2021 Texas Legislative Update: Issues Affecting Master-Planned Community & Condominium Developers and Developer-Controlled Communities

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The 2021 Texas Legislative Session has come to an end and a few changes are coming for planned communities. Compared to the 2019 Legislative Session, 2021 was more active with approximately thirty bills filed that would have had some effect on the administration of Texas planned communities. In the end, four meaningful bills passed (five if you count a bill with duplicate language). Fortunately, for developers, there are no major changes to how we structure communities for our clients, or any meaningful dilution of declarant rights to develop, operate, market, and sell lots or condominium units.

Below is a brief summary of each bill with a few observations on sections of each bill, and what steps should be considered related to existing or future governance systems, and association operations in order to ensure compliance with the new laws. A caveat first. These bills are “fresh” and one is somewhat complex. It will take time to see how practitioners will interpret them over time and what best practices will result therefrom.

Please see full Publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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