Texas 2009 - 81st Regular

Texas House Bill HB1977

Filed
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to encumbrances that may be fixed on homestead property.

Impact

If enacted, HB 1977 would modify existing laws surrounding the protection of homesteads from creditor claims by allowing specific debts to result in encumbrances. This could have profound implications for homeowners, particularly those living in communities governed by property owners' associations. Homeowners may need to ensure timely payment of association fees to prevent encumbrances from being placed on their homes, which could ultimately affect their financial security and home equity.

Summary

House Bill 1977 proposes amendments to the Texas Property Code concerning homestead property and encumbrances that may be placed upon it. The key change involves allowing property owners' associations to place encumbrances on homesteads for unpaid fees related to the maintenance of common facilities or fines levied by the association. This legislation aims to clarify the conditions under which homestead properties can be encumbered and introduces a specific provision for property owners' association debts, in line with other existing encumbrances such as those related to taxes or construction costs.

Contention

The introduction of this bill may lead to contention regarding the balance of power between property owners' associations and homeowners. Proponents may argue that the new provision is necessary for the financial sustainability of community associations, while opponents might express concerns over the potential for abuse, as homeowners could face increased pressure to pay fees or fines. Furthermore, the potential for further encumbrance could pose risks to homeowners' ability to retain their properties during financial difficulties, raising discussions around consumer rights and protections.

Additional_notes

Importantly, this bill's enactment is contingent upon a constitutional amendment that must be passed by voters, which adds an additional layer of complexity to its implementation. The interactions between local governance, homeowners, and state law will likely come under increased scrutiny as this bill progresses.

Companion Bills

TX HJR76

Enabling for Proposing a constitutional amendment permitting an encumbrance to be fixed on homestead property for an obligation to pay certain property owners' association fees and prohibiting the forced sale of the homestead to pay those fees unless authorized by the members of the association in accordance with general law.

Previously Filed As

TX HJR29

Proposing a constitutional amendment providing that a residence homestead is not subject to seizure or sale for delinquent ad valorem taxes.

TX HB117

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

TX HJR124

Proposing a constitutional amendment to remove the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.

TX HB2666

Relating to the limitation on the total amount of ad valorem taxes that a school district may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 20 consecutive tax years.

TX HJR20

Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.

TX HB4478

Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HJR87

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

TX HB794

Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.

TX HB32

Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.

TX HJR14

Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes for the first tax year that the owner of the property qualifies the property for a residence homestead exemption is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the homestead for subsequent tax years based on the inflation rate.

Similar Bills

NJ A254

Permits eligible claimant who is proportionate owner paying entire property tax bill to collect entire homestead property tax reimbursement amount.

NJ A975

Permits eligible claimant who is proportionate owner paying entire property tax bill to collect entire homestead property tax reimbursement amount.

FL H1105

Rescinding a Homestead Exemption Application

NJ A5089

Prohibits homestead property tax rebates and credits and ANCHOR property tax benefits from being paid to property owners who move out of State.

MN HF1343

Property tax provisions modified, and identification requirements for homestead determination modified.

FL H0775

Assessment of Homestead Property

NJ A3354

Converts senior freeze reimbursement into credit applied directly to property tax bills.

NJ S259

Converts senior freeze reimbursement into credit applied directly to property tax bills.