Texas Bill Aimed At Preventing HOA Foreclosures Receives Committee Hearing

House Bill 899, filed by Rep. Harold Dutton of Houston, would prevent Homeowners Associations from foreclosing upon Texas homesteads. It was filed in response to numerous complaints of HOA abuses, including mass foreclosures, foreclosures upon sick and elderly homeowners, and even foreclosure upon soldiers deployed to war.

The Bill, originally filed in January, was the subject of a hearing yesterday in the powerful House Business and Industry Committee, chaired by Rep. Joe Deshotel of Port Arthur.

As currently proposed, HB 899 would add a new Section 202.010 to Chapter 202of the Texas Property Code. The proposed Section 202.010 would read as follows:

Sec. 202.010. FORECLOSURE OF CERTAIN LIENS. A restrictive covenant may not be adopted that places a lien on real property to secure payment of a debt created by the covenant unless the covenant exempts a homestead, as defined by Section 41.002, from foreclosure of the lien.

Unfortunately, even if passed, the Bill would only apply to restrictive covenants (CCRs) adopted on or after the effective date of the Act.

The Committee also considered yesterday HB 1760, which would extend the limitations period for homeowners seeking to file suit against persons seeking to foreclose liens placed upon property under Chapter 51of the Texas Property Code.

I believe that both Bills are necessary to protect Texas homeowners from abuses often committed by those with lien authority over their homes. Accordingly, I support passage of both HB 899 and HB 1760, and encourage you to support these bills by contacting your eleceted official in the Texas Legislature.