Alders’s bill limiting homeowners’ association fines and liens

The text as introduced · 780 words

89R14393 JBD-D

By: Alders
H.B. No. 5225

A BILL TO BE ENTITLED

AN ACT

relating to the powers and duties of certain property owners'

associations.

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

SECTION 1. Section 209.0061(b), Property Code, is amended

to read as follows:

(b) A property owners' association board shall adopt an

enforcement policy regarding the levying of fines by the property

owners' association. The policy must include:

(1) general categories of restrictive covenants for

which the association may assess fines;

(2) a schedule of fines for each category of

violation; [ and ]

(3) information regarding hearings described by

Section 209.007 ; and

(4) a restriction on the association's authority to

impose fines in unreasonable amounts .

SECTION 2. Chapter 209, Property Code, is amended by adding

Section 209.0066 to read as follows:

Sec. 209.0066. ASSESSMENTS GENERALLY. (a) Except as

otherwise provided by this section, a property owners' association,

from one year to the next, may not increase by an unreasonable

amount an assessment a property owner is required to pay.

(b) A property owners' association may require a property

owner to pay an assessment that would otherwise violate Subsection

(a) if a majority of voters entitled to vote on the matter approve

the assessment in a vote held as provided for by this chapter or the

association's dedicatory instruments.

(c) A property owners' association board shall adopt a

policy regarding the levying of assessments related to the

maintenance or improvement of a common area and fees for the use of

subdivision amenities. The policy must include:

(1) general categories of restrictive covenants for

which the association may levy assessments; and

(2) a schedule of:

(A) assessments for each category of maintenance

or improvement and for each common area; and

(B) fees for the use of subdivision amenities.

(d) A property owners' association board may not levy an

assessment for the maintenance or improvement of a common area

unless a majority of voters entitled to vote on the matter approve

the board's policy described by Subsection (c) in a vote held as

provided for by this chapter or the association's dedicatory

instruments.

SECTION 3. Section 209.0094, Property Code, is amended by

adding Subsection (h) to read as follows:

(h) A property owners' association may not file an

assessment lien if the debt securing the lien consists solely of a

minor fine.

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

Sections 209.0151 and 209.0152 to read as follows:

Sec. 209.0151. REGULATION OF AESTHETIC IMPROVEMENTS. A

property owners' association or, if applicable, an architectural

review authority, as defined by Section 209.00505(a), may not adopt

or enforce a provision in a dedicatory instrument that prohibits or

restricts the owner of a lot on which a residence is located from

making a minor aesthetic improvement to the residence or the lot,

including painting the residence a color of the owner's choice,

constructing fencing around the residence, or improving the

landscaping on the property, provided the improvements would not

otherwise violate an applicable building code.

Sec. 209.0152. REGULATION OF USE OF COMMON AREAS. A

property owners' association may not adopt or enforce a provision

in a dedicatory instrument that unreasonably prohibits or restricts

an owner's use of a common area unless a majority of voters entitled

to vote on the matter approve the prohibition or restriction in a

vote held as provided for by this chapter or the association's

dedicatory instruments.

SECTION 5. Section 209.016, Property Code, is amended by

amending Subsection (b) and adding Subsection (b-1) to read as

follows:

(b) A property owners' association may not adopt or enforce

a provision in a dedicatory instrument that:

(1) requires a lease or rental applicant or a tenant to

be submitted to and approved for tenancy by the property owners'

association; [ or ]

(2) requires the following information to be submitted

to a property owners' association regarding a lease or rental

applicant or current tenant:

(A) a consumer or credit report; or

(B) a lease or rental application submitted by

the applicant, tenant, or that person's agent to the property owner

or property owner's agent when applying for tenancy ; or

(3) requires an owner to obtain approval from a

property owners' association before renting the owner's residence

as a short-term rental .

(b-1) In this section, "short-term rental" means a

residence that is rented wholly or partly for a fee and for a period

of less than 30 consecutive days.

SECTION 6. Section 209.0094(h), Property Code, as added by

this Act, applies only to a lien filed on or after the effective

date of this Act.

SECTION 7. This Act takes effect September 1, 2025.