Texas 2021 - 87th Regular

Texas House Bill HB2387 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R3416 DRS-D
2	2	By: Sherman, Sr. H.B. No. 2387
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to suits to collect past due property owners' association
8	8	assessments.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Title 4, Property Code, is amended by adding
11	11	Chapter 31 to read as follows:
12	12	CHAPTER 31. SUITS TO COLLECT PROPERTY OWNERS' ASSOCIATION
13	13	ASSESSMENTS
14	14	Sec. 31.001. DEFINITIONS. In this chapter, a term defined
15	15	by Section 209.002 has the meaning assigned by that section.
16	16	Sec. 31.002. APPLICABILITY OF CHAPTER. This chapter
17	17	applies only to a property owners' association to which Chapter 209
18	18	applies.
19	19	Sec. 31.003. SUIT IN JUSTICE COURT; EXCLUSIVE JURISDICTION.
20	20	(a) A property owners' association that brings a suit to collect
21	21	past due assessments or interest or late fees associated with past
22	22	due assessments must bring the suit in a justice court.
23	23	(b) Notwithstanding Section 27.034(d), Government Code, a
24	24	justice court has exclusive jurisdiction of a suit under this
25	25	chapter.
26	26	Sec. 31.004. PETITION. The petition in a suit under this
27	27	chapter:
28	28	(1) must include a verified statement detailing:
29	29	(A) the basis for each amount sought by the
30	30	property owners' association, citing applicable provisions of the
31	31	association's dedicatory instruments; and
32	32	(B) the steps taken by the association to comply
33	33	with procedures required by Chapter 209 or other law, as
34	34	applicable, including procedures required by the association's
35	35	dedicatory instruments; and
36	36	(2) may not seek relief other than relief authorized
37	37	by Section 31.007 or 31.008.
38	38	Sec. 31.005. COUNTERCLAIMS; OFFSET. (a) A property owner's
39	39	answer in a suit under this chapter may not include a counterclaim
40	40	other than a claim that the property owners' association owes the
41	41	owner money and a request that any amount awarded to the association
42	42	be offset by the amount owed to the owner.
43	43	(b) A property owner's failure to assert a counterclaim
44	44	authorized by this section does not bar the owner from bringing a
45	45	separate suit on the claim, but the owner's failure to timely assert
46	46	the counterclaim in the answer bars consideration of the claim in
47	47	the suit brought against the owner under this chapter.
48	48	(c) This section does not affect the property owner's
49	49	ability to assert any lawful defense to the property owners'
50	50	association's claim.
51	51	Sec. 31.006. MEDIATION. (a) A justice court in a suit
52	52	under this chapter may order mediation of the dispute at no cost to
53	53	the property owner. Mediation ordered under this section shall be
54	54	conducted as provided by Chapter 154, Civil Practice and Remedies
55	55	Code.
56	56	(b) This section does not affect the justice court's
57	57	authority to order another method of alternative dispute resolution
58	58	under Section 27.034(c), Government Code, or the Texas Rules of
59	59	Civil Procedure.
60	60	Sec. 31.007. JUDGMENT; PAYMENT SCHEDULE. (a) A justice
61	61	court in a suit under this chapter shall:
62	62	(1) determine:
63	63	(A) whether the property owners' association is
64	64	entitled to all or part of the amounts requested in the
65	65	association's petition; and
66	66	(B) whether the property owner is entitled to any
67	67	offset requested in the owner's answer; and
68	68	(2) make an award as appropriate.
69	69	(b) The justice court's judgment must provide, if
70	70	applicable, that the property owner is not required to make a
71	71	payment to satisfy the award before the 30th day after the date the
72	72	judgment is signed or a later date specified in the judgment.
73	73	Subject to this subsection, the court may order that the property
74	74	owner be allowed to make partial payments toward satisfaction of
75	75	the award according to a payment schedule prescribed by the court.
76	76	Sec. 31.008. COSTS; ATTORNEY'S FEES. (a) The prevailing
77	77	party in a suit under this chapter is entitled to recover filing
78	78	fees and service costs incurred in connection with the suit.
79	79	(b) In addition to any amounts awarded under Subsection (a),
80	80	the justice court may award a party to the suit other costs and
81	81	reasonable and necessary attorney's fees as is equitable and just,
82	82	in an amount that does not exceed the greater of:
83	83	(1) 15 percent of the amount sought by the property
84	84	owners' association; or
85	85	(2) $500.
86	86	(c) The justice court may award a party to the suit
87	87	attorney's fees or other penalties or costs not specifically
88	88	authorized by this section only if:
89	89	(1) the court finds the other party to have acted in
90	90	bad faith in connection with the suit; or
91	91	(2) the sanction is authorized under Chapter 10, Civil
92	92	Practice and Remedies Code, or Rule 13, Texas Rules of Civil
93	93	Procedure.
94	94	(d) A court hearing an appeal or enforcing a judgment under
95	95	this chapter may award a party to the appeal or enforcement action
96	96	costs and reasonable and necessary attorney's fees as is equitable
97	97	and just.
98	98	Sec. 31.009. COLLECTION OF AMOUNTS NOT AWARDED. A judgment
99	99	under this chapter in favor of a property owners' association must
100	100	provide that the association or the association's agent may not
101	101	seek to impose or collect any additional penalty, cost, attorney's
102	102	fees, or other charge related to the assessments that are the
103	103	subject of the suit except in a proceeding to enforce the judgment.
104	104	Sec. 31.010. RECORDING OF CERTAIN INSTRUMENTS. (a) A
105	105	judgment under this chapter that has become final after the
106	106	exhaustion of appeals or after the expiration of the time for appeal
107	107	is the only basis to record a lien based on unpaid property owners'
108	108	association assessments and related charges.
109	109	(b) A lis pendens, notice of assessment lien, or similar
110	110	instrument may not be recorded with respect to any amount sought by
111	111	a property owners' association in a suit under this chapter:
112	112	(1) while the property owner is current under a
113	113	payment plan ordered under Section 31.007; or
114	114	(2) before the 30th day after the date the owner
115	115	becomes delinquent under the payment plan.
116	116	Sec. 31.011. FORECLOSURE. (a) A judgment in a suit under
117	117	this chapter may be enforced by foreclosure on the property with
118	118	respect to which the assessments that are the subject of the suit
119	119	were imposed only if the association:
120	120	(1) otherwise has authority to foreclose an assessment
121	121	lien on the property for the amount awarded by the judgment; and
122	122	(2) complies with Section 209.0092 and any other law
123	123	governing the foreclosure of the lien.
124	124	(b) The property owners' association may not initiate
125	125	foreclosure of an assessment lien for the amount awarded by the
126	126	judgment:
127	127	(1) while the property owner is current under a
128	128	payment plan ordered under Section 31.007; or
129	129	(2) before the 30th day after the date:
130	130	(A) the owner becomes delinquent under the
131	131	payment plan; or
132	132	(B) the owner becomes delinquent under an order
133	133	to pay the entire award if no payment plan is ordered.
134	134	SECTION 2. (a) Except as provided by Subsection (b) of this
135	135	section, this Act applies to assessments imposed under a dedicatory
136	136	instrument adopted before, on, or after the effective date of this
137	137	Act.
138	138	(b) This Act applies only to collection of property owners'
139	139	association assessments that become due on or after the effective
140	140	date of this Act and any interest, fees, or other costs related to
141	141	those assessments. Collection of property owners' association
142	142	assessments that became due before the effective date of this Act,
143	143	and any interest, fees, or other costs related to those
144	144	assessments, is governed by the law as it existed immediately
145	145	before the effective date of this Act, and that law is continued in
146	146	effect for that purpose.
147	147	SECTION 3. This Act takes effect September 1, 2021.