BILL ANALYSIS

H.B. 1006

By: Schoolcraft

Trade, Workforce & Economic Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law requires amendments to a restrictive covenant of a subdivision to be approved by a certain share of the applicable property owners. The bill author has informed the committee that identifying and locating all the property owners can by extremely burdensome and difficult, particularly for certain subdivisions that are multi-zoned and that are located in multiple counties and municipalities. H.B. 1006 seeks to reduce this burden for certain multi-zoned subdivisions by revising the procedures by which restrictive covenants in certain municipalities may be amended.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1006 amends the Property Code to provide for the amendment of restrictive covenants applicable to property in a multi-zoned subdivision, as defined by the bill, that is located in whole or in part in a municipality with a population of 30,000 or more and located in at least three counties. An amendment of restrictions under the bill's provisions may apply to all or part of the applicable subdivision, and restrictions may be amended under the bill's provisions to affect different portions of the subdivision differently. The bill establishes that an amendment approved under the bill's provisions is effective and applies to each separately owned lot in the area designated as subject to the amendment. The bill defines "multi-zoned subdivision" for the purposes of its provisions as a subdivision, as follows:

·       that was platted before 1965, has more than 900 lots, and is located in two or more separately incorporated municipalities; and

·       at least one portion of the plat of which is zoned for a use other than a use permitted by the applicable restrictions.

H.B. 1006 requires an amendment of restrictions to be approved by the owners of at least 67 percent of the lots in the area of the subdivision designated in the relevant ballot as subject to the proposed amendment. Only one vote may be cast for each lot and the vote of multiple owners of a property may be reflected by the signature or vote of one of the owners.

H.B. 1006 establishes that a ballot for a vote under the bill's provisions must be in writing and, as follows:

·       state the substance of the proposed amendment of the restrictions;

·       designate the area of the subdivision to which the proposed amendment applies; and

·       specify the date by which the ballot must be returned to be counted.

Moreover, such a ballot must be mailed to each owner of a lot in the subdivision area to which the proposed amendment applies at the address shown in the online records of the appraisal district in which the lot is located. The bill also requires a copy of the ballot to be recorded in the real property records of each county in which the subdivision is located before the vote is held. If an amendment is approved, a document certifying the approval must also be recorded in those property records, and such a filed document is considered prima facie evidence that the required vote was attained and the required procedures for the vote were followed.

H.B. 1006 prohibits an owner of property within the subdivision to which amended restrictions approved under the bill's provisions apply from claiming in any judicial proceeding that the amendment is not enforceable on the grounds that the amendment is not applicable to all of the property in the subdivision.

H.B. 1006 applies to a restrictive covenant enacted before, on, or after the bill's effective date.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.