Texas 2015 - 84th Regular

Texas House Bill HB2594 Compare Versions

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Version 2 (New)

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1	1	84R26045 PMO-F
2	2	By: Parker, Romero, Jr. H.B. No. 2594
3	3	Substitute the following for H.B. No. 2594:
4	4	By: Simmons C.S.H.B. No. 2594
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the modification or termination of restrictions by
10	10	petition in certain real estate developments with certain
11	11	amenities.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Title 11, Property Code, is amended by adding
14	14	Chapter 213 to read as follows:
15	15	CHAPTER 213. MODIFICATION OR TERMINATION OF RESTRICTIONS BY
16	16	PETITION IN REAL ESTATE DEVELOPMENTS WITH CERTAIN AMENITIES
17	17	Sec. 213.001. DEFINITIONS. In this chapter:
18	18	(1) "Amenity property" means real property the use of
19	19	which is restricted by a dedicatory instrument to use as a golf
20	20	course or country club.
21	21	(2) "Council of owners" has the meaning assigned by
22	22	Section 81.002 as it relates to an existing condominium in a
23	23	development.
24	24	(3) "Dedicatory instrument" means a governing
25	25	instrument that:
26	26	(A) restricts amenity property to use as amenity
27	27	property;
28	28	(B) designates real property in the development,
29	29	other than amenity property, as a beneficiary of a restriction
30	30	described by Paragraph (A); and
31	31	(C) addresses the establishment, maintenance,
32	32	and operation of amenity property.
33	33	(4) "Development" means:
34	34	(A) amenity property; and
35	35	(B) all real property designated as beneficiary
36	36	property in the dedicatory instrument.
37	37	(5) "Owner" means a person, or the person's personal
38	38	representative, who holds record title to:
39	39	(A) a lot or parcel of real property in a
40	40	development; or
41	41	(B) a unit or apartment of a condominium in the
42	42	development.
43	43	(6) "Petition circulator" means a person authorized to
44	44	circulate a petition under Section 213.005.
45	45	(7) "Property owners' association" means an
46	46	incorporated or unincorporated association that:
47	47	(A) is designated as the representative of the
48	48	owners of lots or parcels of real property in a development;
49	49	(B) has a membership primarily consisting of
50	50	those owners; and
51	51	(C) manages or regulates all or part of the
52	52	development for the benefit of those owners.
53	53	(8) "Restrictions" means one or more restrictive
54	54	covenants contained or incorporated by reference in a properly
55	55	recorded map, plat, replat, declaration, or other instrument filed
56	56	in the real property records or map or plat records. The term
57	57	includes any amendment or extension of the restrictions.
58	58	(9) "Restrictive covenant" means any covenant,
59	59	condition, or restriction contained in a dedicatory instrument,
60	60	whether mandatory, prohibitive, permissive, or administrative.
61	61	(10) "Unit owners' association" means an association
62	62	of unit owners organized under Section 82.101 for a condominium in a
63	63	development.
64	64	Sec. 213.002. FINDINGS AND PURPOSE. (a) The legislature
65	65	finds that:
66	66	(1) a restriction on the use of an amenity property may
67	67	create uncertainty if the owners of an amenity property are
68	68	reluctant or unable to properly maintain or operate the amenity
69	69	property;
70	70	(2) such uncertainty may discourage investment and
71	71	negatively impact property values in the development;
72	72	(3) investors may be reluctant to or will not invest
73	73	funds to revitalize an amenity property burdened with a restriction
74	74	on its use;
75	75	(4) financial institutions may be reluctant to or will
76	76	not provide financing to revitalize an amenity property burdened
77	77	with a restriction on its use; and
78	78	(5) establishing a procedural option to allow for the
79	79	modification or termination of the restriction would alleviate the
80	80	uncertainty and encourage revitalization of the amenity property.
81	81	(b) The purpose of this chapter is to provide a procedural
82	82	option for the modification or termination of a restriction on the
83	83	use of an amenity property.
84	84	Sec. 213.003. MODIFICATION OR TERMINATION BY PETITION. (a)
85	85	Except as provided by Subsection (b), a restriction on the use of an
86	86	amenity property may be modified or terminated by petition in
87	87	accordance with this chapter.
88	88	(b) This chapter does not apply if:
89	89	(1) a dedicatory instrument includes a procedure to
90	90	modify or terminate a restriction on the use of an amenity property
91	91	on approval of the owners of 100 percent of, as applicable, the lots
92	92	or parcels of land and units or apartments of condominiums in the
93	93	development; or
94	94	(2) a restriction on the use of an amenity property may
95	95	be modified or terminated under the procedures of Chapter 81, 82,
96	96	201, or 209.
97	97	Sec. 213.004. PREREQUISITES FOR CIRCULATION. A petition
98	98	may not be circulated under this chapter unless:
99	99	(1) for a continuous period of at least 36 months, the
100	100	amenity property has not been in operation, has not been
101	101	maintained, or has been operated or maintained in a dilapidated or
102	102	substandard condition; and
103	103	(2) if zoning regulations apply to the amenity
104	104	property, the owner of the amenity property has received all
105	105	required zoning approvals for any proposed redevelopment of the
106	106	amenity property.
107	107	Sec. 213.005. PETITION CIRCULATOR. A petition authorized
108	108	by Section 213.003 may be circulated by:
109	109	(1) an owner;
110	110	(2) a property owners' association; or
111	111	(3) a unit owners' association or council of owners.
112	112	Sec. 213.006. CONTENTS OF PETITION. (a) The petition must
113	113	include all relevant information about the proposed modification or
114	114	termination, including:
115	115	(1) the name of the development, if any;
116	116	(2) the name of the amenity property, if any;
117	117	(3) the recording information of the restriction to be
118	118	modified or terminated;
119	119	(4) the text of the restriction subject to
120	120	modification or termination;
121	121	(5) the text of the restriction as modified or
122	122	terminated; and
123	123	(6) a comparison of the original language of the
124	124	restriction and the restriction as modified or terminated, showing
125	125	any insertion and deletion of language or punctuation.
126	126	(b) The petition must state the date by which a signed
127	127	statement required by Section 213.008 must be received to be
128	128	counted.
129	129	Sec. 213.007. CIRCULATION PROCEDURE. (a) A petition
130	130	circulator shall deliver a copy of the petition to:
131	131	(1) all owners of:
132	132	(A) each lot or parcel of real property in the
133	133	development; and
134	134	(B) each unit or apartment of each condominium,
135	135	if any, in the development; and
136	136	(2) each property owners' association, unit owners'
137	137	association, and council of owners in the development.
138	138	(b) The petition circulator may deliver a copy of the
139	139	petition in any reasonable manner, including:
140	140	(1) by regular mail or certified mail, return receipt
141	141	requested, to the last known address of the owners or entities
142	142	described by Subsections (a)(1) and (2);
143	143	(2) personal delivery to the owners or entities
144	144	described by Subsections (a)(1) and (2);
145	145	(3) at a meeting of owners in the development called
146	146	for the purpose of voting on the petition;
147	147	(4) at a regular meeting of a property owners'
148	148	association, unit owners' association, or council of owners; or
149	149	(5) at a special meeting of a property owners'
150	150	association, unit owners' association, or council of owners called
151	151	for the purpose of voting on the petition.
152	152	(c) If the petition circulator acts in good faith in
153	153	determining ownership and delivering copies of the petition as
154	154	required by this section, an owner's lack of receipt of a copy of
155	155	the petition does not affect the application of a modification or
156	156	termination of a restriction under this chapter to the amenity
157	157	property.
158	158	Sec. 213.008. VOTE ON PROPOSAL. (a) The modification or
159	159	termination of the restriction is adopted if the owners of at least
160	160	75 percent of the total number, as applicable, of the lots or
161	161	parcels of land and the units or apartments of condominiums in the
162	162	development, including the owner of the amenity property, vote in
163	163	favor of the modification or termination of the restriction.
164	164	(b) An owner may cast a vote only by delivering to the
165	165	petition circulator a signed statement that includes:
166	166	(1) the owner's name, the legal description or street
167	167	address of the owner's property, and the owner's mailing address;
168	168	(2) a statement that the owner holds record title to
169	169	the property;
170	170	(3) if more than one person owns an interest in the
171	171	property, the name and mailing address of each co-owner; and
172	172	(4) a statement indicating whether the owner is in
173	173	favor of or against the modification or termination proposed by the
174	174	petition.
175	175	(c) An owner may vote only in favor of or against the
176	176	modification or termination as proposed in the petition.
177	177	(d) If more than one person owns an interest in a lot or
178	178	parcel of land or a unit or apartment of a condominium, the owners
179	179	may cast only one vote for that lot, parcel, unit, or apartment.
180	180	Except as otherwise provided by this subsection, the vote of
181	181	multiple owners in favor of or against the modification or
182	182	termination may be reflected by the signatures of a majority of the
183	183	co-owners who return a signed statement. The vote of owners who are
184	184	married may be reflected by the signature of only one of those
185	185	owners.
186	186	(e) A person whose only property interest in a lot or parcel
187	187	of land or unit or apartment of a condominium is that of a contract
188	188	purchaser, lienholder, or mineral interest holder may not cast a
189	189	vote for that property under this chapter.
190	190	(f) A vote may be counted only if the vote is received before
191	191	the deadline stated in the petition as required by Section
192	192	213.006(b).
193	193	(g) The signed statement of an owner conclusively
194	194	establishes that:
195	195	(1) the petition was received by the owner in
196	196	accordance with Section 213.007; and
197	197	(2) the statement accurately reflects the vote of the
198	198	owner.
199	199	Sec. 213.009. CERTIFICATION OF RESULTS BY RECORDED
200	200	AFFIDAVIT. (a) The petition circulator shall certify the result
201	201	of the votes by filing an affidavit with the county clerk of the
202	202	county in which the restriction modified or terminated is recorded.
203	203	(b) The affidavit required by Subsection (a) must state:
204	204	(1) the name of the development, if any;
205	205	(2) the name of the amenity property, if any;
206	206	(3) the recording information of the restriction that
207	207	was modified or terminated;
208	208	(4) the text of the restriction before modification or
209	209	termination;
210	210	(5) the text of the restriction as modified or
211	211	terminated;
212	212	(6) the number of votes in favor of and against the
213	213	proposed modification or termination;
214	214	(7) the name and address of the petition circulator;
215	215	and
216	216	(8) the name, address, and telephone number of the
217	217	person maintaining the documents in accordance with Section
218	218	213.012.
219	219	(c) The petition circulator must affirm in the affidavit
220	220	that the petition was delivered in accordance with Section 213.007.
221	221	Sec. 213.010. NOTICE. (a) The recording of the affidavit
222	222	required by Section 213.009 constitutes notice that the restriction
223	223	is modified or terminated.
224	224	(b) Notwithstanding Subsection (a), the petition circulator
225	225	must deliver to each person who resides within 200 feet of the
226	226	boundary of the amenity property a copy of the affidavit. The
227	227	affidavit may be delivered by regular mail, by certified mail,
228	228	return receipt requested, or by personal delivery.
229	229	Sec. 213.011. EFFECTIVE DATE OF MODIFICATION OR
230	230	TERMINATION. The modification or termination of the restriction
231	231	takes effect on the later of:
232	232	(1) the date the affidavit required by Section 213.009
233	233	is filed with the county clerk; or
234	234	(2) the date, if any, specified as the effective date
235	235	in the petition.
236	236	Sec. 213.012. DOCUMENTATION AVAILABLE. At least one year
237	237	after the date the affidavit is filed with the county clerk, the
238	238	petition circulator shall make available for inspection and copying
239	239	the original petition, the signed statements described by Section
240	240	213.008, and the affidavit required by Section 213.009.
241	241	Sec. 213.013. EXPIRATION. This chapter expires September
242	242	1, 2021.
243	243	SECTION 2. The change in law made by this Act does not apply
244	244	to a petition circulated before the effective date of this Act.
245	245	SECTION 3. This Act takes effect September 1, 2015.