Texas House Bill HB2992

Texas 2019 - 86th Regular

Caption

Relating to the amendment of the dedicatory instruments of certain mixed-use real estate developments.

Impact

The significance of HB2992 lies in its focus on the governance of large mixed-use developments, particularly in densely populated municipalities. By establishing more straightforward amendment procedures, it aims to facilitate the necessary adjustments to property governance that often arise in complex real estate developments. Given that it is applicable to municipalities with populations of two million or more and counties with populations of over 3.3 million, the bill specifically targets urban centers in Texas.

Summary

House Bill 2992 proposes amendments to the Texas Property Code, specifically by introducing a new chapter addressing the amendment of dedicatory instruments in certain mixed-use real estate developments. The bill defines mixed-use real estate developments in a detailed manner, imposing specifications regarding land area, commercial and office property ratios, and governance by a property owners' association. By setting specific criteria for these developments, the bill seeks to streamline the amendment processes related to property governance documents within specified urban populations.

Contention

One notable point of contention within HB2992 is its potential to alter the dynamics of decision-making within property owners' associations. The bill allows for amendments to be made by a majority vote based on allocated voting rights for property owned within the development, which may dilute individual owners' influence in favor of collective decisions. This aspect raises concerns regarding the representation and interests of minority owners versus that of developers or larger property holders. As some stakeholders argue for the need to modernize and ease amendments for mixed-use developments, others caution against possible overreach that may diminish local homeowner control.