Bill Text: TX SB1168 | 2015-2016 | 84th Legislature | Enrolled


Bill Title: Relating to the operation of certain property owners' associations, condominium unit owners' associations, and councils of owners.

Spectrum: Bipartisan Bill

Status: (Passed) 2015-06-19 - Effective on 9/1/15 [SB1168 Detail]

Download: Texas-2015-SB1168-Enrolled.html
 
 
  S.B. No. 1168
 
 
 
 
AN ACT
  relating to the operation of certain property owners' associations,
  condominium unit owners' associations, and councils of owners.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 82.157(a), Property Code, is amended to
  read as follows:
         (a)  Except as provided by Subsection (c), if a unit owner
  other than a declarant intends to sell a unit, before executing a
  contract or conveying the unit, the unit owner must furnish to the
  purchaser a current copy of the declaration, bylaws, any
  association rules, and a resale certificate that must have been
  prepared not earlier than three months before the date it is
  delivered to the purchaser. The resale certificate must be issued
  by the association and must contain the current operating budget of
  the association and statements of:
               (1)  any right of first refusal or other restraint
  contained in the declaration that restricts the right to transfer a
  unit;
               (2)  the amount of the periodic common expense
  assessment and the unpaid common expenses or special assessments
  currently due and payable from the selling unit owner;
               (3)  other unpaid fees or amounts payable to the
  association by the selling unit owner;
               (4)  capital expenditures, if any, approved by the
  association for the next 12 months;
               (5)  the amount of reserves, if any, for capital
  expenditures and of portions of those reserves designated by the
  association for a specified project;
               (6)  any unsatisfied judgments against the
  association;
               (7)  the nature of any pending suits against the
  association;
               (8)  insurance coverage provided for the benefit of
  unit owners;
               (9)  whether the board has knowledge that any
  alterations or improvements to the unit or to the limited common
  elements assigned to that unit violate the declaration, bylaws, or
  association rules;
               (10)  whether the board has received notice from a
  governmental authority concerning violations of health or building
  codes with respect to the unit, the limited common elements
  assigned to that unit, or any other portion of the condominium;
               (11)  the remaining term of any leasehold estate that
  affects the condominium and the provisions governing an extension
  or renewal of the lease; [and]
               (12)  the name, mailing address, and telephone number
  of the association's managing agent, if any;
               (13)  the association's current operating budget and
  balance sheet; and
               (14)  all fees payable to the association or an agent of
  the association that are associated with the transfer of ownership,
  including a description of each fee, to whom the fee is paid, and
  the amount of the fee.
         SECTION 2.  Section 207.001(2), Property Code, is amended to
  read as follows:
               (2)  "Dedicatory instrument," "property owners'
  association," and "restrictive covenant" have the meanings
  assigned by Section 209.002 [202.001].
         SECTION 3.  Section 207.002, Property Code, is amended to
  read as follows:
         Sec. 207.002.  APPLICABILITY. (a)  This chapter applies to
  a subdivision with a property owners' association that is entitled
  to levy regular or special assessments.
         (b)  This chapter does not apply to a condominium council of
  owners governed by Chapter 81 or a condominium unit owners' 
  association governed by Chapter 82.
         SECTION 4.  Section 209.002, Property Code, is amended by
  amending Subdivision (4-a) and adding Subdivision (13) to read as
  follows:
               (4-a)  "Development period" means a period stated in a
  declaration during which a declarant reserves:
                     (A)  a right to facilitate the development,
  construction, and marketing of the subdivision; or [and]
                     (B)  a right to direct the size, shape, and
  composition of the subdivision.
               (13)  "Verified mail" means any method of mailing for
  which evidence of mailing is provided by the United States Postal
  Service or a common carrier.
         SECTION 5.  Section 209.003(d), Property Code, is amended to
  read as follows:
         (d)  This chapter does not apply to a condominium as defined
  [development governed] by Section 81.002 or 82.003 [Chapter 82].
         SECTION 6.  Section 209.0041, Property Code, is amended by
  amending Subsection (h) and adding Subsections (h-1) and (h-2) to
  read as follows:
         (h)  Except as provided by Subsection (h-1) or (h-2) [this
  subsection], a declaration may be amended only by a vote of 67
  percent of the total votes allocated to property owners entitled to
  vote on the amendment of the declaration [in the property owners'
  association], in addition to any governmental approval required by
  law.
         (h-1)  If the declaration contains a lower percentage than
  prescribed by Subsection (h), the percentage in the declaration
  controls.
         (h-2)  If the declaration is silent as to voting rights for
  an amendment, the declaration may be amended by a vote of owners
  owning 67 percent of the lots subject to the declaration.
         SECTION 7.  Chapter 209, Property Code, is amended by adding
  Section 209.0042 to read as follows:
         Sec. 209.0042.  METHODS OF PROVIDING NOTICES TO OWNERS.
  (a)  Subject to this section, a property owners' association may
  adopt a method that may be used by the association to provide a
  notice from the association to a property owner.
         (b)  A property owners' association may use an alternative
  method of providing notice adopted under this section to provide a
  notice for which another method is prescribed by law only if the
  property owner to whom the notice is provided has affirmatively
  opted to allow the association to use the alternative method of
  providing notice to provide to the owner notices for which another
  method is prescribed by law.
         (c)  A property owners' association may not require an owner
  to allow the association to use an alternative method of providing
  notice adopted under this section to provide to the owner any notice
  for which another method of providing notice is prescribed by law.
         SECTION 8.  Section 209.0051, Property Code, is amended by
  amending Subsections (b), (c-1), and (h) and adding Subsection
  (c-2) to read as follows:
         (b)  In this section, "board[:
               [(1)  "Board] meeting":
               (1) [(A)]  means a deliberation between a quorum of the
  voting board of the property owners' association, or between a
  quorum of the voting board and another person, during which
  property owners' association business is considered and the board
  takes formal action; and
               (2) [(B)]  does not include the gathering of a quorum
  of the board at a social function unrelated to the business of the
  association or the attendance by a quorum of the board at a
  regional, state, or national convention, ceremonial event, or press
  conference, if formal action is not taken and any discussion of
  association business is incidental to the social function,
  convention, ceremonial event, or press conference.
               [(2)     "Development period" means a period stated in a
  declaration during which a declarant reserves:
                     [(A)     a right to facilitate the development,
  construction, and marketing of the subdivision; and
                     [(B)     a right to direct the size, shape, and
  composition of the subdivision.]
         (c-1)  Except for a meeting held by electronic or telephonic
  means under Subsection (c-2) [(h)], a board meeting must be held in
  a county in which all or part of the property in the subdivision is
  located or in a county adjacent to that county.
         (c-2)  A board meeting may be held by electronic or
  telephonic means provided that:
               (1)  each board member may hear and be heard by every
  other board member;
               (2)  except for any portion of the meeting conducted in
  executive session:
                     (A)  all owners in attendance at the meeting may
  hear all board members; and
                     (B)  owners are allowed to listen using any
  electronic or telephonic communication method used or expected to
  be used by a board member to participate; and
               (3)  the notice of the meeting includes instructions
  for owners to access any communication method required to be
  accessible under Subdivision (2)(B).
         (h)  Except as provided by this subsection, a [A] board may
  take action outside of a meeting [meet by any method of
  communication], including voting by electronic or [and] telephonic
  means, without prior notice to owners under Subsection (e), if each
  board member is given a reasonable opportunity to express the board
  member's opinion to all other board members and to vote [director
  may hear and be heard by every other director, or the board may take
  action by unanimous written consent to consider routine and
  administrative matters or a reasonably unforeseen emergency or
  urgent necessity that requires immediate board action].  Any action
  taken without notice to owners under Subsection (e) must be
  summarized orally, including an explanation of any known actual or
  estimated expenditures approved at the meeting, and documented in
  the minutes of the next regular or special board meeting.  The board
  may not, unless done in an open meeting for which [without] prior
  notice was given to owners under Subsection (e), consider or vote
  on:
               (1)  fines;
               (2)  damage assessments;
               (3)  initiation of foreclosure actions;
               (4)  initiation of enforcement actions, excluding
  temporary restraining orders or violations involving a threat to
  health or safety;
               (5)  increases in assessments;
               (6)  levying of special assessments;
               (7)  appeals from a denial of architectural control
  approval; [or]
               (8)  a suspension of a right of a particular owner
  before the owner has an opportunity to attend a board meeting to
  present the owner's position, including any defense, on the issue;
               (9)  lending or borrowing money;
               (10)  the adoption or amendment of a dedicatory
  instrument;
               (11)  the approval of an annual budget or the approval
  of an amendment of an annual budget that increases the budget by
  more than 10 percent;
               (12)  the sale or purchase of real property;
               (13)  the filling of a vacancy on the board;
               (14)  the construction of capital improvements other
  than the repair, replacement, or enhancement of existing capital
  improvements; or
               (15)  the election of an officer.
         SECTION 9.  Section 209.0056, Property Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  For an election or vote taken at a meeting of the owners,
  not [Not] later than the 10th day or earlier than the 60th day
  before the date of the [an] election or vote, a property owners'
  association shall give written notice of the election or vote to:
               (1)  each owner of property in the property owners'
  association, for purposes of an association-wide election or vote;
  or
               (2)  each owner of property in the property owners'
  association entitled under the dedicatory instruments to vote in a
  particular representative election, for purposes of a vote that
  involves election of representatives of the association who are
  vested under the dedicatory instruments of the property owners'
  association with the authority to elect or appoint board members of
  the property owners' association.
         (a-1)  For an election or vote of owners not taken at a
  meeting, the property owners' association shall give notice of the
  election or vote to all owners entitled to vote on any matter under
  consideration.  The notice shall be given not later than the 20th
  day before the latest date on which a ballot may be submitted to be
  counted.
         SECTION 10.  Section 209.0057, Property Code, is amended by
  amending Subsections (b), (c), and (d) and adding Subsections
  (b-1), (b-2), (b-3), and (b-4) to read as follows:
         (b)  Any owner may, not later than the 15th day after the
  later of the date of any [the] meeting of owners at which the
  election or vote was held or the date of the announcement of the
  results of the election or vote, require a recount of the votes.  A
  demand for a recount must be submitted in writing either:
               (1)  by verified [certified] mail[, return receipt
  requested,] or by delivery by the United States Postal Service with
  signature confirmation service to the property owners'
  association's mailing address as reflected on the latest management
  certificate filed under Section 209.004; or
               (2)  in person to the property owners' association's
  managing agent as reflected on the latest management certificate
  filed under Section 209.004 or to the address to which absentee and
  proxy ballots are mailed.
         (b-1)  The property owners' association must estimate the
  costs for performance of the recount by a person qualified to
  tabulate votes under Subsection (c) and must send an invoice for the
  estimated costs to the requesting owner at the owner's last known
  address according to association records not later than the 20th
  day after the date the association receives the owner's demand for
  the recount.
         (b-2)  The owner demanding a recount under this section must
  pay the invoice described by Subsection (b-1) in full to the
  property owners' association on or before the 30th day after the
  date the invoice is sent to the owner.
         (b-3)  If the invoice described by Subsection (b-1) is not
  paid by the deadline prescribed by Subsection (b-2), the owner's
  demand for a recount is considered withdrawn and a recount is not
  required. 
         (b-4) If the estimated costs under Subsection (b-1) are
  lesser or greater than the actual costs, the property owners' 
  association must send a final invoice to the owner on or before the
  30th business day after the date the results of the recount are
  provided. If the final invoice includes additional amounts owed by
  the owner, any additional amounts not paid to the association
  before the 30th business day after the date the invoice is sent to
  the owner may be added to the owner's account as an assessment. If
  the estimated costs exceed the final invoice amount, the owner is
  entitled to a refund. The refund shall be paid to the owner at the
  time the final invoice is sent under this subsection.
         (c)  Following receipt of payment under Subsection (b-2),
  the [The] property owners' association shall, at the expense of the
  owner requesting the recount, retain for the purpose of performing
  the recount[,] the services of a person qualified to tabulate votes
  under this subsection.  The association shall enter into a contract
  for the services of a person who:
               (1)  is not a member of the association or related to a
  member of the association board within the third degree by
  consanguinity or affinity, as determined under Chapter 573,
  Government Code; and
               (2)  is:
                     (A)  a current or former:
                           (i)  county judge;
                           (ii)  county elections administrator;
                           (iii)  justice of the peace; or
                           (iv)  county voter registrar; or
                     (B)  a person agreed on by the association and
  each person [the persons] requesting the recount.
         (d)  On [Any recount under Subsection (b) must be performed
  on] or before the 30th day after the date of receipt of [a request
  and] payment for a recount in accordance with Subsection (b-2), the
  recount must be completed and the property owners' association must
  provide each owner who requested the recount with notice of the
  results of the recount [Subsections (b) and (c)].  If the recount
  changes the results of the election, the [property owners']
  association shall reimburse the requesting owner for the cost of
  the recount not later than the 30th day after the date the results
  of the recount are provided.  [The property owners' association
  shall provide the results of the recount to each owner who requested
  the recount.]  Any action taken by the board in the period between
  the initial election vote tally and the completion of the recount is
  not affected by any recount.
         SECTION 11.  Section 209.0058, Property Code, is amended by
  amending Subsections (a) and (c) and adding Subsections (a-1) and
  (d) to read as follows:
         (a)  Except as provided by Subsection (d), a [Any] vote cast
  [in an election or vote] by a member of a property owners'
  association must be in writing and signed by the member if the vote
  is cast:
               (1)  outside of a meeting;
               (2)  in an election to fill a position on the board;
               (3)  on a proposed adoption or amendment of a
  dedicatory instrument;
               (4)  on a proposed increase in the amount of a regular
  assessment or the proposed adoption of a special assessment; or
               (5)  on the proposed removal of a board member.
         (a-1)  If a property owners' association elects to use a
  ballot for a vote on a matter other than a matter described by
  Subsection (a), the ballot must be:
               (1)  in writing and signed by the member; or
               (2)  cast by secret ballot in accordance with
  Subsection (d).
         (c)  In a property owners' association [an association-wide]
  election, written and signed ballots are not required for
  uncontested races.
         (d)  A property owners' association may adopt rules to allow
  voting by secret ballot by association members. The association
  must take measures to reasonably ensure that:
               (1)  a member cannot cast more votes than the member is
  eligible to cast in an election or vote;
               (2)  the association counts each vote cast by a member
  that the member is eligible to cast; and
               (3)  in any election for the board, each candidate may
  name one person to observe the counting of the ballots, provided
  that this does not entitle any observer to see the name of the
  person who cast any ballot, and that any disruptive observer may be
  removed.
         SECTION 12.  Section 209.0059, Property Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  In a residential development with 10 or fewer lots for
  which the declaration was recorded before January 1, 2015, a person
  may not vote in a property owners' association election unless the
  person is subject to a dedicatory instrument governing the
  association through which the association exercises its authority.
         SECTION 13.  Section 209.00591, Property Code, is amended by
  adding Subsection (a-1) and amending Subsection (c) to read as
  follows:
         (a-1)  Notwithstanding any other provision of this chapter,
  a property owners' association's bylaws may require one or more
  board members to reside in the subdivision subject to the
  dedicatory instruments but may not require all board members to
  reside in that subdivision. A requirement described by this
  subsection is not applicable during the development period.
         (c)  The declaration may provide for a period of declarant
  control of the association during which a declarant, or persons
  designated by the declarant, may appoint and remove board members
  and the officers of the association, other than board members or
  officers elected by members of the property owners'
  association.  Regardless of the period of declarant control
  provided by the declaration, on or before the 120th day after the
  date 75 percent of the lots that may 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 must be
  elected by owners other than the declarant.  If the declaration
  does not include the number of lots that may be created and made
  subject to the declaration, at least one-third of the board members
  must be elected by owners other than the declarant not later than
  the 10th anniversary of the date the declaration was recorded.
         SECTION 14.  Section 209.00592, Property Code, is amended by
  amending Subsection (a) and adding Subsections (a-1) and (b-1) to
  read as follows:
         (a)  Subject to Subsection (a-1), the [The] voting rights of
  an owner may be cast or given:
               (1)  in person or by proxy at a meeting of the property
  owners' association;
               (2)  by absentee ballot in accordance with this
  section;
               (3)  by electronic ballot in accordance with this
  section; or
               (4)  by any method of representative or delegated
  voting provided by a dedicatory instrument.
         (a-1)  Except as provided by this subsection, unless a
  dedicatory instrument provides otherwise, a property owners'
  association is not required to provide an owner with more than one
  voting method.  An owner must be allowed to vote by absentee ballot
  or proxy.
         (b-1)  For purposes of Subsection (b), a nomination taken
  from the floor in a board member election is not considered an
  amendment to the proposal for the election.
         SECTION 15.  Section 209.00593, Property Code, is amended by
  adding Subsections (a-1), (a-2), and (a-3) and amending Subsection
  (d) to read as follows:
         (a-1)  At least 10 days before the date a property owners' 
  association composed of more than 100 lots disseminates absentee
  ballots or other ballots to association members for purposes of
  voting in a board member election, the association must provide
  notice to the association members soliciting candidates interested
  in running for a position on the board. The notice must contain
  instructions for an eligible candidate to notify the association of
  the candidate's request to be placed on the ballot and the deadline
  to submit the candidate's request. The deadline may not be earlier
  than the 10th day after the date the association provides the notice
  required by this subsection.
         (a-2)  The notice required by Subsection (a-1) must be:
               (1)  mailed to each owner; or
               (2)  provided by:
                     (A)  posting the notice in a conspicuous manner
  reasonably designed to provide notice to association members:
                           (i)  in a place located on the association's
  common property or, with the property owner's consent, on other
  conspicuously located privately owned property within the
  subdivision; or
                           (ii)  on any Internet website maintained by
  the association or other Internet media; and
                     (B)  sending the notice by e-mail to each owner
  who has registered an e-mail address with the association.
         (a-3)  An association described by Subsection (a-1) shall
  include on each absentee ballot or other ballot for a board member
  election the name of each eligible candidate from whom the
  association received a request to be placed on the ballot in
  accordance with this section.
         (d)  This section does not apply to the appointment of a
  board member during a development period.  [In this subsection,
  "development period" means a period stated in a declaration during
  which a declarant reserves:
               [(1)     a right to facilitate the development,
  construction, and marketing of the subdivision; and
               [(2)     a right to direct the size, shape, and
  composition of the subdivision.]
         SECTION 16.  Section 209.00594, Property Code, is amended by
  amending Subsections (b) and (c) and adding Subsections (b-1) and
  (d) to read as follows:
         (b)  A person other than a person described by Subsection (a)
  may tabulate votes in an association election or vote [but may not
  disclose to any other person how an individual voted].
         (b-1)  A person who tabulates votes under Subsection (b) or
  who performs a recount under Section 209.0057(c) may not disclose
  to any other person how an individual voted.
         (c)  Notwithstanding any other provision of this chapter or
  any other law, only a person [other than a person] who tabulates
  votes under Subsection (b) or who performs a recount under Section
  209.0057(c) [, including a person described by Subsection (a),] may
  be given access to the ballots cast in the election or vote [only as
  part of a recount process authorized by law].
         (d)  This section may not be construed to affect a person's
  obligation to comply with a court order for the release of ballots
  or other voting records.
         SECTION 17.  Section 209.006, Property Code, is amended to
  read as follows:
         Sec. 209.006.  NOTICE REQUIRED BEFORE ENFORCEMENT ACTION.
  (a)  Before a property owners' association may suspend an owner's
  right to use a common area, file a suit against an owner other than a
  suit to collect a regular or special assessment or foreclose under
  an association's lien, charge an owner for property damage, or levy
  a fine for a violation of the restrictions or bylaws or rules of the
  association, the association or its agent must give written notice
  to the owner by certified mail[, return receipt requested].
         (b)  The notice must:
               (1)  describe the violation or property damage that is
  the basis for the suspension action, charge, or fine and state any
  amount due the association from the owner; [and]
               (2)  except as provided by Subsection (d), inform the
  owner that the owner:
                     (A)  is entitled to a reasonable period to cure
  the violation and avoid the fine or suspension if the violation is
  of a curable nature and does not pose a threat to public health or
  safety [unless the owner was given notice and a reasonable
  opportunity to cure a similar violation within the preceding six
  months];
                     (B)  may request a hearing under Section 209.007
  on or before the 30th day after the date [the owner receives] the
  notice was mailed to the owner; and
                     (C)  may have special rights or relief related to
  the enforcement action under federal law, including the
  Servicemembers Civil Relief Act (50 U.S.C. App. [app.] Section 501
  et seq.), if the owner is serving on active military duty;
               (3)  specify the date by which the owner must cure the
  violation if the violation is of a curable nature and does not pose
  a threat to public health or safety; and
               (4)  be sent by verified mail to the owner at the
  owner's last known address as shown on the association records.
         (c)  The date specified in the notice under Subsection (b)(3)
  must provide a reasonable period to cure the violation if the
  violation is of a curable nature and does not pose a threat to
  public health or safety.
         (d)  Subsections (a) and (b) do not apply to a violation for
  which the owner has been previously given notice under this section
  and the opportunity to exercise any rights available under this
  section in the preceding six months.
         (e)  If the owner cures the violation before the expiration
  of the period for cure described by Subsection (c), a fine may not
  be assessed for the violation.
         (f)  For purposes of this section, a violation is considered
  a threat to public health or safety if the violation could
  materially affect the physical health or safety of an ordinary
  resident.
         (g)  For purposes of this section, a violation is considered
  uncurable if the violation has occurred but is not a continuous
  action or a condition capable of being remedied by affirmative
  action. For purposes of this subsection, the nonrepetition of a
  one-time violation or other violation that is not ongoing is not
  considered an adequate remedy.
         (h)  The following are examples of acts considered uncurable
  for purposes of this section:
               (1)  shooting fireworks;
               (2)  an act constituting a threat to health or safety;
               (3)  a noise violation that is not ongoing;
               (4)  property damage, including the removal or
  alteration of landscape; and
               (5)  holding a garage sale or other event prohibited by
  a dedicatory instrument.
         (i)  The following are examples of acts considered curable
  for purposes of this section:
               (1)  a parking violation;
               (2)  a maintenance violation;
               (3)  the failure to construct improvements or
  modifications in accordance with approved plans and
  specifications; and
               (4)  an ongoing noise violation such as a barking dog.
         SECTION 18.  Section 209.0062(c), Property Code, is amended
  to read as follows:
         (c)  A property owners' association is [may] not required to
  allow a payment plan for any amount that extends more than 18 months
  from the date of the owner's request for a payment plan.  The
  association is not required to enter into a payment plan with an
  owner who failed to honor the terms of a previous payment plan
  during the two years following the owner's default under the
  previous payment plan. The association is not required to make a
  payment plan available to an owner after the period for cure
  described by Section 209.0064(b)(3) expires. The association is
  not required to allow an owner to enter into a payment plan more
  than once in any 12-month period.
         SECTION 19.  Section 209.0064(b), Property Code, is amended
  to read as follows:
         (b)  A property owners' association may not hold an owner
  liable for fees of a collection agent retained by the [property
  owners'] association unless the association first provides written
  notice to the owner by certified mail[, return receipt requested,]
  that:
               (1)  specifies each delinquent amount and the total
  amount of the payment required to make the account current;
               (2)  if the association is subject to Section 209.0062
  or the association's dedicatory instruments contain a requirement
  to offer a payment plan, describes the options the owner has to
  avoid having the account turned over to a collection agent,
  including information regarding availability of a payment plan
  through the association; and
               (3)  provides a period of at least 30 days for the owner
  to cure the delinquency before further collection action is taken.
         SECTION 20.  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 if the debt securing
  the lien consists solely of:
               (1)  fines assessed by the association;
               (2)  attorney's fees incurred by the association solely
  associated with fines assessed by the association; or
               (3)  amounts added to the owner's account as an
  assessment under Section 209.005(i) or 209.0057(b-4).
         SECTION 21.  Section 209.0091, Property Code, is amended to
  read as follows:
         Sec. 209.0091.  PREREQUISITES TO FORECLOSURE:  NOTICE AND
  OPPORTUNITY TO CURE FOR CERTAIN OTHER LIENHOLDERS. (a)  A property
  owners' association may not file an application for an expedited
  court order authorizing foreclosure of the association's
  assessment lien as described by Section 209.0092(a) or a petition
  for judicial foreclosure of the association's assessment lien as
  described by Section 209.0092(d) [foreclose a property owners'
  association assessment lien on real property by giving notice of
  sale under Section 51.002 or commencing a judicial foreclosure
  action] unless the association has:
               (1)  provided written notice of the total amount of the
  delinquency giving rise to the foreclosure to any other holder of a
  lien of record on the property whose lien is inferior or subordinate
  to the association's lien and is evidenced by a deed of trust; and
               (2)  provided the recipient of the notice an
  opportunity to cure the delinquency before the 61st day after the
  date the association mails [recipient receives] the notice
  described in Subdivision (1).
         (b)  Notice under this section must be sent by certified
  mail[, return receipt requested,] to the address for the lienholder
  shown in the deed records relating to the property that is subject
  to the property owners' association assessment lien.
         (c)  Notwithstanding any other law, notice under this
  section may be provided to any holder of a lien of record on the
  property.
         SECTION 22.  Section 209.0092, Property Code, is amended by
  amending Subsection (a) and adding Subsections (d) and (e) to read
  as follows:
         (a)  Except as provided by Subsection (c) or (d) and subject
  to Section 209.009, a property owners' association may not
  foreclose a property owners' association assessment lien unless the
  association first obtains a court order in an application for
  expedited foreclosure under the rules adopted by the supreme court
  under Subsection (b).  A property owners' association may use the
  procedure described by this subsection to foreclose any lien
  described by the association's dedicatory instruments.  A property
  owners' association whose dedicatory instruments grant a right of
  foreclosure is considered to have any power of sale required by law
  as a condition of using the procedure described by this subsection.
         (d)  A property owners' association authorized to use the
  procedure described by Subsection (a) may in its discretion elect
  not to use that procedure and instead foreclose the association's
  assessment lien under court judgment foreclosing the lien and
  ordering the sale, pursuant to Rules 309 and 646a, Texas Rules of
  Civil Procedure.
         (e)  This section does not affect any right an association
  that is not authorized to use the procedure described by Subsection
  (a) may have to judicially foreclose the association's assessment
  lien as described by Subsection (d).
         SECTION 23.  Title 11, Property Code, is amended by adding
  Chapter 213 to read as follows:
  CHAPTER 213. MODIFICATION OR TERMINATION OF RESTRICTIONS IN
  CERTAIN REAL ESTATE DEVELOPMENTS BY PROPERTY OWNERS' ASSOCIATION OR
  PROPERTY OWNER PETITION
         Sec. 213.001.  DEFINITIONS. In this chapter:
               (1)  "Amenity property" means real property the use of
  which is restricted by a dedicatory instrument to use as a golf
  course or country club.
               (2)  "Council of owners" has the meaning assigned by
  Section 81.002 as it relates to an existing condominium in a
  development.
               (3)  "Dedicatory instrument" means a governing
  instrument that:
                     (A)  restricts amenity property to use as amenity
  property;
                     (B)  designates real property in the development,
  other than amenity property, as a beneficiary of a restriction
  described by Paragraph (A); and
                     (C)  addresses the establishment, maintenance,
  and operation of amenity property.
               (4)  "Development" means:
                     (A)  amenity property; and
                     (B)  all real property designated as beneficiary
  property in the dedicatory instrument.
               (5)  "Owner" means a person, or the person's personal
  representative, who holds record title to:
                     (A)  a lot or parcel of real property in a
  development; or
                     (B)  a unit or apartment of a condominium in the
  development.
               (6)  "Petition circulator" means a person authorized to
  circulate a petition under Section 213.005.
               (7)  "Property owners' association" means an
  incorporated or unincorporated association that:
                     (A)  is designated as the representative of the
  owners of lots or parcels of real property in a development;
                     (B)  has a membership primarily consisting of
  those owners; and
                     (C)  manages or regulates all or part of the
  development for the benefit of those owners.
               (8)  "Restrictions" means one or more restrictive
  covenants contained or incorporated by reference in a properly
  recorded map, plat, replat, declaration, or other instrument filed
  in the real property records or map or plat records. The term
  includes any amendment or extension of the restrictions.
               (9)  "Restrictive covenant" means any covenant,
  condition, or restriction contained in a dedicatory instrument,
  whether mandatory, prohibitive, permissive, or administrative.
               (10)  "Unit owners' association" means an association
  of unit owners organized under Section 82.101 for a condominium in a
  development.
         Sec. 213.002.  FINDINGS AND PURPOSE. (a)  The legislature
  finds that:
               (1)  a restriction on the use of an amenity property may
  create uncertainty if the owners of an amenity property are
  reluctant or unable to properly maintain or operate the amenity
  property;
               (2)  such uncertainty may discourage investment and
  negatively impact property values in the development;
               (3)  investors may be reluctant to or will not invest
  funds to revitalize an amenity property burdened with a restriction
  on its use;
               (4)  financial institutions may be reluctant to or will
  not provide financing to revitalize an amenity property burdened
  with a restriction on its use; and
               (5)  establishing a procedural option to allow for the
  modification or termination of the restriction would alleviate the
  uncertainty and encourage revitalization of the amenity property.
         (b)  The purpose of this chapter is to provide a procedural
  option for the modification or termination of a restriction on the
  use of an amenity property.
         Sec. 213.003.  MODIFICATION OR TERMINATION BY PETITION.
  (a)  Except as provided by Subsection (b), a restriction on the use
  of an amenity property may be modified or terminated by petition in
  accordance with this chapter.
         (b)  This chapter does not apply if:
               (1)  a dedicatory instrument includes a procedure to
  modify or terminate a restriction on the use of an amenity property
  on approval of the owners of less than 75 percent of, as applicable,
  the lots or parcels of land and units or apartments of condominiums
  in the development; or
               (2)  a restriction on the use of an amenity property may
  be modified or terminated under the procedures of Chapter 81, 82,
  201, or 209.
         Sec. 213.004.  PREREQUISITES FOR CIRCULATION. A petition
  may not be circulated under this chapter unless:
               (1)  for a continuous period of at least 36 months, the
  amenity property has not been in operation; and
               (2)  if zoning regulations apply to the amenity
  property, the owner of the amenity property has received all
  required zoning approvals for any proposed redevelopment of the
  amenity property.
         Sec. 213.005.  PETITION CIRCULATOR.  A petition authorized
  by Section 213.003 may be circulated by:
               (1)  an owner;
               (2)  a property owners' association that owns and
  manages the amenity property; or
               (3)  a unit owners' association or council of owners
  that owns and manages the amenity property.
         Sec. 213.006.  CONTENTS OF PETITION. (a)  The petition must
  include all relevant information about the proposed modification or
  termination, including:
               (1)  the name of the development, if any;
               (2)  the name of the amenity property, if any;
               (3)  the recording information of the restriction to be
  modified or terminated;
               (4)  the text of the restriction subject to
  modification or termination;
               (5)  the text of the restriction as modified or
  terminated; and
               (6)  a comparison of the original language of the
  restriction and the restriction as modified or terminated, showing
  any insertion and deletion of language or punctuation.
         (b)  The petition must state:
               (1)  reasonable times and dates the petition circulator
  will be available at a location in the development to receive a
  signed statement required by Section 213.008;
               (2)  a mailing address, e-mail address, and facsimile
  number to which a signed statement may be delivered; and
               (3)  the date by which a signed statement must be
  received to be counted.
         Sec. 213.007.  CIRCULATION PROCEDURE. (a)  A petition
  circulator shall deliver a copy of the petition to:
               (1)  all owners of:
                     (A)  each lot or parcel of real property in the
  development; and
                     (B)  each unit or apartment of each condominium,
  if any, in the development; and
               (2)  each property owners' association, unit owners' 
  association, and council of owners in the development.
         (b)  The petition circulator may deliver a copy of the
  petition in any reasonable manner, including:
               (1)  by regular mail or certified mail, return receipt
  requested, to the last known address of the owners or entities
  described by Subsections (a)(1) and (2);
               (2)  personal delivery to the owners or entities
  described by Subsections (a)(1) and (2); or
               (3)  at a regular meeting of a property owners'
  association, unit owners' association, or council of owners.
         (c)  If the petition circulator acts in good faith in
  determining ownership and delivering copies of the petition as
  required by this section, an owner's lack of receipt of a copy of
  the petition does not affect the application of a modification or
  termination of a restriction under this chapter to the amenity
  property.
         Sec. 213.008.  VOTE ON PROPOSAL.  (a)  The modification or
  termination of the restriction is adopted if the owners of at least
  75 percent of the total number, as applicable, of the lots or
  parcels of land and the units or apartments of condominiums in the
  development, including the owner of the amenity property, vote in
  favor of the modification or termination of the restriction.
         (b)  An owner may cast a vote only by delivering to the
  petition circulator in accordance with Section 213.009 a signed
  statement that includes:
               (1)  the owner's name, the legal description or street
  address of the owner's property, and the owner's mailing address;
               (2)  a statement that the owner holds record title to
  the property;
               (3)  if more than one person owns an interest in the
  property, the name and mailing address of each co-owner; and
               (4)  a statement indicating whether the owner is in
  favor of or against the modification or termination proposed by the
  petition.
         (c)  An owner may vote only in favor of or against the
  modification or termination as proposed in the petition.
         (d)  If more than one person owns an interest in a lot or
  parcel of land or a unit or apartment of a condominium, the owners
  may cast only one vote for that lot, parcel, unit, or apartment.  
  Except as otherwise provided by this subsection, the vote of
  multiple owners in favor of or against the modification or
  termination may be reflected by the signatures of a majority of the
  co-owners who return a signed statement.  The vote of owners who are
  married may be reflected by the signature of only one of those
  owners.
         (e)  A person whose only property interest in a lot or parcel
  of land or unit or apartment of a condominium is that of a contract
  purchaser, lienholder, or mineral interest holder may not cast a
  vote for that property under this chapter.
         (f)  A vote may be counted only if the vote is received before
  the deadline stated in the petition as required by Section
  213.006(b).
         (g)  The signed statement of an owner conclusively
  establishes that:
               (1)  the petition was received by the owner in
  accordance with Section 213.007; and
               (2)  the statement accurately reflects the vote of the
  owner.
         Sec. 213.009.  DELIVERY OF SIGNED STATEMENT. (a)  The
  petition circulator must accept a signed statement described by
  Section 213.008 that is delivered:
               (1)  in person under Section 213.006(b) or otherwise;
               (2)  by first class mail to an address stated in the
  petition; 
               (3)  by e-mail to an address stated in the petition; or
               (4)  by facsimile to a facsimile number stated in the
  petition.
         (b)  This section supersedes any contrary provision in a
  dedicatory instrument.
         Sec. 213.010.  CERTIFICATION OF RESULTS BY RECORDED
  AFFIDAVIT. (a)  The petition circulator shall certify the result
  of the votes by filing an affidavit with the county clerk of the
  county in which the restriction modified or terminated is recorded.
         (b)  The affidavit required by Subsection (a) must state:
               (1)  the name of the development, if any;
               (2)  the name of the amenity property, if any;
               (3)  the recording information of the restriction that
  was modified or terminated;
               (4)  the text of the restriction before modification or
  termination;
               (5)  the text of the restriction as modified or
  terminated;
               (6)  the number of votes in favor of and against the
  proposed modification or termination;
               (7)  the name and address of the petition circulator;
  and
               (8)  the name, address, and telephone number of the
  person maintaining the documents in accordance with Section
  213.013.
         (c)  The petition circulator must affirm in the affidavit
  that the petition was delivered in accordance with Section 213.007.
         Sec. 213.011.  NOTICE. (a)  The recording of the affidavit
  required by Section 213.010 constitutes notice that the restriction
  is modified or terminated.
         (b)  Notwithstanding Subsection (a), the petition circulator
  must deliver to each person who resides within 200 feet of the
  boundary of the amenity property a copy of the affidavit.  The
  affidavit may be delivered by regular mail, by certified mail,
  return receipt requested, or by personal delivery.
         Sec. 213.012.  EFFECTIVE DATE OF MODIFICATION OR
  TERMINATION. The modification or termination of the restriction
  takes effect on the later of:
               (1)  the date the affidavit required by Section 213.010
  is filed with the county clerk; or
               (2)  the date, if any, specified as the effective date
  in the petition.
         Sec. 213.013.  DOCUMENTATION AVAILABLE. At least one year
  after the date the affidavit is filed with the county clerk, the
  petition circulator shall make available for inspection and copying
  the original petition, the signed statements described by Section
  213.008, and the affidavit required by Section 213.010.
         Sec. 213.014.  EXPIRATION. This chapter expires September
  1, 2021.
         SECTION 24.  Section 209.0041(a), Property Code, is
  repealed.
         SECTION 25.  (a)  Section 82.157(a), Property Code, as
  amended by this Act, applies only to a resale certificate issued on
  or after the effective date of this Act. A resale certificate
  issued 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)  The changes in law made by this Act to Chapter 207,
  Property Code, apply only to a request for subdivision information
  made on or after the effective date of this Act and any resale
  certificate delivered in response to that request. A request for
  subdivision information made before the effective date of this Act,
  any resale certificate delivered in response to that request, and
  any request for an update of that resale certificate are governed by
  the law as it existed immediately before that date, and that law is
  continued in effect for that purpose.
         (c)  Sections 209.0041, 209.0056, 209.0057, 209.0058,
  209.00592, 209.00593, and 209.00594(c), Property Code, as amended
  by this Act, apply only to an election or vote held on or after the
  effective date of this Act. An election or vote held before the
  effective date of this Act is governed by the law as it existed
  immediately before that date, and that law is continued in effect
  for that purpose.
         (d)  Section 209.006, Property Code, as amended by this Act,
  applies only to an enforcement action taken on or after the
  effective date of this Act. An enforcement action taken before the
  effective date of this Act is governed by the law as it existed
  immediately before that date, and that law is continued in effect
  for that purpose.
         (e)  Section 209.0064, Property Code, as amended by this Act,
  applies only to a collection action taken on or after the effective
  date of this Act. A collection action taken before the effective
  date of this Act is governed by the law as it existed immediately
  before that date, and that law is continued in effect for that
  purpose.
         (f)  Section 209.0091, Property Code, as amended by this Act,
  applies only to an application or petition filed on or after the
  effective date of this Act. An application or petition filed before
  the effective date of this Act is governed by the law as it existed
  immediately before that date, and that law is continued in effect
  for that purpose.
         SECTION 26.  Chapter 213, Property Code, as added by this
  Act, does not apply to a petition circulated before the effective
  date of this Act.
         SECTION 27.  This Act takes effect September 1, 2015.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1168 passed the Senate on
  May 6, 2015, by the following vote: Yeas 27, Nays 4; and that the
  Senate concurred in House amendments on May 28, 2015, by the
  following vote: Yeas 26, Nays 5.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1168 passed the House, with
  amendments, on May 24, 2015, by the following vote: Yeas 142,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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