HBA-NLM H.J.R. 46 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 46
By: Yarbrough
Financial Institutions
4/11/1999
Introduced



BACKGROUND AND PURPOSE 

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 taxes, failure to pay a debt incurred to physically
improve the property, and non-payment of a home equity loan. However, in a
1987 case (Homeowner' Association v. Harris, 736 S.W. 2nd 632), the Supreme
Court ruled that homeowners' associations are able to place a lien and
foreclose on a property for assessments. As proposed, H.J.R. 46 requires
the submission to the voters of a constitutional amendment providing 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.   

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 (c-1), as follows: 

(c-1)  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.  Defines "dedicatory instrument" and "property owners'
association." 

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