| 1 | 1 | | 86R13012 PMO-D |
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| 2 | 2 | | By: King of Uvalde H.B. No. 3445 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to declarant control of certain property owners' |
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| 8 | 8 | | associations. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 209.0052(a), Property Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (a) This section applies [does not apply] to a contract |
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| 13 | 13 | | entered into by an association during and after the development |
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| 14 | 14 | | period. |
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| 15 | 15 | | SECTION 2. Section 209.00591(c), Property Code, is amended |
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| 16 | 16 | | to read as follows: |
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| 17 | 17 | | (c) The declaration may provide for a period of declarant |
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| 18 | 18 | | control of the association during which a declarant, or persons |
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| 19 | 19 | | designated by the declarant, may appoint and remove board members |
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| 20 | 20 | | and the officers of the association, other than board members or |
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| 21 | 21 | | officers elected by members of the property owners' association. |
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| 22 | 22 | | Regardless of the period of declarant control provided by the |
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| 23 | 23 | | declaration, on or before the 120th day after the date 75 percent of |
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| 24 | 24 | | the lots that may be created and made subject to the declaration are |
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| 25 | 25 | | conveyed to owners other than a declarant or a builder in the |
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| 26 | 26 | | business of constructing homes who purchased the lots from the |
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| 27 | 27 | | declarant for the purpose of selling completed homes built on the |
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| 28 | 28 | | lots, at least a majority [one-third] of the board members must be |
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| 29 | 29 | | elected by owners other than the declarant. If the declaration does |
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| 30 | 30 | | not include the number of lots that may be created and made subject |
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| 31 | 31 | | to the declaration, at least a majority [one-third] of the board |
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| 32 | 32 | | members must be elected by owners other than the declarant not later |
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| 33 | 33 | | than the fifth [10th] anniversary of the date the declaration was |
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| 34 | 34 | | recorded. |
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| 35 | 35 | | SECTION 3. (a) Section 209.0052, Property Code, as amended |
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| 36 | 36 | | by this Act, applies to a contract entered into, renewed, or |
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| 37 | 37 | | extended on or after the effective date of this Act. |
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| 38 | 38 | | (b) Section 209.00591, Property Code, as amended by this |
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| 39 | 39 | | Act, applies to a provision in a dedicatory instrument or a |
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| 40 | 40 | | restrictive covenant enacted before, on, or after the effective |
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| 41 | 41 | | date of this Act. |
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| 42 | 42 | | SECTION 4. This Act takes effect September 1, 2019. |
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