April saw the various committees around the capitol kick into high gear. The committees are rapidly hearing, considering, modifying and voting on whether to pass the many POA related bills on to the full chamber for a vote. For this legislative update, we will provide an update on the current status of each bill and highlight the bills that are moving quickly through the committee process. NOTE: the status of each bill is as of Friday, April 23, 2021.

Bills That Have Passed One Legislative Branch

• SB 581 – Relating to regulation by a property owners’ association of certain religious displays
  • Status: Passed Senate on 4-6-21, Referred to House Business and Industry Committee on 4-12-21
  • Another bill that has been seen in prior legislative sessions; this bill would amend Sec. 202.018 of the Texas Property Code. The bill would ban POAs from enforcing or adopting a restriction that prohibits owners from displaying “on the owner’s or resident’s property or dwelling” one or more religious items (note that this expands the statute beyond the entry of the property). However, a POA could still enforce a restriction if the religious display threatens public safety, violates a law, is offensive or is installed on property owned by the POA or in common with other members of the POA.
• HB 67 – relating to unenforceable restrictive covenants related to swimming pool enclosures
  • Status: Passed House on 4-14-21, Referred to Senate Business and Commerce Committee on 4-19-21
  • If passed, this bill would prohibit a POA from adopting or enforcing a provision in a dedicatory instrument that prohibits or restricts a property owner from installing on the property owner’s property a swimming pool enclosure that conforms to applicable state or local safety requirements.
• SB 30 – Relating to the removal of certain discriminatory restrictions and provisions from certain real property records
  • Status: Passed Senate on 3-31-21, Left Pending in Committee in House on 4-21-21
  • Permits an owner of real property to request on a form provided and created by the Attorney General, that the County Clerk remove a discriminatory provision or restriction (as defined by Sec. 5.026 of the Texas Property Code) from a recorded instrument. The companion bill is SB 222 (Hughes).
• SB 1588 – Relating to the powers and duties of property owners’ association
  • Status: Passed Senate on 4/28/2021
  • The bill seeks to amend Section 207.003 of the Texas Property Code to place a cap of $375.00 on resale certificate fees, and a $75 cap for an updated resale certificate. The bill would also subject a POA to “actual damages” if a POA fails to deliver a resale certificate within the timeframe provided under the bill. Management certificates must be filed with the Texas Real Estate Commission. Board members, board members’ spouses or persons residing in a current board member’s household would be ineligible to serve on the ACC.  Moreover, this bill would make 209 hearings like “mini-trials” and require the submission of evidence packets and the presentation of a “case” at the hearing.
  • The companion bill is HB 3367 (Turner)

Bills That Are Moving Through Committees

• HB 2274 – Relating to the extension or amendment of deed restrictions in certain older subdivisions
  • Status: Reported Favorably as Substituted
  • Proposes to add Ch. 216 to the Texas Property Code to provide a procedure for extending/amending restrictions for pre-1950 subdivisions, including the removal of any restriction relating to race, religion, or national origin that is void and unenforceable under the United States Constitution or Section 5.026. The bill discusses consent required for extension or amendment of restrictions (written consent of 66.6% of owners), petition and ballots for extensions or amendments, effective date of extension of amendment, and applicability of same.
• HB 2912 – Relating to a Violation of the Texas Residential Property Owners Protection Act or a Dedicatory Instrument by a Board Member of a Property Owners’ Association
  • Status: Reported Favorably as Substituted
  • This bill proposes to add Section 209.017 to the Texas Property Code. The bill provides that if a board member violates Ch. 209 or a governing document while acting in the capacity as a board member, an owner may file a petition against the POA in JP Court. If the owner prevails, judgment may provide that the POA remove the offending board member, award damages or authorize a reduction of assessments based on the damages awarded. The bill would require the owner to provide 10-day notice to the POA prior to filing suit.
• HB 3571 – Relating to the regulation of security measures by a property owners association
  • Status: Committee Report Sent to Local & Consent Calendar
  • This bill would add Sec. 202.023 to the Texas Property Code which would prohibit a POA from adopting or enforcing a restrictive covenant that prevents a property owner from building or installing a security measure, including a security camera, motion detector, or perimeter fence. The POA would be allowed to regulate the type of fencing that an owner may install. The companion bill is SB 1824 (Springer).
• HB 1686 – Relating to the regulation of food production on single-family residential lots by a municipality or POA
  • Status: Committee Report Sent to Calendars
  • If passed, this bill would prohibit a POA from adopting or enforcing a restriction that prohibits the growing of fruits and vegetables, the raising or keeping of six or fewer domestic fowls, six or fewer rabbits, or three or fewer beehives, or a cottage food production operation on a residential lot. The bill would allow a POA to adopt or enforce a covenant to impose reasonable requirements on the raising or keeping of fowls, rabbits or bees such as placing a limit on the number of animals or beehives that is above the minimum included in the bill, and prohibiting the raising or keeping of a rooster . The bill was modified in committee to expand further on the restrictions POAs can adopt and removed bees altogether. . The companion bill is SB 1062 (Zaffrini).
• HB 1467 – Relating to property owners’ association annual meetings held electronically.
  • Status: Reported Favorably as Substituted
  • Amends Section 209.014(a) of the Texas Property Code. Permits an annual meeting to be held via electronic or telephonic means if: 1. Each attendee may hear and be heard by everyone attending; and 2. The notice sent to members includes instructions to access any communication method required to attend the meeting remotely.
• HB 1659 – Relating to the amendment of a residential subdivision’s declaration to affect certain types of property located in the subdivision
  • Status: Comm. Report Sent to Local and Consent Calendar
  • This bill would amend Section 209.0041 of the Texas Property Code (requiring 67% vote for a Declaration Amendment) by adding subsection (d-1). The 67% vote requirement would not apply to an amendment that affects a portion of a subdivision zoned for or containing a commercial structure, industrial structure, apartment complex, or a condominium.
• HB 1202 – Relating to the amendment of a dedicatory instrument to remove a discriminatory provision.
  • Status: Committee Report Sent to Calendars
  • Provides a procedure for the governing body of a POA to amend a dedicatory instrument to remove a discriminatory provision by majority vote of the governing body: 1) on its own motion; or 2) on the motion of a member of the POA. Also provides procedures for owners within an association to amend a dedicatory instrument to remove a discriminatory provision through a petition process or amendment committee formation process. (Companion bills are SB 602 (Kolkhorst) and SB 754 (Miles)).
• HB 875 – Relating to the prohibition of housing discrimination on the basis of age or certain housing needs and to the enforcement of that prohibition.
  • Status: Committee report sent to Calendars
  • If passed, this bill would essentially add the terms “Age” and “Housing Needs” to the protected classes under Chapter 301 of the Texas Property Code (Texas Fair Housing Act).
• HB 191 – Relating to the prohibition of housing discrimination on the basis of sexual orientation or gender identity or expression and to the enforcement of that prohibition
  • Status: Committee Report Sent to Calendars
  • If passed, this bill would essentially add the terms “Gender Identity or Expression” and “Sexual Orientation” to the protected classes under Chapter 301 of the Texas Property Code (Texas Fair Housing Act). The companion bills are HB 188 (Bernal) and SB 233 (Whitmire).
• SB 206 – Relating to the operation of certain low-powered vehicles
  • Status: Recommend for Local & Uncontested Calendar
  • Amends Sec. 551.304 of the Transportation Code to permit the operation of golf carts in a master planned community without a golf cart license plate (Companion bill is HB 1281 (Wilson))

Bills That are To Be Determined

• HB 2013 – Relating to provision of a verified accounting for actions involving foreclosure of a lien on residential real property or recovery on a consumer credit account
  • Status: Referred to Judiciary & Civil Jurisprudence Committee
  • Requires applicant for expedited order allowing foreclosure of a lien on residential real property or petitioner in judicial foreclosure action to file, along with the action, a verified accounting (balance due, each payment reflected, total and final principal amount). Companion bill is SB 359 (Miles).
• HB 2387 – Relating to suits to collect past due property owners’ association assessments
  • Status: Public Hearing Withdrawn from Schedule
  • This bill proposes to add Ch. 31 to the Texas Property Code, which would address suits to collect past due POA assessments. The bill would apply to Ch. 209 POAs. The bill would give JP courts exclusive jurisdiction over POA collection suits, provide requirements for the petition (verified accounting, steps taken to comply with Ch. 209/governing documents, limits relief only to that within proposed Ch. 31). It sets forth counterclaim requirements for owners and permits JP Courts to order mediation at no cost to the property owner. The bill permits a court to award attorney’s fees in an amount that does not exceed the greater of 15% of the amount the POA is seeking or $500.
• HB 3844 – Relating to the establishment of the department of Consumer Affairs Services for Property Owners and Property Owners’ Associations within the Office of the Attorney General
  • Status: Referred to Business & Industry Committee
  • This bill would establish a department in the Attorney General’s office for property owners and POAs to make a record of any complaint by telephone or in writing from a property owner or a POA. If passed, the department would create a form available to the public for the department to record the appropriate contact information of the property owner, POA and management company associated with the POA. The form would also address whether the property owner was informed of the POA’s requirements, provided a copy of the POA’s governing documents, understands the rights and obligations of the property owner and POA under the governing documents, the nature of the property owner’s or POA’s complaint, whether communication was attempted between the owner and POA/management company, whether the property owner agrees or disagrees with the how the provisions of the POA’s governing documents were enforced and if they have any recommendations for changing the governing documents or means of enforcement.
• SB 1939 – Relating to organization of, meetings of, and voting by condominium unit owner’s associations and property owner’s associations
  • Status: Referred to Business & Commerce Committee
  • Extends rights under Section 6.002 of the Texas Business Organizations Code for meetings by electronic and telephonic means to Chapter 82 condominiums. The bill would also allow for electronic voting as provided by Section 6.002 of the Texas Business Organizations Code. The companion bill is HB 3502 (Lambert)
• HB 934 – Relating to the operation of motor-assisted scooters
  • Status: Referred to Transportation Committee
  • Amends Chapter 551 of the Texas Transportation Code to allow a person to operate a motorized scooter in a bicycle lane, or on a street or highway. The county/municipality could further restrict speed, location, impose minimum age requirements, impose higher penalties, restrict parking and/or require safety helmets. Only one person can ride on the scooter and the rider must yield to pedestrians. The scooter cannot go faster than 15 mph if standing, or 20 mph if seated.
• HB 1383 – 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
  • Status: Referred to Elections Committee
  • Prohibits POA from adopting or enforcing a rule or policy that prevents an individual from knocking on the front door of a residential unit, ringing the doorbell or leaving a pamphlet, flier or other form of written communication to assist with registering to vote or communicating support or opposition for a candidate, political party, or measure. But, a POA can adopt or enforce a restriction on the time, place and manner of such activity.
• HB 1970 – Relating to property owners’ association fines
  • Status: Left Pending in Committee
  • This bill has been seen in prior legislative sessions. If passed, this bill would amend Chapter 209 of the Texas Property Code to add Sec. 209.0061 requiring a POA board to adopt a fine policy. The policy must disclose each type of violation for which the board may assess a fine, the amount of the fine for each violation and provide information regarding hearings. The bill would also require the POA to file the policy with the county clerk’s office and provide a copy of the policy to each owner by posting the policy on the POA’s website or annually sending a copy of the policy to the members by hand-delivery, first class mail or e-mail.
• HB 2076 – Relating to the filing of property owners’ association fine policies with a municipality
  • Status: Referred to Business & Industry Committee
  • In addition to HB 1970, HB 2076 also deals with POA fine policies. If passed, this bill would amend Chapter 212 of the Local Government Code by adding Sec. 212.906 requiring the POA to file a fine policy with the municipality in which the subdivision is located.
• SB 749 – Relating to the foreclosure of POA assessment liens on certain boarding home facilities
  • Status: Referred to State Affairs Committee
  • This bill would allow a POA to judicially foreclose an assessment lien on a property used as a boarding house if the debt securing the lien consists solely of fines assessed by the association for a violation of association restrictions, bylaws, or rules and the violation constitutes neglect or abuse of a resident of the boarding home facility.
• HB 1483 – Relating to the redaction of an unconstitutional restriction from an instrument conveying an interest in real property.
  • Status: Referred to Judiciary & Civil Jurisprudence Committee
  • The language of this bill permits a grantee of an instrument conveying an interest in real property who believes that a restriction in the instrument violates the Texas or US Constitution to bring an action against the county and seek redaction of the restriction. The action must be brought in the county where the instrument is recorded. If the court finds the restriction violates the Texas or US Constitution, the court must enter an order: 1) identifying the instrument and specific language in violation; and 2) requiring the county clerk to redact the restriction at issue.
• HB 1470 – Relating to the prohibition of housing discrimination on the basis of a person’s source of income and to the enforcement of that prohibition.
  • Status: Referred to Business & Industry Committee
  • Amends Section 301.003 of the Texas Property Code (TX Fair Housing Act) by adding Subdivision (10-a) to include “Source of Income” as a protected class. The term “Source of Income” includes: 1. Housing choice vouchers under Section 8, US Housing Act 1937; or 2. Any other federal or state or local housing assistance provided to a family/individual/homeowner on behalf of a family or individual, including rental vouchers, rental assistance, or rental subsidies from a nongovernmental organization. The companion bill is SB 265 (West).
• HB 1569 – Relating to regulation by a POA of certain religious displays.
  • Status: Left Pending in Committee
  • The proposed bill would prohibit POAs from adopting or enforcing a covenant prohibiting an owner or resident from displaying one or more religious displays on the property (deletes limitation of entryway). Additionally, this bill repeals the language under the current statute which provides POAs with authority to regulate size and location concerning religious items.
• HB 2447 – Relating to the recall of a board member of and suits against a property owners’ association
  • Status: Left Pending in Committee
  • This bill would permit owners holding at least 20% of all voting interests in a POA to petition a POA and require a special meeting to conduct a recall election to recall a board member. Within 90 days of the POA receiving a petition, the POA must hold the recall meeting. If the majority of the votes in the recall election are for the recall of the named board member, the member position on the board becomes vacant and the board shall fill the vacant seat.
• HB 1963 – Relating to the regulation of short-term rentals by a property owners’ association
  • Status: Referred to Business & Industry Committee
  • The bill proposes to add Section 202.020 to the Texas Property Code. The bill would permit a POA to adopt or enforce a provision in a dedicatory instrument that regulates the use of property as a short-term rental (defined as a residential property rented for a fee for a period of no longer than 30 days)
• SB 318 – Relating to the records of certain condominium unit owners’ associations.
  • Status: Referred to Local Government Committee
  • If passed, this bill would essentially mirror the language under Section 209.005 of the Texas Property Code making the open records procedures applicable to condominium associations. The bill requires a condominium association to make the books and records of the association, including financial records, open to and reasonably available for examination by a unit owner, and sets forth the procedure to request either the inspection or production of certain association records. This bill would also require a condominium association to adopt a records production and copying policy, as well as a document retention policy.
• HB 2591 – Relating to the removal of certain unconstitutional provisions from real property records
  • Status: Left pending in committee
  • Permits an owner of real property to file suit to remove from a recorded instrument affecting or conveying an interest in the property a provision that: (1) violates the United States Constitution; (2) is unenforceable under law; and (3) is unambiguously discriminatory. The companion bills are SB 214 (Whitmire) and HB 485 (Wu).
• HB 801 – Relating to a certification program for assistance animals; authorizing fees; imposing a civil penalty
  • Status: Referred to Public Health Committee
  • Establishes a certification program for assistance animals in Texas, including but not limited to obedience training, evaluation by a licensed veterinarian and evaluation of the primary owner by a mental health professional. Establishes a statewide assistance animal registry. Also prohibits assistance animals in common recreational areas of master planned communities subject to restrictive covenants limiting residency to persons 55 years of age or older unless the assistance animal is certified and meets the additional requirements under the bill.

This will be the final Legislative Update of the 87^th Texas Legislative Session. This session will close sine die on May 31^, 2021. We will have an extensive Legislative Session Recap reviewing the bills that passed and what almost passed as well as an extensive discussion of what we learned from the entire Legislative Session.