Texas Senate Bill SB240

Texas 2009 - 81st Regular

• Filed: 11/10/08
• Out of Senate Committee: 3/30/09
• Voted on by Senate: 4/8/09
• Out of House Committee: 5/6/09

Caption

Relating to the enforcement of deed restrictions.

Impact

The most significant impact of SB240 is its revision of how property owners' associations can manage delinquent assessments and enforce deed restrictions. By mandating that associations adopt reasonable guidelines for alternative payment schedules, the bill aims to provide relief for owners facing financial difficulties. It also clarifies the priority of payments received by the associations, ensuring a more structured approach to debt collection, which may help both owners and associations manage financial obligations more effectively. Overall, this legislation is aimed to enhance fairness and transparency in the enforcement of association rules and debt collections.

Summary

SB240, titled 'Relating to the enforcement of deed restrictions,' seeks to amend the Texas Property Code by introducing measures that regulate the assessment of fines and collection practices by property owners' associations. The bill includes provisions that require fines to be reasonable based on the nature and frequency of the violations and establishes a cap on fines for continuing violations at up to ten times the original amount. Additionally, the bill allows property owners' associations to directly fine nonowner occupants for violations, ensuring that these fines are subject to the same notice and hearing requirements as those imposed on owners.

Contention

The bill sparked discussions regarding the balance of power between property owners' associations and homeowners, as well as the potential for increased litigation due to disputes over fines. While proponents argue that this legislation aligns the enforcement of deed restrictions with contemporary practices and provides better protection for homeowners against unreasonable fines, critics express concern that the provisions may not adequately address situations where associations overstep their authority. Additionally, the limitations on payment plans for delinquencies could present challenges for homeowners who genuinely struggle to meet their financial obligations, raising questions about the bill's equitable impact on all homeowners in these communities.