81R3181 PMO-D
By: Jackson H.B. No. 371
A BILL TO BE ENTITLED
AN ACT
relating to dissolution of certain property owners' associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 209, Property Code, is amended by adding
Section 209.014 to read as follows:
Sec. 209.014. DISSOLUTION OF PROPERTY OWNERS' ASSOCIATION.
(a) An owner seeking to dissolve a property owners' association to
which the owner belongs must initiate the dissolution by
circulating a petition calling for the dissolution of the
association among other owners belonging to the association.
(b) A petition circulated under Subsection (a) must
contain:
(1) the name of the subdivision in which the owner
initiating the petition lives;
(2) the name of the owner initiating the petition;
(3) the reason the owner initiating the petition seeks
to dissolve the property owners' association; and
(4) the date the owner began circulating the petition.
(c) If at least 25 percent of the total number of owners
belonging to the property owners' association sign, acknowledge, or
otherwise approve in writing a petition circulated under Subsection
(a) on or before the first anniversary of the date the petition
began circulating, the owner initiating the petition shall file the
petition in the real property records of each county in which the
subdivision is located.
(d) Not later than the 180th day after the date a petition is
filed under Subsection (c), the property owners' association that
is the subject of the petition shall hold an election among the
association's members in accordance with the association's bylaws
to determine whether the association will be dissolved.
(e) If at least two-thirds of the total number of the votes
cast at the election held under Subsection (d) favor dissolving the
property owners' association, the association shall, not later than
the 180th day after the date of the election, take all steps
necessary under the association's constitution or bylaws formally
and fully to dissolve the association.
(f) The property owners' association shall record the
results of an election held under Subsection (d) in the real
property records of each county in which the subdivision is
located.
SECTION 2. This Act applies only to a property owners'
association created on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2009.