HB5225 - Relating to the powers and duties of certain property owners' associations.

  89R14393 JBD-D     By: Alders H.B. No. 5225       A BILL TO BE ENTITLED   AN ACT   relating to the powers and duties of certain property owners'   associations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 209.0061(b), Property Code, is amended   to read as follows:          (b)  A property owners' association board shall adopt an   enforcement policy regarding the levying of fines by the property   owners' association. The policy must include:                (1)  general categories of restrictive covenants for   which the association may assess fines;                (2)  a schedule of fines for each category of   violation; [ and ]                (3)  information regarding hearings described by   Section 209.007 ; and                 (4)     a restriction on the association's authority to   impose fines in unreasonable amounts .          SECTION 2.  Chapter 209, Property Code, is amended by adding   Section 209.0066 to read as follows:           Sec.   209.0066.     ASSESSMENTS GENERALLY. (a)   Except as   otherwise provided by this section, a property owners' association,   from one year to the next, may not increase by an unreasonable   amount an assessment a property owner is required to pay.           (b)     A property owners' association may require a property   owner to pay an assessment that would otherwise violate Subsection   (a) if a majority of voters entitled to vote on the matter approve   the assessment in a vote held as provided for by this chapter or the   association's dedicatory instruments.           (c)     A property owners' association board shall adopt a   policy regarding the levying of assessments related to the   maintenance or improvement of a common area and fees for the use of   subdivision amenities.   The policy must include:                 (1)     general categories of restrictive covenants for   which the association may levy assessments; and                 (2)  a schedule of:                       (A)     assessments for each category of maintenance   or improvement and for each common area; and                       (B)  fees for the use of subdivision amenities.           (d)     A property owners' association board may not levy an   assessment for the maintenance or improvement of a common area   unless a majority of voters entitled to vote on the matter approve   the board's policy described by Subsection (c) in a vote held as   provided for by this chapter or the association's dedicatory   instruments.            SECTION 3.  Section 209.0094, Property Code, is amended by   adding Subsection (h) to read as follows:           (h)     A property owners' association may not file an   assessment lien if the debt securing the lien consists solely of a   minor fine.          SECTION 4.  Chapter 209, Property Code, is amended by adding   Sections 209.0151 and 209.0152 to read as follows:           Sec.   209.0151.     REGULATION OF AESTHETIC IMPROVEMENTS. A   property owners' association or, if applicable, an architectural   review authority, as defined by Section 209.00505(a), may not adopt   or enforce a provision in a dedicatory instrument that prohibits or   restricts the owner of a lot on which a residence is located from   making a minor aesthetic improvement to the residence or the lot,   including painting the residence a color of the owner's choice,   constructing fencing around the residence, or improving the   landscaping on the property, provided the improvements would not   otherwise violate an applicable building code.             Sec.   209.0152.     REGULATION OF USE OF COMMON AREAS. A   property owners' association may not adopt or enforce a provision   in a dedicatory instrument that unreasonably prohibits or restricts   an owner's use of a common area unless a majority of voters entitled   to vote on the matter approve the prohibition or restriction in a   vote held as provided for by this chapter or the association's   dedicatory instruments.          SECTION 5.  Section 209.016, Property Code, is amended by   amending Subsection (b) and adding Subsection (b-1) to read as   follows:          (b)  A property owners' association may not adopt or enforce   a provision in a dedicatory instrument that:                (1)  requires a lease or rental applicant or a tenant to   be submitted to and approved for tenancy by the property owners'   association; [ or ]                (2)  requires the following information to be submitted   to a property owners' association regarding a lease or rental   applicant or current tenant:                      (A)  a consumer or credit report; or                      (B)  a lease or rental application submitted by   the applicant, tenant, or that person's agent to the property owner   or property owner's agent when applying for tenancy ; or                 (3)     requires an owner to obtain approval from a   property owners' association before renting the owner's residence   as a short-term rental .           (b-1)     In this section, "short-term rental" means a   residence that is rented wholly or partly for a fee and for a period   of less than 30 consecutive days.          SECTION 6.  Section 209.0094(h), Property Code, as added by   this Act, applies only to a lien filed on or after the effective   date of this Act.          SECTION 7.  This Act takes effect September 1, 2025.