2015 Statutes: Promises and Pitfalls

For homeowners, the most important legislation was Senate Bill 1168.  This was an “omnibus bill” – meaning that it affects many different statutes (all part of the Property Code).  Most of this bill affects subdivisions, but some affects condominiums.  In general, its provisions take effect as of September 1, 2015. Several other bills, more focused, also passed.  These include Senate Bills 862, 864, and 1626, as well as House Bills 262, 745, 939, 1072, 1455,…

Amendments to Chapter 209.0051 make significant changes to the “open meetings” law for subdivisions (not condominiums).  Due to its importance, I review the entire statute as now in effect.  Homeowners, and associations, should study this now! Initially, 209.0051(a) continues to exempt any association that is subject to Government Code 551.0015.  That exception merits expanded use, but currently applies rarely.  Also, developers keep their partial exception to these requirements in 209.0051(i).  This merits reconsideration in future…

As amended 209.00593 gives homeowners significant rights to run for the board in larger subdivisions (with more than 100 lots).  First, the associations must solicit owners to run for the board at least 10 days before an association distributes ballots to homeowners, and homeowners must have 10 days to request to be placed on the ballot. 209.00593(a-1).  There are rules specifying how to give this notice. 209.00593(a-2).  Homeowners who give notice must be listed by…

Amendments to 209.0058 again allow for secret ballots.  The Legislature previously banned secret ballots, in the interest of voter security, but once again allows them – subject to new protections for homeowners. The phrasing is awkward, but generally associations have the right to hold elections or votes either by using ballots that are “in writing and signed by” homeowners (including electronic ballots under 209.00592) OR “cast by secret ballot in accordance with 209.0058(d).  (Truly uncontested…

Subdivisions still must give notice by certified by mail, but no longer are required to pay for a return receipt. 209.006(a).   The exception to notice based on past violations was made even larger, being moved to 209.006(d). The statute now allows subdivisions to avoid offering an opportunity to cure, and avoid fines or suspension, “if the violation is of a curable nature and does not pose a threat to public health or safety.” 209.006(b)(2)(A).   “For…

  The new statute specifies that all homeowners “must be allowed to vote by absentee ballot or proxy.” 209.00592(a-1).  Such votes by absent owners cannot be disqualified simply by making a nomination for board member from the floor during an election. 209.00592(b-1).

  209.0056(a) clarifies that, for elections or votes taken at meetings of members, subdivision associations must give at least 10 (but not more than 60) days notice.  That is unchanged. 209.0056(a-1) clarifies that, for elections or votes not taken at a meeting, subdivision associations must give at least 20 days notice before the cut-off date to submit a ballot.  It may be that the 20-day minimum should be imported into 209.0056(a), for meetings.

  The detail added to this subdivision seems much larger than the usefulness that we have seen to date in recounts.  However, if a homeowner seeks a recount, study this (and note that elsewhere the new 209.009(3) limits foreclosure based on fees for a recount).

  Both in subdivisions and condominiums, homeowners now have rights to install and use standby electric generators (a defined term). 202.019 (a & b).  However, associations have a fairly large number of categories in which they can regulate. 202.019(c). The associations must reasonably apply and enforce these rules, and cannot impose a rule on location if: (1) it increases the cost of installing the standby electric generator by more than 10 percent; or (2) it…

  Previously, conviction of a felony, or crime of moral turpitude, barred homeowners from being directors.  Now, that bar disappears 20 years after the conviction. 209.00591(b).