Bill Text: TX SB1845 | 2019-2020 | 86th Legislature | Enrolled


Bill Title: Relating to the amendment of the dedicatory instruments of certain mixed-use real estate developments.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Enrolled) 2019-06-14 - Effective on 9/1/19 [SB1845 Detail]

Download: Texas-2019-SB1845-Enrolled.html
 
 
  S.B. No. 1845
 
 
 
 
AN ACT
  relating to the amendment of the dedicatory instruments of certain
  mixed-use real estate developments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 11, Property Code, is amended by adding
  Chapter 214 to read as follows:
  CHAPTER 214.  AMENDMENT OF DEDICATORY INSTRUMENTS OF CERTAIN
  MIXED-USE REAL ESTATE DEVELOPMENTS
         Sec. 214.001.  DEFINITIONS. In this chapter:
               (1)  "Current developer" means an owner of one or more
  tracts or lots in a mixed-use real estate development, or the
  owner's affiliate, who:
                     (A)  is the current declarant in the declaration
  governing the development; and
                     (B)  currently holds the developer rights for the
  development.
               (2)  "Declaration" means an instrument filed in the
  real property records of a county that includes restrictive
  covenants governing a real estate development.
               (3)  "Dedicatory instrument" has the meaning assigned
  by Section 202.001.
               (4)  "Mixed-use real estate development" means a real
  estate development that:
                     (A)  contains at least 200 acres and not more than
  250 acres of deed-restricted property composed of at least 10
  separate tracts or parcels of property;
                     (B)  includes:
                           (i)  commercial properties, including hotel
  and retail properties, that constitute at least 70 percent of the
  total land area of the development; and
                           (ii)  office properties that constitute at
  least 50 percent of the total land area of the development;
                     (C)  may include other real estate uses;
                     (D)  is governed by a property owners'
  association; and
                     (E)  is subject to a dedicatory instrument that:
                           (i)  requires mandatory membership in the
  property owners' association;
                           (ii)  authorizes the property owners'
  association to collect a regular assessment on all or a majority of
  the property in the development;
                           (iii)  requires the approval of owners of
  more than:
                                 (a)  90 percent of the ground area
  constituting the development to change a provision of the
  dedicatory instrument governing the permitted use of a property; or
                                 (b)  60 percent of the ground area
  constituting the development to change a provision of the
  dedicatory instrument that is not related to the permitted use of a
  property; and
                           (iv)  provides that voting for an amendment
  is based on the number of acres owned by each owner.
               (5)  "Property owners' association" has the meaning
  assigned by Section 202.001.
         Sec. 214.002.  APPLICABILITY OF CHAPTER. (a)  This chapter
  applies only to a mixed-use real estate development that is located
  in:
               (1)  a municipality with a population of two million or
  more; and
               (2)  a county with a population of 3.3 million or more.
         (b)  This chapter does not apply to:
               (1)  a mixed-use real estate development that includes
  single-family residential properties; or
               (2)  a condominium subject to Chapter 81 or 82.
         (c)  This chapter applies to a dedicatory instrument
  regardless of the date on which the dedicatory instrument was
  created.
         Sec. 214.003.  AMENDMENT OF DEDICATORY INSTRUMENT.
  (a)  This section supersedes any conflicting requirement in a
  dedicatory instrument of a mixed-use real estate development.
         (b)  To the extent of any conflict with another provision of
  this title, this section prevails.
         (c)  Except as provided by Subsection (d), a declaration of a
  mixed-use real estate development may be amended only by a vote of a
  majority of the total votes allocated to property owners entitled
  to vote on the amendment of the declaration.
         (d)  If the declaration contains a lower approval
  requirement than prescribed by Subsection (c), the approval
  requirement in the declaration controls.  If the declaration is
  silent as to voting rights for an amendment, the declaration may be
  amended by a vote of a majority of the total votes allocated to
  property owners entitled to vote on the amendment of the
  declaration.
         (e)  While the mixed-use real estate development has a
  current developer, an amendment made to the declaration under this
  section requires the current developer to consent to the amendment
  to be valid.
         (f)  A bylaw of a mixed-use real estate development may not
  be amended to conflict with this section.
         SECTION 2.  This Act takes effect September 1, 2019.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1845 passed the Senate on
  April 26, 2019, by the following vote: Yeas 26, Nays 4; and that
  the Senate concurred in House amendment on May 26, 2019, by the
  following vote: Yeas 29, Nays 2.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1845 passed the House, with
  amendment, on May 22, 2019, by the following vote: Yeas 140,
  Nays 4, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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