Committee Report Unfavorable on TUPCA (Victory for Homeowners, for now)--

ATTENTION HOMEOWNERS. THIS GOOD NEWS ON THE DEFEAT OF TUPCA AS CONVEYED TO US HERE AT MCC (A big thanks to all who wrote their state reps on this. Keep an eye out for new pro-TUPCA offensive in '07 from the lawyers/CAI group who crafted it). See the rest of the committee report by following the title link above:


"We learned then that neither the Senate nor the House would support TUPCA." -Adolph (Homeowner advocate meeting with HLRM Committee at the end of '06)

Recommendations from the House Land and Resource Management Committee:

When HOAs (which have taken on many of the attributes and functions of governmental entities) violate the spirit or the letter of the law regarding their duties and rights, then it becomes incumbent on government to rein in these abuses.

A new chapter in the Texas Property Code, with state-wide and general application, should be enacted that addresses the creation, governance, obligations, and rights of property owners' associations.

Current provisions in law regarding property owners' associations should be repealed to the extent that they are duplicative or inconsistent with the new chapter.

The new chapter should generally be directed at protecting the interests of homeowners, with the balance of power and presumptions in their favor and not that of the associations that represent them.

The new chapter should include provisions that encourage, to the greatest extent possible, member participation in the discussions and actions of the association as a whole.

The new chapter should include provisions that encourage non-legal and inexpensive resolutions to the conflicts that occur between the association and its members.

The new chapter should limit remedies allowed to associations to the least extreme necessary to enforce obligations due to it.

Non-judicial foreclosure by HOAs should be prohibited by law.

Judicial foreclosure by HOAs, if continued in law, should be authorized only under limited circumstances and in accordance with procedure allowed by law.

Foreclosure proceedings by HOAs, if continued in law, should be allowed to be instituted only when a homeowner owes the association an amount that surpasses a high threshold dollar amount.

If the legislature determines that foreclosure should be a remedy available to HOAs, a meaningful right of redemption should be authorized.

The new chapter should take into account the ever-changing nature of HOAs and the various stakeholders, in addition to associations and homeowners, that will be affected by any new law.


Committee Report Summary (from http://www.senate.state.tx.us/75r/senate/commit/c520/c520.htm#Reports):


1. The committee does not recommend adoption of TUPCA at this time.
2. The committee recommends notice to buyers advising the number and nature of lawsuits
3. Ability to amend its declaration by 2/3 of its homeowners
4. Must provide payment plans
5. Payment prioritization schedule
6. Capping of fines
7. Subdivision plats must show location of utility infrastructure and specify amenities
8. Need for information balanced with privacy interests of INDIVIDUAL HOMEOWNERS
9. An association cannot exercise "right of refusal" to purchase property
10. Homeowners can choose judicial or non-judicial foreclosure
11. Legislature should examine title problems
12. Disinterested party is to COUNT VOTES predicated upon a request by a certain percent of members.



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