81R10966 AJA-D
By: Rose H.B. No. 4151
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the foreclosure of property owners'
association assessment liens for a certain period.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 11, Property Code, is amended by adding
Chapter 209A to read as follows:
CHAPTER 209A. FORECLOSURE OF CERTAIN ASSESSMENT LIENS
Sec. 209A.001. DEFINITIONS. In this section:
(1) "Assessment" means a regular assessment, special
assessment, or other amount a property owner is required to pay a
property owners' association or condominium owners' association
under a dedicatory instrument or declaration or by law.
(2) "Condominium owners' association" means a council
of owners of a condominium regime governed by Chapter 81, or a unit
owners' association governed by Chapter 82.
(3) "Property owners' association" has the meaning
assigned by Section 209.002.
Sec. 209A.002. OPERABILITY OF CHAPTER; EXPIRATION. (a)
This chapter is operable only if the federal Act known as the
"Homeowner Affordability and Stability Plan" becomes law. If this
chapter becomes operable, the operability date of this chapter is
the date the federal Act takes effect, and this chapter is no longer
operable on the date on which the federal Act expires. If the
federal Act does not become law, this chapter is not operable and
has no effect.
(b) Notwithstanding Subsection (a), this chapter expires
September 1, 2013.
Sec. 209A.003. FORECLOSURE OF ASSESSMENT LIENS PROHIBITED.
(a) A property owners' association or condominium owners'
association may not foreclose the association's assessment lien on
residential real property during the period this chapter is
operable. Delinquent assessments, regardless of whether the
assessments became due before or after the operability date of this
chapter, may not accrue penalties during the period this chapter is
operable.
(b) Subsection (a) applies to a property for which a notice
of sale is given under Section 51.002 before the operability date of
this chapter or a property for which an action for judicial
foreclosure is filed before the operability date of this chapter if
a sale of the property has not been completed before the operability
date of this chapter.
SECTION 2. 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.