House Bill No. 1698 introduces a new chapter, Chapter 213, to the Property Code of Texas, which specifically addresses the amendment of restrictive covenants in certain multi-zoned subdivisions. The bill defines a "multi-zoned subdivision" as one that was platted before 1965, contains more than 900 lots, is located in two or more municipalities, and has at least one portion zoned for a use not permitted by existing restrictions. The chapter outlines the process for amending these restrictions, including the requirement for approval from at least 67 percent of lot owners in the designated area, and specifies that amendments can apply to all or part of the subdivision.

Additionally, the bill mandates that ballots for voting on amendments must be written, state the substance of the proposed changes, and be mailed to each lot owner. It also requires that any approved amendments be recorded in the real property records of the relevant counties, providing prima facie evidence of the vote's validity. Importantly, the bill prohibits property owners from claiming that amendments are unenforceable due to a lack of mutuality, ensuring that the amendments can be applied even if they do not affect all properties within the subdivision. The provisions of this chapter apply to restrictive covenants enacted before, on, or after the bill's effective date.

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