HOMEOWNER ALERT

HOMEOWNER ALERT

The 83rd Session of the Texas Legislature has brought new attacks on homeowner rights. In the 82nd Session, HB 1228, Sec.209.0093 allowed removal or adoption of foreclosure authority by 67% of total allocated votes. This was good for homeowners but not acceptable to the CAI whose stated agenda is to enable all HOAs to have the ability to use the new expedited foreclosure. The intent of the prior legislation was to eliminate nonjudicial foreclosure for HOAs.

Those HOAs that previously had nonjudicial foreclosure powers would be able to utilize an expedited judicial process. Those that had only judicial foreclosure authority maintained that authority. HOAs that did not have foreclosure powers were not granted foreclosure powers under last session’s bill.

In this 83rd Session, Rep. Sheet’s bill, HB 2928, is clearly designed to create a power for every HOA in Texas to be able to foreclose – including HOAs that never had such a power in their restrictive covenants. If the HOA had no foreclosure power then it should not be given that power.

HB 2928 creates a “power of sale” for all HOAs and so:

• Would enable the HOA to foreclose when it had no such authority,
• Would entitle all HOAs, including newly empowered HOAs to use an accelerated foreclosure process, and
• Is designed to prevent homeowners from terminating foreclosure power because the legislature is eliminating this power by statute not by restrictive covenant. By doing this, the bill would eliminate any ability of the homeowners to have any say on HOA foreclosure power. If there is an HOA, it could foreclose irrespective of what the restrictive covenants said.

Do contact the House Business and Industry Committee and your state representative asking them to vote against HB 2928.

Here are the members of the Business and Industry Committee:
House Committee on Business & Industry (C040) Clerk: Benjamin Fitzgibbons
Legislature: 83(R) – 2013 Phone: (512) 463-0766
Appointment Date: 1/8/2013 Room: EXT E2.128

Position Member
Chair: Rep. René Oliveira

Vice Chair: Rep. Dwayne Bohac

Members: Rep. Rob Orr

Rep. Eddie Rodriguez

Rep. Jason Villalba

Rep. Armando Walle

Rep. Paul Workman

Here is link to Texas Legislature Online: http://www.legis.state.tx.us/

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