Texas 2023 - 88th Regular

Texas House Bill HB1558 Compare Versions

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1	1	H.B. No. 1558
2	2
3	3
4	4	AN ACT
5	5	relating to the extension or amendment of deed restrictions in
6	6	certain older subdivisions.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Title 11, Property Code, is amended by adding
9	9	Chapter 216 to read as follows:
10	10	CHAPTER 216. EXTENSION OR AMENDMENT OF RESTRICTIONS IN CERTAIN
11	11	OLDER SUBDIVISIONS
12	12	Sec. 216.001. DEFINITIONS. In this chapter:
13	13	(1) "Dedicatory instrument" has the meaning assigned
14	14	by Section 202.001.
15	15	(2) "Lienholder" and "owner" have the meanings
16	16	assigned by Section 201.003.
17	17	(3) "Older subdivision" means a subdivision described
18	18	by a recorded map or plat filed before 1947 in the real property
19	19	records of the county in which the subdivision is located.
20	20	(4) "Petition" has the meaning assigned by Section
21	21	202.001.
22	22	(5) "Property owners' association" means an
23	23	incorporated or unincorporated homeowners' association, community
24	24	association, civic club, or similar entity that:
25	25	(A) has a membership primarily consisting of the
26	26	owners of real property in a subdivision; and
27	27	(B) supports the enforcement of or promotes the
28	28	observance of the deed restrictions applicable to all or part of the
29	29	property located in the subdivision.
30	30	(6) "Restrictions" has the meaning assigned by Section
31	31	209.002.
32	32	(7) "Subdivision" means land that:
33	33	(A) consists of multiple sections that have each
34	34	been divided into two or more parts on a map or plat that has been
35	35	recorded in the real property records of a county; and
36	36	(B) is or was subject to restrictions that:
37	37	(i) limit a majority of the land, excluding
38	38	streets and public areas, to residential use; and
39	39	(ii) were recorded in the real property
40	40	records of the county.
41	41	(8) "University" means an institution of higher
42	42	education or a private or independent institution of higher
43	43	education, as those terms are defined by Section 61.003, Education
44	44	Code. The term includes a university's affiliate entity, including
45	45	an endowment instrument, and a unit, division, institution, or
46	46	agency established to operate as a component part of a university.
47	47	Sec. 216.002. FINDINGS AND PURPOSE. (a) The legislature
48	48	finds that:
49	49	(1) the inability of owners to extend or amend
50	50	property restrictions in older subdivisions in which no zoning
51	51	regulations apply creates uncertainty in living conditions and
52	52	discourages investments in those subdivisions;
53	53	(2) owners in affected older subdivisions are
54	54	reluctant or unable to provide proper maintenance, upkeep, and
55	55	repairs of structures because of the inability to amend the
56	56	restrictions in response to changing circumstances;
57	57	(3) these conditions will cause dilapidation of
58	58	housing and other structures and cause unhealthful and unsanitary
59	59	conditions in affected older subdivisions, contrary to the health,
60	60	safety, and welfare of the public; and
61	61	(4) the existence of race-related covenants in
62	62	restrictions, regardless of their unenforceability, is offensive,
63	63	repugnant, and harmful to members of racial or ethnic minority
64	64	groups and public policy requires that those covenants be removed.
65	65	(b) The purpose of this chapter is to provide a procedure
66	66	for extending or amending restrictions for certain older
67	67	subdivisions, including the removal of any restriction relating to
68	68	race, religion, or national origin that is void and unenforceable
69	69	under the United States Constitution or Section 5.026.
70	70	Sec. 216.003. APPLICABILITY OF CHAPTER. (a) This chapter
71	71	applies only to an older subdivision that:
72	72	(1) is wholly or partly located in a municipality with
73	73	a population of two million or more;
74	74	(2) had original restrictions that:
75	75	(A) for at least one section of the subdivision,
76	76	did not have an express procedure that provides for successive
77	77	extensions of the restrictions;
78	78	(B) did not have an express procedure for
79	79	amending the restrictions;
80	80	(C) under the common law of this state could not
81	81	be amended without the unanimous consent of:
82	82	(i) all owners in the subdivision; or
83	83	(ii) all owners in any section of the
84	84	subdivision; and
85	85	(D) may no longer be valid due to an inability to
86	86	extend or amend the restrictions; and
87	87	(3) has a single property owners' association in which
88	88	all owners in the subdivision are eligible for membership but in
89	89	which membership is not mandatory.
90	90	(b) This chapter applies to a restriction regardless of the
91	91	date on which the restriction was created.
92	92	(c) This chapter supersedes any contrary requirement for
93	93	the extension or amendment of a restriction in a dedicatory
94	94	instrument of a subdivision to which this chapter applies.
95	95	(d) This chapter does not apply to:
96	96	(1) a residential subdivision described by Section
97	97	209.0041(b);
98	98	(2) a condominium, as defined by Section 81.002 or
99	99	82.003;
100	100	(3) any portion of a residential subdivision in which
101	101	restrictions are no longer enforceable due to nonresidential use;
102	102	or
103	103	(4) property that is owned by a university that was
104	104	owned by the university on the effective date of this chapter.
105	105	Sec. 216.004. AMENDMENT OF RESTRICTIONS. (a) For purposes
106	106	of this chapter, the amendment of restrictions includes the
107	107	adoption of new restrictions or the modification or removal of
108	108	existing restrictions.
109	109	(b) An amendment of restrictions under this chapter may not
110	110	create a property owners' association with mandatory membership.
111	111	An amendment of restrictions under this chapter that creates a
112	112	property owners' association with mandatory membership is void.
113	113	Sec. 216.005. PROPERTY OWNERS' ASSOCIATION ACTION NOT
114	114	REQUIRED. Except as provided by Section 216.008, restrictions may
115	115	be extended or amended under this chapter without action by the
116	116	property owners' association.
117	117	Sec. 216.006. EXTENSION OF RESTRICTIONS. (a) Restrictions
118	118	may be extended as provided by Section 216.007 or, if a dedicatory
119	119	instrument provides a procedure for an initial extension of the
120	120	original restrictions, that procedure may be used for successive
121	121	extensions of the original restrictions unless the dedicatory
122	122	instrument expressly prohibits the procedure from being used for
123	123	successive extensions. If the dedicatory instrument prohibits the
124	124	procedure from being used to provide for automatic extension of
125	125	restrictions, the procedure may not be used under this subsection
126	126	to provide for automatic extension of the restrictions.
127	127	(b) A provision in a dedicatory instrument that prohibits
128	128	the extension of an existing restriction during a certain period
129	129	does not apply to a successive extension under a procedure for
130	130	initial extension of original restrictions under Subsection (a).
131	131	(c) An extension of restrictions under this chapter may:
132	132	(1) be for a period equal to the original term of the
133	133	restrictions or a shorter period; and
134	134	(2) subject to Subsection (a), provide for additional
135	135	automatic extensions of the term of the restrictions for a period of
136	136	not more than 10 years for each extension.
137	137	(d) A dedicatory instrument that provides for the extension
138	138	of restrictions and does not provide for amendment of restrictions
139	139	may be amended under this chapter, including by amending the
140	140	provision providing for the extension of the restrictions.
141	141	Sec. 216.007. CONSENT REQUIRED FOR EXTENSION OR AMENDMENT
142	142	OF RESTRICTIONS. (a) A restriction may be extended or amended by a
143	143	petition or ballots that indicate the written consent of the owners
144	144	of at least 66.6 percent of the total number of separately owned
145	145	parcels or tracts in the subdivision, regardless of whether the
146	146	parcels or tracts contain part or all of one or more platted lots or
147	147	combination of lots, but not including any parcels or tracts
148	148	excluded from applicability of this chapter under Section
149	149	216.003(d).
150	150	(b) A restriction that is extended or amended as described
151	151	by Subsection (a) applies to all sections of the subdivision other
152	152	than property excluded from applicability of this chapter under
153	153	Section 216.003(d) to the extent that the extended or amended
154	154	restriction expressly applies to the entire subdivision,
155	155	regardless of whether:
156	156	(1) each section has separate restrictions; or
157	157	(2) each owner is a member of the property owners'
158	158	association.
159	159	(c) If the original restrictions for a subdivision contain a
160	160	lower percentage to extend or amend the restrictions, the
161	161	percentage in the original restrictions controls.
162	162	Sec. 216.008. PETITION OR BALLOTS. (a) After receiving
163	163	written approval of a petition or ballot by the property owners'
164	164	association, the petition or ballots for the extension or amendment
165	165	of restrictions must be distributed to the owners in the
166	166	subdivision by any public method, including:
167	167	(1) by United States mail;
168	168	(2) by electronic mail or other method of electronic
169	169	transmission or publication, including publication on an Internet
170	170	website;
171	171	(3) by door-to-door circulation;
172	172	(4) by publication in a newspaper or similar
173	173	publication of general circulation in the municipality in which the
174	174	subdivision is located; or
175	175	(5) at a meeting of the owners in the subdivision
176	176	called for the purpose of voting on the proposed extension or
177	177	amendment.
178	178	(b) The petition or ballots may be provided to owners in
179	179	separate documents. The separate documents are considered to be
180	180	one instrument.
181	181	(c) If a restriction is amended under this chapter, a
182	182	petition or ballot for a subsequent amendment of the restrictions
183	183	may not be distributed under Subsection (a) before the fifth
184	184	anniversary of the effective date of the amended restriction under
185	185	Section 216.010.
186	186	Sec. 216.009. EFFECT OF OWNER'S SIGNATURE. (a) An owner's
187	187	signature on a petition or ballot conclusively establishes the
188	188	owner's consent for the purposes of this chapter.
189	189	(b) The vote of multiple owners of a lot, parcel, or tract
190	190	may be reflected by the signature of one of the owners.
191	191	(c) After an owner signs a petition or ballot for an
192	192	extension or amendment of a restriction, the owner's subsequent
193	193	conveyance of the owner's interest in real property in the
194	194	subdivision covered by the extension or amendment does not affect
195	195	the validity of the signature for the purposes of the petition or
196	196	ballot.
197	197	Sec. 216.010. EFFECTIVE DATE OF EXTENSION OR AMENDMENT. An
198	198	extension or amendment of a restriction under this chapter takes
199	199	effect on the date the extension or amendment and the petition or
200	200	ballots that reflect the written consent of the required number of
201	201	owners in the subdivision for the adoption of the extension or
202	202	amendment are filed and recorded in the real property records of the
203	203	county in which the subdivision is located.
204	204	Sec. 216.011. APPLICABILITY OF EXTENSION OR AMENDMENT. (a)
205	205	An extension or amendment of a restriction under this chapter is
206	206	binding on a lot, parcel, or tract in the subdivision as provided by
207	207	the restriction, regardless of whether the owner or owners of the
208	208	lot, parcel, or tract consented to the extension or amendment.
209	209	(b) Notwithstanding any other law, an owner may not opt out
210	210	of the applicability to the owner's property of a restriction that
211	211	is extended or amended under this chapter.
212	212	(c) An extension or amendment of a restriction under this
213	213	chapter is binding on a lienholder or a person who acquires title to
214	214	property at a foreclosure sale or by deed from a foreclosing
215	215	lienholder.
216	216	Sec. 216.012. UNCONSTITUTIONAL RESTRICTIONS NOT EXTENDED.
217	217	If a provision in restrictions extended under this chapter is void
218	218	and unenforceable under the United States Constitution or Section
219	219	5.026, the restrictions are considered as if the void and
220	220	unenforceable provision was never contained in the restrictions.
221	221	Sec. 216.013. PROCEDURES CUMULATIVE. The procedure
222	222	provided by this chapter for the extension or amendment of
223	223	restrictions is cumulative of and not in lieu of any other method by
224	224	which restrictions of a subdivision to which this chapter applies
225	225	may be extended or amended.
226	226	Sec. 216.014. CONSTRUCTION OF CHAPTER AND RESTRICTIONS.
227	227	(a) This chapter and any petition or ballot made or action taken in
228	228	connection with an attempt to comply with this chapter shall be
229	229	liberally construed to effectuate the intent of this chapter and
230	230	the petition, ballot, or action.
231	231	(b) A restriction that is extended or amended under this
232	232	chapter shall be liberally construed to give effect to the
233	233	restriction's purposes and intent.
234	234	SECTION 2. This Act takes effect immediately if it receives
235	235	a vote of two-thirds of all the members elected to each house, as
236	236	provided by Section 39, Article III, Texas Constitution. If this
237	237	Act does not receive the vote necessary for immediate effect, this
238	238	Act takes effect September 1, 2023.
239	239	______________________________ ______________________________
240	240	President of the Senate Speaker of the House
241	241	I certify that H.B. No. 1558 was passed by the House on April
242	242	20, 2023, by the following vote: Yeas 117, Nays 29, 2 present, not
243	243	voting; and that the House concurred in Senate amendments to H.B.
244	244	No. 1558 on May 25, 2023, by the following vote: Yeas 118, Nays 20,
245	245	2 present, not voting.
246	246	______________________________
247	247	Chief Clerk of the House
248	248	I certify that H.B. No. 1558 was passed by the Senate, with
249	249	amendments, on May 18, 2023, by the following vote: Yeas 26, Nays
250	250	5.
251	251	______________________________
252	252	Secretary of the Senate
253	253	APPROVED: __________________
254	254	Date
255	255	__________________
256	256	Governor