HB 2398
AN ACT relating to the governance of property owners' associations.
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
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.
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
Bill filed: AN ACT relating to the governance of property owners' associations.
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