H.B. No. 1698 introduces a new chapter, Chapter 213, to the Texas Property Code, 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 multiple municipalities, and has portions zoned for uses 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 differently to various parts of the subdivision.

Additionally, the bill mandates that ballots for voting on amendments must be written, detail the proposed changes, and be mailed to lot owners. It also requires that any approved amendments be recorded in the real property records of the relevant counties, providing prima facie evidence of compliance with voting procedures. Importantly, the bill prohibits property owners from contesting the enforceability of amendments on the grounds of lack of mutuality, ensuring that approved changes are binding even if they do not apply uniformly across the subdivision. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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