| 1 | 1 | | 89R4623 SCR-D |
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| 2 | 2 | | By: Harris Davila H.B. No. 2630 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to declarant control of certain property owners' |
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| 10 | 10 | | associations. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 209.00591(c), Property Code, is amended |
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| 13 | 13 | | to read as follows: |
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| 14 | 14 | | (c) The declaration may provide for a period of declarant |
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| 15 | 15 | | control of the association during which a declarant, or persons |
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| 16 | 16 | | designated by the declarant, may appoint and remove board members |
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| 17 | 17 | | and the officers of the association, other than board members or |
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| 18 | 18 | | officers elected by members of the property owners' association. |
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| 19 | 19 | | Regardless of the period of declarant control provided by the |
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| 20 | 20 | | declaration:[,] |
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| 21 | 21 | | (1) on or before the 120th day after the date 50 |
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| 22 | 22 | | percent of the lots that may be created and made subject to the |
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| 23 | 23 | | declaration are conveyed to owners other than a declarant or a |
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| 24 | 24 | | builder in the business of constructing homes who purchased the |
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| 25 | 25 | | lots from the declarant for the purpose of selling completed homes |
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| 26 | 26 | | built on the lots, at least one board member must be elected by |
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| 27 | 27 | | owners other than the declarant; |
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| 28 | 28 | | (2) on or before the 120th day after the date 75 |
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| 29 | 29 | | percent of the lots that may be created and made subject to the |
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| 30 | 30 | | declaration are conveyed as described by Subdivision (1) [to owners |
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| 31 | 31 | | other than a declarant or a builder in the business of constructing |
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| 32 | 32 | | homes who purchased the lots from the declarant for the purpose of |
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| 33 | 33 | | selling completed homes built on the lots], at least one-third of |
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| 34 | 34 | | the board members must be elected by owners other than the |
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| 35 | 35 | | declarant; and |
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| 36 | 36 | | (3) if[. If] the declaration does not include the |
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| 37 | 37 | | number of lots that may be created and made subject to the |
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| 38 | 38 | | declaration, at least one-third of the board members must be |
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| 39 | 39 | | elected by owners other than the declarant not later than the fifth |
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| 40 | 40 | | [10th] anniversary of the date the declaration was recorded. |
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| 41 | 41 | | SECTION 2. Section 209.00591, Property Code, as amended by |
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| 42 | 42 | | this Act, applies to a declaration regardless of whether the |
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| 43 | 43 | | declaration was created or amended before, on, or after the |
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| 44 | 44 | | effective date of this Act. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2025. |
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