The bill, S.B. No. 1935, amends the Texas Property Code to enhance the governance and operation of property owners' association boards. Key changes include stipulations for board meetings to be held within specific geographic limits, ensuring that they occur in a county where the property is located or within 10 miles if a majority of board members are not elected by owners other than the declarant. Additionally, the bill establishes requirements for board member elections, mandating that at least one-third of board members be elected by owners other than the declarant within a specified timeframe after a majority of lots are conveyed. It also introduces a new requirement for associations to provide notice to owners regarding board member elections and outlines the conditions under which fines can be assessed, emphasizing that they must be reasonable and capped for continuing violations.

Furthermore, the bill imposes a restriction on increasing regular assessments by property owners' associations, limiting annual increases to no more than five percent unless approved by a majority vote of property owners. The amendments apply to all property owners' associations regardless of when their declarations were adopted, with specific deadlines set for compliance by March 1, 2026. The bill is set to take effect on September 1, 2025, and includes provisions that ensure existing fines and assessment increases are governed by the law in effect prior to the bill's enactment.

Statutes affected:
Introduced: Property Code 209.00591, Property Code 209.0061 (Property Code 209)