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HB 2398

AN ACT relating to the governance of property owners' associations.

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

Modifies regulations for property owners' associations (POAs) in Texas by establishing new rules for amending dedicatory instruments, allowing amendments with a majority vote of lot owners, and clarifying board member fiduciary responsibilities. The legislation empowers county attorneys to seek injunctive relief for POA violations and requires board members to act in good faith on behalf of property owners, making them personally liable for their actions or inactions. These changes aim to increase transparency, accountability, and owner participation in POA governance.

Subject Areas

Bill Text

relating to the governance of property owners' associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 209.0041, Property Code, is amended by
adding Subsections (j), (k), and (l) to read as follows:
(j)  Except as provided by Subsection (k), a dedicatory
instrument other than a declaration may be amended by a vote of
owners owning a majority of the lots subject to the dedicatory
instrument, in addition to any governmental approval required by
(k)  If the dedicatory instrument contains a higher
percentage than prescribed by Subsection (j), the percentage in the
dedicatory instrument controls.
(l)  If a dedicatory instrument contains quorum
requirements, those requirements apply to a vote under Subsection
SECTION 2.  Section 209.00592, Property Code, is amended by
adding Subsection (h) to read as follows:
(h)  A county attorney may bring an action for injunctive
relief to restrain or remedy a violation of this section.
SECTION 3.  Section 209.00593, Property Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1)  A county attorney may bring an action for injunctive
relief to restrain or remedy a violation of this section.
SECTION 4.  Chapter 209, Property Code, is amended by adding
Section 209.018 to read as follows:
Sec. 209.018.  BOARD ACTION; BOARD MEMBERS AND OFFICERS AS
FIDUCIARIES.  Except as provided by a declaration, bylaws, or this
chapter, the board shall act in all instances on behalf of the
property owners' association if in the good-faith judgment of the
board the action is reasonable.  Each officer or member of the board
is liable as a fiduciary of the owners for the officer's or member's
acts or omissions.  All acts of the property owners' association
must be by and through the board unless otherwise provided by the
declaration or bylaws or by law.
SECTION 5.  (a)  Section 209.0041, Property Code, as amended
by this Act, applies only to a vote held on or after the effective
date of this Act.  A vote held before the effective date of this Act
is governed by the law as it existed immediately before that date,
and that law is continued in effect for that purpose.
(b)  Section 209.018, Property Code, as added by this Act,
applies only to an act or omission that occurs on or after the
effective date of this Act.  An act or omission that occurs before
the effective date of this Act is governed by the law in effect on
the date the act or omission occurred, and the former law is
continued in effect for that purpose.
SECTION 6.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to the governance of property owners' associations.