HB 58

Abstract

Amends the Counties Code. Provides that a restrictive covenant modification to an unlawful restrictive covenant may be filed by: (1) the holder of an ownership interest in property that is subject to the unlawful restrictive covenant; or (2) a common interest community association, a condominium association, a unit owners' association, or a master association of a parcel of property subject to the association's declaration and the parcel is subject to an unlawful restrictive covenant. Includes requirements for a restrictive covenant modification and the petition to modify. Provides that, on receipt of a restrictive covenant modification, the recorder shall submit the restrictive covenant modification together with a copy of the original instrument referenced in the restrictive covenant modification to the State's Attorney. Once submitted to the State's Attorney, the State's Attorney shall make a determination within 30 days if the original document contains an unlawful restrictive covenant. Provides that the recorder may not record the modification unless the State's Attorney determines an unlawful restrictive covenant exists and shall record the modification if the State's Attorney finds an unlawful restrictive covenant. Limits liability of the county for unauthorized modifications. Defines terms. Contains other provisions. House Floor Amendment No. 1 Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes: modifies the type of association or cooperative that may execute and file a restrictive covenant modification; provides that, when a parcel of property subject to an unlawful restrictive covenant is in a common interest community association, condominium association, unit owners' association, residential housing cooperative, or master association, only the board, acting through a majority vote, may execute and file a restrictive covenant modification under the Section; provides that removal of an unlawful restrictive covenant will not require approval of the owners or members of such association or cooperative, notwithstanding any provision of the governing documents to the contrary; provides that, if the board receives a written request by an owner or member of the association or cooperative that the board exercise its authority to execute and file a restrictive covenant modification under the Section, the board shall, within 90 days, investigate any claim of an unlawful restrictive covenant and, if determined to be an unlawful restrictive covenant, shall file a restrictive covenant modification as provided under the Section; provides for a cause of action against the association or cooperative by an owner or member for failure to file a restrictive covenant modification after a request to do so and for attorneys' fees and costs if the owner or member prevails; and requires the board to give notice and a copy of the of the restrictive covenant modification to owners and members. Provides that the recorder may impose a fee for filing a restrictive covenant modification to an unlawful restrictive covenant in an amount not to exceed $10.