bill lets HOA owners amend rules by majority vote

The text as introduced · 449 words

89R4969 JBD-D

By: Bucy
H.B. No. 2398

A BILL TO BE ENTITLED

AN ACT

relating to the governance of property owners' associations.

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

SECTION 1. Section 209.0041, Property Code, is amended by

adding Subsections (j), (k), and (l) to read as follows:

(j) Except as provided by Subsection (k), a dedicatory

instrument other than a declaration may be amended by a vote of

owners owning a majority of the lots subject to the dedicatory

instrument, in addition to any governmental approval required by

law.

(k) If the dedicatory instrument contains a higher

percentage than prescribed by Subsection (j), the percentage in the

dedicatory instrument controls.

(l) If a dedicatory instrument contains quorum

requirements, those requirements apply to a vote under Subsection

(j).

SECTION 2. Section 209.00592, Property Code, is amended by

adding Subsection (h) to read as follows:

(h) A county attorney may bring an action for injunctive

relief to restrain or remedy a violation of this section.

SECTION 3. Section 209.00593, Property Code, is amended by

adding Subsection (c-1) to read as follows:

(c-1) A county attorney may bring an action for injunctive

relief to restrain or remedy a violation of this section.

SECTION 4. Chapter 209, Property Code, is amended by adding

Section 209.018 to read as follows:

Sec. 209.018. BOARD ACTION; BOARD MEMBERS AND OFFICERS AS

FIDUCIARIES. Except as provided by a declaration, bylaws, or this

chapter, the board shall act in all instances on behalf of the

property owners' association if in the good-faith judgment of the

board the action is reasonable. Each officer or member of the board

is liable as a fiduciary of the owners for the officer's or member's

acts or omissions. All acts of the property owners' association

must be by and through the board unless otherwise provided by the

declaration or bylaws or by law.

SECTION 5. (a) Section 209.0041, Property Code, as amended

by this Act, applies only to a vote held on or after the effective

date of this Act. A 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.

(b) Section 209.018, Property Code, as added by this Act,

applies only to an act or omission that occurs on or after the

effective date of this Act. An act or omission that occurs before

the effective date of this Act is governed by the law in effect on

the date the act or omission occurred, and the former law is

continued in effect for that purpose.

SECTION 6. This Act takes effect September 1, 2025.