Texas House Bill HB3445

Texas 2019 - 86th Regular

Caption

Relating to declarant control of certain property owners' associations.

Impact

One significant impact of HB3445 is the alteration of the timeline for when property owners gain the right to elect a majority of board members. Under the proposed amendments, if 75% of the lots have been sold, owners who are not declarants must elect at least a majority of the board within 120 days. This shift is expected to empower homeowners and align governance with the interests of those residing in the community rather than the developers who initially established it.

Summary

House Bill 3445 addresses the regulation of property owners' associations by introducing amendments to the Texas Property Code, specifically focusing on declarant control mechanisms. The proposed changes limit the duration and control that declarants, typically developers or builders, can exert over an association after a certain number of lots have been conveyed to owners. The intent behind this legislation is to enhance member participation in the governance of their associations and ensure that majority representation from property owners occurs in a timely manner.

Contention

Despite the bill's intention to enhance homeowner control, there may be contention regarding the speed and extent of change it enacts. Advocates believe it addresses long-standing issues of accountability and representation in property owners' associations. However, some developers could argue that the new requirements may disrupt the intended management and operational ease during the transition from development to homeowner governance. The bill's broad application to existing contracts could also generate legal discussions around retroactive implications.

Provisions

The amendments include specific provisions for when these changes take effect and apply, ensuring that any contracts formed or amended post-enactment will adhere to the new guidelines. They also clarify that the laws apply to both current and future dedicatory instruments, thereby aiming for a comprehensive reform in how property owners' associations operate within Texas.