Texas POA Bills    84th Legislature (2015)

A Periodic Report by Sharon Reuler 

Written

Friday morning

May 29, 2015


  

 

 

 

 

 

 


  

  

 

 

Dear POAphiles and POAphobes, 

 

THE END IS NIGH

 

We're down to the final hours of the 84th Legislature, Regular Session - the proverbial hurly-burly sausage-making days when bills gets changed in ways that we don't discover until after the Session is over. The fate of the HOA Bills is mostly known. (Need a fudge factor for surprises.)  By law, the Session must end by midnight on Monday, June 1st (the 140th day) . . . though the Capitol's clocks have been known to slow down as midnight approaches. 

 

THE BIGGIES

 

The two most significant law changes are on track to become Texas laws effective 9/1/15.

 

For condos, the most significant POA Bill of 2015 is HB 1455. It has no affect on the day-to-day operation of condo HOAs.

 

For subdivisions, the POA Omnibus Bill - SB 1168 - is the grand champion of change. Many of its 29 law changes affect every subdivision POA in Texas.

 

FATE OF THE CONDO LITIGATION BILL 

 

My last report was about House Bill 1455 by King, on the eve of its vote by the full House. HB 1455 closes a loophole in the Texas Uniform Condominium Act that has fueled a firestorm of opportunistic construction defect litigation in other states with similar condominium statutes. I'm pleased to report that HB 1455 is en route to becoming law. The House approved it on May 8, the Senate on May 26. Because not a single word of the bill changed in the Senate, it's in queue to go to the Governor. Kudos to the Texas Association of Builders for leading the charge to restore balance to condominium development in Texas.


 

WHERE IS THE POA OMNIBUS BILL?

 

Late yesterday the Senate concurred in the House Floor Amendments to Senate Bill 1168 by West, which means that SB 1168 passed both chambers and will be sent to the Governor.  SB 1168 is an "Omnibus Bill" - an amalgam of spot amendments under a single bill number. Because each section stands on its own, any section of the bill can be added or removed without hurting the rest of the bill. 
POA BILLS REPORT #10
  

My tenth report on POA-Pertinent bills is available on this link.

 

REPORT #10 - 2015 Texas POA Bill Contenders

 

Report #10 is limited to the 11 POA Bills that are en route to becoming law or which still have a chance of attaining statutehood. The number of 11 POA Bills is deceptive because one of the bills is an "Omnibus Bill."  Compared to the others, SB 1168 is the equivalent of 29 bills.  Collectively, the 11 POA Bills represent 39 changes of POA law. 

 

Report #10 has a thumbnail description of each of the 11 bills and 39 law changes.  I tried to update each description to address changes made in the last weeks. For instance, the Omnibus Bill was amended 8 times last week while it was being voted on by the House. And the Senate just concurred in all of them.
PROGRESS REPORT

1 - Signed by the Governor.  One bill has already been signed by the Governor, and goes into effect on 9/1/15.

SB 1626 by Rodriguez - Limits developer's exemption for solar devices

4 - Sent to the Governor. Four bills are on the Governor's desk. Governor Abbot has until June 20 to sign, veto, or ignore them. Ignored bills go into effect by operation of law.

 

HB 745 by Bohac - Solar powered LED street signs for HOAs

 

HB 1072 by Thompson - Caps felony convictions to serve on HOA board

 

SB 862 by Birdwell - Clarifies multiple voting methods in Chapter 209

 

SB 864 by Birdwell - Authorizes secret ballots for subdivision POAs

 

5 - As Good as Finished.  Five bills have been approved by both chambers and will be sent to the Governor.

 

HB 939 by Dale - Authorizes standby electric generators

 

HB 1455 by King - Adds prerequisites to construction defect lawsuit by condominium HOA

 

HB 3089 by Galindo - Requires fire safety sprinklers in certain high-rises in Bexar County. [bracketed]

 

SB 1168 by West - Omnibus Bill with 29 law changes ranging from foreclosure to board meetings to golf courses.  Senate concurred in House Floor Amendments on 5/27/15 - after Report #10 was written.

 

SB 852 by Nichols - Helps amend restrictions for projects around Lake Livingston. [bracketed]

 

1 - A Handshake Away.  One bill still needs House approval of Senate changes, and time is running out.

  

HB 2489 by Leach - Limits what POA may require from rentals 

  
TLO WEBSITE
 
All bills are available to you on the Texas Legislature Online (TLO) website.  It's easy to use.
Save the Date - July 1
  
Only July 1 at 12:30 pm, the State Bar of Texas is offering a 60-minute online seminar about the new HOA laws, titled: Legislative Update 2015: Condos & Owners Associations . Although attorney Bob Burton of Winstead and I will be addressing an audience of attorneys for CLE credit, non-lawyers can register for the same $85 fee.  
HOA/POA Slang
  
If you're Type A about terminology for common interest communities, this report may drive you bonkers. I use HOA and POA interchangeably - and inconsistently - to refer to mandatory membership associations for all types of common interest development - condos, townhomes, subdivisions, masters, mixed-use, and subs.
 
Texas laws, however, do distinguish between condos and non-condos. Condos are subject to Chapter 82 (TUCA) of the Property Code (and maybe also Chapter 81, depending on age).  The non-condos are subject to Chapter 209 of the Property Code, which refers to the developments as "subdivisions."  So, a property is either a condo or a subdivision, and its owners association may be called either HOA or POA or "condo association" or "townhome association" or "neighborhood association" or . . . the options are endless.
 
Speaking of townhomes . . . . contrary to popular belief, Texas law does not recognize townhomes as something other than a condo or subdivision. Townhomes are a style of building that can be condominium in ownership (Chapter 82) or non-condo (Chapter 209).
 
Of course, there's more to it than this windshield tour. But, you get the idea.  Don't bet on what a word means. :-)   
Sharon's Perspective
  

All views expressed are entirely my own, and my views have been known to change. I receive no income for my legislative reporting. I'm not a lobbyist ~ don't head any group or promote any cause ~ don't expect to go to Austin for hearings.

 

I'm a Texas real estate lawyer who works with developers of common interest developments. I write the "HOA docs" for new communities and advise developers on HOA issues that arise during build-out. My developer practice is enriched by an earlier decade of representing established homeowner-controlled POAs.

 

Before becoming a lawyer in 1987, I was a real estate broker specializing in the resales of condominiums and townhomes. Also, I have the sensitivities of a homeowner from 38 years of living in common interest communities, and three bumpy HOA experiences as a home buyer. 

 

My interest in POAs began in 1977. Four years later I was drawn to POA legislation by the then proposed Texas Uniform Condominium Act. I was privileged to play a pivotal role in TUCA's passage in 1993.

 

My nearly 40 years (omg!) of involvement with POA legislation has always been as a volunteer. In recent years I have done little more than report on what's going on under the dome.  I try to call it like I see it.  

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contact info
Although I aspire to be active on social media, I'm still old school. I can be reached at the street address below, by email sreuler@txlandlaw.com, and by phone (972) 720-9727. If I'm not responsive, it's because my day job keeps me plenty busy.
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