CHAPTER 208. AMENDMENT AND TERMINATION OF RESTRICTIVE COVENANTS IN HISTORIC NEIGHBORHOODS

PROPERTY CODE

TITLE 11. RESTRICTIVE COVENANTS

CHAPTER 208. AMENDMENT AND TERMINATION OF RESTRICTIVE COVENANTS

IN HISTORIC NEIGHBORHOODS

Sec. 208.001. DEFINITIONS. In this chapter:

(1) "Owner" and "real property records" have the meanings

assigned by Section 201.003.

(2) "Dedicatory instrument," "property owners' association,"

"petition," and "restrictive covenant" have the meanings assigned

by Section 202.001.

(3) "Regular assessment" and "special assessment" have the

meanings assigned by Section 204.001.

(4) "Apartment complex" has the meaning assigned by Section

204.002(c).

(5) "Historic neighborhood" means:

(A) an area incorporated as a separate municipality before 1900

and subsequently annexed into another municipality;

(B) an area described by a municipal map or subdivision plat

filed in real property records of the county in which the area is

located before 1900; or

(C) an area designated as a historic district or similar

designation by the municipality in which the area is located, the

Texas Historical Commission, or the National Register of Historic

Places.

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.001 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(98), eff. Sept. 1, 2001.

Sec. 208.002. APPLICABILITY. (a) This chapter applies only to

a historic neighborhood that is located in whole or in part in a

municipality with a population of 1.6 million or more located in

a county with a population of 2.8 million or more.

(b) This chapter applies to a restrictive covenant regardless of

the date on which it was created.

(c) This chapter applies to property in the area of a historic

neighborhood that is zoned for or that contains a commercial

structure, an industrial structure, an apartment complex, or a

condominium development covered by Title 7 only if the owner of

the property signed a restrictive covenant that includes the

property in a common scheme for preservation of historic property

as described by Section 208.004.

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.002 and amended by Acts 2001, 77th

Leg., ch. 1420, Sec. 21.001(98), 21,002(17), eff. Sept. 1, 2001.

Sec. 208.003. HISTORIC NEIGHBORHOOD PRESERVATION ASSOCIATION.

(a) A historic neighborhood preservation association must:

(1) be a Texas nonprofit corporation or limited liability

company organized, in part, to encourage the preservation of

property in a historic neighborhood; and

(2) open its membership to all owners of property in the

historic neighborhood.

(b) A historic neighborhood preservation association may be

composed of only a portion of the owners of property in the

historic neighborhood.

(c) A historic neighborhood preservation association may be a

property owners' association or an organization that is qualified

as a charitable organization under Section 501(c)(3) of the

Internal Revenue Code of 1986.

(d) A statement in the articles of incorporation or association,

bylaws, regulations, or operating agreement of the historic

neighborhood preservation association is prima facie evidence of

compliance with Subsection (a).

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.003 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(98), eff. Sept. 1, 2001.

Sec. 208.004. COMMON SCHEME FOR PRESERVATION OF PROPERTY IN

HISTORIC NEIGHBORHOOD. (a) A common scheme for preservation of

historic property exists in a historic neighborhood if:

(1) the restrictive covenants were created by individual

dedicatory instruments signed by an owner of one or more

separately owned parcels or tracts in the historic neighborhood;

and

(2) the restrictive covenants authorize a historic neighborhood

preservation association to enforce the restrictive covenants.

(b) A common scheme for preservation of historic property does

not include property that is not subject to restrictive covenants

that authorize a historic neighborhood preservation association

to enforce the restrictive covenants.

(c) Restrictive covenants included in a common scheme for

preservation of historic property exist for the benefit of all

owners of property subject to the common scheme for preservation

as if each owner were referenced in each dedicatory instrument.

(d) Each owner of property subject to a common scheme for

preservation of historic property may enforce restrictive

covenants on other property included in the common scheme for

preservation.

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.004 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(98), eff. Sept. 1, 2001.

Sec. 208.005. AMENDMENT OR TERMINATION OF RESTRICTIVE COVENANTS

UNDER COMMON SCHEME FOR PRESERVATION. (a) A restrictive

covenant applicable to property that is included in a common

scheme for preservation of historic property may not be amended

or terminated except as provided by this section.

(b) A historic neighborhood preservation association may approve

and submit to a vote of the owners of property that is included

in a common scheme for preservation of historic property an

amendment of the restrictive covenants or the termination of all

or part of the restrictive covenants included in the common

scheme for preservation of historic property.

(c) The amendment or termination of a restrictive covenant is

effective and applies to each separately owned parcel or tract

subject to the common scheme for preservation of historic

property if the owners of at least 75 percent of the parcels or

tracts who vote on the issue in accordance with Section 208.006

vote in favor of the amendment or termination of the restrictive

covenant.

(d) A document certifying that 75 percent of the owners voting

on the issue approved the amendment or termination of the

restrictive covenant must be recorded by the historic

neighborhood preservation association in the real property

records of the county in which the historic neighborhood is

located. The document is prima facie evidence that the requisite

percentage of votes was attained and the required formalities for

the action were taken.

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.005 and amended by Acts 2001, 77th

Leg., ch. 1420, Sec. 21.001(98), 21.002(18), eff. Sept. 1, 2001.

Sec. 208.006. METHOD OF VOTING. (a) An amendment or

termination of a restrictive covenant must be voted on:

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

amendment or termination of the restrictive covenant and

specifies the date by which the historic neighborhood

preservation association must receive a ballot for the ballot to

be counted;

(2) at a meeting of the historic neighborhood preservation

association;

(3) by circulation of a petition by the historic neighborhood

preservation association or a person authorized by the historic

neighborhood preservation association; or

(4) by any combination of methods described by this subsection.

(b) If the vote occurs at a meeting of the historic neighborhood

preservation association under Subsection (a)(2), the historic

neighborhood preservation association shall:

(1) before the meeting, deliver written notice of the meeting

stating the purpose of the meeting to each owner of property

subject to the common scheme for preservation of historic

property; and

(2) provide each owner of property subject to the common scheme

for preservation with the opportunity to appear and vote at the

meeting.

(c) The historic neighborhood preservation association shall

provide for the mailing to each owner, as applicable:

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

(2) notice of the meeting under Subsection (a)(2); or

(3) the petition under Subsection (a)(3).

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

by signature or vote of one of the owners.

(e) The historic neighborhood preservation association shall

record a copy of the ballot or petition, as applicable, in the

real property records of the county in which the historic

neighborhood is located before the vote of the owners.

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.006 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(98), eff. Sept. 1, 2001.

Sec. 208.007. REGULAR AND SPECIAL ASSESSMENTS. The procedure

established by this chapter for the amendment of restrictive

covenants may not be used to establish a regular or special

assessment.

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.007 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(98), eff. Sept. 1, 2001.

Sec. 208.008. BUILDING LINES. The procedure established by this

chapter for the amendment of restrictive covenants may not be

used to modify a building line established by a restrictive

covenant, municipal map, or subdivision plat.

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.008 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(98), eff. Sept. 1, 2001.

Sec. 208.009. DEFENSE TO ENFORCEMENT OF RESTRICTIVE COVENANT.

An owner may not assert as a defense to the enforcement of a

restrictive covenant that is part of a common scheme for

preservation of historic property that the owner or a predecessor

in title signed a blank signature page or similar procedural

defect if the signature page was attached to a dedicatory

instrument adopted by a historic neighborhood preservation

association and:

(1) the dedicatory instrument has been recorded for more than

two years; or

(2) the restrictive covenant is referenced in the owner's title

insurance policy obtained by the owner when the property was

purchased.

Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18,

1999. Renumbered from Sec. 207.009 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(98), eff. Sept. 1, 2001.