THE NEW HOA HB 1228 OVERSIGHT BILL

By

Harvella Jones

Texas. It took more than a decade to get a bill that would give oversight to HOA’s but at last the homeowners and their advocates who fought so hard over the years for oversight will see it in their communities as a result of Governor Rick Perry signing HB 1228, Rep. Harold Dutton’s bill into law Friday, June 17th. While there was a disappointing blow to Rep. Burt Solomons amended Sen. Royce West’s Bill SB 142 when Rep. Solomons withdrew it on May 24^th, after Rep. Phil King, District 61, amendment to the bill was voted by the House not to be tabled, the passing of HB 1228 is a clean victory for homeowners and their advocates across the state of Texas.

Highlights of Rep. Dutton’s bill contained an amendment from Rep. Jose Menendez (Dist. 124 – Bexar-part) added a release of assessment lien section. Sen. Royce West moved some of what was part of SB 142 that was withdrawn over to HB 1228 and some of what was moved was his Alternative Payment Schedule, Priority of Payments and Third Party Collections. Rep. Harold Dutton’s core bill that started off as two (2) pages ended up as thirteen (13) pages. His bill started off relating to prerequisites to foreclosure: Notice and opportunity to cure for certain other lien holders.

A quick list of what we can expect from HB 1228 is

· Prerequisites to foreclosure

· Judicial foreclosure required

· 67% can remove foreclosures from their community

· A third-party collection section will connect to FDCA

· Priority of payment section

· Cuts out the attorney contingent agreements

· The owner can always communicate with the association regarding the debt even if an attorney has been retained

· An association may not sell or otherwise transfer any interest in the associations accounts receivables for a purpose other than as collateral for a loan

Below is the link to the bill itself to read and become familiar with the new HOA oversight law as well as the confirmation that Governor Rick Perry signed this historic oversight bill Friday, June 17th:

http://www.thenationalhomeownersadvocategroup.com/downloads/HB1228RepHaroldDutton00011.pdf

http://www.capitol.state.tx.us/BillLookup/History.aspx?LegSess=82R&Bill=HB1228

Thank you to all—homeowner advocates, Texas Eagle Forum, homeowners, reporters, legislators with emphasis on Rep. Harold Dutton for introducing a great bill and Sen. Royce West and Rep. Jose Menendez for adding their much needed building blocks to the bill and of course, Governor Rick Perry for signing it.

Harvellajones1234@sbcglobal.net

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