Texas POA Bills    84th Legislature (2015)

A Periodic Report by Sharon Reuler 

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Issued February 16, 2015  
  

Friends,

 

The 2015 session is getting off to a slow start.  I've heard rumors of a couple "meaty" POA bills that are suppose to be filed before the deadline of March 13. But, I haven't seen them and don't know the particulars.  Tic Toc - still a whole month until the filing deadline.

 

My second report on pending POA bills is available on this link:

 

REPORT - 2015 Texas POA Bills

  

NEW. You'll find a new feature at the back of the report - a list of the 24 POA-Specific and Sundry Bills in ascending order of bill numbers, with a cross-reference to where the description is in the topical table. 

 

So far I've identified 10 POA-Specific bills.  The two that were filed since my last report are both inspired by newsworthy events.

 

HB 1335 by Gutierrez arises out of a 2011 HOA foreclosure in San Antonio that made news again recently when the owner vacated the house and threatened to sue the HOA for trying to gig him for $15K of legal fees on an assessment debt of less than $1K. The "Miller v Monte Viejo" bill seeks a $500 cap on the owner's liability for HOA legal fees incurred in a foreclosure - judicial or nonjudicial. Yup - five HUNDRED dollars.  (Pity we can't outsource collection work to Kathmandu.) 
 

HB 1178 by Isaac (the "Belterra bill") seeks to void a CC&Rs provision that creates a perpetual monopoly for one company to furnish fuel for the subdivision's "community propane system."  Besides the lack of competition, there seems to be no State regulation of this type of utility. As a result, consumers pay a pretty penny for propane heat.  Owners who opt out ~ such as by converting to natural gas ~ are charged up to $1,500 - or so sez the news coverage.  Although the Belterra community near Dripping Springs is the "victim" most often cited in the Austin media coverage, the situation is reportedly more widespread.

  

On the attached report I include 14 "Sundry" bills that are not POA- Specific.  In prior sessions, that part of the report dropped off as the session picked up steam. 

 

As I've done since 2005, I will periodically report on bills that seem likely to affect the creation and operation of common interest developments in Texas - subdivisions and condominiums - anything with mandatory membership and assessments.

TLO Website
  

The Texas Legislature Online website is the second best thing about our Legislature. (The first being the hiatus between sessions.) TLO is chock full of information and fueled by a powerful search engine that's easy to learn and use. Open 24/7 for free. If you have any interest in legislation, you'll love exploring this amazing website. Look for the "My TLO" tab next to "Home" in the top left corner. Here you can sign up for automatic email alerts of bills that interest you, or topics, or committee meetings.   

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. :-)  
Numbers
  
Since the Session started, 1,927 bills have been filed - less than half of the more than 5,000 bills that we expect to see filed by March 13.  In 2013, of the 5,868 bills filed, 1,437 became law. The passage rate of 25% is fairly typical.
Trivia
  
The Texas Legislature first created a subject category for HOA\POA bills in the 1999 Session, when an astounding 25 bills were filed. That was the beginning of the furor at the Capitol that culminated in the 2011 HOA Reform Laws.  Since 1999, an average of 29 POA bills have been filed each session - the banner years being 2009 and 2011, with 51 and 52 bills filed, respectively. 


 

Dates of Interest 


January 13, 2015 - Opening day of 84th Regular Session
March 13, 2015 - Deadline for filing bills (with some exceptions)
June 1, 2015 - Last day of Session (no exceptions)
June 21, 2015 - Last day Governor can veto a bill that passed
August 31, 2015 - Effective date for bills without specific effective dates

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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