bill sets new rules for HOAs and condo associations

The text as introduced · 1,508 words

89R726 DRS-F

By: Turner
H.B. No. 1349

A BILL TO BE ENTITLED

AN ACT

relating to property owners' associations, including condominium

unit owners' associations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 82.003(a), Property Code, is amended by

adding Subdivision (17-a) to read as follows:

(17-a) "Management company" means a person or entity

established or contracted to provide management or administrative

services on behalf of a unit owners' association organized under

Section 82.101.

SECTION 2. Subchapter C, Chapter 82, Property Code, is

amended by adding Section 82.1142 to read as follows:

Sec. 82.1142. ONLINE ASSOCIATION INFORMATION REQUIRED. (a)

This section only applies to:

(1) the association of a condominium composed of at

least 60 units; or

(2) an association that has contracted with a

management company.

(b) An association to which this section applies shall make

the current version of the association's dedicatory instruments

relating to the association and filed in the county deed records

available on an Internet website that is:

(1) maintained by the association or a management

company on behalf of the association; and

(2) accessible to association members.

SECTION 3. Section 82.116, Property Code, is amended by

amending Subsections (a), (b), and (c) and adding Subsections (b-1)

and (d) to read as follows:

(a) An association shall record in each county in which any

portion of the condominium is located a management certificate,

signed and acknowledged by an officer of the association, stating:

(1) the name of the condominium;

(2) the name of the association;

(3) the location of the condominium;

(4) the recording data for the declaration and any

amendments to the declaration ;

(5) the mailing address of the association ;

(6) [ , or ] the name , [ and ] mailing address , telephone

number, and e-mail address of any management company [ the person or

entity managing the association ];

(7) the website address of any Internet website on

which the association's dedicatory instruments are available in

accordance with Section 82.1142;

(8) the amount and description of a fee or fees charged

to a unit seller or buyer relating to a transfer of a property

interest in a unit of the condominium; and

(9) [ (6) ] other information the association considers

appropriate.

(b) The association shall record an amended [ a ] management

certificate not later than the 30th day after the date the

association has notice of a change in any information in a recorded

certificate required by Subsection (a) [ Subdivisions (a)(1)-(5) ].

(b-1) Not later than the seventh day after the date an

association files a management certificate for recording under

Subsection (a) or files an amended management certificate for

recording under Subsection (b), the association shall

electronically file the management certificate or amended

management certificate with the Texas Real Estate Commission. The

Texas Real Estate Commission shall only collect the management

certificate and amended management certificate for the purpose of

making the data accessible to the public through an Internet

website.

(c) Except as provided by Subsection (d), the [ The ]

association and its officers, directors, employees, and agents are

not subject to liability to any person for delay or failure to

record a management certificate with a county clerk's office or to

electronically file the management certificate with the Texas Real

Estate Commission , unless the delay or failure is wilful or caused

by gross negligence.

(d) A unit owner is not liable for attorney's fees incurred

by an association relating to the collection of a delinquent

assessment against the unit owner, or interest on the delinquent

assessment, if the attorney's fees are incurred by the association

or the interest accrues during the period a management certificate

is not recorded with a county clerk or electronically filed with the

Texas Real Estate Commission, as required by this section.

SECTION 4. Section 82.157, Property Code, is amended by

adding Subsection (f) to read as follows:

(f) An association may charge a reasonable and necessary

fee, not to exceed $375, to furnish a resale certificate under

Subsection (a).

SECTION 5. Section 202.023, Property Code, is amended by

amending Subsection (c) and adding Subsections (d) and (e) to read

as follows:

(c) This section does not prohibit a property owners'

association from:

(1) prohibiting the installation of a security camera

by a property owner in a place other than the property owner's

private property; [ or ]

(2) regulating the type of fencing that a property

owner may install ;

(3) prohibiting the placement of fencing that

obstructs:

(A) a license area, as defined by a written

license agreement or plat;

(B) a sidewalk in the public right-of-way or

otherwise installed for public or community use; or

(C) a drainage easement or drainage area;

(4) requiring a driveway gate to be set back at least

10 feet from the right-of-way if the driveway intersects with a

laned roadway, as defined by Section 541.302, Transportation Code;

or

(5) if provided by a restrictive covenant, prohibiting

the installation of fencing in front of the front-most building

line of a dwelling .

(d) Notwithstanding Subsection (c), a property owner may

maintain any perimeter fencing or fencing in front of a dwelling's

front-most building line installed or constructed before September

1, 2025.

(e) Notwithstanding Subsection (c)(5), a property owners'

association may not prohibit a property owner from installing

perimeter fencing or fencing in front of the front-most building

line of a dwelling if:

(1) the property owner's residential address is exempt

from public disclosure under state or federal law; or

(2) the property owner provides to the association

documentation from a law enforcement agency of the property owner's

need for enhanced security measures.

SECTION 6. Section 209.00505(c), Property Code, is

redesignated as Section 209.00506, Property Code, and amended to

read as follows:

Sec. 209.00506. ELIGIBILITY TO SERVE ON ARCHITECTURAL

REVIEW AUTHORITY. (a) This section applies only to an

architectural review authority to which Section 209.00505 applies.

(b) Except as provided by Subsection (d), a person may not

be appointed or elected to serve on an architectural review

authority unless the person timely notifies the property owners'

association of the person's interest in serving on the authority in

accordance with Section 209.00507.

(c) Except as provided by Subsection (d), a [ A ] person may

not be appointed or elected to serve on an architectural review

authority if the person is:

(1) a current board member;

(2) a current board member's spouse; or

(3) a person residing in a current board member's

household.

(d) If a vacancy remains on the architectural review

authority after each person eligible under Subsection (c) who

timely notifies the property owners' association in accordance with

Section 209.00507 is appointed or elected to the authority, the

association may appoint any person to fill the vacancy, including a

person not otherwise eligible under Subsection (c).

SECTION 7. Chapter 209, Property Code, is amended by adding

Section 209.00507 to read as follows:

Sec. 209.00507. SOLICITATION OF CANDIDATES FOR

ARCHITECTURAL REVIEW AUTHORITY. (a) This section applies only to

an architectural review authority to which Section 209.00505

applies.

(b) Not later than the 10th day before the date a property

owners' association or board takes action to elect or appoint or

meets to elect or appoint a person to serve on the architectural

review authority, the association must provide notice to the

association members soliciting persons interested in serving on the

architectural review authority.

(c) The notice required under Subsection (b) must:

(1) be provided:

(A) by mail to each owner; or

(B) by:

(i) posting the notice in a conspicuous

manner reasonably designed to provide notice to property owners'

association members:

(a) 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

(b) on any Internet website

maintained by the association or other Internet media; and

(ii) sending the notice by e-mail to each

owner who has registered an e-mail address with the property

owners' association; and

(2) contain instructions for a person to notify the

property owners' association of the person's interest in serving on

the architectural review authority, including the date by which the

person's notification must be received by the association.

(d) The date established by a property owners' association

under Subsection (c)(2) by which notification of a person's

interest in serving on the architectural review authority must be

received by the association may not be a date earlier than the 10th

day after the date the association provides the notice described by

Subsection (c).

SECTION 8. A condominium unit owners' association that has

recorded a management certificate or amended management

certificate with a county clerk under Section 82.116, Property

Code, before the effective date of this Act shall electronically

file the most recently recorded management certificate or amended

management certificate with the Texas Real Estate Commission as

required by Section 82.116(b-1), Property Code, as added by this

Act, not later than March 1, 2026.

SECTION 9. This Act takes effect September 1, 2025.