HBA-TYH H.J.R. 37 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 37
By: Dutton
Financial Institutions
3/31/1999
Introduced



BACKGROUND AND PURPOSE 

Recently, there have been some instances in which Texas homeowners
associations have abused their powers, including their ability to foreclose
on private property against members who fail to pay certain fees or
citations.  As proposed, H.J.R. 37 requires the submission to the voters of
a constitutional amendment permitting an encumbrance to be fixed on
homestead property for property owners' association fees, without
permitting the forced sale of the homestead. 

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 50, Article XVI, Texas Constitution, by adding
Subsection (t), as follows: 

(t)  Provides that an obligation to pay property owners' association fees
for maintenance and ownership of common facilities and services is a debt
for which an encumbrance may be fixed on homestead property.  Provides that
the homestead is protected from forced sale for the payment of a debt
described by this subsection.  

SECTION 2.  Requires this proposed constitutional amendment be submitted to
the voters at an election to be held November 2, 1999.  Sets forth the
required language for the ballot.