Texas Senate Bill SB2204

Texas 2019 - 86th Regular

Caption

Relating to declarant control of a property owners' association board.

Impact

If enacted, SB2204 will have significant implications for property owners' rights and local governance. The bill seeks to empower homeowners by reducing the control that developers or declarants typically have over property owners' associations. By requiring that a majority of board members be homeowners rather than declarants, associations may be better positioned to address the specific needs and concerns of the community they serve, leading to a more democratic governance structure in these organizations.

Summary

SB2204 addresses the governance of property owners' associations by modifying the existing regulations surrounding declarant control of their boards. The bill stipulates specific requirements for board member elections aimed at shifting control from declarants to homeowners. Notably, the legislation mandates that at least one-third of the board members must be elected by homeowners within a prescribed timeframe after property conveyance. This change seeks to enhance homeowners' influence over association decisions, ensuring fair representation on the board.

Contention

Contention around SB2204 arises primarily from differing views on the balance of control between declarants and homeowners. Proponents argue that the bill is a necessary measure to protect the interests of homeowners who often feel disenfranchised by developer-led boards. On the other hand, opponents—often from the development sector—may argue that the change could hinder the flexibility and efficiency that declarants provide in the early stages of community development. Therefore, a discussion is warranted on how these governance changes could impact the relationship between developers and residents in growing neighborhoods.