Texas 2009 - 81st Regular

Texas House Bill HB3319 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R5306 UM-F
2	2	By: Farrar H.B. No. 3319
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of property owners' associations and the
8	8	extension of, addition to, or modification of deed restrictions in
9	9	certain areas.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 204.001, Property Code, is amended by
12	12	adding Subdivision (5) to read as follows:
13	13	(5) "Property owners' association" means an entity
14	14	described as a property owners' association by Section 204.004.
15	15	SECTION 2. Section 204.004, Property Code, is amended by
16	16	amending Subsection (a) and adding Subsection (d) to read as
17	17	follows:
18	18	(a) A property owners' association is a designated
19	19	representative of the owners of property in a subdivision and may be
20	20	referred to as a "homeowners association," "community
21	21	association," "civic association," "civic club," "association,"
22	22	"committee," or similar term contained in the restrictions. The
23	23	membership of the association consists of the owners of property
24	24	within the subdivision. For the purposes of this section, a
25	25	reference to the property owners' association in the dedicatory
26	26	instrument affecting the subdivision is a sufficient designation of
27	27	the association as a representative of the owners of property in a
28	28	subdivision. An "architect control committee," "architectural
29	29	review committee," or similar committee primarily focused on
30	30	architectural issues is not a property owners' association for the
31	31	purposes of this section.
32	32	(d) The association is not required to collect mandatory
33	33	regular or special assessments, but:
34	34	(1) membership in the association must be open to all
35	35	owners in the subdivision; and
36	36	(2) all owners must have equivalent voting rights.
37	37	SECTION 3. Section 204.006, Property Code, is amended by
38	38	amending Subsection (a) and adding Subsections (d), (e), and (f) to
39	39	read as follows:
40	40	(a) If existing restrictions applicable to a subdivision do
41	41	not provide for a property owners' association and require approval
42	42	of more than 60 percent of the owners to add to or modify the
43	43	original dedicating instrument, a petition to add to or modify the
44	44	existing restrictions for the [sole] purpose of creating and
45	45	operating a property owners' association for [with mandatory
46	46	membership, mandatory regular or special assessments, and
47	47	equivalent voting rights for each of the owners in] the subdivision
48	48	is effective if:
49	49	(1) a petition committee has been formed as prescribed
50	50	by Section 201.005;
51	51	(2) the petition is approved by the owners, excluding
52	52	lienholders, contract purchasers, and the owners of mineral
53	53	interests, of at least 60 percent of the real property in the
54	54	subdivision; and
55	55	(3) the procedure employed in the circulation and
56	56	approval of the petition to add to or amend the existing
57	57	restrictions for the specified purpose complies with the
58	58	requirements of this chapter.
59	59	(d) Membership in a property owners' association created
60	60	under this section must be mandatory for all owners in the
61	61	subdivision, and all owners must have equivalent voting rights.
62	62	The association may collect mandatory regular or special
63	63	assessments. The petition creating the property owners'
64	64	association may limit the association's powers or term of existence
65	65	by including a statement of the limitation in the petition,
66	66	including:
67	67	(1) a statement that the association:
68	68	(A) is denied any or all of the rights granted by
69	69	Section 204.010;
70	70	(B) is created for the sole purpose of enforcing
71	71	restrictions in the subdivision and modifying those restrictions in
72	72	accordance with this chapter; or
73	73	(C) has a specified term of existence; or
74	74	(2) any other statement of a limitation to which the
75	75	property owners' association is subject.
76	76	(e) A single petition may:
77	77	(1) create the property owners' association;
78	78	(2) include a direction that the property owners'
79	79	association approve and circulate a petition under Section 204.005;
80	80	and
81	81	(3) provide for the extension of, addition to, or
82	82	modification of existing restrictions in the subdivision.
83	83	(f) A petition under Subsection (e) must be approved by the
84	84	owners, excluding lienholders, contract purchasers, and the owners
85	85	of mineral interests, of at least 75 percent of the real property in
86	86	the subdivision or a smaller percentage as required by the original
87	87	dedicatory instrument. A petition approved in accordance with this
88	88	section satisfies the approval requirement of Section 204.005.
89	89	SECTION 4. Chapter 204, Property Code, is amended by adding
90	90	Section 204.012 to read as follows:
91	91	Sec. 204.012. RATIFICATION. An attempt before September 1,
92	92	2009, to extend, add to, or modify a restriction or create a
93	93	property owners' association under this chapter that did not
94	94	satisfy the requirements of the chapter as they existed at the time
95	95	the attempt was made is ratified on September 1, 2009, if the
96	96	attempt would satisfy the requirements of the chapter as they
97	97	existed on September 1, 2009.
98	98	SECTION 5. This Act takes effect immediately if it receives
99	99	a vote of two-thirds of all the members elected to each house, as
100	100	provided by Section 39, Article III, Texas Constitution. If this
101	101	Act does not receive the vote necessary for immediate effect, this
102	102	Act takes effect September 1, 2009.