bill on when developers give up HOA boards

The text as introduced · 371 words

89R4623 SCR-D

By: Harris Davila
H.B. No. 2630

A BILL TO BE ENTITLED

AN ACT

relating to declarant control of certain property owners'

associations.

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

SECTION 1. Section 209.00591(c), Property Code, is amended

to read as follows:

(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 : [ , ]

(1) on or before the 120th day after the date 50

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 board member must be elected by

owners other than the declarant;

(2) 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 as described by Subdivision (1) [ 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 ; and

(3) if [ . 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 fifth

[ 10th ] anniversary of the date the declaration was recorded.

SECTION 2. Section 209.00591, Property Code, as amended by

this Act, applies to a declaration regardless of whether the

declaration was created or amended before, on, or after the

effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.