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A BILL TO BE ENTITLED
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AN ACT
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relating to the collection of attorney fees in property owners' |
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association foreclosures. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 209.008, Property Code, is amended to |
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read as follows: |
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Sec. 209.008. ATTORNEY'S FEES. (a) A property owners' |
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association may collect reimbursement of reasonable attorney's |
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fees and other reasonable costs incurred by the association |
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relating to collecting amounts, including damages, due the |
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association for enforcing restrictions or the bylaws or rules of |
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the association only if the owner is provided a written notice that |
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attorney's fees and costs will be charged to the owner if the |
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delinquency or violation continues after a date certain. |
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(b) An owner is not liable for attorney's fees incurred by |
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the association relating to a matter described by the notice under |
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Section 209.006 if the attorney's fees are incurred before the |
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conclusion of the hearing under Section 209.007 or, if the owner |
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does not request a hearing under that section, before the date by |
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which the owner must request a hearing. The owner's presence is not |
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required to hold a hearing under Section 209.007. |
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(c) All attorney's fees, costs, and other amounts collected |
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from an owner shall be deposited into an account maintained at a |
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financial institution in the name of the association or its |
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managing agent. Only members of the association's board or its |
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managing agent or employees of its managing agent may be |
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signatories on the account. |
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(d) On written request from the owner, the association shall |
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provide copies of invoices for attorney's fees and other costs |
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relating only to the matter for which the association seeks |
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reimbursement of fees and costs. |
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(e) The notice provisions of Subsection (a) do not apply to |
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a counterclaim of an association in a lawsuit brought against the |
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association by a property owner. |
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(f) If the dedicatory instrument or restrictions of an |
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association allow for [nonjudicial] foreclosure, the amount of |
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attorney's fees that a property owners' association may [include] |
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seek in a [nonjudicial] foreclosure sale proceeding brought for an |
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indebtedness covered by a property owners' association's assessment |
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lien is limited to the greater of: |
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(1) ten percent [one third] of the amount of all |
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[actual costs and] assessments owed [excluding attorney's fees,
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plus interest and court costs,] if those amounts are permitted to be |
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included by law including the statute of limitations [or by the
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restrictive covenants governing the property]; or |
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(2) [$2,500] $500. |
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g)
Subsection (f) does not prevent a property owners'
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association from recovering or collecting attorney's fees in excess
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of the amounts prescribed by Subsection (f) by other means provided
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by law.
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(g) A property owners' association may not seek any |
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additional attorney's fees in a foreclosure proceeding except as |
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provided by (f) unless: |
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(i) an owner files a separate, original proceeding in |
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a court of competent jurisdiction that contests the property |
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owners' association right to foreclose; and |
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(ii) such fees are reasonable and necessary, and |
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equitable and just, to defend such a proceeding. |
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SECTION 3 |
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. The Act takes effect September 1, 2015. |