| 1 | 1 | | 82R6642 TJS-D |
|---|
| 2 | 2 | | By: Dutton H.B. No. 1639 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the recovery of attorney's fees in foreclosure actions |
|---|
| 8 | 8 | | by property owners' associations. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 209.008, Property Code, is amended by |
|---|
| 11 | 11 | | amending Subsection (a) and adding Subsection (h) to read as |
|---|
| 12 | 12 | | follows: |
|---|
| 13 | 13 | | (a) Except as provided by this section, a [A] property |
|---|
| 14 | 14 | | owners' association may collect reimbursement of reasonable |
|---|
| 15 | 15 | | attorney's fees and other reasonable costs incurred by the |
|---|
| 16 | 16 | | association relating to collecting amounts, including damages, due |
|---|
| 17 | 17 | | the association for enforcing restrictions or the bylaws or rules |
|---|
| 18 | 18 | | of the association only if the owner is provided a written notice |
|---|
| 19 | 19 | | that attorney's fees and costs will be charged to the owner if the |
|---|
| 20 | 20 | | delinquency or violation continues after a date certain. |
|---|
| 21 | 21 | | (h) Notwithstanding Subsection (f), an owner is not liable |
|---|
| 22 | 22 | | for attorney's fees incurred by the property owners' association in |
|---|
| 23 | 23 | | judicially or nonjudicially foreclosing the association's |
|---|
| 24 | 24 | | assessment lien on the owner's property. |
|---|
| 25 | 25 | | SECTION 2. (a) Except as provided by this section, the |
|---|
| 26 | 26 | | change in law made by this Act applies only to a judicial |
|---|
| 27 | 27 | | foreclosure in which an action is commenced or a nonjudicial |
|---|
| 28 | 28 | | foreclosure in which a notice of default under Section 51.002, |
|---|
| 29 | 29 | | Property Code, is given on or after the effective date of this Act. |
|---|
| 30 | 30 | | A foreclosure in which an action is commenced or a notice of default |
|---|
| 31 | 31 | | is given before the effective date of this Act is governed by the |
|---|
| 32 | 32 | | law in effect immediately before the effective date of this Act, and |
|---|
| 33 | 33 | | that law is continued in effect for that purpose. |
|---|
| 34 | 34 | | (b) The change in law made by this Act does not apply to |
|---|
| 35 | 35 | | liability for attorney's fees incurred before the effective date of |
|---|
| 36 | 36 | | this Act. Liability for attorney's fees incurred before the |
|---|
| 37 | 37 | | effective date of this Act is governed by the law in effect |
|---|
| 38 | 38 | | immediately before the effective date of this Act, and that law is |
|---|
| 39 | 39 | | continued in effect for that purpose. |
|---|
| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2011. |
|---|