| 1 | 1 | | 81R7891 AJA-D |
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| 2 | 2 | | By: Paxton H.B. No. 1824 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to foreclosure of a property owners' association's |
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| 8 | 8 | | assessment lien. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 209, Property Code, is amended by adding |
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| 11 | 11 | | Section 209.0091 to read as follows: |
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| 12 | 12 | | Sec. 209.0091. PREREQUISITES TO FORECLOSURE OF ASSOCIATION |
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| 13 | 13 | | LIEN. (a) A property owners' association may not file suit to |
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| 14 | 14 | | foreclose an assessment lien or initiate foreclosure of the lien |
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| 15 | 15 | | under Section 51.002 unless: |
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| 16 | 16 | | (1) an assessment secured by the lien is overdue by at |
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| 17 | 17 | | least three months; and |
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| 18 | 18 | | (2) the property owners' association has complied with |
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| 19 | 19 | | this section. |
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| 20 | 20 | | (b) Not later than the 10th day before the end of the third |
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| 21 | 21 | | month in which the assessment is overdue, the property owners' |
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| 22 | 22 | | association must send the property owner written notice of the |
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| 23 | 23 | | delinquency by certified mail, return receipt requested. The |
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| 24 | 24 | | notice must also inform the owner of the owner's right to a hearing |
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| 25 | 25 | | under this section. |
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| 26 | 26 | | (c) The property owners' association must give the property |
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| 27 | 27 | | owner the opportunity to appear at a hearing before the association |
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| 28 | 28 | | board. Any hearing under this subsection must occur on or before |
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| 29 | 29 | | the 30th day after the date the owner receives the notice required |
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| 30 | 30 | | by this section. An owner is entitled to be represented by counsel |
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| 31 | 31 | | at any hearing under this subsection. |
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| 32 | 32 | | (d) If the association board determines after the hearing |
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| 33 | 33 | | that the owner has not paid the delinquent assessments, the |
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| 34 | 34 | | property owners' association shall offer the property owner the |
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| 35 | 35 | | opportunity to pay the delinquent assessments in monthly |
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| 36 | 36 | | installments for a period of 12 months. |
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| 37 | 37 | | (e) A property owners' association may file suit to |
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| 38 | 38 | | foreclose the assessment lien or initiate a foreclosure of the |
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| 39 | 39 | | assessment lien under Section 51.002 if: |
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| 40 | 40 | | (1) a property owner does not respond to a notice sent |
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| 41 | 41 | | under Subsection (b) before the period prescribed for holding a |
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| 42 | 42 | | hearing under Subsection (c) expires; or |
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| 43 | 43 | | (2) after a hearing under this section, a property |
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| 44 | 44 | | owner is delinquent in paying assessments for a fourth consecutive |
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| 45 | 45 | | month. |
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| 46 | 46 | | SECTION 2. The change in law made by this Act applies only |
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| 47 | 47 | | to an assessment that becomes delinquent on or after the effective |
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| 48 | 48 | | date of this Act. An assessment that becomes delinquent before the |
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| 49 | 49 | | effective date of this Act is governed by the law in effect |
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| 50 | 50 | | immediately before the effective date of this Act, and that law is |
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| 51 | 51 | | continued in effect for that purpose. |
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| 52 | 52 | | SECTION 3. This Act takes effect September 1, 2009. |
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