Texas POA Bills    84th Legislature (2015)

A Periodic Report by Sharon Reuler 

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Issued March 29, 2015  
  

Friends,

 

I have a lot to report about bills pertaining to common interest developments in Texas, but - sadly - not much of it is "sexy". Most of this Session's POA bills may interest those who get down into the weeds of HOA laws, but not the general public. 

 

The 84th Legislature just passed the halfway mark - only 65 days left of the 140-day biennial Session which ends at midnight on June 1. A near-record high of 6,136 bills were filed by the March 13 deadline. But, lawmakers have been unusually slow about scheduling hearings for their bills.


 OMNIBUS BILL

 

A 24-part 17-page Omnibus Bill dominates this Session's reporting on POA Pertinent Bills.  An Omnibus Bill is hard to describe because it's 24 different bills that share the same bill number. It contains 8 NEW laws, and 16 "fixes" (clarifications & corrections).

 

The NEW provisions that worry me most relate to assessment lien foreclosure - SECTIONS 18 & 19 of the Omnibus Bill.  I hope folks aren't so bored by the time they get to the last sections that they fail to recognize their significance.  (Thumbs down)

 

Here's a link to my Section-by-Section description of the Omnibus Bill, as initially filed:

 

Omnibus Bill - HB 2797/SB 1168 - REPORT #5

  

Sponsored by Texas Community Association Advocates (TCAA), the Omnibus Bill was birthed on March 10th as identical twins (aka "companion bills"). The House version is HB 2797 by Rep. Jason Villalba of Dallas. The Senate twin is SB 1168 by Sen. Royce West of Dallas.

 

POA BILLS REPORT #5
 

After Report #4 was issued in early March, seven more POA-Pertinent House Bills and eight more Senate Bills were filed.  We now know the complete lay of the POA landscape for the 2015 Session.  My fifth report on POA-Pertinent bills - as of March 27, 2015 - is available on this link. 

 

REPORT #5 - 2015 Texas POA Bills

 

Report #5 identifies 34 POA-Pertinent bills, which is deceptive. Eight of the 34 are copycats, leaving 26 unique bills, of which one has 24 independent parts, resulting in the equivalent of 50 bills filed. So, 50 POA-Pertinent law changes are described in the attached Report #5.

 

Some bills previously reported as "POA Bills" are MIA. Because they're only tangentially POA-related, I relegated them to second tier status as Sundry Bills in order to concentrate on the now larger number of genuinely POA-specific bills. I may report on the Sundry Bills at a later date.

 

HOA NAMES - HEARING TODAY

 

On the other hand, I added a corporation bill that doesn't mention POAs but could impact them nonetheless. If HB 2753 or its companion SB 1973 become law, we may run out of POA names for purposes of incorporation and re-incorporation. HB 2753 has its hearing in front of the House Business & Industry Committee on Monday 3/30 (today!), if you're interested. Good chance the hearing room will have a webcam.

 

OTHER NEW BILLS 


The availability of HOA names for purposes of incorporation is probably way down on your list of things to be concerned about. See what I mean about this Session's bills being not-so-sexy?  Here's a sampling of some other POA-specific bills filed after my last report:

 

Golf Courses. HB 2594 by Parker provides procedures for removing restrictions that require land be used for golf course or country club purposes. I understand the need, but this particular legislative solution seems wrong-headed.

    

High Rises.  HB 3089 by Galindo requires mid-rise and high-rise residential buildings (75 ft or more in height) to be retrofitted with fire safety sprinklers.

 

Guns.  HB 2999 by Landgraf forbids HOAs from prohibiting lawful gun use.

 

Flags. HB 3460 by Murr adds several more types of flags that homeowners are permitted to fly, without HOA interference such as any historical Texas flag. Come and Take It.

 

Solar.  HB 3539 by Dukes and its companion SB 1626 limits the developer privilege to subdivisions of 50 lots or less.  Developers will still be able to prohibit or regulate solar devices in the smaller subdivisions.

 

Telecom Contracts.  SB 1538 by Burton prohibits exclusive contracts between the HOA and a telecommunications provider, so that homeowners have freedom of choice. 

 

Declaration Amendment.  SB 1244 by Burton drastically reduces the consents required to amend the Declaration - to 60% of votes cast (not total votes), with no minimum threshold. Closer to the government model. (Thumbs down)

 

 = = = = = = =
 

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.

New Day for POA Bills in Senate
  

For the first time since 2001, POA bills are not being referred to the Senate Committee on Intergovernmental Relations ("IGR"). What's the connection between POAs and "intergovernmental relations"? Nothing!

  

So far this Session, POA bills in the Senate are being assigned to the Committee on Business & Commerce ("B&C"). Hurrah! B&C is the Senate counterpart to the House Committee on Business & Industry ("B&I"), which has been the custodian of POA bills in the House since at least 1993. Hopefully POA bills have found a new permanent nest in the Senate.

 

Sidenote. Houston Senator John Whitmire, who worked on POA bills in 2001 while on IGR, is now on the B&C Committee. Four of the nine B&C Committee members are from the Houston area. It's a given that every lawmaker from the greater Houston area has HOA constituents and a lifetime of personal HOA experience, and is fed a steady diet of "bad HOA" stories by the local media. It's not that way everywhere else in Texas . . . yet.  Very different perspectives.
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
  
The 84th Session is showing signs of being statistically extraordinary. Bill filing ended on March 13th with over 6,000 bills filed - the second highest number of the last 14 Sessions (almost 30 years). By contrast with the large number of bills filed, this Session is reportedly one of the slowest for getting bills scheduled for committee hearings. Of 4,143 House Bills filed, 910 (22%) have been scheduled for House Committee hearings. Of 1,993 Senate Bills filed, 356 (18%) have been scheduled for Senate Committee hearings. With almost 5,000 bills that haven't yet been set for hearing, push is going to come to shove real soon.
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.  This Legislature has identified 27 bills for the HOA\POA subject category, of which one is an Omnibus Bill with 20 sections.
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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