87R8317 NC-F
 
  By: A. Johnson of Harris H.B. No. 2274
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the extension or amendment of deed restrictions in
  certain older subdivisions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 11, Property Code, is amended by adding
  Chapter 216 to read as follows:
  CHAPTER 216. EXTENSION OR AMENDMENT OF RESTRICTIONS IN CERTAIN
  OLDER SUBDIVISIONS
         Sec. 216.001.  DEFINITIONS. In this chapter:
               (1)  "Dedicatory instrument" has the meaning assigned
  by Section 202.001.
               (2)  "Lienholder" and "owner" have the meanings
  assigned by Section 201.003.
               (3)  "Older subdivision" means a subdivision described
  by a recorded map or plat filed before 1950 in real property records
  of the county in which the subdivision is located.
               (4)  "Petition" has the meaning assigned by Section
  202.001.
               (5)  "Property owners' association" means an
  incorporated or unincorporated homeowners' association, community
  association, civic club, or similar entity that:
                     (A)  has a membership primarily consisting of the
  owners of real property in a subdivision; and
                     (B)  supports the enforcement of or promotes the
  observance of the deed restrictions applicable to all or part of the
  property located in the subdivision.
               (6)  "Restrictions" has the meaning assigned by Section
  209.002.
               (7)  "Subdivision" means land that:
                     (A)  consists of multiple sections that have each
  been divided into two or more parts on a map or plat that has been
  recorded in the real property records of a county; and
                     (B)  is or was subject to restrictions that:
                           (i)  limit a majority of the land, excluding
  streets and public areas, to residential use; and
                           (ii)  were recorded in the real property
  records of the county.
         Sec. 216.002.  FINDINGS AND PURPOSE. (a) The legislature
  finds that:
               (1)  the inability of owners to extend or amend
  property restrictions in older subdivisions in which no zoning
  regulations apply creates uncertainty in living conditions and
  discourages investments in those subdivisions;
               (2)  owners in affected older subdivisions are
  reluctant or unable to provide proper maintenance, upkeep, and
  repairs of structures because of the inability to amend the
  restrictions in response to changing circumstances;
               (3)  these conditions will cause dilapidation of
  housing and other structures and cause unhealthful and unsanitary
  conditions in affected older subdivisions, contrary to the health,
  safety, and welfare of the public; and
               (4)  the existence of race-related covenants in
  restrictions, regardless of their unenforceability, is offensive,
  repugnant, and harmful to members of racial or ethnic minority
  groups and public policy requires that those covenants be removed.
         (b)  The purpose of this chapter is to provide a procedure
  for extending or amending restrictions for certain older
  subdivisions, including the removal of any restriction relating to
  race, religion, or national origin that is void and unenforceable
  under the United States Constitution or Section 5.026.
         Sec. 216.003.  APPLICABILITY OF CHAPTER. (a) This chapter
  applies only to an older subdivision that:
               (1)  is wholly or partly located in a municipality with
  a population of two million or more;
               (2)  had original restrictions that:
                     (A)  did not have an express procedure that
  provides for successive extensions of the restrictions;
                     (B)  did not have an express procedure for
  amending the restrictions;
                     (C)  could not be amended without the unanimous
  consent of:
                           (i)  all owners in the subdivision; or
                           (ii)  all owners in any section of the
  subdivision; or
                     (D)  may no longer be valid due to an inability to
  extend or amend the restrictions; and
               (3)  has a single property owners' association in which
  all owners in the subdivision are eligible for membership but in
  which membership is not mandatory.
         (b)  This chapter applies to a restriction regardless of the
  date on which the restriction was created.
         (c)  This chapter supersedes any contrary requirement for
  the extension or amendment of a restriction in a dedicatory
  instrument of a subdivision to which this chapter applies.
         Sec. 216.004.  AMENDMENT OF RESTRICTIONS. For purposes of
  this chapter, the amendment of restrictions includes the adoption
  of new restrictions or the modification or removal of existing
  restrictions.
         Sec. 216.005.  PROPERTY OWNERS' ASSOCIATION ACTION NOT
  REQUIRED. Restrictions may be extended or amended under this
  chapter without action by the property owners' association.
         Sec. 216.006.  EXTENSION OF RESTRICTIONS. (a) Restrictions
  may be extended as provided by Section 216.007 or, if a dedicatory
  instrument provides a procedure for an initial extension of the
  original restrictions, that procedure may be used for successive
  extensions of the original restrictions unless the dedicatory
  instrument expressly prohibits the procedure from being used for
  successive extensions. If the dedicatory instrument prohibits the
  procedure from being used to provide for automatic extension of
  restrictions, the procedure may not be used under this subsection
  to provide for automatic extension of the restrictions.
         (b)  A provision in a dedicatory instrument that prohibits
  the extension of an existing restriction during a certain period
  does not apply to a successive extension under a procedure for
  initial extension of original restrictions under Subsection (a).
         (c)  An extension of restrictions under this chapter may:
               (1)  be for a period equal to the original term of the
  restrictions or a shorter period; and
               (2)  subject to Subsection (a), provide for additional
  automatic extensions of the term of the restrictions for a period of
  not more than 10 years for each extension.
         (d)  A dedicatory instrument that provides for the extension
  of restrictions and does not provide for amendment of restrictions
  may be amended under this chapter, including by amending the
  provision providing for the extension of the restrictions.
         Sec. 216.007.  CONSENT REQUIRED FOR EXTENSION OR AMENDMENT
  OF RESTRICTIONS. (a) A restriction may be extended or amended by a
  petition or ballots that indicate the written consent of the owners
  of at least 66.6 percent of the total number of separately owned
  parcels or tracts in the subdivision, regardless of whether the
  parcels or tracts contain part or all of one or more platted lots or
  combination of lots.
         (b)  A restriction that is extended or amended as described
  by Subsection (a) applies to all sections of the subdivision,
  including any annex, to the extent that the extended or amended
  restriction expressly applies to the entire subdivision,
  regardless of whether:
               (1)  each section has separate restrictions; or
               (2)  each owner is a member of the property owners'
  association.
         (c)  If the original restrictions for a subdivision contain a
  lower percentage to extend or amend the restrictions, the
  percentage in the original restrictions controls.
         Sec. 216.008.  PETITION OR BALLOTS. (a) A petition or
  ballots for the extension or amendment of restrictions may be
  distributed to the owners in the subdivision by any method,
  including:
               (1)  by United States mail;
               (2)  by electronic mail or other method of electronic
  transmission;
               (3)  by door-to-door circulation; or
               (4)  at a meeting of the owners in the subdivision
  called for the purpose of voting on the proposed extension or
  amendment.
         (b)  The petition or ballots may be provided to owners in
  separate documents. The separate documents are considered to be
  one instrument.
         Sec. 216.009.  EFFECT OF OWNER'S SIGNATURE. (a) An owner's
  signature on a petition or ballot conclusively establishes the
  owner's consent for the purposes of this chapter.
         (b)  The vote of multiple owners of a lot, parcel, or tract
  may be reflected by the signature of one of the owners.
         (c)  After an owner signs a petition or ballot for an
  extension or amendment of a restriction, the owner's subsequent
  conveyance of the owner's interest in real property in the
  subdivision covered by the extension or amendment does not affect
  the validity of the signature for the purposes of the petition or
  ballot.
         Sec. 216.010.  EFFECTIVE DATE OF EXTENSION OR AMENDMENT. An
  extension or amendment of a restriction under this chapter takes
  effect on the date the extension or amendment and the petition or
  ballots that reflect the written consent of the required number of
  owners in the subdivision for the adoption of the extension or
  amendment are filed and recorded in the real property records of the
  county in which the subdivision is located.
         Sec. 216.011.  APPLICABILITY OF EXTENSION OR AMENDMENT. (a)
  An extension or amendment of a restriction under this chapter is
  binding on a lot, parcel, or tract in the subdivision as provided by
  the restriction, regardless of whether the owner or owners of the
  lot, parcel, or tract consented to the extension or amendment.
         (b)  Notwithstanding any other law, a property owner may not
  opt out of the applicability to the owner's property of a
  restriction that is extended or amended under this chapter.
         (c)  An extension or amendment of a restriction under this
  chapter is binding on a lienholder or a person who acquires title to
  property at a foreclosure sale or by deed from a foreclosing
  lienholder.
         Sec. 216.012.  UNCONSTITUTIONAL RESTRICTIONS NOT EXTENDED.
  If a provision in restrictions extended under this chapter is void
  and unenforceable under the United States Constitution or Section
  5.026, the restrictions are considered as if the void and
  unenforceable provision was never contained in the restrictions.
         Sec. 216.013.  PROCEDURES CUMULATIVE. The procedure
  provided by this chapter for the extension or amendment of
  restrictions is cumulative of and not in lieu of any other method by
  which restrictions of a subdivision to which this chapter applies
  may be extended or amended.
         Sec. 216.014.  CONSTRUCTION OF CHAPTER AND RESTRICTIONS.
  (a) This chapter and any petition or ballot made or action taken in
  connection with an attempt to comply with this chapter shall be
  liberally construed to effectuate the intent of this chapter and
  the petition, ballot, or action.
         (b)  A restriction that is extended or amended under this
  chapter shall be liberally construed to give effect to the
  restriction's purposes and intent.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.