By Shelley Kofler, KERA News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-970810.mp3
Austin, TX – New protections against Home Owner Association abuse are headed to Governor Perry's desk. They come just days after the reforms appeared dead.
Senator Royce West, a Dallas Democrat, says this session he spent more than 40 hours in negotiations with homeowners, home builders and homeowner associations, HOA's. West says he wanted to hammer out a bill of rights for the millions of Texans living in HOA's - an agreement deep-pocketed associations wouldn't kill again.
West: We've worked on this for the last four to five years. It was one of my highest priorities as a legislator when I came down here.
But when the issue came to the House floor Tuesday, and a close ally of business began pushing West's bill, Republican Burt Solomons of Carrollton took his own HOA bill and West's off the table.
Solomons: It was drafted mostly by a few folks from the industry side. Closest thing you got to consumer representation was Senator West. He tried to do a good job to get some things done. But it had to be approved by certain people over there to get it up and get it out.
Beaumont Democrat, Representative Joe Deshotel, chair of the House business and industry committee, sided with Solomons. Deshotel said a prime sticking point was something called priority of payments. Who gets the homeowners' money first when they owe back association dues which lead to attorneys' fees and additional fines? Deshotel said the way West's bill was structured left homeowners more open to foreclosure
Deshotel: They can use the threat of foreclosure to make you pay attorneys fees and fines when foreclosure should be used only for assessments and dues.
The Tuesday collapse prompted headline writers to declare HOA protection DOA.
But Solomons, Deshotel and West kept working, cleaning up discrepancies, looking for bills to which they could attach reforms.
Late Thursday afternoon West announced success. Three bills reining in HOA practices had passed both chambers and were headed to the Governor.
West cited measures that restrict the ability of HOA's to foreclose.
West: If a person is behind in their assessments they can now get a payment plan. We provided homeowners the ability to do away with foreclosure if they want to. If 10 percent of the homeowners in a particular HOA decide to do away with foreclosure as a remedy then they can petition the homeowners association. Then homeowners' board would then be required to do a vote.
The new reforms also entitle a homeowner to a court hearing before an HOA can seize property. They require HOA's to allow homeowners into board meetings and have access to their records.
What that remains is for Governor Perry to sign the reforms. Some wonder whether the Governor's close friendship with Houston home builder and donor Bob Perry, could scuttle all the work. But Senator West is optimistic.
West: I think this is ground breaking for HOA reform in the State of Texas