Final Update June 5, 2023
The 88th Texas Legislative Regular Session has come to an end. On May 29, 2023, Governor Abbott released a proclamation calling for a special session of the Texas Senate to reconvene on June 2, 2023, to focus on bills related to property taxes and border security. With the eyes of the nation on the Texas Legislature, the regular session ended, thankfully, with more of a whimper than a bang for property owners associations (POAs). Our 2023 Texas Legislative Session Recap details the final statuses on each POA related bill we have been tracking this session. For the bills that passed both legislative chambers, visit our 88th Texas Legislative Session Action Items article to learn more about the actions POAs will need to prepare to take in response to the new laws.
Bills Sent to Governor
SB 1668 – Relating to property owners’ associations, including condominium owners’ associations.
Author: Hughes
Final Status: Sent to the Governor on 5-29-23
SB 1668 would amend Chapter 82 of the Texas Property Code to add language for condominiums mirroring the requirements for a website and management certificates filed with Texas Real Estate Commission that are found in Chapter 209 of the Texas Property Code. Condominium associations will be required to make the association’s dedicatory instruments available to its members on an Internet website.
SB 1668 also amends Sec. 202.023 of the Texas Property Code to clarify requirements on perimeter fencing. It lastly amends Chapter 209 of the Texas Property Code by adding a notice requirement to solicit candidates for the POA’s ACC committee and provides POA boards the ability to fill an ACC committee if there are not enough qualified candidates who have given the board a notice of intent to serve on the ACC.
HB 998 – Relating to the provision of property owners’ association insurance by the FAIR Plan Association in certain areas.
Author: Paul
Final Status: Signed by Governor, effective on 9-1-23
HB 998 will amend the Texas Insurance Code. The bill defines “property owners’ association insurance” as “property and liability insurance covering common areas and facilities of a homeowners’ or common elements of a condominium owners’ association.” HB 998 will allow the Texas Department of Insurance to include in its Fair Access to Insurance Requirements Plan the delivery of POA insurance in underserved areas if its commissioner determines that POA insurance is not reasonably available in the voluntary market to a substantial number of insurable risks.
HB 614 – Relating to property owners’ association fines.
Author: Shaheen
Final Status: Sent to the Governor on 5-26-23
A returning bill from prior legislative sessions. This bill, if signed, would add Sec. 209.0061 to the Texas Property Code, which would require POAs to adopt an enforcement policy with specific provisions including each category of restrictive covenants for which fines may be assessed, a schedule of fines for each category of violation, and information regarding the hearing provided for under Sec. 209.007. POAs would be required to file the policy with the county clerk, post the policy on the POA’s website and annually send a copy of the policy to homeowners within the POA.
HB 886 – Relating to requirements to file a property owners’ association assessment lien.
Author: Shaheen
Final Status: Sent to the Governor on 5-30-23
This bill would change the requirements for POAs filing assessment liens against property owners. If signed, this bill would amend Sec. 209.0094 which would require certain conditions before a lien could be filed. POAs would be required to provide two separate monthly notices of delinquency to the property owner’s last known mailing address, as reflected in the records maintained by the POA: the first notice by first class mail or by email; and the second notice by certified mail, return receipt requested. The POA would not be able to file the assessment lien before the 90th day after the second delinquency notice was sent.
HB 1193 – Relating to prohibiting housing discrimination by a property owners’ association against a residential tenant based on the tenant’s method of payment.
Author: Turner
Final Status: Sent to the Governor on 5-26-23
HB 1193 would add Sec. 202.024 to the Texas Property Code and would prohibit POAs from adopting or enforcing a dedicatory instrument that restricts, or has the effect of restricting, a property owner from renting a dwelling to a person based on the person’s method of payment. The bill defines “method of payment” as a Section 8 housing voucher or any other housing/rental assistance or subsidy.
Bills that Passed One Side of Legislature
HB 3777 – Relating to the confidentiality of ballots and proxies in a property owners’ association election or vote.
Author: Jetton
Final Status: Passed House on 5-6-23, Referred to Senate Local Government Committee on 5-9-23
HB 3777 would add Sec. 82.1142 to Chapter 82 of the Texas Property Code, if passed. This section would mirror Chapter 209 language regarding who can tabulate votes in an association election or vote. Sec. 209.00594 would be amended to include proxy votes amongst other requirements.
HB 1786 – Relating to notice to property owners of the adoption or amendment of certain restrictive covenants.
Author: Burns
Final Status: Passed House on 5-9-23, Referred to Senate Business & Commerce Committee on 5-11-23
HB 1786 would add Sec. 202.0045 to the Texas Property Code, if passed. Sec. 202.0045 would require enhanced notice requirements for amended or newly adopted restrictive covenants. The notice requirements include: (1) publishing once a week, for two consecutive weeks, in a newspaper in the county or counties where the association is located; and (2) sending by certified mail to each owner. The restrictive covenant would be able to be enforced on the 60th day after the association gives notice.
HB 1367 – Relating to the violation of certain laws and provisions of governing instruments by, and the recall by property owners of, a property owners’ association board member.
Author: Vasut
Final Status: Passed House on 5-11-23, Referred to Senate Local Government Committee on 5-12-23
HB 1367 would add Sections 209.00595 and 209.018 to the Texas Property Code, if passed. Sec. 209.00595 would allow for owners with 20 percent of all voting interests in a POA to petition and require a special meeting for the sole purpose of conducting a recall election against one board member. The board must hold the meeting and recall election no later than the 90th day after receiving the petition. If the majority of votes received in the election is for recall, the board member is recalled, and the vacant position is to be filled by the board pursuant to Sec. 209.00593.
Sec. 209.018 would allow an owner to bring action in a Justice of the Peace (JP) court against a POA for a Chapter 209 violation or a provision of the POA’s dedicatory instruments by a board member acting in the board member’s official capacity. If the JP court finds that the board member violated Chapter 209 or a dedicatory instrument, one or more of the following remedies may be granted:
- Immediate removal of the board member from the board;
- Financial penalty to the POA for damages incurred by the owner resulting from the violation; or
- allowing the owner to deduct the amounts awarded from future regular or special assessments
HB 328 and HB 329 – Relating to the regulation by a property owners’ association of the installation of solar roof tiles.
Author: Cortez
Final Status: Passed House on 5-6-23, Referred to Senate Business & Commerce Committee on 5-9-23
Procedural bills to clarify that “solar energy device” has the meaning assigned by Section 171.107 of the Tax Code. This bill would not change existing law.
HB 1191 – Relating to the regulation of raising or keeping six or fewer chickens by a political subdivision or property owners’ association.
Author: Cain
Final Status: Passed House on 5-12-23, Referred to Senate Local Government Committee on 5-16-23
The most controversial bill this session was the infamous chicken bill in its current evolution. HB 92slightly changed through the committee process. HB 92, if it had passed, would add Sec. 202.024 to the Property Code and would prohibit POAs of single-family lots from adopting or enforcing a restrictive covenant that prohibits the growing of fruits and vegetables, the raising of six or fewer domestic fowl, or six or fewer adult rabbits, and the production of food at a home-based cottage good production operation. POAs would be able to pass reasonable restrictions on the growing of fruits and vegetables on a single-family residential lot that do not have the effect of prohibiting the growing of the fruits or vegetables in the rear yard of a residence, including a requirement that the growing area be maintained in good condition if visible from the street faced by the lot or from an adjoining lot. POAs would also be able to adopt reasonable restrictions on the raising of fowl and rabbits to include a set number on the total animals allowed, prohibitions on raising a rooster, minimum distance of the animal shelter from a residence other than the owner’s own residence, shelter requirements, sanitary restrictions and location restrictions to the rear of the residence. HB 92 also included prohibitions against the restrictions of solar energy devices, rainwater harvesting systems, and standby electric generators.
This bill would not have applied to condominiums governed under Chapter 81 or 82 of the Property Code.
HB 276 would have allowed for the same prohibitions on rabbits, fowl and vegetables mentioned above.
SB 326, if it had passed, would add the same Sec. 202.024 but apply only to the raising of chickens. If it had passed, the bill would allow single-family residential owners to raise or keep six or fewer chickens on their lot; however, it would only apply to restrictive covenants that were created on or after September 1, 2023.
HB 1191, it had passed, would add the same Sec. 202.024 but apply only to the raising of chickens and not other activities.
Other Bills Filed This Session
HB 3503 – Relating to property owners’ associations, including condominium owners’ associations.
Author: Turner
Final Status: Committee Report sent to Calendars on 5-2-23
Companion bill to SB 1668 listed above.
HB 3423 – Relating to organization of, meetings of, and voting by condominium unit owners’ associations and property owners’ associations.
Author: Bryant
Final Status: Comm. Report sent to Local & Consent Calendar on 5-5-23
Companion bill to SB 1767 listed below.
SB 1767 – Relating to organization of, meetings of, and voting by condominium unit owners’ associations and property owners’ associations.
Author: Creighton
Final Status: Referred to Business & Commerce Committee on 3-20-23
SB 1767, if passed, would amend both Chapter 82 and Chapter 209 to allow for meetings to be held by any means of communication, including electronic and telephonic, and allow for voting to be conducted by electronic means.
SB 741 – Relating to the provision of property owners’ association insurance by the FAIR Plan Association in certain areas.
Author: Middleton
Final Status: Left pending in committee on 4-18-23
Companion bill to HB 998. See details under HB 998 above.
HB 1799 – Relating to the authority of a property owners’ association to regulate the street parking of certain vehicles.
Author: Landgraf
Final Status: Committee report sent to Calendars on 5-2-23
HB 1799 would add Sec. 202.008 to the Texas Property Code, if passed. Sec. 202.008 would prevent a POA from adopting or enforcing a restriction that prohibits an owner or resident from parking a vehicle on a street adjacent to the owner’s or resident’s dwelling if the vehicle is:
- A government vehicle
- Operated by the owner or resident in the regular course of their employment
- Required by the owner’s or resident’s employer to be parked in the immediate vicinity of the property owner’s or resident’s dwelling when the owner or resident is in that location.
HB 2428 – Relating to requirements for a vote to amend certain dedicatory instruments by a property owners’ association.
Author: Raney
Final Status: Withdrawn from schedule on 4-17-23
HB 2428 would amend Sec. 209.0041(h) of the Texas Property Code, if passed. HB 2428 would remove all exceptions to the 67 percent vote requirement for declaration amendments, including the exception that the lower percentage in the association’s declaration controls.
HB 1307 – Relating to municipal release of extraterritorial jurisdiction and disannexation involving certain areas.
Author: Toth
Final Status: Committee report sent to Calendars on 4-26-23
HB 1307 would add Sec. 42.0252 to the Local Government Code. If passed, this bill would allow the majority of registered voters of a POA that lies in the extraterritorial jurisdiction of a municipality to petition to be released from the jurisdiction of the municipality.
HB 1252 – Relating to the audit of the financial records of certain property owners’ associations.
Author: Shaheen
Final Status: Placed on General State Calendar on 5-11-23
HB 1252, if passed, would add Sec. 209.00501. The bill would require POAs to annually obtain an independent audit of the POA’s financial records and provide a copy of the audit to each member of the POA. The audit shall be performed by a certified public accountant if required by the association’s bylaws, a vote of the board, or a majority vote of the POA members.
HB 4995 – Relating to the authority of a municipality, county, or property owners’ association to prohibit or regulate certain activities on residence homestead property.
Author: Kitzman
Final Status: Referred to State Affairs Committee on 3-23-23
Mirrors chicken bills listed above.
HB 4455 – Relating to the regulation by a property owner’s association of the installation of solar energy devices and certain roofing materials on property.
Author: DeAyala
Final Status: Referred to Business & Industry Committee on 3-21-23
If passed, HB 4455 would amend Sec. 202.010 of the Texas Property Code to change the requirement from 10 percent to 25 percent increase in energy production if the solar energy device is located in an area not designated by the POA.
HB 3775 – Relating to the authority of a property owner’s association to regulate the assembly, association, and speech of property owners or residents related to governmental officials or candidates for political office.
Author: Jetton
Final Status: Referred to Business & Industry Committee on 3-20-23
HB 3775 would add Sec. 202.013 to the Texas Property Code, if passed. In a similar structure to SB 468, the bill would prohibit POAs from restricting a property owner’s or resident’s ability to invite a public official or candidate for public office from speaking with association members, residents, or their invitees in association common areas. The difference in HB 3775 from SB 468 is HB 3775 does allow for restrictions to be placed on the types of common areas used and when the common area can be used.
HB 2450 – Relating to the authority of a property owners’ association to regulate the assembly, association and speech of property owners or residents.
Author: Schofield
Final Status: Referred to Business & Industry Committee on 3-13-23
Companion bill to SB 468. See details under SB 468 below.
SB 468 – Relating to the authority of a property owners’ association to regulate the assembly, association, and speech of property owners or residents.
Author: Kolkhorst
Final Status: Referred to State Affairs Committee on 2-17-23
If passed, SB 468 would add Section 202.013 to the Texas Property Code. This section would prohibit POAs from adopting or enforcing provisions in the dedicatory instruments that restrict a property owner or resident from: (1) peacefully assembling or meeting with POA members, residents, or their invitees or guests in POA common areas; (2) or inviting guest speakers, including public officials and candidates for public office, without prior approval by the POA, to address or meet with POA members, residents or their invitees. The bill would also prohibit POAs from regulating or restricting the content of an owner’s or resident’s speech. The bill would not prohibit POAs from adopting or enforcing a dedicatory instrument, to the extent allowed by the U.S. Constitution, that prohibits speech or conduct that threatens public health or safety, violates a law, or contains language, graphics, or any display that is patently offensive to a passerby.
SB 1363 – Relating to enforcement by a property owners’ association of a restrictive covenant that prevents a property owner from building or installing certain security measures.
Author: Alvarado
Final Status: Referred to Business & Commerce Committee on 3-16-23
SB 1363 would amend Sec. 202.023(c) of the Texas Property Code to allow a POA to adopt or enforce a restriction prohibiting a perimeter fence in front of the front building line if the restriction is approved by 75 percent of property owners.
HB 3776 – Relating to the eligibility and solicitation of persons to serve on the architectural review authority of a property owners’ association.
Author: Jetton
Final Status: Referred to Business & Industry Committee on 3-20-23
HB 3776 would amend the ACC portions of SB 1588 from the 87th Texas Legislative Session, if passed. If HB 3776 is passed, Sec. 209.00505(c) would be redesignated as 209.00506 and require a person wishing to serve on the ACC to timely notify the association of their interest. If a vacancy remains after each person eligible, who timely notified the association, is given a position, the association may fill the vacancy regardless of eligibility. Sec. 209.00507 would also be added that would require the association to issue a notice of solicitation for the ACC and contain instructions on how owners can notify the association of their interest in serving.
HB 5258 – Relating to the violation of certain laws and provisions of governing instruments by the governing body of a property owners’ association.
Author: Bucy
Final Status: Referred to Business & Industry Committee on 3-24-23
If passed, HB 5258 would allow for a county attorney to institute an action for injunctive relief to restrain or remedy a violation of Sec. 209.00592 or 209.00593.
HB 2174 – Relating to the authority of a property owners’ association to require a fee for the review or approval of a proposed solar energy device installation.
Author: Cole
Final Status: Referred to Business & Industry Committee on 3-9-23
HB 2174 would amend Sec. 202.010 of the Texas Property Code, if passed. The amendment would prohibit POAs from charging a fee for the review or approval of a proposed solar energy device.
HB 330 – Relating to regulation of residential wind power facilities by property owners’ associations.
Author: Goodwin
Final Status: Referred to Business & Industry Committee on 2-23-23
A new bill for this session targeting the use of renewable energy in communities. If passed, this bill would add Section 202.024 to the Texas Property Code. The section would generally prohibit POAs from adopting or enforcing an existing provision that prohibits or restricts a property owner from installing a wind power facility of an appropriate residential scale. There are a few provisions within the bill that would allow the POA to restrict the wind power instrument. Also, for developments with fewer than 51 planned residential units, the declarant, during the development period, may prohibit or restrict a property owner from installing a wind power facility. Please refer to our Bill Spotlight article of HB 330 for more detailed information.
HB 378 – Relating to the authority of certain entities and individuals to prevent individuals from accessing private property for the purpose of registering voters or communicating political messages.
Author: Bucy
Final Status: Referred to Elections Committee on 2-23-23.
If passed, this bill would amend the Texas Election Code by adding Section 276.020. Essentially, this bill would prohibit a POA from adopting or enforcing a rule preventing individuals from knocking on the front door of a residential unit, ringing the doorbell of the unit, or leaving a pamphlet, flier, or other form of written communication at the unit for the purpose of registering someone to vote, or disseminating the support or opposition of a candidate, party, or measure. The bill allows a POA to adopt a reasonable restriction on the time, place, or manner of the aforementioned activity.
