Bill Text: TX HB366 | 2011-2012 | 82nd Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to priority of payment relating to property owners' association assessments.

Sponsorship: Partisan Bill (Republican 3)

Status: (Introduced - Dead) 2011-04-19 - Considered in Calendars [HB366 Detail]

Download: Texas-2011-HB366-Introduced.html

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82R2739 PMO-F
By: Orr H.B. No. 366

A BILL TO BE ENTITLED
AN ACT
relating to priority of payment relating to property owners'
association assessments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 209.009, Property Code, is amended to
read as follows:
Sec. 209.009. FORECLOSURE SALE PROHIBITED IN CERTAIN
CIRCUMSTANCES. (a) A property owners' association may not
foreclose a property owners' association's assessment lien if the
debt securing the lien consists solely of:
(1) fines assessed by the association; or
(2) attorney's fees incurred by the association solely
associated with fines assessed by the association.
(b) Unless otherwise provided in writing by the property
owner, a payment received by a property owners' association from
the owner shall be applied to the owner's debt in the following
order of priority:
(1) any delinquent assessment;
(2) any current assessment;
(3) any fines assessed by the association; and
(4) any attorney's fees incurred by the association
solely associated with fines assessed by the association.
SECTION 2. This Act applies to a payment received by a
property owners' association on or after the effective date of this
Act. A payment received before the effective date of this Act is
governed by the law in effect when the payment was received, and the
former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.