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AN ACT
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relating to the amendment of the dedicatory instruments of certain |
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mixed-use real estate developments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 11, Property Code, is amended by adding |
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Chapter 214 to read as follows: |
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CHAPTER 214. AMENDMENT OF DEDICATORY INSTRUMENTS OF CERTAIN |
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MIXED-USE REAL ESTATE DEVELOPMENTS |
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Sec. 214.001. DEFINITIONS. In this chapter: |
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(1) "Current developer" means an owner of one or more |
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tracts or lots in a mixed-use real estate development, or the |
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owner's affiliate, who: |
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(A) is the current declarant in the declaration |
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governing the development; and |
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(B) currently holds the developer rights for the |
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development. |
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(2) "Declaration" means an instrument filed in the |
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real property records of a county that includes restrictive |
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covenants governing a real estate development. |
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(3) "Dedicatory instrument" has the meaning assigned |
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by Section 202.001. |
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(4) "Mixed-use real estate development" means a real |
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estate development that: |
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(A) contains at least 200 acres and not more than |
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250 acres of deed-restricted property composed of at least 10 |
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separate tracts or parcels of property; |
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(B) includes: |
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(i) commercial properties, including hotel |
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and retail properties, that constitute at least 70 percent of the |
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total land area of the development; and |
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(ii) office properties that constitute at |
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least 50 percent of the total land area of the development; |
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(C) may include other real estate uses; |
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(D) is governed by a property owners' |
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association; and |
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(E) is subject to a dedicatory instrument that: |
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(i) requires mandatory membership in the |
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property owners' association; |
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(ii) authorizes the property owners' |
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association to collect a regular assessment on all or a majority of |
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the property in the development; |
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(iii) requires the approval of owners of |
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more than: |
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(a) 90 percent of the ground area |
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constituting the development to change a provision of the |
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dedicatory instrument governing the permitted use of a property; or |
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(b) 60 percent of the ground area |
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constituting the development to change a provision of the |
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dedicatory instrument that is not related to the permitted use of a |
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property; and |
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(iv) provides that voting for an amendment |
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is based on the number of acres owned by each owner. |
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(5) "Property owners' association" has the meaning |
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assigned by Section 202.001. |
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Sec. 214.002. APPLICABILITY OF CHAPTER. (a) This chapter |
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applies only to a mixed-use real estate development that is located |
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in: |
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(1) a municipality with a population of two million or |
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more; and |
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(2) a county with a population of 3.3 million or more. |
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(b) This chapter does not apply to: |
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(1) a mixed-use real estate development that includes |
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single-family residential properties; or |
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(2) a condominium subject to Chapter 81 or 82. |
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(c) This chapter applies to a dedicatory instrument |
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regardless of the date on which the dedicatory instrument was |
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created. |
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Sec. 214.003. AMENDMENT OF DEDICATORY INSTRUMENT. |
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(a) This section supersedes any conflicting requirement in a |
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dedicatory instrument of a mixed-use real estate development. |
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(b) To the extent of any conflict with another provision of |
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this title, this section prevails. |
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(c) Except as provided by Subsection (d), a declaration of a |
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mixed-use real estate development may be amended only by a vote of a |
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majority of the total votes allocated to property owners entitled |
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to vote on the amendment of the declaration. |
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(d) If the declaration contains a lower approval |
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requirement than prescribed by Subsection (c), the approval |
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requirement in the declaration controls. If the declaration is |
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silent as to voting rights for an amendment, the declaration may be |
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amended by a vote of a majority of the total votes allocated to |
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property owners entitled to vote on the amendment of the |
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declaration. |
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(e) While the mixed-use real estate development has a |
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current developer, an amendment made to the declaration under this |
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section requires the current developer to consent to the amendment |
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to be valid. |
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(f) A bylaw of a mixed-use real estate development may not |
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be amended to conflict with this section. |
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SECTION 2. This Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1845 passed the Senate on |
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April 26, 2019, by the following vote: Yeas 26, Nays 4; and that |
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the Senate concurred in House amendment on May 26, 2019, by the |
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following vote: Yeas 29, Nays 2. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1845 passed the House, with |
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amendment, on May 22, 2019, by the following vote: Yeas 140, |
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Nays 4, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |