Texas 2011 - 82nd Regular

Texas Senate Bill SB446

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to encumbrances that may be fixed on homestead property.

Impact

The impact of SB446 on state laws is significant as it redefines the protections offered to homestead properties in Texas. It allows for property owners' associations to collect outstanding fees associated with maintenance and services on common facilities by establishing encumbrances on homestead property. Consequently, if a homeowner transfers ownership of such a property, these associations may enforce claims for unpaid dues, thus altering the landscape of homeowner obligations within property associations. This change could lead to an increase in enforcement actions by associations to secure payments for services, potentially heightening tensions between homeowners and these organizations.

Summary

SB446 is a piece of legislation that amends the Texas Property Code, specifically focusing on the encumbrances that may be fixed on homestead property. The bill clarifies the conditions under which homestead properties are exempt from seizure by creditors and introduces provisions related to property owners' association fees. Notably, the bill outlines that homestead properties are not exempt from seizure for certain encumbrances, including those related to property purchases, taxes, and fees owed to property owners' associations. By expanding the types of encumbrances that can be placed on homesteads, the bill aims to provide clarity for both property owners and creditors regarding financial obligations tied to such properties.

Sentiment

The sentiment surrounding SB446 appears mixed, with some stakeholders viewing the amendments as a necessary update that protects the financial operations of property owners' associations. Supporters argue that clearer regulations will help streamline the collection of fees and promote responsible property management. Conversely, critics express concern that the bill may lead to increased financial burdens on homeowners, especially those who may be struggling to meet association fee obligations. The discussion reflects ongoing debate about balancing property rights with the need for effective governance of common property.

Contention

Notable points of contention regarding SB446 include the potential impact on homeowners who may find themselves at greater risk of losing their homes due to association fees or dues. While proponents believe the bill enhances property owners' associations' ability to function efficiently, opponents are wary of the implications for those inadequately prepared to meet new financial responsibilities. The requirement that these fees could result in encumbrances raises questions about the limits of creditor claims and the extent to which community governance should impact individual property rights. These discussions reflect broader concerns about homeowner protections versus fulfilling obligations to community governance.

Companion Bills

TX SJR19

Enabling for Proposing a constitutional amendment permitting an encumbrance to be fixed on homestead property for an obligation to pay certain property owners' association fees and fines without permitting the forced sale of the homestead.

Previously Filed As

TX HJR29

Proposing a constitutional amendment providing that a residence homestead is not subject to seizure or sale for delinquent ad valorem taxes.

TX HJR124

Proposing a constitutional amendment to remove the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.

TX HJR20

Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.

TX HB117

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

TX HB2666

Relating to the limitation on the total amount of ad valorem taxes that a school district may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 20 consecutive tax years.

TX HJR87

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

TX HJR14

Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes for the first tax year that the owner of the property qualifies the property for a residence homestead exemption is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the homestead for subsequent tax years based on the inflation rate.

TX HB4478

Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HJR2

Proposing a constitutional amendment to authorize the legislature to establish a temporary limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes; to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads; to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts; to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations; and to authorize the legislature to provide for a four-year term of office for a member of the governing body of certain appraisal entities.

TX HB794

Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.

Similar Bills

NJ A254

Permits eligible claimant who is proportionate owner paying entire property tax bill to collect entire homestead property tax reimbursement amount.

NJ A975

Permits eligible claimant who is proportionate owner paying entire property tax bill to collect entire homestead property tax reimbursement amount.

FL H1105

Rescinding a Homestead Exemption Application

NJ A5089

Prohibits homestead property tax rebates and credits and ANCHOR property tax benefits from being paid to property owners who move out of State.

MN HF1343

Property tax provisions modified, and identification requirements for homestead determination modified.

FL H0775

Assessment of Homestead Property

NJ A3354

Converts senior freeze reimbursement into credit applied directly to property tax bills.

NJ S259

Converts senior freeze reimbursement into credit applied directly to property tax bills.