86R13012 PMO-D
By: King of Uvalde H.B. No. 3445
A BILL TO BE ENTITLED
AN ACT
relating to declarant control of certain property owners'
associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 209.0052(a), Property Code, is amended
to read as follows:
(a) This section applies [does not apply] to a contract
entered into by an association during and after the development
period.
SECTION 2. Section 209.00591(c), Property Code, is amended
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.
Regardless of the period of declarant control provided by the
declaration, 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. 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 fifth [10th] anniversary of the date the declaration was
recorded.
SECTION 3. (a) Section 209.0052, Property Code, as amended
by this Act, applies to a contract entered into, renewed, or
extended on or after the effective date of this Act.
(b) Section 209.00591, Property Code, as amended by this
Act, applies to a provision in a dedicatory instrument or a
restrictive covenant enacted before, on, or after the effective
date of this Act.
SECTION 4. This Act takes effect September 1, 2019.