82R7846 AJA-D
By: Paxton H.B. No. 1868
A BILL TO BE ENTITLED
AN ACT
relating to payment of delinquent property owners' association
assessments and foreclosure of a property owners' association
assessment lien.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 209, Property Code, is amended by adding
Sections 209.0091, 209.0092, and 209.0093 to read as follows:
Sec. 209.0091. ALTERNATIVE PAYMENT PLAN FOR DELINQUENT
ASSESSMENTS ON HOMESTEAD PROPERTY. (a) A property owners'
association shall adopt guidelines under which an owner who is
unable to pay a delinquent regular or special assessment in full on
property that is the owner's homestead may, at the owner's request,
make partial payments of the delinquent assessment until the
delinquency is cured. The association must allow an owner to submit
a request for a payment plan under this subsection for at least the
six-month period after the earliest date on which an unpaid
assessment on the property became delinquent.
(b) Guidelines adopted under Subsection (a) may provide for
the payment of a reasonable amount of interest on unpaid
assessments, not to exceed 10 percent interest annually. Interest
charged under this subsection may accrue from the time the
assessment becomes delinquent.
(c) This section does not require a property owners'
association to agree to a payment plan that:
(1) does not bind the owner to make at least one pro
rata payment monthly; or
(2) concludes later than 18 months after the earliest
date on which an unpaid assessment became delinquent.
Sec. 209.0092. PREREQUISITES TO FORECLOSURE ON HOMESTEAD.
(a) A property owners' association may not foreclose a property
owners' association assessment lien on property that is the owner's
homestead unless:
(1) an assessment secured by the lien is overdue by at
least six months and the owner has not requested a payment plan
under Section 209.0091 or a payment due under a payment plan is
overdue by at least three months;
(2) the total amount of delinquent assessments totals
at least $1,000; and
(3) before the expiration of the applicable period
prescribed by Subdivision (1), the property owners' association has
provided the owner at least two written notices of the delinquency,
sent at least 30 days apart, by certified mail, return receipt
requested, or by delivery by the United States Postal Service with
signature confirmation.
(b) A notice under Subsection (a) must:
(1) include an itemized list of each delinquent
assessment and state the total amount of the delinquent
assessments;
(2) inform the property owner that:
(A) the association is entitled to foreclose on
the owner's property for the unpaid assessments; and
(B) if the notice relates to a delinquency not
subject to a payment plan, the association must allow the owner to
enter into a payment plan arrangement if the owner requests the
arrangement on or before the date specified under Subdivision (3)
or, if the notice relates to a delinquency under a payment plan, the
association is entitled to foreclose if the delinquency is not
cured by the date specified under Subdivision (3); and
(3) specify the latest date on which the owner is
entitled to request a payment plan or cure a delinquency under a
payment plan, as applicable.
Sec. 209.0093. PROVISION OF ADDITIONAL SECURITY FOR
ASSESSMENTS ON HOMESTEAD. (a) A property owners' association shall
allow a property owner to provide the association with a security
interest in real or personal property other than the property that
is subject to the property owners' association assessments out of
which the association must seek satisfaction before foreclosing on
the property subject to the assessments if, at the time of the
foreclosure, the property subject to the assessments is the owner's
homestead.
(b) The association may not foreclose on homestead property
that is subject to assessments for which additional security has
been provided under this section unless the association has first
sought satisfaction out of the additional security and has not
recovered a sufficient amount to satisfy the debt secured by the
homestead property.
SECTION 2. The change in law made by this Act applies only
to a foreclosure of a property owners' association assessment lien
for unpaid assessments all of which first become delinquent on or
after the effective date of this Act. Foreclosure of a property
owners' association assessment lien for assessments all or part of
which first became delinquent before the effective date of this Act
is governed by the law in effect immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2011.