|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to declarant control of a property owners' association |
|
board. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 209.0051(c-1), Property Code, is amended |
|
to read as follows: |
|
(c-1) Except for a meeting held by electronic or telephonic |
|
means under Subsection (c-2), a board meeting must be held: |
|
(1) in a county in which all or part of the property in |
|
the subdivision is located or in a county adjacent to that county; |
|
and |
|
(2) within 10 miles of the subdivision, if a majority |
|
of the board members are not elected by owners other than the |
|
declarant. |
|
SECTION 2. Section 209.00591, Property Code, is amended by |
|
amending Subsection (c) and adding Subsections (d) and (e) 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. |
|
(d) Regardless of the period of declarant control provided |
|
by the declaration: |
|
(1) on or before the 120th day after the date a |
|
majority 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 one-third of the board members must be |
|
elected by owners other than the declarant; and |
|
(2) [,] 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. |
|
(e) 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 10th anniversary of the |
|
date the declaration was recorded. |
|
SECTION 3. (a) Section 209.00591, Property Code, as |
|
amended by this Act, applies to a property owners' association |
|
board regardless of whether the association's declaration was |
|
adopted before, on, or after the effective date of this Act. |
|
(b) Notwithstanding Section 209.00591, Property Code, as |
|
amended by this Act, at least one-third of the board members of a |
|
property owners' association to which Chapter 209, Property Code, |
|
applies must be elected by owners other than the declarant on or |
|
before March 1, 2020, if the association reached the majority |
|
conveyance threshold described by Section 209.00591(d)(1), |
|
Property Code, as added by this Act, before the effective date of |
|
this Act. |
|
(c) Notwithstanding Section 209.00591, Property Code, as |
|
amended by this Act, at least a majority of the board members of a |
|
property owners' association to which Chapter 209, Property Code, |
|
applies must be elected by owners other than the declarant on or |
|
before March 1, 2020, if: |
|
(1) the association reached the 75 percent conveyance |
|
threshold described by Section 209.00591(d)(2), Property Code, as |
|
added by this Act, before the effective date of this Act; or |
|
(2) the 10th anniversary of the date the association's |
|
declaration was recorded occurred before the effective date of this |
|
Act or occurs on or after the effective date of this Act and before |
|
March 1, 2020. |
|
SECTION 4. This Act takes effect September 1, 2019. |