By comparison to major legislation in 2011, less was accomplished in 2013. It is probably fair to say that homeowner rights somewhat increased.

Major Changes Limit Contracts That Directors Can Make in Subdivisions (HB 503)

Too often directors have taken advantage of their positions to obtain contracts with their association to pay themselves, their families or friends. Section 209.0052 makes that more difficult, essentially forbidding subdivisions from contracting with directors (or their families, or their companies) unless: (1) the subdivision obtains two or more competitive bids from others; (2) the involved director’s relationship is disclosed to other directors; and (3) the involved director does not review the bids, does not participate in debate, and does not vote to make the contract.

Major Changes for Condominiums (HB 2075)

This omnibus bill amends several provisions of Property Code Chapter 82 (which governs all condominiums created since 1994, and some parts apply to all condominiums). These are clearly significant, but in some cases it is not clear if they will help or harm unit owners.

Section 82.113 does provide a clear benefit to unit owners. It insures that they have the right to redeem their unit after a foreclosure sale, regardless of who purchases the unit.

Section 82.102 increases the power of directors to authorize borrowing of money, and to assign future assessments (with liens) as collateral. If documents require approval by unit owners, 67% is always enough, or less if the Declaration provides for less.

Section 82.111 has two types of modifications. One facilitates certain uses of insurance proceeds. Now, a vote to not repair or rebuild by at least 80% of the unit owners no longer requires that such vote also be approved by each owner of a unit or assigned limited common that will not be repaired or rebuilt.

A second set of modifications (in 82.111) allows the association in some circumstances to assess the deductible (and any costs above the insurance reimbursement) against the unit owner and the owner’s unit. It also imposes requirements for the association to follow, or to amend, the declaration if the association seeks to charge unit owners rather than pay expenses as a common expense.

Chapter 209.015 Now Protects Some Rights For Double Lots (HB 35)

A new provision, Section 209.015 secures homeowner rights to use an adjoining that they own, for “residential purposes.” This includes specified allowed uses for parking, certain utilities, a swimming pool or child’s swingset, as well as sidewalks and fencing. It more generally includes buildings, structures, and other improvements customarily appurtenant to a residence (not business or commercial use). The ACC still has regulatory oversight.

Chapter 202.011 Better Protects Flagpoles (HB 680)

In 2011, section 202.011 somewhat protected the right of owners (including condominium unit owners as well as subdivision homeowners) to fly flags of the USA, Texas, and the military – subject to regulation. Now 202.011 to make clear that associations must allow owners to place at least one flagpole in the “front yard” (a defined term).

Chapter 202.007 Better Protects Xeriscaping (SB 207)

Section 202.007 limits association power to prevent homeowners from using drought-resistant landscaping or water-conserving natural turf. Now, while an association may impose certain aesthetic requirements, it may not unreasonably deny approval.

Chapter 209 Confirms The Right To Mediate (HB 2978)

In general, courts have the right to order the parties to mediate. That power is confirmed now for expedited foreclosure proceedings, and the court may appoint a mediator

Chapter 209.00593 Allows More Appointments of Directors (HB 3176) Section 209.00593 now authorizes boards to appoint directors to fill mid-term vacancies for any reason. Elections are still required at the end of a term, but it is not clear if this is an improvement, because it may dilute the power of directors in the minority.