By: Bhojani H.B. No. 5407 A BILL TO BE ENTITLED AN ACT relating to restrictions on residential leasing in property owners' associations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 202, Property Code, is amended by adding new section 202.0231 follows: Sec. 202.0231. REGULATION OF RESIDENTIAL LEASING. (a) A property owners' association may not establish, include, adopt, or enforce a provision in a dedicatory instrument, or construe a restricted covenant as, prohibiting an owner from executing a residential lease of at least six months. (b) If an owner chooses to execute a residential lease with one or more tenants, a property owners' association may not establish, include, adopt, or enforce a provision in a dedicatory instrument that imposes occupancy limits beyond those in Property Code Sec. 92.010. SECTION 2. (a) This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.