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A BILL TO BE ENTITLED
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AN ACT
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relating to declarant control of certain property owners' |
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associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 209.0052(a), Property Code, is amended |
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to read as follows: |
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(a) This section applies [does not apply] to a contract |
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entered into by an association during and after the development |
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period. |
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SECTION 2. Section 209.00591(c), Property Code, is amended |
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to read as follows: |
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(c) The declaration may provide for a period of declarant |
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control of the association during which a declarant, or persons |
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designated by the declarant, may appoint and remove board members |
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and the officers of the association, other than board members or |
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officers elected by members of the property owners' association. |
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Regardless of the period of declarant control provided by the |
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declaration, on or before the 120th day after the date 75 percent of |
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the lots that may be created and made subject to the declaration are |
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conveyed to owners other than a declarant or a builder in the |
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business of constructing homes who purchased the lots from the |
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declarant for the purpose of selling completed homes built on the |
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lots, at least a majority [one-third] of the board members must be |
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elected by owners other than the declarant. If the declaration does |
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not include the number of lots that may be created and made subject |
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to the declaration, at least a majority [one-third] of the board |
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members must be elected by owners other than the declarant not later |
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than the fifth [10th] anniversary of the date the declaration was |
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recorded. |
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SECTION 3. (a) Section 209.0052, Property Code, as amended |
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by this Act, applies to a contract entered into, renewed, or |
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extended on or after the effective date of this Act. |
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(b) Section 209.00591, Property Code, as amended by this |
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Act, applies to a provision in a dedicatory instrument or a |
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restrictive covenant enacted before, on, or after the effective |
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date of this Act. |
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SECTION 4. This Act takes effect September 1, 2019. |