and copying on the member's |
|
written request to the property owners' association's managing |
|
agent at the address appearing on the most recently filed |
|
management certificate or, if there is not a managing agent, to the |
|
board. |
|
(e) Members shall be given notice of the date, hour, place, |
|
and general subject of a regular or special board meeting, |
|
including a general description of any matter to be brought up for |
|
deliberation in executive session. The notice shall be: |
|
(1) mailed to each property owner not later than the |
|
10th day or earlier than the 60th day before the date of the |
|
meeting; or |
|
(2) provided at least 72 hours before the start of the |
|
meeting by: |
|
(A) posting the notice in a conspicuous manner |
|
reasonably designed to provide notice to property owners' |
|
association members: |
|
(i) in a place located on the association's |
|
common property or, with the property owner's consent, on other |
|
conspicuously located privately owned property within the |
|
subdivision; or |
|
(ii) on any Internet website maintained by |
|
the association or other Internet media; and |
|
(B) sending the notice by e-mail to each owner |
|
who has registered an e-mail address with the association. |
|
(f) It is an owner's duty to keep an updated e-mail address |
|
registered with the property owners' association under Subsection |
|
(e)(2)(B). |
|
(g) If the board recesses a regular or special board meeting |
|
to continue the following regular business day, the board is not |
|
required to post notice of the continued meeting if the recess is |
|
taken in good faith and not to circumvent this section. If a |
|
regular or special board meeting is continued to the following |
|
regular business day, and on that following day the board continues |
|
the meeting to another day, the board shall give notice of the |
|
continuation in at least one manner prescribed by Subsection |
|
(e)(2)(A) within two hours after adjourning the meeting being |
|
continued. |
|
(h) A board may meet by any method of communication, |
|
including electronic and telephonic, without prior notice to owners |
|
under Subsection (e), if each director may hear and be heard by |
|
every other director, or the board may take action by unanimous |
|
written consent to consider routine and administrative matters or a |
|
reasonably unforeseen emergency or urgent necessity that requires |
|
immediate board action. Any action taken without notice to owners |
|
under Subsection (e) must be summarized orally, including an |
|
explanation of any known actual or estimated expenditures approved |
|
at the meeting, and documented in the minutes of the next regular or |
|
special board meeting. The board may not, without prior notice to |
|
owners under Subsection (e), consider or vote on: |
|
(1) fines; |
|
(2) damage assessments; |
|
(3) initiation of foreclosure actions; |
|
(4) initiation of enforcement actions, excluding |
|
temporary restraining orders or violations involving a threat to |
|
health or safety; |
|
(5) increases in assessments; |
|
(6) levying of special assessments; |
|
(7) appeals from a denial of architectural control |
|
approval; or |
|
(8) a suspension of a right of a particular owner |
|
before the owner has an opportunity to attend a board meeting to |
|
present the owner's position, including any defense, on the issue. |
|
(i) This section applies to a meeting of a property owners' |
|
association board during the development period, as defined by |
|
Section 202.011, only if the meeting is conducted for the purpose |
|
of: |
|
(1) adopting or amending the governing documents, |
|
including declarations, bylaws, rules, and regulations of the |
|
association; |
|
(2) increasing the amount of regular assessments of |
|
the association or adopting or increasing a special assessment; |
|
(3) electing non-developer board members of the |
|
association or establishing a process by which those members are |
|
elected; or |
|
(4) changing the voting rights of members of the |
|
association. |
|
Sec. 209.0056. NOTICE OF ELECTION OR ASSOCIATION VOTE. |
|
(a) Not later than the 10th day or earlier than the 60th day before |
|
the date of an election or vote, a property owners' association |
|
shall give written notice of the election or vote to: |
|
(1) each owner of property in the property owners' |
|
association, for purposes of an association-wide election or vote; |
|
or |
|
(2) each owner of property in the property owners' |
|
association entitled under the dedicatory instruments to vote in a |
|
particular representative election, for purposes of a vote that |
|
involves election of representatives of the association who are |
|
vested under the dedicatory instruments of the property owners' |
|
association with the authority to elect or appoint board members of |
|
the property owners' association. |
|
(b) This section supersedes any contrary requirement in a |
|
dedicatory instrument. |
|
(c) This section does not apply to a property owners' |
|
association that is subject to Chapter 552, Government Code, by |
|
application of Section 552.0036, Government Code. |
|
Sec. 209.0057. RECOUNT OF VOTES. (a) This section does |
|
not apply to a property owners' association that is subject to |
|
Chapter 552, Government Code, by application of Section 552.0036, |
|
Government Code. |
|
(b) Any owner may, not later than the 15th day after the date |
|
of the meeting at which the election was held, require a recount of |
|
the votes. A demand for a recount must be submitted in writing |
|
either: |
|
(1) by certified mail, return receipt requested, or by |
|
delivery by the United States Postal Service with signature |
|
confirmation service to the property owners' association's mailing |
|
address on the latest management certificate filed under Section |
|
209.004; or |
|
(2) in person to the property owners' association's |
|
managing agent as reflected on the latest management certificate |
|
filed under Section 209.004 or to the address to which absentee and |
|
proxy ballots are mailed. |
|
(c) The property owners' association shall, at the expense |
|
of the owner requesting the recount, retain for the purpose of |
|
performing the recount, the services of a person qualified to |
|
tabulate votes under this subsection. The association shall enter |
|
into a contract for the services of a person who: |
|
(1) is not a member of the association or related to a |
|
member of the association board within the third degree by |
|
consanguinity or affinity, as determined under Chapter 573, |
|
Government Code; and |
|
(2) is: |
|
(A) a current or former: |
|
(i) county judge; |
|
(ii) county elections administrator; |
|
(iii) justice of the peace; or |
|
(iv) county voter registrar; or |
|
(B) a person agreed on by the association and the |
|
persons requesting the recount. |
|
(d) Any recount under Subsection (b) must be performed on or |
|
before the 30th day after the date of receipt of a request and |
|
payment for a recount in accordance with Subsections (b) and (c). |
|
If the recount changes the results of the election, the property |
|
owners' association shall reimburse the requesting owner for the |
|
cost of the recount. The property owners' association shall |
|
provide the results of the recount to each owner who requested the |
|
recount. Any action taken by the board in the period between the |
|
initial election vote tally and the completion of the recount is not |
|
affected by any recount. |
|
Sec. 209.0058. BALLOTS. (a) Any vote cast in an election |
|
or vote by a member of a property owners' association must be in |
|
writing and signed by the member. |
|
(b) Electronic votes cast under Section 209.00592 |
|
constitute written and signed ballots. |
|
(c) In an association-wide election, written and signed |
|
ballots are not required for uncontested races. |
|
Sec. 209.0059. RIGHT TO VOTE. (a) A provision in a |
|
dedicatory instrument that would disqualify a property owner from |
|
voting in a property owners' association election of board members |
|
or on any matter concerning the rights or responsibilities of the |
|
owner is void. |
|
(b) This section does not apply to a property owners' |
|
association that is subject to Chapter 552, Government Code, by |
|
application of Section 552.0036, Government Code. |
|
Sec. 209.00591. BOARD MEMBERSHIP. (a) Except as provided |
|
by this section, a provision in a dedicatory instrument that |
|
restricts a property owner's right to run for a position on the |
|
board of the property owners' association is void. |
|
(b) If a board is presented with written, documented |
|
evidence from a database or other record maintained by a |
|
governmental law enforcement authority that a board member has been |
|
convicted of a felony or crime involving moral turpitude, the board |
|
member is immediately ineligible to serve on the board of the |
|
property owners' association, automatically considered removed |
|
from the board, and prohibited from future service on the board. |
|
(c) The declaration may provide for a period of declarant |
|
control of the association during which a declarant, or persons |
|
designated by the declarant, may appoint and remove board members |
|
and the officers of the association, other than board members or |
|
officers elected by members of the property owners' association. |
|
Regardless of the period of declarant control provided by the |
|
declaration, on or before the 120th day after the date 75 percent of |
|
the lots that may be created and made subject to the declaration are |
|
conveyed to owners other than a declarant, at least one-third of the |
|
board members must be elected by owners other than the declarant. |
|
If the declaration does not include the number of lots that may be |
|
created and made subject to the declaration, at least one-third of |
|
the board members must be elected by owners other than the declarant |
|
not later than the 10th anniversary of the date the declaration was |
|
recorded. |
|
Sec. 209.00592. VOTING; QUORUM. (a) The voting rights of |
|
an owner may be cast or given: |
|
(1) in person or by proxy at a meeting of the property |
|
owners' association; |
|
(2) by absentee ballot in accordance with this |
|
section; |
|
(3) by electronic ballot in accordance with this |
|
section; or |
|
(4) by any method of representative or delegated |
|
voting provided by a dedicatory instrument. |
|
(b) An absentee or electronic ballot: |
|
(1) may be counted as an owner present and voting for |
|
the purpose of establishing a quorum only for items appearing on the |
|
ballot; |
|
(2) may not be counted, even if properly delivered, if |
|
the owner attends any meeting to vote in person, so that any vote |
|
cast at a meeting by a property owner supersedes any vote submitted |
|
by absentee or electronic ballot previously submitted for that |
|
proposal; and |
|
(3) may not be counted on the final vote of a proposal |
|
if the motion was amended at the meeting to be different from the |
|
exact language on the absentee or electronic ballot. |
|
(c) A solicitation for votes by absentee ballot must |
|
include: |
|
(1) an absentee ballot that contains each proposed |
|
action and provides an opportunity to vote for or against each |
|
proposed action; |
|
(2) instructions for delivery of the completed |
|
absentee ballot, including the delivery location; and |
|
(3) the following language: "By casting your vote via |
|
absentee ballot you will forgo the opportunity to consider and vote |
|
on any action from the floor on these proposals, if a meeting is |
|
held. This means that if there are amendments to these proposals |
|
your votes will not be counted on the final vote on these measures. |
|
If you desire to retain this ability, please attend any meeting in |
|
person. You may submit an absentee ballot and later choose to |
|
attend any meeting in person, in which case any in-person vote will |
|
prevail." |
|
(d) For the purposes of this section, "electronic ballot" |
|
means a ballot: |
|
(1) given by: |
|
(A) e-mail; |
|
(B) facsimile; or |
|
(C) posting on an Internet website; |
|
(2) for which the identity of the property owner |
|
submitting the ballot can be confirmed; and |
|
(3) for which the property owner may receive a receipt |
|
of the electronic transmission and receipt of the owner's ballot. |
|
(e) If an electronic ballot is posted on an Internet |
|
website, a notice of the posting shall be sent to each owner that |
|
contains instructions on obtaining access to the posting on the |
|
website. |
|
(f) This section supersedes any contrary provision in a |
|
dedicatory instrument. |
|
(g) This section does not apply to a property owners' |
|
association that is subject to Chapter 552, Government Code, by |
|
application of Section 552.0036, Government Code. |
|
Sec. 209.00593. ELECTION OF BOARD MEMBERS. |
|
(a) Notwithstanding any provision in a dedicatory instrument, any |
|
board member whose term has expired must be elected by owners who |
|
are members of the property owners' association. A board member may |
|
be appointed by the board only to fill a vacancy caused by a |
|
resignation, death, or disability. A board member appointed to |
|
fill a vacant position shall serve the unexpired term of the |
|
predecessor board member. |
|
(b) The board of a property owners' association may amend |
|
the bylaws of the property owners' association to provide for |
|
elections to be held as required by Subsection (a). |
|
(c) The appointment of a board member in violation of this |
|
section is void. |
|
(d) This section does not apply to the appointment of a |
|
board member during a development period, as defined by Section |
|
202.011. |
|
(e) This section does not apply to a representative board |
|
whose members or delegates are elected or appointed by |
|
representatives of a property owners' association who are elected |
|
by owner members of a property owners' association. |
|
SECTION 16. Subsection (b), Section 209.006, Property Code, |
|
is amended to read as follows: |
|
(b) The notice must: |
|
(1) describe the violation or property damage that is |
|
the basis for the suspension action, charge, or fine and state any |
|
amount due the association from the owner; and |
|
(2) inform the owner that the owner: |
|
(A) is entitled to a reasonable period to cure |
|
the violation and avoid the fine or suspension unless the owner was |
|
given notice and a reasonable opportunity to cure a similar |
|
violation within the preceding six months; and |
|
(B) may request a hearing under Section 209.007 |
|
on or before the 30th day after the date notice was delivered to the |
|
owner [receives the notice]. |
|
SECTION 17. Chapter 209, Property Code, is amended by |
|
adding Sections 209.0061, 209.0062, 209.0063, and 209.0064 to read |
|
as follows: |
|
Sec. 209.0061. ASSESSMENT OF FINES. (a) A fine assessed |
|
by the property owners' association must be reasonable in the |
|
context of the nature and frequency of the violation and the effect |
|
of the violation on the subdivision as a whole. If the association |
|
allows fines for a continuing violation to accumulate against a lot |
|
or an owner, the association must establish a reasonable maximum |
|
fine amount for a continuing violation at which point the total fine |
|
amount is capped. |
|
(b) If a lot occupant other than the owner violates a |
|
provision of the dedicatory instrument, the property owners' |
|
association, in addition to exercising any of the association's |
|
powers against the owner, may assess a fine directly against the |
|
nonowner occupant in the same manner as provided for an owner but |
|
may not require payment from both the owner and a nonowner occupant |
|
for the same violation. |
|
(c) If the property owners' association assesses a fine |
|
against a nonowner occupant under this section, the notice |
|
provisions of Section 209.006 and the hearing provisions of Section |
|
209.007 apply to the nonowner occupant in the same manner as those |
|
provisions apply to an owner. |
|
Sec. 209.0062. ALTERNATIVE PAYMENT SCHEDULE FOR CERTAIN |
|
ASSESSMENTS. (a) A property owners' association composed of more |
|
than 14 lots shall adopt reasonable guidelines to establish an |
|
alternative payment schedule by which an owner may make partial |
|
payments to the property owners' association for delinquent regular |
|
or special assessments or any other amount owed to the association |
|
without accruing additional monetary penalties. For purposes of |
|
this section, monetary penalties do not include reasonable costs |
|
associated with administering the payment plan or interest. |
|
(b) The minimum term for a payment plan offered by a |
|
property owners' association is three months. |
|
(c) A property owners' association is not required to allow |
|
a payment plan for any amount that extends more than 18 months from |
|
the date of the owner's request for a payment plan or to enter into a |
|
payment plan with an owner who failed to honor the terms of a |
|
previous payment plan during the two years following the owner's |
|
default under the previous payment plan. |
|
(d) A property owners' association shall file the |
|
association's guidelines under this section in the real property |
|
records of each county in which the subdivision is located. |
|
(e) A property owners' association's failure to file as |
|
required by this section the association's guidelines in the real |
|
property records of each county in which the subdivision is located |
|
does not prohibit a property owner from receiving an alternative |
|
payment schedule by which the owner may make partial payments to the |
|
property owners' association for delinquent regular or special |
|
assessments or any other amount owed to the association without |
|
accruing additional monetary penalties, as defined by Subsection |
|
(a). |
|
Sec. 209.0063. PRIORITY OF PAYMENTS. (a) Except as |
|
provided by Subsection (b), a payment received by a property |
|
owners' association from the owner shall be applied to the owner's |
|
debt in the following order of priority: |
|
(1) any delinquent assessment; |
|
(2) any current assessment; |
|
(3) any attorney's fees or third party collection |
|
costs incurred by the association associated solely with |
|
assessments or any other charge that could provide the basis for |
|
foreclosure; |
|
(4) any attorney's fees incurred by the association |
|
that are not subject to Subdivision (3); |
|
(5) any fines assessed by the association; and |
|
(6) any other amount owed to the association. |
|
(b) If, at the time the property owners' association |
|
receives a payment from a property owner, the owner is in default |
|
under a payment plan entered into with the association: |
|
(1) the association is not required to apply the |
|
payment in the order of priority specified by Subsection (a); and |
|
(2) in applying the payment, a fine assessed by the |
|
association may not be given priority over any other amount owed to |
|
the association. |
|
Sec. 209.0064. THIRD PARTY COLLECTIONS. Before a property |
|
owners' association may assess the account of an owner for |
|
reimbursement of reasonable attorney's fees and other reasonable |
|
costs payable by the association to another party or billed by a |
|
third party to the association on a contingency basis and that are |
|
related to collecting assessments or other amounts owed the |
|
association by the owner, the association must provide a notice to |
|
the owner by certified mail, return receipt requested, that: |
|
(1) specifies each delinquent amount and the total |
|
amount of the payment required to make the account current; |
|
(2) describes the options the owner has to avoid |
|
liability for attorney's fees or other costs related to collection |
|
of those amounts, including information regarding the availability |
|
of a payment plan through the association; and |
|
(3) provides a period of at least 30 days for the owner |
|
to cure the delinquency before further action is taken by the |
|
association. |
|
SECTION 18. Section 209.009, Property Code, is amended to |
|
read as follows: |
|
Sec. 209.009. FORECLOSURE SALE PROHIBITED IN CERTAIN |
|
CIRCUMSTANCES. A property owners' association may not foreclose a |
|
property owners' association's assessment lien if the debt securing |
|
the lien consists solely of: |
|
(1) fines assessed by the association; [or] |
|
(2) attorney's fees incurred by the association solely |
|
associated with fines assessed by the association; or |
|
(3) amounts added to the owner's account as an |
|
assessment under Section 209.005(i). |
|
SECTION 19. Chapter 209, Property Code, is amended by |
|
adding Sections 209.0091, 209.0092, and 209.0093 to read as |
|
follows: |
|
Sec. 209.0091. JUDICIAL FORECLOSURE REQUIRED. (a) Except |
|
as provided by Subsection (c) and subject to Section 209.009, a |
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property owners' association may not foreclose a property owners' |
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association assessment lien unless the association first obtains a |
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court order in an application for expedited foreclosure under the |
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rules adopted by the supreme court under Subsection (b). A property |
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owners' association may use the procedure described by this |
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subsection to foreclose any lien described by the association's |
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dedicatory instruments. |
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(b) The supreme court, as an exercise of the court's |
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authority under Section 74.024, Government Code, shall adopt rules |
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establishing expedited foreclosure proceedings for use by a |
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property owners' association in foreclosing an assessment lien of |
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the association. The rules adopted under this subsection must be |
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substantially similar to the rules adopted by the supreme court |
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under Section 50(r), Article XVI, Texas Constitution. |
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(c) Expedited foreclosure is not required under this |
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section if the owner of the property that is subject to foreclosure |
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agrees in writing at the time the foreclosure is sought to waive |
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expedited foreclosure under this section. A waiver under this |
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subsection may not be required as a condition of the transfer of |
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title to real property. |
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Sec. 209.0092. REMOVAL OR ADOPTION OF FORECLOSURE |
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AUTHORITY. A provision granting a right to foreclose a lien on real |
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property for unpaid amounts due to a property owners' association |
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may be removed from a dedicatory instrument or adopted in a |
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dedicatory instrument by a vote of at least 67 percent of the total |
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votes allocated to property owners in the property owners' |
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association. Owners holding at least 10 percent of all voting |
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interests in the property owners' association may petition the |
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association and require a special meeting to be called for the |
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purposes of taking a vote for the purposes of this section. |
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Sec. 209.0093. ASSESSMENT LIEN FILING. A lien, lien |
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affidavit, or other instrument evidencing the nonpayment of |
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assessments or other charges owed to a property owners' association |
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and filed in the official public records of a county is a legal |
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instrument affecting title to real property. |
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SECTION 20. Subsection (a), Section 209.010, Property Code, |
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is amended to read as follows: |
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(a) A property owners' association that conducts a |
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foreclosure sale of an owner's lot must send to the lot owner and to |
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each lienholder of record, not later than the 30th day after the |
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date of the foreclosure sale: |
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(1) [,] a written notice stating the date and time the |
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sale occurred and informing the lot owner and each lienholder of |
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record of the right of the lot owner and lienholder to redeem the |
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property under Section 209.011; and |
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(2) a copy of Section 209.011. |
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SECTION 21. Chapter 209, Property Code, is amended by |
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adding Section 209.014 to read as follows: |
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Sec. 209.014. MANDATORY ELECTION REQUIRED AFTER FAILURE TO |
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CALL REGULAR MEETING. (a) Notwithstanding any provision in a |
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dedicatory instrument, a board of a property owners' association |
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shall call an annual meeting of the members of the association. |
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(b) If a board of a property owners' association does not |
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call an annual meeting of the association members, an owner may |
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demand that a meeting of the association members be called not later |
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than the 30th day after the date of the owner's demand. The owner's |
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demand must be made in writing and sent by certified mail, return |
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receipt requested, to the registered agent of the property owners' |
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association and to the association at the address for the |
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association according to the most recently filed management |
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certificate. A copy of the notice must be sent to each property |
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owner who is a member of the association. |
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(c) If the board does not call a meeting of the members of |
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the property owners' association on or before the 30th day after the |
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date of a demand under Subsection (b), three or more owners may form |
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an election committee. The election committee shall file written |
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notice of the committee's formation with the county clerk of each |
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county in which the subdivision is located. |
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(d) A notice filed by an election committee must contain: |
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(1) a statement that an election committee has been |
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formed to call a meeting of owners who are members of the property |
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owners' association for the sole purpose of electing board members; |
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(2) the name and residential address of each committee |
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member; and |
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(3) the name of the subdivision over which the |
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property owners' association has jurisdiction under a dedicatory |
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instrument. |
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(e) Each committee member must sign and acknowledge the |
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notice before a notary or other official authorized to take |
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acknowledgments. |
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(f) The county clerk shall enter on the notice the date the |
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notice is filed and record the notice in the county's real property |
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records. |
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(g) Only one committee in a subdivision may operate under |
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this section at one time. If more than one committee in a |
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subdivision files a notice, the first committee that files a |
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notice, after having complied with all other requirements of this |
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section, is the committee with the power to act under this section. |
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A committee that does not hold or conduct a successful election |
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within four months after the date the notice is filed with the |
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county clerk is dissolved by operation of law. An election held or |
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conducted by a dissolved committee is ineffective for any purpose |
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under this section. |
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(h) The election committee may call meetings of the owners |
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who are members of the property owners' association for the sole |
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purpose of electing board members. Notice, quorum, and voting |
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provisions contained in the bylaws of the property owners' |
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association apply to any meeting called by the election committee. |
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SECTION 22. Subsection (a), Section 211.002, Property Code, |
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is amended to read as follows: |
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(a) This chapter applies only to a residential real estate |
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subdivision or any unit or parcel of a subdivision to which another |
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chapter in this title that provides a procedure under which a |
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subdivision's restrictions may for general purposes be amended does |
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not apply [located in whole or in part within an unincorporated area
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of a county if the county has a population of less than 65,000]. |
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SECTION 23. (a) Subsection (a), Section 5.006, and |
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Subsection (c), Section 202.004, Property Code, as amended by this |
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Act, apply only to an action filed on or after the effective date of |
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this Act. An action filed before the effective date of this Act is |
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governed by the law in effect immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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(b) Section 5.012, Property Code, as amended by this Act, |
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applies only to a sale of property that occurs on or after the |
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effective date of this Act. For the purposes of this subsection, a |
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sale of property occurs before the effective date of this Act if the |
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executory contract binding the purchaser to purchase the property |
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is executed before that date. A sale of property that occurs 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 51.015, Property Code, as amended by this Act, |
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applies only to the levy of an assessment or assessments as |
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described by Section 51.015, Property Code, as amended by this Act, |
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the effective date of which is on or after the effective date of |
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this Act. A levy of an assessment or assessments the effective date |
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of which is before the effective date of this Act is governed by the |
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law as it existed immediately before the effective date of this Act, |
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and that law is continued in effect for that purpose. |
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(d) Section 202.006, Property Code, as amended by this Act, |
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and Sections 202.011, 202.012, and 209.0059 and Subsection (a), |
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Section 209.00592, Property Code, as added by this Act, apply to a |
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provision in a dedicatory instrument or a restrictive covenant |
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enacted before, on, or after the effective date of this Act, except |
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that any action taken before the effective date of this Act based on |
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an unfiled dedicatory instrument is not invalidated by Section |
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202.006, Property Code, as amended by this Act. |
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(e) Sections 207.003 and 209.005, Property Code, as amended |
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by this Act, apply only to a request for information received by a |
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property owners' association on or after the effective date of this |
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Act. A request for information received by a property owners' |
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association before the effective date of this Act is governed by the |
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law in effect immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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(f) Subsection (m), Section 209.005, Property Code, as |
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added by this Act, applies only with respect to books and records |
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generated on or after the effective date of this Act. Books and |
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records generated before the effective date of this Act are |
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governed by the law in effect immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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(g) Section 209.006, Property Code, as amended by this Act, |
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applies only to an enforcement action initiated by a property |
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owners' association on or after the effective date of this Act. An |
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enforcement action initiated before the effective date of this Act |
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is governed by the law in effect immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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(h) Section 209.0062, Property Code, as added by this Act, |
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applies only to an assessment or other debt that becomes due on or |
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after the effective date of this Act. An assessment or other debt |
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that becomes due before the effective date of this Act is governed |
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by the law in effect immediately before the effective date of this |
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Act, and that law is continued in effect for that purpose. |
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(i) 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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(j) Section 209.0091, Property Code, as added by this Act, |
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and Subsection (a), Section 209.010, Property Code, as amended by |
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this Act, apply only to a foreclosure sale conducted on or after the |
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effective date of this Act. A foreclosure sale conducted 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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(k) Section 209.0093, Property Code, as added by this Act, |
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applies only to an instrument filed on or after January 1, 2012. An |
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instrument filed before January 1, 2012, is governed by the law in |
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effect on the date the instrument was filed, and that law is |
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continued in effect for that purpose. |
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(l) Section 209.014, Property Code, as added by this Act, |
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applies to a property owners' association created before, on, or |
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after the effective date of this Act. |
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SECTION 24. Not later than January 1, 2012, each property |
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owners' association shall present for recording with the county |
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clerk as prescribed by Section 202.006, Property Code, as amended |
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by this Act, each dedicatory instrument governing the association |
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that has not been previously recorded in the real property records |
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of the county. |
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SECTION 25. Not later than January 1, 2012, the Supreme |
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Court of Texas shall adopt rules of civil procedure under Section |
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209.0091, Property Code, as added by this Act. |
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SECTION 26. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect January 1, 2012. |
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(b) Subsection (b), Section 209.0091, Property Code, as |
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added by this Act, takes effect September 1, 2011. |