Bill Text: TX HB2387 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to suits to collect past due property owners' association assessments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-04-06 - Withdrawn from schedule [HB2387 Detail]
Download: Texas-2021-HB2387-Introduced.html
87R3416 DRS-D | ||
By: Sherman, Sr. | H.B. No. 2387 |
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relating to suits to collect past due property owners' association | ||
assessments. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 4, Property Code, is amended by adding | ||
Chapter 31 to read as follows: | ||
CHAPTER 31. SUITS TO COLLECT PROPERTY OWNERS' ASSOCIATION | ||
ASSESSMENTS | ||
Sec. 31.001. DEFINITIONS. In this chapter, a term defined | ||
by Section 209.002 has the meaning assigned by that section. | ||
Sec. 31.002. APPLICABILITY OF CHAPTER. This chapter | ||
applies only to a property owners' association to which Chapter 209 | ||
applies. | ||
Sec. 31.003. SUIT IN JUSTICE COURT; EXCLUSIVE JURISDICTION. | ||
(a) A property owners' association that brings a suit to collect | ||
past due assessments or interest or late fees associated with past | ||
due assessments must bring the suit in a justice court. | ||
(b) Notwithstanding Section 27.034(d), Government Code, a | ||
justice court has exclusive jurisdiction of a suit under this | ||
chapter. | ||
Sec. 31.004. PETITION. The petition in a suit under this | ||
chapter: | ||
(1) must include a verified statement detailing: | ||
(A) the basis for each amount sought by the | ||
property owners' association, citing applicable provisions of the | ||
association's dedicatory instruments; and | ||
(B) the steps taken by the association to comply | ||
with procedures required by Chapter 209 or other law, as | ||
applicable, including procedures required by the association's | ||
dedicatory instruments; and | ||
(2) may not seek relief other than relief authorized | ||
by Section 31.007 or 31.008. | ||
Sec. 31.005. COUNTERCLAIMS; OFFSET. (a) A property owner's | ||
answer in a suit under this chapter may not include a counterclaim | ||
other than a claim that the property owners' association owes the | ||
owner money and a request that any amount awarded to the association | ||
be offset by the amount owed to the owner. | ||
(b) A property owner's failure to assert a counterclaim | ||
authorized by this section does not bar the owner from bringing a | ||
separate suit on the claim, but the owner's failure to timely assert | ||
the counterclaim in the answer bars consideration of the claim in | ||
the suit brought against the owner under this chapter. | ||
(c) This section does not affect the property owner's | ||
ability to assert any lawful defense to the property owners' | ||
association's claim. | ||
Sec. 31.006. MEDIATION. (a) A justice court in a suit | ||
under this chapter may order mediation of the dispute at no cost to | ||
the property owner. Mediation ordered under this section shall be | ||
conducted as provided by Chapter 154, Civil Practice and Remedies | ||
Code. | ||
(b) This section does not affect the justice court's | ||
authority to order another method of alternative dispute resolution | ||
under Section 27.034(c), Government Code, or the Texas Rules of | ||
Civil Procedure. | ||
Sec. 31.007. JUDGMENT; PAYMENT SCHEDULE. (a) A justice | ||
court in a suit under this chapter shall: | ||
(1) determine: | ||
(A) whether the property owners' association is | ||
entitled to all or part of the amounts requested in the | ||
association's petition; and | ||
(B) whether the property owner is entitled to any | ||
offset requested in the owner's answer; and | ||
(2) make an award as appropriate. | ||
(b) The justice court's judgment must provide, if | ||
applicable, that the property owner is not required to make a | ||
payment to satisfy the award before the 30th day after the date the | ||
judgment is signed or a later date specified in the judgment. | ||
Subject to this subsection, the court may order that the property | ||
owner be allowed to make partial payments toward satisfaction of | ||
the award according to a payment schedule prescribed by the court. | ||
Sec. 31.008. COSTS; ATTORNEY'S FEES. (a) The prevailing | ||
party in a suit under this chapter is entitled to recover filing | ||
fees and service costs incurred in connection with the suit. | ||
(b) In addition to any amounts awarded under Subsection (a), | ||
the justice court may award a party to the suit other costs and | ||
reasonable and necessary attorney's fees as is equitable and just, | ||
in an amount that does not exceed the greater of: | ||
(1) 15 percent of the amount sought by the property | ||
owners' association; or | ||
(2) $500. | ||
(c) The justice court may award a party to the suit | ||
attorney's fees or other penalties or costs not specifically | ||
authorized by this section only if: | ||
(1) the court finds the other party to have acted in | ||
bad faith in connection with the suit; or | ||
(2) the sanction is authorized under Chapter 10, Civil | ||
Practice and Remedies Code, or Rule 13, Texas Rules of Civil | ||
Procedure. | ||
(d) A court hearing an appeal or enforcing a judgment under | ||
this chapter may award a party to the appeal or enforcement action | ||
costs and reasonable and necessary attorney's fees as is equitable | ||
and just. | ||
Sec. 31.009. COLLECTION OF AMOUNTS NOT AWARDED. A judgment | ||
under this chapter in favor of a property owners' association must | ||
provide that the association or the association's agent may not | ||
seek to impose or collect any additional penalty, cost, attorney's | ||
fees, or other charge related to the assessments that are the | ||
subject of the suit except in a proceeding to enforce the judgment. | ||
Sec. 31.010. RECORDING OF CERTAIN INSTRUMENTS. (a) A | ||
judgment under this chapter that has become final after the | ||
exhaustion of appeals or after the expiration of the time for appeal | ||
is the only basis to record a lien based on unpaid property owners' | ||
association assessments and related charges. | ||
(b) A lis pendens, notice of assessment lien, or similar | ||
instrument may not be recorded with respect to any amount sought by | ||
a property owners' association in a suit under this chapter: | ||
(1) while the property owner is current under a | ||
payment plan ordered under Section 31.007; or | ||
(2) before the 30th day after the date the owner | ||
becomes delinquent under the payment plan. | ||
Sec. 31.011. FORECLOSURE. (a) A judgment in a suit under | ||
this chapter may be enforced by foreclosure on the property with | ||
respect to which the assessments that are the subject of the suit | ||
were imposed only if the association: | ||
(1) otherwise has authority to foreclose an assessment | ||
lien on the property for the amount awarded by the judgment; and | ||
(2) complies with Section 209.0092 and any other law | ||
governing the foreclosure of the lien. | ||
(b) The property owners' association may not initiate | ||
foreclosure of an assessment lien for the amount awarded by the | ||
judgment: | ||
(1) while the property owner is current under a | ||
payment plan ordered under Section 31.007; or | ||
(2) before the 30th day after the date: | ||
(A) the owner becomes delinquent under the | ||
payment plan; or | ||
(B) the owner becomes delinquent under an order | ||
to pay the entire award if no payment plan is ordered. | ||
SECTION 2. (a) Except as provided by Subsection (b) of this | ||
section, this Act applies to assessments imposed under a dedicatory | ||
instrument adopted before, on, or after the effective date of this | ||
Act. | ||
(b) This Act applies only to collection of property owners' | ||
association assessments that become due on or after the effective | ||
date of this Act and any interest, fees, or other costs related to | ||
those assessments. Collection of property owners' association | ||
assessments that became due before the effective date of this Act, | ||
and any interest, fees, or other costs related to those | ||
assessments, is governed by the law as it existed immediately | ||
before the effective date of this Act, and that law is continued in | ||
effect for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2021. |