| 1 | 1 | | 89R16168 RAL-D |
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| 2 | 2 | | By: Reynolds H.B. No. 5011 |
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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 certain protections for owners in a property owners' |
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| 10 | 10 | | association. |
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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 209.005(o), Property Code, is amended to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (o) A party that [If the property owners' association] |
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| 15 | 15 | | prevails in an action under Subsection (n)[, the association] is |
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| 16 | 16 | | entitled to a judgment for court costs and attorney's fees incurred |
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| 17 | 17 | | by the party [association] in connection with the action. |
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| 18 | 18 | | SECTION 2. Chapter 209, Property Code, is amended by adding |
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| 19 | 19 | | Section 209.018 to read as follows: |
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| 20 | 20 | | Sec. 209.018. WITHHOLDING OF ASSESSMENTS BY PROPERTY OWNER. |
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| 21 | 21 | | (a) Notwithstanding a provision in a dedicatory instrument or |
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| 22 | 22 | | other law, if a property owner brings an action against a property |
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| 23 | 23 | | owners' association, the property owner may withhold assessment |
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| 24 | 24 | | payments while the action is pending. |
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| 25 | 25 | | (b) If a property owners' association prevails in an action |
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| 26 | 26 | | brought by a property owner, the property owner shall pay all |
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| 27 | 27 | | assessments withheld under Subsection (a) and resume assessment |
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| 28 | 28 | | payments. |
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| 29 | 29 | | (c) A property owners' association may not file a suit to |
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| 30 | 30 | | collect assessments withheld under Subsection (a) against an owner |
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| 31 | 31 | | who prevails in an action against the property owners' association. |
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| 32 | 32 | | SECTION 3. Section 209.005, Property Code, as amended by |
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| 33 | 33 | | this Act, and Section 209.018, Property Code, as added by this Act, |
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| 34 | 34 | | apply only to an action filed on or after the effective date of this |
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| 35 | 35 | | Act. An action filed before the effective date of this Act is |
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| 36 | 36 | | governed by the law in effect on the date the action was filed, and |
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| 37 | 37 | | the former law is continued in effect for that purpose. |
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| 38 | 38 | | SECTION 4. This Act takes effect September 1, 2025. |
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