Texas House Bill HB140

Texas 2025 - 89th 1st C.S.

• Filed: 7/21/25

Caption

Relating to the repeal of a prohibition on property owners' association rental restrictions based on a person's method of payment.

Impact

The repeal established by HB 140 will significantly alter the regulatory framework governing property owners' associations in Texas. By allowing such associations to dictate their own rental restrictions pertaining to payment methods, the legislation may encourage a more favorable environment for landlords, enabling them to enforce policies that align with their financial management strategies. Conversely, it raises concerns for tenants who may prefer or rely on alternative payment methods that could be potentially restricted under new association rules, leading to debates surrounding tenant rights and housing accessibility.

Summary

House Bill 140 proposes the repeal of a prohibition that restricts property owners' associations from implementing rental restrictions based on a tenant's method of payment. This legislative change seeks to empower property owners associations with greater flexibility in determining rental criteria, potentially allowing them to set rules based on how rent is paid, including stipulations regarding cash, check, or electronic payments. The intent behind this bill is to facilitate a more diverse payment landscape, providing property owners with the tools to enhance financial transactions and compliance within their communities.

Contention

While supporters of HB 140 argue that the repeal provides necessary autonomy to property owners' associations and helps streamline property management, critics raise alarm over the lack of protections for tenants. There is potential fear that the bill could lead to discrimination against individuals based on their preferred payment methods, which could disproportionately affect those with limited access to conventional banking solutions. Such concerns have fueled discussions about whether the bill adequately considers the interests and rights of tenants in property rental agreements.

Texas Constitutional Statutes Affected

Property Code

• Chapter 202. Construction And Enforcement Of Restrictive Covenants
  • Section: New Section