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A BILL TO BE ENTITLED
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AN ACT
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relating to declarant control of certain property owners' |
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associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 209.00591(c), Property Code, is amended |
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to read as follows: |
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(c) The declaration may provide for a period of declarant |
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control of the association during which a declarant, or persons |
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designated by the declarant, may appoint and remove board members |
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and the officers of the association, other than board members or |
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officers elected by members of the property owners' association. |
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Regardless of the period of declarant control provided by the |
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declaration:[,] |
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(1) on or before the 120th day after the date 50 |
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percent of the lots that may be created and made subject to the |
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declaration are conveyed to owners other than a declarant or a |
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builder in the business of constructing homes who purchased the |
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lots from the declarant for the purpose of selling completed homes |
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built on the lots, at least one board member must be elected by |
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owners other than the declarant; |
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(2) on or before the 120th day after the date 75 |
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percent of the lots that may be created and made subject to the |
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declaration are conveyed as described by Subdivision (1) [to owners |
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other than a declarant or a builder in the business of constructing |
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homes who purchased the lots from the declarant for the purpose of |
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selling completed homes built on the lots], at least one-third of |
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the board members must be elected by owners other than the |
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declarant; and |
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(3) if[. If] the declaration does not include the |
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number of lots that may be created and made subject to the |
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declaration, at least one-third of the board members must be |
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elected by owners other than the declarant not later than the fifth |
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[10th] anniversary of the date the declaration was recorded. |
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SECTION 2. Section 209.00591, Property Code, as amended by |
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this Act, applies to a declaration regardless of whether the |
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declaration was created or amended before, on, or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |