| 1 | 1 | | 81R10966 AJA-D |
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| 2 | 2 | | By: Rose H.B. No. 4151 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to prohibiting the foreclosure of property owners' |
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| 8 | 8 | | association assessment liens for a certain period. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Title 11, Property Code, is amended by adding |
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| 11 | 11 | | Chapter 209A to read as follows: |
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| 12 | 12 | | CHAPTER 209A. FORECLOSURE OF CERTAIN ASSESSMENT LIENS |
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| 13 | 13 | | Sec. 209A.001. DEFINITIONS. In this section: |
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| 14 | 14 | | (1) "Assessment" means a regular assessment, special |
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| 15 | 15 | | assessment, or other amount a property owner is required to pay a |
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| 16 | 16 | | property owners' association or condominium owners' association |
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| 17 | 17 | | under a dedicatory instrument or declaration or by law. |
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| 18 | 18 | | (2) "Condominium owners' association" means a council |
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| 19 | 19 | | of owners of a condominium regime governed by Chapter 81, or a unit |
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| 20 | 20 | | owners' association governed by Chapter 82. |
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| 21 | 21 | | (3) "Property owners' association" has the meaning |
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| 22 | 22 | | assigned by Section 209.002. |
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| 23 | 23 | | Sec. 209A.002. OPERABILITY OF CHAPTER; EXPIRATION. (a) |
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| 24 | 24 | | This chapter is operable only if the federal Act known as the |
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| 25 | 25 | | "Homeowner Affordability and Stability Plan" becomes law. If this |
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| 26 | 26 | | chapter becomes operable, the operability date of this chapter is |
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| 27 | 27 | | the date the federal Act takes effect, and this chapter is no longer |
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| 28 | 28 | | operable on the date on which the federal Act expires. If the |
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| 29 | 29 | | federal Act does not become law, this chapter is not operable and |
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| 30 | 30 | | has no effect. |
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| 31 | 31 | | (b) Notwithstanding Subsection (a), this chapter expires |
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| 32 | 32 | | September 1, 2013. |
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| 33 | 33 | | Sec. 209A.003. FORECLOSURE OF ASSESSMENT LIENS PROHIBITED. |
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| 34 | 34 | | (a) A property owners' association or condominium owners' |
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| 35 | 35 | | association may not foreclose the association's assessment lien on |
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| 36 | 36 | | residential real property during the period this chapter is |
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| 37 | 37 | | operable. Delinquent assessments, regardless of whether the |
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| 38 | 38 | | assessments became due before or after the operability date of this |
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| 39 | 39 | | chapter, may not accrue penalties during the period this chapter is |
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| 40 | 40 | | operable. |
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| 41 | 41 | | (b) Subsection (a) applies to a property for which a notice |
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| 42 | 42 | | of sale is given under Section 51.002 before the operability date of |
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| 43 | 43 | | this chapter or a property for which an action for judicial |
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| 44 | 44 | | foreclosure is filed before the operability date of this chapter if |
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| 45 | 45 | | a sale of the property has not been completed before the operability |
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| 46 | 46 | | date of this chapter. |
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| 47 | 47 | | SECTION 2. This Act takes effect immediately if it receives |
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| 48 | 48 | | a vote of two-thirds of all the members elected to each house, as |
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| 49 | 49 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 50 | 50 | | Act does not receive the vote necessary for immediate effect, this |
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| 51 | 51 | | Act takes effect September 1, 2009. |
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