85R8129 BEE-D
By: Fallon H.B. No. 2320
A BILL TO BE ENTITLED
AN ACT
relating to declarant control of a property owners' association
board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 209.0051(c-1), Property Code, is amended
to read as follows:
(c-1) Except for a meeting held by electronic or telephonic
means under Subsection (c-2), a board meeting must be held:
(1) in a county in which all or part of the property in
the subdivision is located or in a county adjacent to that county;
and
(2) within 10 miles of the subdivision, if a majority
of the board members are not elected by owners other than the
declarant.
SECTION 2. Section 209.00591, Property Code, is amended by
amending Subsection (c) and adding Subsections (d) and (e) to read
as follows:
(c) The declaration may provide for a period of declarant
control of the association during which a declarant, or persons
designated by the declarant, may appoint and remove board members
and the officers of the association, other than board members or
officers elected by members of the property owners' association.
(d) Regardless of the period of declarant control provided
by the declaration:
(1) on or before the 120th day after the date a
majority of the lots that may be created and made subject to the
declaration are conveyed to owners other than a declarant or a
builder in the business of constructing homes who purchased the
lots from the declarant for the purpose of selling completed homes
built on the lots, at least one-third of the board members must be
elected by owners other than the declarant; and
(2) [,] on or before the 120th day after the date 75
percent of the lots that may be created and made subject to the
declaration are conveyed to owners other than a declarant or a
builder in the business of constructing homes who purchased the
lots from the declarant for the purpose of selling completed homes
built on the lots, at least a majority [one-third] of the board
members must be elected by owners other than the declarant.
(e) If the declaration does not include the number of lots
that may be created and made subject to the declaration, at least a
majority [one-third] of the board members must be elected by owners
other than the declarant not later than the 10th anniversary of the
date the declaration was recorded.
SECTION 3. (a) Section 209.00591, Property Code, as
amended by this Act, applies to a property owners' association
board regardless of whether the association's declaration was
adopted before, on, or after the effective date of this Act.
(b) Notwithstanding Section 209.00591, Property Code, as
amended by this Act, at least one-third of the board members of a
property owners' association to which Chapter 209, Property Code,
applies must be elected by owners other than the declarant on or
before March 1, 2018, if the association reached the majority
conveyance threshold described by Section 209.00591(d)(1),
Property Code, as added by this Act, before the effective date of
this Act.
(c) Notwithstanding Section 209.00591, Property Code, as
amended by this Act, at least a majority of the board members of a
property owners' association to which Chapter 209, Property Code,
applies must be elected by owners other than the declarant on or
before March 1, 2018, if:
(1) the association reached the 75 percent conveyance
threshold described by Section 209.00591(d)(2), Property Code, as
added by this Act, before the effective date of this Act; or
(2) the 10th anniversary of the date the association's
declaration was recorded occurred before the effective date of this
Act or occurs on or after the effective date of this Act and before
March 1, 2018.
SECTION 4. This Act takes effect September 1, 2017.