Relating to declarant control of a property owners' association board.
The enactment of HB2320 has the potential to significantly empower homeowners by diminishing the control exercisable by developers over property owners' associations. This shift in governance could improve transparency and responsiveness to community needs, as board members elected by homeowners would likely prioritize the interests of residents over those of property developers. Additionally, the bill's provisions apply retrospectively to associations created under older declarations, ensuring a broader impact across various communities and enhancing democratic practices in local governance.
House Bill 2320 seeks to amend the Texas Property Code regarding the governance of property owners' associations by establishing clearer guidelines on declarant control over board member appointments. This bill aims to transition power from developers (the declarants) to property owners by ensuring that a certain percentage of board members are elected by the homeowners. Specifically, the bill stipulates that within 120 days after a majority of lots are sold to homeowners, at least one-third of board members must be elected by non-declarants. Furthermore, as more lots are sold, this requirement escalates to a majority of board members being elected from the non-declarant group by the time 75% of lots are conveyed.
Notably, there may be contention surrounding the timeline and implementation of these changes, particularly from developers who may have relied on longer periods of control. Concerns may arise regarding transitions in governance and the pace at which these elections must occur. The bill could prompt debates about the balance of power within property owners' associations, with developers advocating for their interests while homeowners may push for more immediate changes. The bill's provisions intended to enforce a stricter timeline could become a focal point of opposition, especially if it is perceived to challenge the existing agreements between developers and homeowners.