Bill Text: TX HB3528 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the collection of past due assessments and certain other charges by a property owners' association.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-04-24 - Left pending in committee [HB3528 Detail]
Download: Texas-2017-HB3528-Introduced.html
85R11844 AJA-D | ||
By: Vo | H.B. No. 3528 |
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relating to the collection of past due assessments and certain | ||
other charges by a property owners' association. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 209, Property Code, is amended by adding | ||
Sections 209.0061, 209.00611, and 209.00612 to read as follows: | ||
Sec. 209.0061. COLLECTION OF PAST DUE ASSESSMENTS: FEES AND | ||
COLLECTION COSTS. (a) If a property owners' association's | ||
dedicatory instruments authorize the association to impose late | ||
fees on, or recover costs associated with the collection of, past | ||
due regular or special assessments, the association may collect | ||
only the following fees and costs: | ||
(1) a single late fee for each past due assessment that | ||
does not exceed 10 percent of the past due assessment; | ||
(2) if any interest or administrative costs are | ||
authorized by the dedicatory instruments, a monthly charge that: | ||
(A) does not exceed one-half of one percent of | ||
all unpaid past due assessments; and | ||
(B) is payable directly to the association, | ||
regardless of whether the amount is ultimately used to pay the | ||
association's property manager; | ||
(3) if the association sends a follow-up letter | ||
authorized by Section 209.00611(b), a charge for attorney's fees | ||
that does not exceed 25 percent of the past due assessments; and | ||
(4) for a payment plan, regardless of whether the | ||
association is required to offer the plan under Section 209.0062, a | ||
monthly charge that does not exceed three percent of the sum of: | ||
(A) the past due assessments; and | ||
(B) any charges authorized by Subdivision (1), | ||
(2), or (3) incurred as of the date the payment plan is accepted. | ||
(b) A property owners' association may not impose a charge | ||
other than the charge authorized by Subsection (a)(1) before the | ||
31st day after the date the association sends the property owner a | ||
letter that complies with Section 209.00611(a). | ||
(c) A property owners' association may not impose attorney's | ||
fees or any other charges on a property owner for: | ||
(1) documentation or other information requested by | ||
the owner in order to: | ||
(A) confirm the amount of assessments due; or | ||
(B) understand: | ||
(i) an assessment or a related charge; or | ||
(ii) a payment plan being offered to the | ||
owner; or | ||
(2) the negotiation of the terms of a payment plan. | ||
(d) Subsection (c)(2) does not require a property owners' | ||
association to offer a payment plan other than as required by | ||
Section 209.0062. | ||
Sec. 209.00611. COLLECTION OF PAST DUE ASSESSMENTS: | ||
COLLECTION LETTERS. (a) A letter sent to a property owner by or on | ||
behalf of a property owners' association seeking to collect a past | ||
due regular or special assessment must: | ||
(1) be sent to the owner by certified mail to the | ||
address to which the association usually sends invoices or other | ||
official communications and, if the association uses e-mail to | ||
communicate with property owners, to each e-mail address provided | ||
by the owner for that purpose; | ||
(2) itemize each charge the association seeks to | ||
collect and reference to each provision in the dedicatory | ||
instruments on which the charge is based; | ||
(3) state: | ||
(A) a total amount certain that the association | ||
claims is due; | ||
(B) the date on which that amount was determined; | ||
and | ||
(C) that payments made after that date will be | ||
credited as provided by law; | ||
(4) if Section 209.0062 applies to the association or | ||
the association's dedicatory instruments require a payment plan to | ||
be offered, include the terms of an available payment plan that | ||
complies with that section; | ||
(5) state that the owner must pay the total amount | ||
claimed or, if applicable, accept and deliver the first amount due | ||
under the payment plan on or before the 30th day after the date the | ||
letter was sent to avoid additional charges related to collection | ||
of the assessments; | ||
(6) provide the owner with a phone number the owner may | ||
use at no cost to ask questions about the charges or the payment | ||
plan terms; | ||
(7) provide an address to which the owner may send a | ||
check or money order as payment and notify the owner of any | ||
available online payment portal; and | ||
(8) notify the owner that attorney's fees and other | ||
charges may be imposed and that a lawsuit may be filed to collect | ||
the unpaid amount if: | ||
(A) the owner does not pay the total amount | ||
claimed or, if applicable, accept and deliver the first payment | ||
under the payment plan in the time provided by Subdivision (5); or | ||
(B) the owner accepts a payment plan and does not | ||
comply with the plan. | ||
(b) Not earlier than the 31st day after the date a letter | ||
described by Subsection (a) is sent to a property owner, the | ||
property owners' association may send a follow-up letter that | ||
includes a charge for attorney's fees authorized by Section | ||
209.0061(a)(3). | ||
Sec. 209.00612. COLLECTION OF PAST DUE ASSESSMENTS: | ||
LAWSUITS. (a) In a lawsuit filed by a property owners' association | ||
to collect past due assessments, the original petition: | ||
(1) must prominently state that: | ||
(A) the property owner may resolve the entire | ||
claim by paying, on or before the 60th day after the date the owner | ||
is served with the petition, an amount certain stated in the | ||
petition that the association claims is due: | ||
(i) determined as of a date stated in the | ||
petition; and | ||
(ii) that includes only the itemized | ||
amounts described by Subdivision (2); and | ||
(B) any payment received after the stated date on | ||
which the amount certain was determined will be credited towards | ||
the amount claimed in the petition; and | ||
(2) may include a claim only for the following | ||
itemized amounts: | ||
(A) past due regular and special assessments; | ||
(B) costs or fees the association may collect | ||
under Section 209.0061; | ||
(C) filing fees, fees for service of process, | ||
certified mail charges incurred in connection with the suit, and | ||
any other charges paid by the association in connection with the | ||
suit that the association is authorized to collect under the | ||
dedicatory instruments; and | ||
(D) additional attorney's fees in an amount that | ||
does not exceed $500. | ||
(b) A payment received from a property owner after the | ||
stated date on which the amount certain claimed in the petition was | ||
determined must be credited towards the claimed amount. | ||
(c) A property owners' association may not impose any | ||
additional collection-related charges in connection with the past | ||
due assessments being claimed before the 61st day after the date the | ||
association's petition is served on the property owner. | ||
(d) A property owner must be allowed to make a payment in | ||
satisfaction of the claim by check or money order to the attorney or | ||
law firm representing the association. | ||
(e) In a lawsuit described by Subsection (a), the court may | ||
award reasonable and necessary attorney's fees as are equitable and | ||
just. | ||
SECTION 2. Section 209.0062, Property Code, is amended by | ||
amending Subsection (a) and adding Subsection (a-1) to read as | ||
follows: | ||
(a) A property owners' association composed of more than 14 | ||
lots shall adopt reasonable guidelines to establish an alternative | ||
payment schedule by which an owner may make partial payments to the | ||
property owners' association for delinquent regular or special | ||
assessments or any other amount owed to the association without | ||
accruing additional monetary penalties other than amounts | ||
authorized by Section 209.0061. | ||
(a-1) A payment plan offered by a property owners' | ||
association for payment of past due assessments, regardless of | ||
whether the association is subject to Subsection (a): | ||
(1) may not be conditioned on payment of any amount not | ||
authorized by Section 209.0061; and | ||
(2) must allow the owner to pay off at any time without | ||
additional penalty or requirement for further payments under the | ||
plan the outstanding balance of the past due assessments and any | ||
charges authorized by Section 209.0061(a)(1), (2), or (3) that were | ||
incurred as of the date the payment plan was entered into [ |
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SECTION 3. The heading to Section 209.0063, Property Code, | ||
is amended to read as follows: | ||
Sec. 209.0063. PRIORITY OF PAYMENTS; LATE OR PARTIAL | ||
PAYMENTS. | ||
SECTION 4. Section 209.0063, Property Code, is amended by | ||
adding Subsection (c) to read as follows: | ||
(c) A property owners' association must accept a partial | ||
payment on any amount due to the association, regardless of whether | ||
the owner is subject to a payment plan, to be applied in accordance | ||
with this section. If the association uses an online payment | ||
portal, the association may not block an owner's ability to make a | ||
late or partial payment through the portal. | ||
SECTION 5. Section 209.009, Property Code, is amended to | ||
read as follows: | ||
Sec. 209.009. FORECLOSURE SALE PROHIBITED IN CERTAIN | ||
CIRCUMSTANCES. A property owners' association may not foreclose a | ||
property owners' association's assessment lien unless the debt | ||
secured by the lien includes more than $5,000 of debt described by | ||
Section 209.0063(a)(1), (2), or (3) [ |
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SECTION 6. (a) Except as provided by Subsection (b) of this | ||
section, the changes in law made by this Act apply only to | ||
collection of regular and special assessments that become due on or | ||
after the effective date of this Act. Collection of assessments | ||
that became due before the effective date of this Act 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. | ||
(b) Section 209.0063(c), Property Code, as added by this | ||
Act, applies to a payment made by a property owner on or after the | ||
effective date of this Act. | ||
SECTION 7. This Act takes effect September 1, 2017. |