BILL ANALYSIS Senate Research Center S.B. 1935 89R11319 RAL-F By: Hinojosa, Juan "Chuy" Local Government 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Many Texas homeowners living in communities governed by property owners' associations (POAs) have raised concerns about a lack of transparency, accountability, and fair representation. In many developments, control of the POA board remains with the developeror declarantlong after most homes are sold, leaving residents with little say in decisions that affect their dues, property rules, and quality of life. Homeowners often face unexpected fee increases, disproportionate fines for minor violations, and limited access to meetings or elections. Without clear timelines for when residents gain voting rights or meaningful input, POAs can operate with minimal oversight and little community engagement. S.B. 1935 aims at restoring balance between homeowners and POAs by requiring timely homeowner representation on POA boards, limiting unreasonable fines and assessment increases, and ensuring residents are notified of their rights. As proposed, S.B. 1935 amends current law relating to the composition and operation of a property owners' association board. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 209.0051(c-1), Property Code, as follows: (c-1) Requires that a property owners' association board (board) meeting, except for a meeting held by electronic or telephonic means under Subsection (c-2) (relating authorizing a board meeting to be held by electronic and telephonic means provided that certain requirements are met), be held in a certain area, including within 10 miles of the subdivision, if a majority of the board members are not elected by owners other than the declarant. Makes nonsubstantive changes. SECTION 2. Amends Section 209.00591, Property Code, by amending Subsection (c) and adding Subsections (d), (e), and (f), as follows: (c) Authorizes an instrument filed in the real property records of a county that includes restrictive covenants governing a residential subdivision (declaration) to provide for a period of declarant control of the property owners' association (association) during which a declarant, or persons designated by the declarant, is authorized to appoint and remove board members and the officers of the association, other than board members or officers elected by members of the association. (d) Creates this subsection from existing text. Provides that, regardless of the period of declarant control provided by the declaration: (1) on or before the 120th day after the date a majority of the lots that are authorized to be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least one-third of the board members are required to be elected by owners other than the declarant; and (2) on or before the 120th day after the date 75 percent of the lots that are authorized to be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least a majority, rather than one-third, of the board members are required to be elected by owners other than the declarant. Makes nonsubstantive changes to this subsection. (e) Creates this subsection from existing text. Requires at least a majority, rather than one-third, of the board members, if the declaration does not include the number of lots that are authorized to be created and made subject to the declaration, to be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded. (f) Requires the declarant, not later than the 30th day after the date a majority of the lots that are authorized to be created and made subject to the declaration are conveyed as described by Subsection (d)(1), to give notice to the owners that at least one-third of the board members are required to be elected by owners other than the declarant. Requires that notice required under this subsection be provided by posting the notice on any Internet website available to association members that is maintained by the association or by a management company on behalf of the association and sending the notice by e-mail to each owner who has registered an e-mail address with the association. SECTION 3. Amends Section 209.0061, Property Code, by adding Subsection (e), as follows: (e) Requires that the amount of a fine assessed by the association be reasonable in the context of the nature and frequency of the violation and the effect of the violation on the subdivision as a whole. Requires the association, if the association allows fines for a continuing violation to accumulate against a lot or an owner, to establish a reasonable maximum fine amount for a continuing violation at which point the total fine amount is capped. SECTION 4. Amends Chapter 209, Property Code, by adding Section 209.018, as follows: Sec. 209.018. RESTRICTION ON INCREASE OF REGULAR ASSESSMENT. Prohibits an association, notwithstanding a provision in a dedicatory instrument, from increasing the amount of a regular assessment by an amount greater than or equal to five percent per year unless the increase is approved by an affirmative vote of at least a majority of the total votes allocated to property owners entitled to vote on the proposed increase. SECTION 5. (a) Provides that Section 209.00591, Property Code, as amended by this Act, applies to a property owners' association board regardless of whether the association's declaration was adopted before, on, or after the effective date of this Act. (b) Requires at least one-third of the board members of an association to which Chapter 209 (Texas Residential Property Owners Protection Act), Property Code, applies, notwithstanding Section 209.00591, Property Code, as amended by this Act, to be elected by owners other than the declarant on or before March 1, 2026, if the association reached the majority conveyance threshold described by Section 209.00591(d)(1), Property Code, as added by this Act, before the effective date of this Act. (c) Requires at least a majority of the board members of an association to which Chapter 209, Property Code, notwithstanding Section 209.00591, Property Code, as amended by this Act, applies to be elected by owners other than the declarant on or before March 1, 2026, if: (1) the association reached the 75 percent conveyance threshold described by Section 209.00591(d)(2), Property Code, as added by this Act, before the effective date of this Act; or (2) the 10th anniversary of the date the association's declaration was recorded occurred before the effective date of this Act or occurs on or after the effective date of this Act and before March 1, 2026. SECTION 6. Makes application of Section 209.0061, Property Code, as amended by this Act, prospective. SECTION 7. Makes application of Section 209.018, Property Code, as added by this Act, prospective. SECTION 8. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1935
89R11319 RAL-F By: Hinojosa, Juan "Chuy"
Local Government
4/4/2025
As Filed
Senate Research Center
S.B. 1935
89R11319 RAL-F
By: Hinojosa, Juan "Chuy"
Local Government
4/4/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Many Texas homeowners living in communities governed by property owners' associations (POAs) have raised concerns about a lack of transparency, accountability, and fair representation. In many developments, control of the POA board remains with the developeror declarantlong after most homes are sold, leaving residents with little say in decisions that affect their dues, property rules, and quality of life. Homeowners often face unexpected fee increases, disproportionate fines for minor violations, and limited access to meetings or elections. Without clear timelines for when residents gain voting rights or meaningful input, POAs can operate with minimal oversight and little community engagement.
S.B. 1935 aims at restoring balance between homeowners and POAs by requiring timely homeowner representation on POA boards, limiting unreasonable fines and assessment increases, and ensuring residents are notified of their rights.
As proposed, S.B. 1935 amends current law relating to the composition and operation of a property owners' association board.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 209.0051(c-1), Property Code, as follows:
(c-1) Requires that a property owners' association board (board) meeting, except for a meeting held by electronic or telephonic means under Subsection (c-2) (relating authorizing a board meeting to be held by electronic and telephonic means provided that certain requirements are met), be held in a certain area, including within 10 miles of the subdivision, if a majority of the board members are not elected by owners other than the declarant. Makes nonsubstantive changes.
SECTION 2. Amends Section 209.00591, Property Code, by amending Subsection (c) and adding Subsections (d), (e), and (f), as follows:
(c) Authorizes an instrument filed in the real property records of a county that includes restrictive covenants governing a residential subdivision (declaration) to provide for a period of declarant control of the property owners' association (association) during which a declarant, or persons designated by the declarant, is authorized to appoint and remove board members and the officers of the association, other than board members or officers elected by members of the association.
(d) Creates this subsection from existing text. Provides that, regardless of the period of declarant control provided by the declaration:
(1) on or before the 120th day after the date a majority of the lots that are authorized to be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least one-third of the board members are required to be elected by owners other than the declarant; and
(2) on or before the 120th day after the date 75 percent of the lots that are authorized to be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least a majority, rather than one-third, of the board members are required to be elected by owners other than the declarant.
Makes nonsubstantive changes to this subsection.
(e) Creates this subsection from existing text. Requires at least a majority, rather than one-third, of the board members, if the declaration does not include the number of lots that are authorized to be created and made subject to the declaration, to be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded.
(f) Requires the declarant, not later than the 30th day after the date a majority of the lots that are authorized to be created and made subject to the declaration are conveyed as described by Subsection (d)(1), to give notice to the owners that at least one-third of the board members are required to be elected by owners other than the declarant. Requires that notice required under this subsection be provided by posting the notice on any Internet website available to association members that is maintained by the association or by a management company on behalf of the association and sending the notice by e-mail to each owner who has registered an e-mail address with the association.
SECTION 3. Amends Section 209.0061, Property Code, by adding Subsection (e), as follows:
(e) Requires that the amount of a fine assessed by the association be reasonable in the context of the nature and frequency of the violation and the effect of the violation on the subdivision as a whole. Requires the association, if the association allows fines for a continuing violation to accumulate against a lot or an owner, to establish a reasonable maximum fine amount for a continuing violation at which point the total fine amount is capped.
SECTION 4. Amends Chapter 209, Property Code, by adding Section 209.018, as follows:
Sec. 209.018. RESTRICTION ON INCREASE OF REGULAR ASSESSMENT. Prohibits an association, notwithstanding a provision in a dedicatory instrument, from increasing the amount of a regular assessment by an amount greater than or equal to five percent per year unless the increase is approved by an affirmative vote of at least a majority of the total votes allocated to property owners entitled to vote on the proposed increase.
SECTION 5. (a) Provides that Section 209.00591, Property Code, as amended by this Act, applies to a property owners' association board regardless of whether the association's declaration was adopted before, on, or after the effective date of this Act.
(b) Requires at least one-third of the board members of an association to which Chapter 209 (Texas Residential Property Owners Protection Act), Property Code, applies, notwithstanding Section 209.00591, Property Code, as amended by this Act, to be elected by owners other than the declarant on or before March 1, 2026, if the association reached the majority conveyance threshold described by Section 209.00591(d)(1), Property Code, as added by this Act, before the effective date of this Act.
(c) Requires at least a majority of the board members of an association to which Chapter 209, Property Code, notwithstanding Section 209.00591, Property Code, as amended by this Act, applies to be elected by owners other than the declarant on or before March 1, 2026, if:
(1) the association reached the 75 percent conveyance threshold described by Section 209.00591(d)(2), Property Code, as added by this Act, before the effective date of this Act; or
(2) the 10th anniversary of the date the association's declaration was recorded occurred before the effective date of this Act or occurs on or after the effective date of this Act and before March 1, 2026.
SECTION 6. Makes application of Section 209.0061, Property Code, as amended by this Act, prospective.
SECTION 7. Makes application of Section 209.018, Property Code, as added by this Act, prospective.
SECTION 8. Effective date: September 1, 2025.