81R5306 UM-F
By: Farrar H.B. No. 3319
A BILL TO BE ENTITLED
AN ACT
relating to the creation of property owners' associations and the
extension of, addition to, or modification of deed restrictions in
certain areas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 204.001, Property Code, is amended by
adding Subdivision (5) to read as follows:
(5) "Property owners' association" means an entity
described as a property owners' association by Section 204.004.
SECTION 2. Section 204.004, Property Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) A property owners' association is a designated
representative of the owners of property in a subdivision and may be
referred to as a "homeowners association," "community
association," "civic association," "civic club," "association,"
"committee," or similar term contained in the restrictions. The
membership of the association consists of the owners of property
within the subdivision. For the purposes of this section, a
reference to the property owners' association in the dedicatory
instrument affecting the subdivision is a sufficient designation of
the association as a representative of the owners of property in a
subdivision. An "architect control committee," "architectural
review committee," or similar committee primarily focused on
architectural issues is not a property owners' association for the
purposes of this section.
(d) The association is not required to collect mandatory
regular or special assessments, but:
(1) membership in the association must be open to all
owners in the subdivision; and
(2) all owners must have equivalent voting rights.
SECTION 3. Section 204.006, Property Code, is amended by
amending Subsection (a) and adding Subsections (d), (e), and (f) to
read as follows:
(a) If existing restrictions applicable to a subdivision do
not provide for a property owners' association and require approval
of more than 60 percent of the owners to add to or modify the
original dedicating instrument, a petition to add to or modify the
existing restrictions for the [sole] purpose of creating and
operating a property owners' association for [with mandatory
membership, mandatory regular or special assessments, and
equivalent voting rights for each of the owners in] the subdivision
is effective if:
(1) a petition committee has been formed as prescribed
by Section 201.005;
(2) the petition is approved by the owners, excluding
lienholders, contract purchasers, and the owners of mineral
interests, of at least 60 percent of the real property in the
subdivision; and
(3) the procedure employed in the circulation and
approval of the petition to add to or amend the existing
restrictions for the specified purpose complies with the
requirements of this chapter.
(d) Membership in a property owners' association created
under this section must be mandatory for all owners in the
subdivision, and all owners must have equivalent voting rights.
The association may collect mandatory regular or special
assessments. The petition creating the property owners'
association may limit the association's powers or term of existence
by including a statement of the limitation in the petition,
including:
(1) a statement that the association:
(A) is denied any or all of the rights granted by
Section 204.010;
(B) is created for the sole purpose of enforcing
restrictions in the subdivision and modifying those restrictions in
accordance with this chapter; or
(C) has a specified term of existence; or
(2) any other statement of a limitation to which the
property owners' association is subject.
(e) A single petition may:
(1) create the property owners' association;
(2) include a direction that the property owners'
association approve and circulate a petition under Section 204.005;
and
(3) provide for the extension of, addition to, or
modification of existing restrictions in the subdivision.
(f) A petition under Subsection (e) must be approved by the
owners, excluding lienholders, contract purchasers, and the owners
of mineral interests, of at least 75 percent of the real property in
the subdivision or a smaller percentage as required by the original
dedicatory instrument. A petition approved in accordance with this
section satisfies the approval requirement of Section 204.005.
SECTION 4. Chapter 204, Property Code, is amended by adding
Section 204.012 to read as follows:
Sec. 204.012. RATIFICATION. An attempt before September 1,
2009, to extend, add to, or modify a restriction or create a
property owners' association under this chapter that did not
satisfy the requirements of the chapter as they existed at the time
the attempt was made is ratified on September 1, 2009, if the
attempt would satisfy the requirements of the chapter as they
existed on September 1, 2009.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.