Texas Property Code

§ 209.0052 — ASSOCIATION CONTRACTS

PR § 209.0052Title 11. RESTRICTIVE COVENANTS · Ch. 209. TEXAS RESIDENTIAL PROPERTY OWNERS PROTECTION ACT

Statute text

(a)This section does not apply to a contract entered into by an association during the development period.

(b)An association may enter into an enforceable contract with a current association board member, a person related to a current association board member within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code, a company in which a current association board member has a financial interest in at least 51 percent of profits, or a company in which a person related to a current association board member within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code, has a financial interest in at least 51 percent of profits only if the following conditions are satisfied:

(1)the board member, relative, or company bids on the proposed contract and the association has received at least two other bids for the contract from persons not associated with the board member, relative, or company, if reasonably available in the community;

(2)the board member:

(A)is not given access to the other bids;

(B)does not participate in any board discussion regarding the contract; and

…

Legislative history

Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 13, eff. September 1, 2021.