82R12639 PMO-F
By: Orr, Solomons, Garza H.B. No. 366
Substitute the following for H.B. No. 366:
By: Orr C.S.H.B. No. 366
A BILL TO BE ENTITLED
AN ACT
relating to priority of payment relating to property owners'
association assessments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 209, Property Code, is amended by adding
Section 209.0063 to read as follows:
Sec. 209.0063. PRIORITY OF PAYMENTS. Unless otherwise
provided in writing by the property owner at the time payment is
made, a payment received by a property owners' association from the
owner shall be applied to the owner's debt in the following order of
priority:
(1) any delinquent assessment;
(2) any current assessment;
(3) any attorney's fees incurred by the association
associated solely with assessments or any other charge that could
provide the basis for foreclosure;
(4) any fines assessed by the association;
(5) any attorney's fees incurred by the association
that are not subject to Subdivision (3); and
(6) any other amount owed to the association.
SECTION 2. This Act applies to a payment received by a
property owners' association on or after the effective date of this
Act. A payment received before the effective date of this Act is
governed by the law in effect when the payment was received, and the
former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.