S.B. No. 1845
AN ACT
relating to the amendment of the dedicatory instruments of certain
mixed-use real estate developments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 11, Property Code, is amended by adding
Chapter 214 to read as follows:
CHAPTER 214. AMENDMENT OF DEDICATORY INSTRUMENTS OF CERTAIN
MIXED-USE REAL ESTATE DEVELOPMENTS
Sec. 214.001. DEFINITIONS. In this chapter:
(1) "Current developer" means an owner of one or more
tracts or lots in a mixed-use real estate development, or the
owner's affiliate, who:
(A) is the current declarant in the declaration
governing the development; and
(B) currently holds the developer rights for the
development.
(2) "Declaration" means an instrument filed in the
real property records of a county that includes restrictive
covenants governing a real estate development.
(3) "Dedicatory instrument" has the meaning assigned
by Section 202.001.
(4) "Mixed-use real estate development" means a real
estate development that:
(A) contains at least 200 acres and not more than
250 acres of deed-restricted property composed of at least 10
separate tracts or parcels of property;
(B) includes:
(i) commercial properties, including hotel
and retail properties, that constitute at least 70 percent of the
total land area of the development; and
(ii) office properties that constitute at
least 50 percent of the total land area of the development;
(C) may include other real estate uses;
(D) is governed by a property owners'
association; and
(E) is subject to a dedicatory instrument that:
(i) requires mandatory membership in the
property owners' association;
(ii) authorizes the property owners'
association to collect a regular assessment on all or a majority of
the property in the development;
(iii) requires the approval of owners of
more than:
(a) 90 percent of the ground area
constituting the development to change a provision of the
dedicatory instrument governing the permitted use of a property; or
(b) 60 percent of the ground area
constituting the development to change a provision of the
dedicatory instrument that is not related to the permitted use of a
property; and
(iv) provides that voting for an amendment
is based on the number of acres owned by each owner.
(5) "Property owners' association" has the meaning
assigned by Section 202.001.
Sec. 214.002. APPLICABILITY OF CHAPTER. (a) This chapter
applies only to a mixed-use real estate development that is located
in:
(1) a municipality with a population of two million or
more; and
(2) a county with a population of 3.3 million or more.
(b) This chapter does not apply to:
(1) a mixed-use real estate development that includes
single-family residential properties; or
(2) a condominium subject to Chapter 81 or 82.
(c) This chapter applies to a dedicatory instrument
regardless of the date on which the dedicatory instrument was
created.
Sec. 214.003. AMENDMENT OF DEDICATORY INSTRUMENT.
(a) This section supersedes any conflicting requirement in a
dedicatory instrument of a mixed-use real estate development.
(b) To the extent of any conflict with another provision of
this title, this section prevails.
(c) Except as provided by Subsection (d), a declaration of a
mixed-use real estate development may be amended only by a vote of a
majority of the total votes allocated to property owners entitled
to vote on the amendment of the declaration.
(d) If the declaration contains a lower approval
requirement than prescribed by Subsection (c), the approval
requirement in the declaration controls. If the declaration is
silent as to voting rights for an amendment, the declaration may be
amended by a vote of a majority of the total votes allocated to
property owners entitled to vote on the amendment of the
declaration.
(e) While the mixed-use real estate development has a
current developer, an amendment made to the declaration under this
section requires the current developer to consent to the amendment
to be valid.
(f) A bylaw of a mixed-use real estate development may not
be amended to conflict with this section.
SECTION 2. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1845 passed the Senate on
April 26, 2019, by the following vote: Yeas 26, Nays 4; and that
the Senate concurred in House amendment on May 26, 2019, by the
following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1845 passed the House, with
amendment, on May 22, 2019, by the following vote: Yeas 140,
Nays 4, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor