81R7891 AJA-D
By: Paxton H.B. No. 1824
A BILL TO BE ENTITLED
AN ACT
relating to foreclosure of a property owners' association's
assessment lien.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 209, Property Code, is amended by adding
Section 209.0091 to read as follows:
Sec. 209.0091. PREREQUISITES TO FORECLOSURE OF ASSOCIATION
LIEN. (a) A property owners' association may not file suit to
foreclose an assessment lien or initiate foreclosure of the lien
under Section 51.002 unless:
(1) an assessment secured by the lien is overdue by at
least three months; and
(2) the property owners' association has complied with
this section.
(b) Not later than the 10th day before the end of the third
month in which the assessment is overdue, the property owners'
association must send the property owner written notice of the
delinquency by certified mail, return receipt requested. The
notice must also inform the owner of the owner's right to a hearing
under this section.
(c) The property owners' association must give the property
owner the opportunity to appear at a hearing before the association
board. Any hearing under this subsection must occur on or before
the 30th day after the date the owner receives the notice required
by this section. An owner is entitled to be represented by counsel
at any hearing under this subsection.
(d) If the association board determines after the hearing
that the owner has not paid the delinquent assessments, the
property owners' association shall offer the property owner the
opportunity to pay the delinquent assessments in monthly
installments for a period of 12 months.
(e) A property owners' association may file suit to
foreclose the assessment lien or initiate a foreclosure of the
assessment lien under Section 51.002 if:
(1) a property owner does not respond to a notice sent
under Subsection (b) before the period prescribed for holding a
hearing under Subsection (c) expires; or
(2) after a hearing under this section, a property
owner is delinquent in paying assessments for a fourth consecutive
month.
SECTION 2. The change in law made by this Act applies only
to an assessment that becomes delinquent on or after the effective
date of this Act. An assessment that becomes delinquent before the
effective date of this Act is governed by the law in effect
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.