Texas House Bill HB3857

Texas 2021 - 87th Regular

Caption

Relating to requirements to file a property owners' association assessment lien.

Impact

The bill stipulates that an assessment lien cannot be filed until at least 180 days after the property owners' association sends the third notice of delinquency. This extended timeframe is intended to provide property owners with ample opportunity to settle any outstanding payments before facing legal consequences regarding their property. The legislation particularly impacts how property owners' associations manage delinquent assessments and enforce their claims, potentially leading to fewer assessment liens being filed in cases where owners can address their debts within the specified period.

Summary

House Bill 3857 addresses the procedures related to the filing of assessment liens by property owners' associations in Texas. According to the amended section of the Texas Property Code, before any assessment lien can be filed due to nonpayment, the association must send out three separate notices of delinquency. These notices must be sent via certified mail, and they must be directed to the property owner's last known mailing address as maintained by the association. This requirement aims to ensure that property owners are adequately notified before their property could be subjected to a lien.

Contention

While the bill aims to protect property owners by giving them greater notice and an extended period before a lien is filed, it may also lead to contention among property owners' associations. Some associations may feel that the new requirements could impede their ability to efficiently recover unpaid assessments, leading to prolonged financial issues for the associations themselves. Striking a balance between protecting property owners and ensuring property owners' associations can enforce their rights remains a significant concern as the bill is further discussed.