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THE 2011 TEXAS LEGISLATIVE WRAPUP FOR HOMEOWNERS
By
Harvella Jones
Texas. It was quite a legislative session—the 82nd one to be exact. It started in January amid frigid temperatures welcoming in energized House and Senate legislators—some incumbents and a lot of newbie’s—all ready to go to work. After a day of show-and-tell with their family and friends, all buckled down to what proved to be the production of some of the most creative and much needed homeowner bills ever filed by the legislative body.
Our prayers were answered and while many of the bills did not make it through (we hope those authors re-file them next session), with God’s intervention, ten (10) bills made it out albeit slightly wounded and appeared on Governor Perry’s desk for signature. On June 17th, a couple weeks from our national celebration of independence on July 4th, how ironic that these bills represent a form of independence for homeowners.
To recap the bills, because what good will it do to pass the bills and homeowners are not aware what passed, here they are:
HB 1228 – The New HOA Oversight Bill – This bill fixed issues that had been complained about for more than a decade such as attorney contingency agreements, priority of payments, payment plans, etc. and was the one most feared not to pass as it is a clear and clean victory for advocates and homeowners as it eliminates problems predating military foreclosures, flags, solar panels, etcetera, containing the largest amount of oversight for HOA’s in one bill and was the bill that met the most industry opposition.
SB 101 – Prohibits Nonjudicial foreclosures on Military Families. Signed by Governor Perry on June 17th. A special thank you to May and Mike Clauer who stepped outside their comfort zone to bring this issue to the public arena and then to the legislative body for action to be taken and as a result, a bill is now in place to prevent this type of activity against military families in the future.
SB 472 – Regulates HOA voting practices and elections. Signed by Governor Perry on June 17th.
HB 8 – Relating to prohibiting certain private transfer fees and the preservation of private real property rights; providing penalties. Signed by Governor Perry on June 17th.
HB 362 – Regulation of solar energy and certain roofing materials. Signed by Governor Perry on June 17th.
HB 1278 – Relating to regulation by a HOA of certain religious displays. Signed by Governor Perry on June 17th.
HB 1821 – Pertaining to notice to mandatory HOA membership, lien enforcement and foreclosure for non-payment of assessment fees and resale certificates and other document filing. Signed by Governor Perry on June 17th. There is concern with this bill that HOA’s will not give notice to buyers prior to their signature on the dotted line that they are in a mandatory HOA and if they do not pay their assessment fees, a lien will be processed for foreclosure of their purchase.
HB 2761 – Relating to meetings, elections and records of certain HOA’s. Signed by Governor Perry on June 17th. Advocates and homeowners, while for the most part liked this bill, there were some concerns regarding potential abuse surrounding the costs of the books and records and unpaid costs being added as “assessments” as well as no retention for proxies and ballots. Advocate and homeowner testimony were beneficial as the final bill inserted a sentence to exclude the books and records charges turning into a foreclosure issue (Lines 5-13 p. 20) and as far as the retention of proxies and ballots, homeowners need to ensure that all elections are accurately recorded in the minutes which do have a retention period in the bill of seven years (Lines 3-4, p. 7).
It is recommended that homeowners become aware of the Records Production and Copying Policy that prescribes the costs the HOA will charge for compilation, production and reproduction of information requested so there are no surprises upon completion of the production request. (Lines 22-27, p. 4 and Lines 1-3, p. 5)
Homeowners can now go to JP Court and get books and records released plus attorney fees and court costs if they have to do so. (Lines 18-20, p. 7). If the HOA prevails, the same results apply. (Lines 25-27, p. 7; line 1, p. 8). If the homeowner wins, the amount can be deducted from future assessments due. (Lines 21-24, p., 7)
This bill contains the right to vote, the right to run for office, Election of Board Members. “Not withstanding any provision in a dedicatory instrument, any board member whose term has expired must be elected by owners who are members of the property owners’ association. A board member may be appointed by the board only to fill a vacancy caused by a resignation, death, or disability. A board member appointed to fill a vacant position shall serve the unexpired term of the predecessor board member.” (Lines 5-12, p. 19)
Foreclosure sale prohibited solely on fines, attorney fees and books and records amounts added to the homeowner’s account. (Lines 5-13, page 20).
Mandatory Election required after failure to call regular meeting. (Line 16 begin, p. 20)
HB 2779 – Regarding the display of flags. Signed by Governor Perry on June 17th.
HB 3391 – Relating to rainwater harvesting and other water conservation initiatives. Signed by Governor Perry on June 17th.
HB 2869 – Relating to the powers and duties of certain master mixed-use property owners’ associations. This is not part of the ten(10) bills that will more than likely help homeowners. This bill is being mentioned because it was signed by Governor Perry also on June 17th and involves “master mixed-use” property owners’ associations in the Las Colinas (Irving, Texas) area. What is of concern in this bill is the use of the word “self-help”? What more can be done to homeowners besides foreclosing on their home? According to the bill, “Self-help means the process by which a property owners’ association takes remedial action with regard to property governed by the association.” (Lines 18-20, p. 1)
On page 10(Lines 22-27) and p. 11 (Lines 1-2), it further states “An association may use self-help to enforce its restrictive covenants against a residential or commercial property owner as necessary to prevent immediate harm to a person or property, or as otherwise reasonable. If a property owner commits a subsequent repeat violation of the restrictive covenants within 12 months of the initial violation, the association is not required to provide the property owner with advance notice before the association implements self-help.” What does this mean? Is this an early introduction to a police state? This area needs to be monitored to find out what “self-help” means and to squash it like a bug if it turns out to be something restricting the use of the land as the ushering in of “fines” turned out to be. Homeowner Associations absolutely do not need any more tools in their toolbox.
The session is for all practical purposes closed except for a few loose ends amid record breaking high temperatures and a drought. There were some highs and some lows but a lot was achieved for homeowners.
Texas homeowners are extremely fortunate as you have a team of homeowner advocates that are dedicated to property and Constitutional rights and as a result of all of our hard work collectively, we were able (with God’s Divine Intervention) to bring about much needed changes to our communities. If you were not able to help in some way by testifying, faxing, visiting or emailing your legislator support for any of these bills or even those that did not pass, please feel free to contact the following advocate groups and thank them with a note of appreciation or even a donation of any size would be appreciated to help further the work these advocates do to make your community one you will always enjoy living in. The Texas Housing Justice League does not accept donations but welcome you to join at no cost. Homeowner’s United!
Texas Homeowners for HOA Reform, Inc.
HomeOwners For Better Building (H.O.B.B.)
The Texas Homeowner’s Advocate Group and
The National Homeowners Advocate Group, LLC
Texas Housing Justice League (THJL) does not accept donations; however, you may join for free
Harvellajones1234@sbcglobal.net
© 2011. All rights reserved. The National Homeowners Advocate Group, LLC.
