Texas 2021 - 87th Regular

Texas House Bill HB3367 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	87R19620 MWC-F
2		-	By: Turner of Tarrant, Bonnen, H.B. No. 3367
3		-	Thompson of Harris, Shine, Hefner,
4		-	et al.
5		-	Substitute the following for H.B.
	1	+	By: Turner of Tarrant H.B. No. 3367
6	2
7	3
8	4		A BILL TO BE ENTITLED
9	5		AN ACT
10		-	relating to the powers and duties of ~~certain~~ property owners'
11		-	~~associations~~.
	6	+	relating to the powers and duties of property owners' associations;
	7	+	authorizing a fee.
12	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13		-	SECTION 1. Section 207.003(c), Property Code, is amended to
14		-	read as follows:
	9	+	SECTION 1. Subsections (a) and (c), Section 204.002,
	10	+	Property Code, are amended to read as follows:
	11	+	Sec. 204.002. [APPLICATION] APPLICABILITY. (a) This
	12	+	chapter applies [only] to [a] any residential real estate
	13	+	subdivision governed by Chapter 209, Title 11, Property Code,
	14	+	excluding a condominium [development] regime governed by Chapters
	15	+	81 and 82, Title 7, Property Code[, that is located in whole or in
	16	+	part:
	17	+	(1) in a county with a population of 3.3 million or
	18	+	more;
	19	+	(2) in a county with a population of not less than
	20	+	285,000 and not more than 300,000 that is adjacent to the Gulf of
	21	+	Mexico and that is adjacent to a county having a population of 3.3
	22	+	million or more; or
	23	+	(3) in a county with a population of 275,000 or more
	24	+	that:
	25	+	(A) is adjacent to a county with a population of
	26	+	3.3 million or more; and
	27	+	(B) contains part of a national forest].
	28	+	(c) This chapter does not apply to [portions of] a
	29	+	subdivision property that [are] is zoned for [or that contain] a
	30	+	commercial structure, an industrial structure, or an apartment
	31	+	complex[, or a condominium development governed by Title 7,
	32	+	Property Code]. For purposes of this subsection, "apartment
	33	+	complex" means two or more dwellings in one or more buildings that
	34	+	are owned by the same owner, located on the same lot or tract, and
	35	+	managed by the same owner, agent, or management company.
	36	+	SECTION 2. Subsections (b), (c) and (d), Section 204.003,
	37	+	Property Code, are amended to read as follows:
	38	+	(b) Notwithstanding Subsection (a), for a residential
	39	+	subdivision [described by Subsection (c)], the provisions of this
	40	+	chapter prevail over an express designation in a document described
	41	+	by Subsection (a) if:
	42	+	(1) the designated number of owners of real property
	43	+	in the subdivision required for approval of an extension of,
	44	+	addition to, or modification of the document is more than 75
	45	+	percent; or
	46	+	(2) the designation prohibits the extension of,
	47	+	addition to, or modification of an existing restriction for a
	48	+	certain time period and that time period has not expired.
	49	+	(c) [Subsection (b) applies to a residential subdivision
	50	+	that is located in a county described by Section 204.002(a)(3)
	51	+	other than a gated community with private streets.
	52	+	(d)] A document creating restrictions that provides for the
	53	+	extension or renewal of restrictions and does not provide for
	54	+	modification or amendment of restrictions may be modified under
	55	+	this chapter, including modifying the provision that provides for
	56	+	extension or renewal of the restrictions.
	57	+	SECTION 3. Chapter 204, Property Code, is amended by adding
	58	+	Section 204.012 to read as follows:
	59	+	Sec. 204.012. RESTRICTIONS ON MEMBERSHIP OF ARCHITECTURAL
	60	+	CONTROL COMMITTEE. A member or spouse of the board of directors or
	61	+	trustees of a property owners' association, or a person in the
	62	+	lineal line of consanguinity of a member of the board of directors
	63	+	or trustees of a property owners' association may not be appointed
	64	+	or elected to serve on an architectural control committee.
	65	+	SECTION 4. Subsection (c), Section 207.003, Property Code,
	66	+	is amended to read as follows:
15	67		(c) A property owners' association may charge a reasonable
16	68		and necessary fee, not to exceed $250, to assemble, copy, and
17	69		deliver the information required by this section and may charge a
18	70		reasonable and necessary fee, not to exceed $30, to prepare and
19	71		deliver an update of a resale certificate under Subsection (f).
20		-	SECTION 2. Section 207.004~~(b)~~, Property Code, ~~is amended to~~
21		-	read as follows:
	72	+	SECTION 5. Subsection (b), Section 207.004, Property Code,
	73	+	is amended to read as follows:
22	74		(b) If a property owners' association fails to deliver the
23		-	information required under Section 207.003 before the ~~fifth~~
24		-	~~business [seventh]~~ day after the second request for the information
25		-	~~was~~ mailed by certified mail, return receipt requested, or hand
	75	+	information required under Section 207.003 before the seventh
	76	+	calendar day after the second request for the information was
	77	+	mailed by certified mail, return receipt requested, or hand
26	78		delivered, evidenced by receipt, the owner:
27	79		(1) may seek one or any combination of the following:
28	80		(A) a court order directing the property owners'
29	81		association to furnish the required information;
30	82		(B) a judgment against the property owners'
31		-	association for ~~actual damages [~~not more than $500];
	83	+	association [for not more than $500];
32	84		(C) a judgment against the property owners'
33		-	association for court costs and ~~reasonable~~ attorney's fees; or
	85	+	association for court costs and attorney's fees; or
34	86		(D) a judgment authorizing the owner or the
35	87		owner's assignee to deduct the amounts awarded under Paragraphs (B)
36	88		and (C) from any future regular or special assessments payable to
37	89		the property owners' association; and
38	90		(2) may provide a buyer under contract to purchase the
39	91		owner's property an affidavit that states that the owner, owner's
40	92		agent, or title insurance company or its agent acting on behalf of
41	93		the owner made, in accordance with this chapter, two written
42	94		requests to the property owners' association for the information
43	95		described in Section 207.003 and that the association did not
44	96		timely provide the information.
45		-	SECTION 3. Section 207.006, Property Code, is amended to
	97	+	SECTION 6. Section 207.006, Property Code, is amended to
46	98		read as follows:
47		-	Sec. 207.006. ONLINE SUBDIVISION INFORMATION REQUIRED. A
48		-	property owners' association shall make the current version of the
49		-	association's dedicatory instruments relating to the association
50		-	or subdivision and filed in the county deed records available on the
51		-	homepage of an Internet [a] website accessible to association
52		-	members that is maintained by [if] the association [has,] or by a
53		-	management company on behalf of the association [maintains, a
54		-	publicly accessible website].
55		-	SECTION 4. Section 209.004, Property Code, is amended by
56		-	amending Subsections (a), (b), (c), and (e) and adding Subsection
57		-	(b-1) to read as follows:
58		-	(a) A property owners' association shall record in each
59		-	county in which any portion of the residential subdivision is
60		-	located a management certificate, signed and acknowledged by an
61		-	officer or the managing agent of the association, stating:
	99	+	Sec. 207.006. ONLINE SUBDIVISION INFORMATION REQUIRED. (a)
	100	+	A property owners' association shall make the most recent versions
	101	+	of its dedicatory instruments, including its amendments, relating
	102	+	to the association or subdivision and filed in the county deed
	103	+	records available on [a] the homepage of a publicly available
	104	+	website [if] the association [has,] or [a] the management company
	105	+	on behalf of the association maintains[, a publicly accessible
	106	+	website].
	107	+	SECTION 7. Section 209.002, Property Code, is amended by
	108	+	adding a new subdivision (2-a) to read as follows:
	109	+	(2-a) "Commission" has the meaning assigned by Chapter
	110	+	1101, Title 7, Occupations Code.
	111	+	SECTION 8. Sec. 209.004, Property Code, is amended to read
	112	+	as follows:
	113	+	MANAGEMENT CERTIFICATES. (a) A property owners' association
	114	+	shall record in each county in which any portion of the residential
	115	+	subdivision is located a management certificate, signed and
	116	+	acknowledged by an officer or the managing agent of the
	117	+	association, stating:
62	118		(1) the name of the subdivision;
63	119		(2) the name of the association;
64	120		(3) the recording data for the subdivision;
65		-	(4) the recording data for the declaration and ~~any~~
66		-	amendments ~~to the declaration~~;
	121	+	(4) the recording data for the declaration and its
	122	+	amendments;
67	123		(5) the name and mailing address of the association;
68		-	(6) the name, [and] mailing address, ~~telephone~~ number,
69		-	~~and e-mail~~ address of the person managing the association or the
	124	+	(6) the name, [and] mailing address, phone number, and
	125	+	email address of the person managing the association or the
70	126		association's designated representative; [and]
71		-	(7) the website address of any Internet website on
72		-	which the association's dedicatory instruments are available in
73		-	accordance with Section 207.006; and
	127	+	(7) the website address of a publicly available
	128	+	website for the association; and
74	129		(8) other information the association considers
75	130		appropriate.
76		-	(b) The property owners' association shall record an
	131	+	(b) Not later than July 1 of each calendar year, a property
	132	+	owners' association currently formed and operating as of August 31,
	133	+	2021 shall also electronically file a management certificate, or an
	134	+	amended management certificate required under this chapter to the
	135	+	commission. The commission may charge a fee for the electronic
	136	+	filing of a management certificate, or an amended management
	137	+	certificate. A fee adopted by the commission may not exceed the
	138	+	amount charged by a property owners' association for a resale
	139	+	certificate under Chapter 207, Title 11, Property Code.
	140	+	(b-1) A property owners' association formed and operating
	141	+	as of September 1, 2021 and after shall also electronically file a
	142	+	management certificate, or an amended management certificate
	143	+	required under this chapter to the commission within 10 calendar
	144	+	days of filing the required management certificate with a county
	145	+	clerk under this chapter. The commission may charge a fee for the
	146	+	electronic filing of a management certificate, or an amended
	147	+	management certificate. A fee adopted by the commission may not
	148	+	exceed the amount charged by a property owners' association for a
	149	+	resale certificate under Chapter 207, Title 11, Property Code.
	150	+	[(a-1)] (c) The county clerk of each county in which a
	151	+	management certificate is filed as required by this section shall
	152	+	record the management certificate in the real property records of
	153	+	the county and index the document as a "Property Owners'
	154	+	Association Management Certificate."
	155	+	[(b)] (d) The property owners' association shall record an
77	156		amended management certificate in each county in which any portion
78	157		of the residential subdivision is located not later than the 30th
79	158		day after the date the association has notice of a change in any
80	159		information in the recorded certificate required by Subsection (a).
81		-	(b-1) Not later than the seventh day after the date a
82		-	property owners' association files a management certificate for
83		-	recording under Subsection (a) or files an amended management
84		-	certificate for recording under Subsection (b), the property
85		-	owners' association shall electronically file the management
86		-	certificate or amended management certificate with the Texas Real
87		-	Estate Commission. The Texas Real Estate Commission shall only
88		-	collect the management certificate and amended management
89		-	certificate for the purpose of making the data accessible to the
90		-	general public through an Internet website.
91		-	(c) Except as provided under Subsections (d) and (e), the
92		-	property owners' association and its officers, directors,
	160	+	[(c)] (e) Except as provided under Subsections (d) and (e),
	161	+	the property owners' association and its officers, directors,
93	162		employees, and agents are not subject to liability to any person for
94		-	a delay in recording or failure to record a management certificate
95		-	with a county clerk's office or electronically file the management
96		-	certificate with the Texas Real Estate Commission, unless the delay
97		-	or failure is wilful or caused by gross negligence.
98		-	(e) A lien of a property owners' association that fails to
99		-	file a management certificate or an amended management certificate
100		-	under this section to secure an amount due on the effective date of
101		-	a transfer to a bona fide purchaser is enforceable only for an
102		-	amount incurred after the effective date of sale. An owner is not
103		-	liable for attorney's fees incurred by a property owners'
104		-	association relating to the collection of a delinquent assessment
105		-	against the owner or interest on the amount of a delinquent
106		-	assessment if the attorney's fees are incurred by the association
107		-	or the interest accrues during the period a management certificate
108		-	is not recorded with a county clerk or electronically filed with the
109		-	Texas Real Estate Commission as required by this section.
110		-	SECTION 5. Chapter 209, Property Code, is amended by adding
111		-	Section 209.00505 to read as follows:
112		-	Sec. 209.00505. ARCHITECTURAL REVIEW AUTHORITY. (a) In
113		-	this section, "architectural review authority" means the governing
114		-	authority for the review and approval of improvements within a
115		-	subdivision.
116		-	(b) This section:
117		-	(1) applies only to a property owners' association
118		-	that consists of more than 40 lots; and
119		-	(2) does not apply during a development period or
120		-	during any period in which the declarant:
121		-	(A) appoints at least a majority of the members
122		-	of the architectural review authority or otherwise controls the
123		-	appointment of the architectural review authority; or
124		-	(B) has the right to veto or modify a decision of
125		-	the architectural review authority.
126		-	(c) A person may not be appointed or elected to serve on an
127		-	architectural review authority if the person is:
128		-	(1) a current board member;
129		-	(2) a current board member's spouse;
130		-	(3) a person related to a current board member within
131		-	the second degree of consanguinity; or
132		-	(4) a person residing in a current board member's
133		-	household.
134		-	(d) A decision by the architectural review authority
135		-	denying an application or request by an owner for the construction
136		-	of improvements in the subdivision may be appealed to the board. A
137		-	written notice of the denial must be provided to the owner by
138		-	certified mail, hand delivery, or electronic delivery. The notice
139		-	must:
140		-	(1) describe the basis for the denial in reasonable
141		-	detail and changes, if any, to the application or improvements
142		-	required as a condition to approval; and
143		-	(2) inform the owner that the owner may request a
144		-	hearing under Subsection (e) on or before the 30th day after the
145		-	date the notice was mailed to the owner.
146		-	(e) The board shall hold a hearing under this section not
147		-	later than the 30th day after the date the board receives the
148		-	owner's request for a hearing and shall notify the owner of the
149		-	date, time, and place of the hearing not later than the 10th day
150		-	before the date of the hearing. Only one hearing is required under
151		-	this subsection.
152		-	(f) During a hearing, the board or the designated
153		-	representative of the property owners' association and the owner or
154		-	the owner's designated representative will each be provided the
155		-	opportunity to discuss, verify facts, and resolve the denial of the
156		-	owner's application or request for the construction of
157		-	improvements, and the changes, if any, requested by the
158		-	architectural review authority in the notice provided to the owner
159		-	under Subsection (d).
160		-	(g) The board or the owner may request a postponement. If
161		-	requested, a postponement shall be granted for a period of not more
162		-	than 10 days. Additional postponements may be granted by agreement
163		-	of the parties.
164		-	(h) The property owners' association or the owner may make
165		-	an audio recording of the meeting.
166		-	SECTION 6. Sections 209.0051(e) and (h), Property Code, are
167		-	amended to read as follows:
	163	+	a delay in recording or failure to record with a county clerk's
	164	+	office or with the commission a management certificate, unless the
	165	+	delay or failure is [wilful] willful or caused by gross negligence.
	166	+	[(d)] (f) If a property owners' association fails to record
	167	+	a management certificate or an amended management certificate under
	168	+	this section, the seller, the purchaser, lender, or title insurance
	169	+	company or its agent in a transaction involving property in the
	170	+	property owners' association is not liable to the property owners'
	171	+	association for:
	172	+	(1) any amount due to the association on the date of a
	173	+	transfer to a bona fide purchaser; and
	174	+	(2) any debt to or claim of the association that
	175	+	accrued before the date of a transfer to a bona fide purchaser.
	176	+	[(e)] (g) A lien of a property owners' association that
	177	+	fails to file a management certificate or an amended management
	178	+	certificate under this section is unenforceable [to secure an
	179	+	amount due on the effective date of a transfer to a bona fide
	180	+	purchaser is enforceable only for an amount incurred after the
	181	+	effective date of sale].
	182	+	[(f)] (h) For purposes of this section, "bona fide
	183	+	purchaser" means:
	184	+	(1) a person who pays valuable consideration without
	185	+	notice of outstanding rights of others and acts in good faith; or
	186	+	(2) a third-party lender who acquires a security
	187	+	interest in the property under a deed of trust.
	188	+	SECTION 9. Subsections (e) and (h), Section 209.0051,
	189	+	Property Code, are amended to read as follows:
168	190		(e) Members shall be given notice of the date, hour, place,
169	191		and general subject of a regular or special board meeting,
170	192		including a general description of any matter to be brought up for
171	193		deliberation in executive session. The notice shall be:
172	194		(1) mailed to each property owner not later than the
173	195		10th day or earlier than the 60th day before the date of the
174	196		meeting; or
175		-	(2) provided at least 144 [72] hours before the start
176		-	of a regular board [the] meeting and at least 72 hours before the
177		-	start of a special board meeting by:
	197	+	(2) provided at least [72] 144 hours before the start
	198	+	of the meeting by:
178	199		(A) posting the notice in a conspicuous manner
179	200		reasonably designed to provide notice to property owners'
180	201		association members:
181	202		(i) in a place located on the association's
182	203		common property or, with the property owner's consent, on other
183	204		conspicuously located privately owned property within the
184	205		subdivision; or
185		-	(ii) on the home page of any Internet
186		-	website accessible by association members that is maintained by the
187		-	association or by a management company on behalf of the association
188		-	[other Internet media]; and
	206	+	(ii) on the homepage of an [any] Internet
	207	+	website maintained by the association [or] and other Internet
	208	+	media; and
189	209		(B) sending the notice by e-mail to each owner
190	210		who has registered an e-mail address with the association.
191	211		(h) Except as provided by this subsection, a board may take
192	212		action outside of a meeting, including voting by electronic or
193	213		telephonic means, without prior notice to owners under Subsection
194	214		(e), if each board member is given a reasonable opportunity to
195	215		express the board member's opinion to all other board members and to
196	216		vote. Any action taken without notice to owners under Subsection
197	217		(e) must be summarized orally, including an explanation of any
198	218		known actual or estimated expenditures approved at the meeting, and
199	219		documented in the minutes of the next regular or special board
200		-	meeting. The board may not, unless done in an open meeting for
201		-	~~which~~ prior notice was given to owners under Subsection (e),
202		-	~~consider or~~ vote on:
	220	+	meeting. The board may not, unless done in an open meeting for which
	221	+	prior notice was given to owners under Subsection (e), consider or
	222	+	vote on:
203	223		(1) fines;
204	224		(2) damage assessments;
205	225		(3) initiation of foreclosure actions;
206	226		(4) initiation of enforcement actions, excluding
207	227		temporary restraining orders or violations involving a threat to
208	228		health or safety;
209	229		(5) increases in assessments;
210	230		(6) levying of special assessments;
211		-	(7) appeals from a denial of architectural ~~review~~
212		-	~~authority [control]~~ approval;
	231	+	(7) appeals from a denial of architectural control
	232	+	approval;
213	233		(8) a suspension of a right of a particular owner
214	234		before the owner has an opportunity to attend a board meeting to
215	235		present the owner's position, including any defense, on the issue;
216	236		(9) lending or borrowing money;
217	237		(10) the adoption or amendment of a dedicatory
218	238		instrument;
219	239		(11) the approval of an annual budget or the approval
220	240		of an amendment of an annual budget [that increases the budget by
221	241		more than 10 percent];
222	242		(12) the sale or purchase of real property;
223	243		(13) the filling of a vacancy on the board;
224	244		(14) the construction of capital improvements other
225	245		than the repair, replacement, or enhancement of existing capital
226	246		improvements; or
227	247		(15) the election of an officer.
228		-	SECTION 7. Section 209.0055(a), Property Code, is amended
229		-	to read as follows:
230		-	(a) This section applies only to a property owners'
231		-	association that:
232		-	(1) provides maintenance, preservation, and
233		-	architectural review authority [control] of residential and
234		-	commercial property within a defined geographic area in a county
235		-	with a population of 2.8 million or more or in a county adjacent to a
236		-	county with a population of 2.8 million or more; and
237		-	(2) is a corporation that:
238		-	(A) is governed by a board of trustees who may
239		-	employ a general manager to execute the association's bylaws and
240		-	administer the business of the corporation;
241		-	(B) does not require membership in the
242		-	corporation by the owners of the property within the defined area;
243		-	and
244		-	(C) was incorporated before January 1, 2006.
245		-	SECTION 8. Section 209.006(a), Property Code, is amended to
246		-	read as follows:
	248	+	SECTION 10. Subsection (a), Section 209.006, Property Code,
	249	+	is amended to read as follows:
247	250		(a) Before a property owners' association may suspend an
248	251		owner's right to use a common area, file a suit against an owner
249	252		other than a suit to collect a regular or special assessment or
250	253		foreclose under an association's lien, charge an owner for property
251	254		damage, [or] levy a fine for a violation of the restrictions or
252	255		bylaws or rules of the association, or report any delinquency of an
253		-	owner to a credit reporting ~~service~~, the association or its ~~agent~~
254		-	must give written notice to the owner by certified mail.
255		-	SECTION 9. Section 209.0063~~(a)~~, ~~Property Code, is amended~~
256		-	to read as follows:
	256	+	owner to a credit reporting agency or bureau, the association or its
	257	+	agent must give written notice to the owner by certified mail.
	258	+	SECTION 11. Subsection (a), Section 209.0063, Occupations
	259	+	Code, is amended to read as follows:
257	260		(a) Except as provided by Subsection (b), a payment received
258	261		by a property owners' association from the owner shall be applied to
259	262		the owner's debt in the following order of priority:
260	263		(1) any delinquent assessment;
261	264		(2) any current assessment;
262	265		(3) any reasonable attorney's fees or reasonable third
263	266		party collection costs incurred by the association associated
264	267		solely with assessments or any other charge that could provide the
265	268		basis for foreclosure;
266	269		(4) any reasonable attorney's fees incurred by the
267	270		association that are not subject to Subdivision (3);
268	271		(5) any reasonable fines assessed by the association;
269	272		and
270		-	(6) any other reasonable amount ~~owed to the~~
271		-	association.
272		-	SECTION 10. Section 209.0064~~(b)~~, Property ~~Code, is amended~~
273		-	to read as follows:
	273	+	(6) any other reasonable and necessary incurred amount
	274	+	owed to the association.
	275	+	SECTION 12. Subsection (b), Section 209.0064, Property
	276	+	Code, is amended to read as follows:
274	277		(b) A property owners' association may not hold an owner
275	278		liable for fees of a collection agent retained by the association
276	279		unless the association first provides written notice to the owner
277	280		by certified mail that:
278	281		(1) specifies each delinquent amount and the total
279	282		amount of the payment required to make the account current;
280	283		(2) if the association is subject to Section 209.0062
281	284		or the association's dedicatory instruments contain a requirement
282	285		to offer a payment plan, describes the options the owner has to
283	286		avoid having the account turned over to a collection agent,
284	287		including information regarding availability of a payment plan
285	288		through the association; and
286		-	(3) provides a period of at least 45 [30] days for the
	289	+	(3) provides a period of at least [30] 45 days for the
287	290		owner to cure the delinquency before further collection action is
288	291		taken.
289		-	SECTION 11. Chapter 209, Property Code, is amended by
290		-	adding Section 209.0065 to read as follows:
291		-	Sec. 209.0065. CREDIT REPORTING ~~SERVICES~~. (a) A property
	292	+	SECTION 13. Chapter 209, Property Code, is amended by
	293	+	adding a new Section 209.0065 to read as follows:
	294	+	Sec. 209.0065. CREDIT REPORTING AGENCIES. (a) A property
292	295		owners' association or the association's collection agent may not
293		-	report any delinquent fines, ~~fees~~, or assessments to a credit
294		-	reporting ~~service that are~~ the ~~subject of~~ a pending dispute ~~between~~
295		-	~~the owner and~~ the property owners' association.
	296	+	report any delinquent fines, fee, or assessments to a credit
	297	+	reporting agency if the property owner has a pending dispute of the
	298	+	charges with the property owners' association.
296	299		(b) A property owners' association may report delinquent
297	300		payment history assessments, fines, and fees of property owners
298		-	within its jurisdiction to a credit reporting ~~service~~ only ~~if:~~
299		-	~~(1) at least 30 business days before reporting to a~~
300		-	~~credit reporting service,~~ the association ~~sends~~, via certified
301		-	~~mail, hand~~ delivery, electronic delivery, or by other delivery
302		-	~~means~~ acceptable between the parties, a detailed report of all
303		-	~~delinquent~~ charges owed; ~~and~~
	301	+	within its jurisdiction to a credit reporting agency or bureau only
	302	+	if:
	303	+	(1) the association has sent, via certified mail, hand
	304	+	delivery, electronic delivery, or by other delivery means
	305	+	acceptable between the parties, a detailed report of all delinquent
	306	+	charges owed;
304	307		(2) a property owner has been given the opportunity to
305		-	enter into a payment plan.
306		-	SECTION 12. Section 209.007, Property Code, is amended by
307		-	amending Subsection (a) and adding Subsections (f), (g), and (h) to
	308	+	enter into a payment plan; and
	309	+	(2) the detailed report of delinquent charges was sent
	310	+	to a property owner at least 45 business days before reporting to a
	311	+	credit reporting agency or bureau.
	312	+	SECTION 14. Section 209.007, Property Code, is amended to
308	313		read as follows:
309		-	(a) Except as provided by Subsection (d) and only if [If]
310		-	the owner is entitled to an opportunity to cure the violation, the
311		-	owner has the right to submit a written request for a hearing to
312		-	discuss and verify facts and resolve the matter in issue before [a
313		-	committee appointed by] the board [of the property owners'
314		-	association or before the board if the board does not appoint a
315		-	committee].
316		-	(f) Not later than 10 days before the association holds a
	314	+	Sec. 209.007. HEARING BEFORE BOARD; ALTERNATIVE DISPUTE
	315	+	RESOLUTION. (a) [If the] An owner is entitled to appeal a violation,
	316	+	an architectural control committee decision, or dispute any fines
	317	+	or fees to the board of directors of a property owners' association
	318	+	[an opportunity to cure the violation, the owner has the right to
	319	+	submit a written request for a hearing to discuss and verify facts
	320	+	and resolve the matter in issue before a committee appointed by the
	321	+	board of the property owners' association or before the board if the
	322	+	board does not appoint a committee].
	323	+	(b) [If a hearing is to be held before a committee, the
	324	+	notice prescribed by Section 209.006 must state that the owner has
	325	+	the right to appeal the committee's decision to the board by written
	326	+	notice to the board.
	327	+	(c)] The association shall hold a hearing under this section
	328	+	not later than the 30th day after the date the board receives the
	329	+	owner's request for [a] an appeal hearing and shall notify the owner
	330	+	of the date, time, and place of the hearing not later than the 10th
	331	+	day before the date of the hearing. The board or the owner may
	332	+	request a postponement, and, if requested, a postponement shall be
	333	+	granted for a period of not more than 10 days. Additional
	334	+	postponements may be granted by agreement of the parties. The
	335	+	[owner or the] association [may] shall make an audio recording of
	336	+	the meeting. An owner may make an audio recording of the meeting.
	337	+	(c) No later than 10 days before the association holds a
317	338		hearing under this section, the association shall provide to an
318		-	owner a packet containing all documents, photographs, and
319		-	communications relating to the matter the association intends to
320		-	introduce at the hearing.
321		-	(g) If an association does not provide a packet within the
322		-	period described by Subsection (f), an owner is entitled to an
323		-	automatic 15-day postponement of the hearing.
324		-	(h) During a hearing, a member of the board or the
325		-	association's designated representative shall first present the
326		-	association's case against the owner. An owner or the owner's
327		-	designated representative is entitled to rebut the association's
328		-	information, present the owner's information, and present issues
329		-	relevant to the appeal or dispute.
330		-	SECTION 13. Section 209.015(c), Property Code, is amended
331		-	to read as follows:
332		-	(c) An owner must obtain the approval of the property
333		-	owners' association or, if applicable, an architectural review
334		-	authority, as defined by Section 209.00505(a), [committee]
335		-	established by the association or the association's dedicatory
336		-	instruments, based on criteria prescribed by the dedicatory
337		-	instruments specific to the use of a lot for residential purposes,
338		-	including reasonable restrictions regarding size, location,
339		-	shielding, and aesthetics of the residential purpose, before the
340		-	owner begins the construction, placement, or erection of a
341		-	building, structure, or other improvement for the residential
342		-	purpose on an adjacent lot.
343		-	SECTION 14. Section 209.016, Property Code, is amended by
344		-	amending Subsection (d) and adding Subsection (e) to read as
345		-	follows:
346		-	(d) Nothing [Except as provided by Subsection (b), nothing]
347		-	in this section shall be construed to prohibit the adoption or
348		-	enforcement of a provision in a dedicatory instrument establishing
349		-	a restriction relating to occupancy or leasing.
350		-	(e) A property owners' association may request the
351		-	following information to be submitted to the association regarding
352		-	a lease or rental applicant:
353		-	(1) contact information, including the name, mailing
354		-	address, phone number, and e-mail address of each person who will
355		-	reside at a property in the subdivision under a lease; and
356		-	(2) the commencement date and term of the lease.
357		-	SECTION 15. The following provisions of the Property Code
358		-	are repealed:
359		-	(1) Sections 204.003(c) and (d);
360		-	(2) Section 209.007(b); and
361		-	(3) Sections 209.016(a) and (c).
362		-	SECTION 16. (a) Not later than December 1, 2021, the Texas
363		-	Real Estate Commission shall establish and make available the
364		-	system necessary for the electronic filing of management
365		-	certificates and amended management certificates as required under
366		-	Section 209.004(b-1), Property Code, as added by this Act.
367		-	(b) Notwithstanding Section 209.004(b-1), Property Code, as
368		-	added by this Act, a property owners' association that has on or
369		-	before December 1, 2021, recorded a management certificate or
370		-	amended management certificate with a county clerk under Section
371		-	209.004, Property Code, shall electronically file the most recently
372		-	recorded management certificate or amended management certificate
373		-	with the Texas Real Estate Commission not later than June 1, 2022.
374		-	SECTION 17. Section 209.0065, Property Code, as added by
375		-	this Act, applies only to a fine, fee, or assessment that becomes
376		-	due on or after the effective date of this Act. A fine, fee, or
377		-	assessment that becomes due before the effective date of this Act is
378		-	governed by the law in effect immediately before the effective date
379		-	of this Act, and that law is continued in effect for that purpose.
380		-	SECTION 18. (a) Except as provided by Subsection (b) of
381		-	this section, this Act takes effect September 1, 2021.
382		-	(b) Section 209.004(b-1), Property Code, as added by this
383		-	Act, takes effect December 1, 2021.
	339	+	owner an evidence packet containing all documents, photographs, or
	340	+	communications relating to the matter in issue which the
	341	+	association intends to introduce at the hearing.
	342	+	(d) If an association does not provide a complete evidence
	343	+	packet within the time frame described in subsection (c), an owner
	344	+	is entitled to an automatic 15 day postponement of the hearing.
	345	+	(e) During a hearing, a member of the board of directors or
	346	+	their designated representative of the association shall present
	347	+	the association's evidence against the owner first. A property
	348	+	owner or their designated representative is entitled to rebut the
	349	+	association's evidence, present their evidence, and present issues
	350	+	relevant to the appeal.
	351	+	(f) The notice and hearing provisions of Section 209.006 and
	352	+	this section do not apply if the association files a suit seeking a
	353	+	temporary restraining order or temporary injunctive relief or files
	354	+	a suit that includes foreclosure as a cause of action. If a suit is
	355	+	filed relating to a matter to which those sections apply, a party to
	356	+	the suit may file a motion to compel mediation. The notice and
	357	+	hearing provisions of Section 209.006 and this section do not apply
	358	+	to a temporary suspension of a person's right to use common areas if
	359	+	the temporary suspension is the result of a violation that occurred
	360	+	in a common area and involved a significant and immediate risk of
	361	+	harm to others in the subdivision. The temporary suspension is
	362	+	effective until the board makes a final determination on the
	363	+	suspension action after following the procedures prescribed by this
	364	+	section.
	365	+	[(e)] (g) An owner or property owners' association may use
	366	+	alternative dispute resolution services.
	367	+	SECTION 15. Subsection (a), Section 209.008, Property Code,
	368	+	is amended to read as follows:
	369	+	(a) A property owners' association may collect
	370	+	reimbursement of reasonable attorney's fees and other reasonable
	371	+	and necessary costs incurred by the association relating to
	372	+	collecting amounts, including damages, due the association for
	373	+	enforcing restrictions or the bylaws or rules of the association
	374	+	only if the owner is provided a written notice that attorney's fees
	375	+	and costs will be charged to the owner if the delinquency or
	376	+	violation continues after a date certain.
	377	+	SECTION 16. Subsection (a), Section 209.008, Property Code,
	378	+	is amended to read as follows:
	379	+	Sec. 209.016. REGULATION OF RESIDENTIAL LEASES OR RENTAL
	380	+	AGREEMENTS. (a) [In this section, "sensitive personal information"
	381	+	means an individual's:
	382	+	(1) social security number;
	383	+	(2) driver's license number;
	384	+	(3) government-issued identification number; or
	385	+	(4) account, credit card, or debit card number.
	386	+	(b)] A property owners' association may not adopt or enforce
	387	+	a provision in a dedicatory instrument that:
	388	+	(1) requires a lease or rental applicant or a tenant to
	389	+	be submitted to and approved for tenancy by the property owners'
	390	+	association; or
	391	+	(2) requires the following information to be submitted
	392	+	to a property owners' association regarding a lease or rental
	393	+	applicant or current tenant:
	394	+	(A) a consumer or credit report; or
	395	+	(B) a lease or rental application submitted by
	396	+	the applicant, tenant, or that person's agent to the property owner
	397	+	or property owner's agent when applying for tenancy.
	398	+	[(c) If a copy of the lease or rental agreement is required
	399	+	by the property owners' association, any sensitive personal
	400	+	information may be redacted or otherwise made unreadable or
	401	+	indecipherable.
	402	+	(d) Except as provided by Subsection (b), nothing in this
	403	+	section shall be construed to prohibit the adoption or enforcement
	404	+	of a provision in a dedicatory instrument establishing a
	405	+	restriction relating to occupancy or leasing.]
	406	+	SECTION 17. Section 204.003(d), Property Code, is repealed.
	407	+	SECTION 18. This Act takes effect immediately if it
	408	+	receives a vote of two-thirds of all the members elected to each
	409	+	house, as provided by Section 39, Article III, Texas Constitution.
	410	+	If this Act does not receive the vote necessary for immediate
	411	+	effect, this Act takes effect September 1, 2021.