The bill, S.B. No. 1935, amends the Texas Property Code to enhance the governance and operational structure of property owners' associations. Key changes include stipulations regarding board meetings, which must now be held in a county where the property is located or within 10 miles of the subdivision 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 notify owners about board member election rights and sets guidelines for the assessment of fines, ensuring they are reasonable and capped for continuing violations.

Furthermore, the bill imposes a restriction on increasing regular assessments, 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 for compliance set for March 1, 2026. The bill is set to take effect on September 1, 2025, and includes provisions that ensure existing fines and assessments 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)