|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to declarant control of certain property owners' |
|
associations. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 209.0052(a), Property Code, is amended |
|
to read as follows: |
|
(a) This section applies [does not apply] to a contract |
|
entered into by an association during and after the development |
|
period. |
|
SECTION 2. Section 209.00591(c), Property Code, is amended |
|
to read as follows: |
|
(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 or a builder in the |
|
business of constructing homes who purchased the lots from the |
|
declarant for the purpose of selling completed homes built on the |
|
lots, at least a majority [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 a majority [one-third] of the board |
|
members must be elected by owners other than the declarant not later |
|
than the fifth [10th] anniversary of the date the declaration was |
|
recorded. |
|
SECTION 3. (a) Section 209.0052, Property Code, as amended |
|
by this Act, applies to a contract entered into, renewed, or |
|
extended on or after the effective date of this Act. |
|
(b) Section 209.00591, Property Code, as amended by this |
|
Act, applies to a provision in a dedicatory instrument or a |
|
restrictive covenant enacted before, on, or after the effective |
|
date of this Act. |
|
SECTION 4. This Act takes effect September 1, 2019. |