S.B. No. 1018
relating to the extension or modification of residential
restrictive covenants in certain counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 11, Property Code, is amended by adding
Chapter 210 to read as follows:
CHAPTER 210. EXTENSION OR MODIFICATION OF RESIDENTIAL
Sec. 210.001. DEFINITIONS. In this chapter:
(1) "Dedicatory instrument" has the meaning assigned
by Section 202.001.
(2) "Owner" has the meaning assigned by Section
(3) "Property owners' association" has the meaning
assigned by Section 202.001.
(4) "Residential real estate subdivision" or
"subdivision" has the meaning assigned by Section 201.003.
(5) "Restrictions" has the meaning assigned by Section
Sec. 210.002. APPLICABILITY OF CHAPTER. This chapter
applies to a residential real estate subdivision that is located in
a county with a population of:
(1) more than 170,000 and less than 175,000; or
(2) more than 45,000 and less than 75,000 that is
adjacent to a county with a population of more than 170,000 and less
Sec. 210.003. FINDINGS AND PURPOSE. (a) The legislature
(1) the pending expiration of and the inability of
owners to extend or modify property restrictions applicable to
certain real estate subdivisions in this state creates uncertainty
in living conditions and discourages investments in those
(2) owners of land in affected subdivisions are
reluctant or unable to provide proper maintenance, upkeep, and
repairs of structures because of the pending expiration of
(3) financial institutions cannot or will not lend
money for investments, maintenance, upkeep, or repairs in affected
(4) these conditions cause dilapidation of housing and
other structures and cause unhealthful and unsanitary conditions in
affected subdivisions, contrary to the health, safety, and welfare
of the public; and
(5) the existence of race-related covenants in
restrictions, regardless of their unenforceability, is offensive,
repugnant, and harmful to members of racial or ethnic minority
groups and public policy requires that those covenants be removed.
(b) The purpose of this chapter is to provide a procedure
for extending or modifying residential restrictions and to provide
for the removal of any restriction or other provision relating to
race, religion, or national origin that is void and unenforceable
under either the United States Constitution or Section 5.026.
Sec. 210.004. EXTENSION OR MODIFICATION OF RESTRICTIONS.
(a) In addition to any procedures provided in a subdivision's
restrictions, a property owners' association, or a petition
committee comprised of at least three owners, may circulate a
petition proposing to extend or modify existing restrictions.
(b) An extension or modification of existing restrictions
that is approved by the owners becomes effective when the
resolution required by Section 210.008 is filed as a dedicatory
instrument with the county clerk of each county in which the
subdivision is located.
(c) An extension or modification of existing restrictions
that is approved by the owners under this chapter is binding on all
properties in the subdivision.
Sec. 210.005. PETITION PROCEDURE. (a) The property
owners' association or petition committee shall deliver to each
record owner of property in the subdivision a petition describing
the exact terms of the proposed extension or modification of the
(b) The petition must state the date by which a response
must be received in order to be counted.
(c) The petition may allow each owner to indicate approval
or disapproval of:
(1) the entire proposal; or
(2) specific provisions of the proposal.
(d) Separate signature pages may be delivered if the
proposed extension or modification is stated fully or referenced on
each signature page. A reference may be made by the following or
substantially similar wording: "We the undersigned owners of
property in the __________ Subdivision indicate by our signatures
on this document our approval or disapproval of the proposal(s)
circulated by __________ on or about [date] to [extend or modify]
our restrictive covenants. We acknowledge that we have fully
reviewed the proposal(s)."
(e) The petition must be sent by certified mail, return
receipt requested, to each owner's mailing address as reflected in
the appraisal records maintained by the appraisal district in which
the owner's property is located.
(f) The signature of an owner on the petition conclusively
establishes that the owner received the petition.
Sec. 210.006. VOTE ON PROPOSAL. (a) If the petition
allows owners to indicate only approval or disapproval of the
entire proposal, the proposal is adopted if owners of at least 66
percent of the real property in the subdivision vote in favor of the
proposal. If the petition allows owners to indicate approval or
disapproval of specific provisions of the proposal, a provision is
adopted if owners of at least 66 percent of the real property in the
subdivision vote in favor of the provision.
(b) The property owners' association or petition committee
shall exclude votes by lienholders, contract purchasers, and owners
of mineral interests.
(c) Except as provided by this subsection, the approval or
disapproval of multiple owners of a property may be reflected by the
signatures of a majority of the co-owners. The approval or
disapproval of owners who are married may be reflected by the
signature of one of those owners.
(d) An owner is considered to have cast a vote if the owner
signs the petition indicating approval or disapproval of the
proposal or one or more specific provisions of the proposal.
(e) The property owners' association or petition committee
may only count a vote if the association or committee receives the
vote before the deadline stated in the petition.
Sec. 210.007. SUBDIVISION CONSISTING OF MULTIPLE SECTIONS.
If a subdivision consisting of multiple sections, each with its own
restrictions, is represented by a single property owners'
association, a proposal or specific provision of a proposal is
adopted if owners of at least 66 percent of the total number of
properties in the subdivision vote in favor of the proposal or
Sec. 210.008. RESOLUTION CERTIFYING RESULTS OF VOTE.
(a) The property owners' association or petition committee shall
certify the results of a vote under this chapter by a written
resolution specifying the number of votes for and against the
proposal, or for and against each provision of the proposal, and
shall also certify that the petition was delivered to each record
owner of property in the subdivision as required by Section
(b) The association or committee shall attach to the
resolution a statement of the exact terms of the proposed extension
or modification of the existing restrictions.
(c) The association or committee shall make the resolution,
petition, and signature pages available to any owner on request.
Sec. 210.009. ADDITIONAL PROCEDURES. The procedures
provided by this chapter are in addition to any procedures provided
in a subdivision's restrictions for the extension or modification
of existing restrictions. The property owners' association or
petition committee may propose the extension or modification of
restrictions either in accordance with the procedures provided by
the subdivision's restrictions or the procedures provided by this
SECTION 2. This Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1018 passed the Senate on
May 3, 2005, by the following vote: Yeas 31, Nays 0.
Secretary of the Senate
I hereby certify that S.B. No. 1018 passed the House on
May 20, 2005, by a non-record vote.
Chief Clerk of the House