CHAPTER 206. EXTENSION OF RESTRICTIONS IMPOSING REGULAR ASSESSMENTS IN CERTAIN SUBDIVISIONS

PROPERTY CODE

TITLE 11. RESTRICTIVE COVENANTS

CHAPTER 206. EXTENSION OF RESTRICTIONS IMPOSING REGULAR

ASSESSMENTS IN CERTAIN SUBDIVISIONS

Sec. 206.001. DEFINITIONS. In this chapter:

(1) "Community association" means an incorporated association

created to enforce restrictions.

(2) "Dedicatory instrument" and "restrictive covenant" have the

meanings assigned by Section 202.001.

(3) "Lienholder," "owner," "real property records," "residential

real estate subdivision," and "restrictions" have the meanings

assigned by Section 201.003.

(4) "Regular assessment" means an assessment, charge, fee, or

dues that each owner is required to pay to the community

association on a regular basis and that is to be used by the

association for the benefit of the subdivision in accordance with

the original, extended, added, or modified restrictions.

Added by Acts 1997, 75th Leg., ch. 1249, Sec. 1, eff. Sept. 1,

1997.

Sec. 206.002. APPLICABILITY OF CHAPTER. This chapter applies

only to:

(1) a residential real estate subdivision that:

(A) consists of at least 4,600 homes;

(B) is located in whole or in part in a municipality with a

population of more than 1.6 million located in a county with a

population of 2.8 million or more; and

(C) has restrictions the terms of which are automatically

extended but has a regular assessment that is established by a

separate document that permits the assessment to expire and does

not provide for extension of the term of the assessment; or

(2) a residential real estate subdivision that:

(A) consists of at least 750 homes;

(B) is located in two adjacent municipalities in a county with a

population of 2.8 million or more; and

(C) has use restrictions the terms of which are automatically

extended but has a regular assessment that is established by two

separate documents that permit the assessment to expire and do

not provide for extension of the term of the assessment.

Added by Acts 1997, 75th Leg., ch. 1249, Sec. 1, eff. Sept. 1,

1997. Amended by Acts 2001, 77th Leg., ch. 597, Sec. 1, eff.

Sept. 1, 2001.

Sec. 206.003. EXTENSION OF RESTRICTION IMPOSING REGULAR

ASSESSMENT. (a) A community association may approve and submit

to a vote of the owners an extension of a restriction imposing a

regular assessment.

(b) The extension of a restriction imposing a regular assessment

is approved if a majority of the owners in the subdivision who

vote on the issue in accordance with Section 206.004 vote in

favor of the extension.

(c) An extension approved in accordance with this section and

Section 206.004 applies to all real property in the subdivision,

including residential and commercial property.

(d) A document certifying that a majority of the owners voting

on the issue approved the extension of the restriction must be

recorded in the real property records of the county in which the

subdivision is located.

Added by Acts 1997, 75th Leg., ch. 1249, Sec. 1, eff. Sept. 1,

1997.

Sec. 206.004. METHOD OF VOTING. (a) An extension of a

restriction that imposes a regular assessment must be voted on:

(1) by a written ballot that states the substance of the

amendment extending the restriction and specifies the date by

which the community association must receive a ballot for the

ballot to be counted; or

(2) at a meeting of the property owners in the subdivision.

(b) The community association shall provide for mailing to each

owner, as applicable:

(1) the ballot under Subsection (a)(1); or

(2) notice of the meeting under Subsection (a)(2) that states

the purpose of the meeting.

(c) In conjunction with a vote by ballot or at a meeting under

Subsection (a), the community association may provide for

circulation of a petition in the subdivision.

(d) The vote of multiple owners of a property may be reflected

by the signature or vote of one of the owners.

(e) The community association shall record a copy of the ballot

or petition in the real property records in the county in which

the subdivision is located prior to submission of the extension

to a vote of the owners.

Added by Acts 1997, 75th Leg., ch. 1249, Sec. 1, eff. Sept. 1,

1997.