H.B. No. 3128
AN ACT
relating to service of process on condominium unit owners and
condominium unit owners' associations in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 82.002(c), Property Code, is amended to
read as follows:
(c) This section and the following sections apply to a
condominium in this state for which the declaration was recorded
before January 1, 1994: Sections 82.005, 82.006, 82.007, 82.053,
82.054, 82.102(a)(1)-(7) and (12)-(22), 82.108, 82.111, 82.113,
82.114, 82.116, 82.118, 82.157, and 82.161. The definitions
prescribed by Section 82.003 apply to a condominium in this state
for which the declaration was recorded before January 1, 1994, to
the extent the definitions do not conflict with the declaration.
The sections listed in this subsection apply only with respect to
events and circumstances occurring on or after January 1, 1994, and
do not invalidate existing provisions of the declaration, bylaws,
or plats or plans of a condominium for which the declaration was
recorded before January 1, 1994.
SECTION 2. Subchapter C, Chapter 82, Property Code, is
amended by adding Section 82.118 to read as follows:
Sec. 82.118. SERVICE OF PROCESS ON UNIT OWNERS. (a) A unit
owner of a condominium located wholly or partly in a municipality
with a population of more than 1.9 million may be served with
process by the municipality or the municipality's agent for a
judicial or administrative proceeding initiated by the
municipality and directly related to the unit owner's property
interest in the condominium by serving the unit owner at the unit
owner's last known address, according to the records of the
appraisal district in which the condominium is located, by any
means permitted by Rule 21a, Texas Rules of Civil Procedure.
(b) Notwithstanding Subsection (a), a unit owner may not
offer proof in the judicial or administrative proceeding, or in a
subsequent related proceeding, that otherwise proper service by
mail of the notice was not received not later than three days after
the date the notice was deposited in a post office or official
depository under the care and custody of the United States Postal
Service.
SECTION 3. Section 82.153(a), Property Code, is amended to
read as follows:
(a) A condominium information statement must contain or
accurately disclose:
(1) the name and principal address of the declarant
and of the condominium;
(2) a general description of the condominium that
includes the types of units and the maximum number of units;
(3) the minimum and maximum number of additional
units, if any, that may be included in the condominium;
(4) a brief narrative description of any development
rights reserved by a declarant and of any conditions relating to or
limitations upon the exercise of development rights;
(5) copies of the declaration, articles of
incorporation of the association, the bylaws, any rules of the
association, and amendments to any of them, and copies of leases and
contracts, other than loan documents, that are required by the
declarant to be signed by purchasers at closing;
(6) a projected or pro forma budget for the
association that complies with Subsection (b) for the first fiscal
year of the association following the date of the first conveyance
to a purchaser, identification of the person who prepared the
budget, and a statement of the budget's assumptions concerning
occupancy and inflation factors;
(7) a general description of each lien, lease, or
encumbrance on or affecting the title to the condominium after
conveyance by the declarant;
(8) a copy of each written warranty provided by the
declarant;
(9) a description of any unsatisfied judgments against
the association and any pending suits to which the association is a
party or which are material to the land title and construction of
the condominium of which a declarant has actual knowledge;
(10) a general description of the insurance coverage
provided for the benefit of unit owners; [and]
(11) current or expected fees or charges to be paid by
unit owners for the use of the common elements and other facilities
related to the condominium; and
(12) for a condominium located wholly or partly in a
municipality with a population of more than 1.9 million a statement
that a unit owner:
(A) as an alternative to personal service, may be
served with process by the municipality or the municipality's agent
for a judicial or administrative proceeding initiated by the
municipality and directly related to the unit owner's property
interest in the condominium by serving the unit owner at the unit
owner's last known address, according to the records of the
appraisal district in which the condominium is located, by any
means permitted by Rule 21a, Texas Rules of Civil Procedure;
(B) shall promptly notify the appraisal district
of a change in the unit owner's mailing address; and
(C) may not offer proof in the judicial or
administrative proceeding, or in a subsequent related proceeding,
that otherwise proper service by mail of the notice was not received
not later than three days after the date the notice was deposited in
a post office or official depository under the care and custody of
the United States Postal Service.
SECTION 4. Section 54.035, Local Government Code, is
amended by amending Subsections (a), (d), (e), and (f) and adding
Subsections (a-1) and (a-2) to read as follows:
(a) Except as provided by Subsections (a-1) and (a-2),
notice [Notice] of all proceedings before the commission panels
must be given:
(1) by personal delivery, by certified mail with
return receipt requested, or by delivery by the United States
Postal Service using signature confirmation service, to the record
owners of the affected property, and each holder of a recorded lien
against the affected property, as shown by the records in the office
of the county clerk of the county in which the affected property is
located if the address of the lienholder can be ascertained from the
deed of trust establishing the lien or [and/or] other applicable
instruments on file in the office of the county clerk; and
(2) to all unknown owners, by posting a copy of the
notice on the front door of each improvement situated on the
affected property or as close to the front door as practicable.
(a-1) Notice to a condominium association of a proceeding
before a commission panel relating to a condominium, as defined by
Section 81.002 or 82.003, Property Code, located wholly or partly
in a municipality with a population of more than 1.9 million must be
served by personal service, by certified mail, return receipt
requested, or by the United States Postal Service using signature
confirmation service, to the registered agent of the unit owners'
association.
(a-2) Notice to an owner of a unit of a condominium, as
defined by Section 81.002 or 82.003, Property Code, located wholly
or partly in a municipality with a population of more than 1.9
million must be given in accordance with Section 82.118, Property
Code.
(d) A municipality must exercise due diligence to determine
the identity and address of a property owner, [or] lienholder, or
registered agent to whom the municipality is required to give
notice.
(e) A municipality exercises due diligence in determining
the identity and address of a property owner, [or] lienholder, or
registered agent when it follows the procedures for service under
Section 82.118, Property Code, or searches the following records:
(1) county real property records of the county in
which the property is located;
(2) appraisal district records of the appraisal
district in which the property is located;
(3) records of the secretary of state, if the property
owner, [or] lienholder, or registered agent is a corporation,
partnership, or other business association;
(4) assumed name records of the county in which the
property is located;
(5) tax records of the municipality; and
(6) utility records of the municipality.
(f) When a municipality mails a notice in accordance with
this section to a property owner, [or] lienholder, or registered
agent and the United States Postal Service returns the notice as
"refused" or "unclaimed," the validity of the notice is not
affected, and the notice is considered delivered.
SECTION 5. Section 214.001, Local Government Code, is
amended by amending Subsections (b) and (r) and adding Subsection
(b-1) to read as follows:
(b) The ordinance must:
(1) establish minimum standards for the continued use
and occupancy of all buildings regardless of the date of their
construction;
(2) provide for giving proper notice, subject to
Subsection (b-1), to the owner of a building; and
(3) provide for a public hearing to determine whether
a building complies with the standards set out in the ordinance.
(b-1) For a condominium, as defined by Section 81.002 or
82.003, Property Code, located wholly or partly in a municipality
with a population of more than 1.9 million, notice to a unit owner
in accordance with Section 82.118, Property Code, and notice to the
registered agent for the unit owners' association in the manner
provided for service of process to a condominium association under
Section 54.035(a-1) satisfy the notice requirements under this
section.
(r) When a municipality mails a notice in accordance with
this section to a property owner, lienholder, [or] mortgagee, or
registered agent and the United States Postal Service returns the
notice as "refused" or "unclaimed," the validity of the notice is
not affected, and the notice is considered delivered.
SECTION 6. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3128 was passed by the House on May 6,
2009, by the following vote: Yeas 144, Nays 2, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3128 was passed by the Senate on May
27, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor