HBA-TYH H.B. 1299 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1299
By: Yarbrough
Financial Institutions
4/12/1999
Introduced



BACKGROUND AND PURPOSE 

Homesteads in Texas have been protected since the Texas Homestead Act of
1839.  Currently, the Texas Constitution specifies that a home cannot be
foreclosed upon for any reason other than failure to pay the mortgage used
to buy the home, failure to pay property tax, failure to pay a debt
incurred to physically improve the property, and non-payment of a home
equity loan.  In 1987, the Texas Supreme Court created an additional
situation in which homeowners' associations are able to place a lien and
foreclose on a property for an obligation to pay property owners'
association fees.  H.B. 1299 prohibits an encumbrance being placed on a
homestead property for an obligation to pay property owners' association
fees. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 41.001, Property Code, by adding Subsection (d),
as follows: 

(d)  Provides that an obligation to pay property owners' association fees
for maintenance and ownership of common facilities and services is not an
encumbrance that may be properly fixed on or executed against homestead
property.  Provides that in this subsection, "property owners' association"
has the meaning assigned by Section 202.001 (Definitions). 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Emergency clause.
  Effective date: upon passage.