S.B. No. 1845

	AN ACT
	relating to the amendment of the dedicatory instruments of certain
	mixed-use real estate developments.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Title 11, Property Code, is amended by adding
	Chapter 214 to read as follows:
	CHAPTER 214.  AMENDMENT OF DEDICATORY INSTRUMENTS OF CERTAIN
	MIXED-USE REAL ESTATE DEVELOPMENTS
	Sec. 214.001.  DEFINITIONS. In this chapter:
	(1)  "Current developer" means an owner of one or more
	tracts or lots in a mixed-use real estate development, or the
	owner's affiliate, who:
	(A)  is the current declarant in the declaration
	governing the development; and
	(B)  currently holds the developer rights for the
	development.
	(2)  "Declaration" means an instrument filed in the
	real property records of a county that includes restrictive
	covenants governing a real estate development.
	(3)  "Dedicatory instrument" has the meaning assigned
	by Section 202.001.
	(4)  "Mixed-use real estate development" means a real
	estate development that:
	(A)  contains at least 200 acres and not more than
	250 acres of deed-restricted property composed of at least 10
	separate tracts or parcels of property;
	(B)  includes:
	(i)  commercial properties, including hotel
	and retail properties, that constitute at least 70 percent of the
	total land area of the development; and
	(ii)  office properties that constitute at
	least 50 percent of the total land area of the development;
	(C)  may include other real estate uses;
	(D)  is governed by a property owners'
	association; and
	(E)  is subject to a dedicatory instrument that:
	(i)  requires mandatory membership in the
	property owners' association;
	(ii)  authorizes the property owners'
	association to collect a regular assessment on all or a majority of
	the property in the development;
	(iii)  requires the approval of owners of
	more than:
	(a)  90 percent of the ground area
	constituting the development to change a provision of the
	dedicatory instrument governing the permitted use of a property; or
	(b)  60 percent of the ground area
	constituting the development to change a provision of the
	dedicatory instrument that is not related to the permitted use of a
	property; and
	(iv)  provides that voting for an amendment
	is based on the number of acres owned by each owner.
	(5)  "Property owners' association" has the meaning
	assigned by Section 202.001.
	Sec. 214.002.  APPLICABILITY OF CHAPTER. (a)  This chapter
	applies only to a mixed-use real estate development that is located
	in:
	(1)  a municipality with a population of two million or
	more; and
	(2)  a county with a population of 3.3 million or more.
	(b)  This chapter does not apply to:
	(1)  a mixed-use real estate development that includes
	single-family residential properties; or
	(2)  a condominium subject to Chapter 81 or 82.
	(c)  This chapter applies to a dedicatory instrument
	regardless of the date on which the dedicatory instrument was
	created.
	Sec. 214.003.  AMENDMENT OF DEDICATORY INSTRUMENT.
	(a)  This section supersedes any conflicting requirement in a
	dedicatory instrument of a mixed-use real estate development.
	(b)  To the extent of any conflict with another provision of
	this title, this section prevails.
	(c)  Except as provided by Subsection (d), a declaration of a
	mixed-use real estate development may be amended only by a vote of a
	majority of the total votes allocated to property owners entitled
	to vote on the amendment of the declaration.
	(d)  If the declaration contains a lower approval
	requirement than prescribed by Subsection (c), the approval
	requirement in the declaration controls.  If the declaration is
	silent as to voting rights for an amendment, the declaration may be
	amended by a vote of a majority of the total votes allocated to
	property owners entitled to vote on the amendment of the
	declaration.
	(e)  While the mixed-use real estate development has a
	current developer, an amendment made to the declaration under this
	section requires the current developer to consent to the amendment
	to be valid.
	(f)  A bylaw of a mixed-use real estate development may not
	be amended to conflict with this section.
	SECTION 2.  This Act takes effect September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1845 passed the Senate on
	April 26, 2019, by the following vote: Yeas 26, Nays 4; and that
	the Senate concurred in House amendment on May 26, 2019, by the
	following vote: Yeas 29, Nays 2.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1845 passed the House, with
	amendment, on May 22, 2019, by the following vote: Yeas 140,
	Nays 4, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor