Tex. Prop. Code Section 209.0052
Association Contracts


(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 (Degrees of Relationship; Nepotism Prohibitions), 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 (Degrees of Relationship; Nepotism Prohibitions), 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

(C)

does not vote on the award of the contract;

(3)

the material facts regarding the relationship or interest with respect to the proposed contract are disclosed to or known by the association board and the board, in good faith and with ordinary care, authorizes the contract by an affirmative vote of the majority of the board members who do not have an interest governed by this subsection; and

(4)

the association board certifies that the other requirements of this subsection have been satisfied by a resolution approved by an affirmative vote of the majority of the board members who do not have an interest governed by this subsection.

(c)

In addition to the other applicable requirements of this section, an association that proposes to contract for services that will cost more than $50,000 shall solicit bids or proposals using a bid process established by the association.
Added by Acts 2013, 83rd Leg., R.S., Ch. 863 (H.B. 503), Sec. 2, eff. September 1, 2013.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 13, eff. September 1, 2021.

Source: Section 209.0052 — Association Contracts, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­209.­htm#209.­0052 (accessed Jun. 5, 2024).

209.001
Short Title
209.002
Definitions
209.003
Applicability of Chapter
209.004
Management Certificates
209.005
Association Records
209.006
Notice Required Before Enforcement Action
209.007
Hearing Before Board
209.008
Attorney’s Fees
209.009
Foreclosure Sale Prohibited in Certain Circumstances
209.010
Notice After Foreclosure Sale
209.011
Right of Redemption After Foreclosure
209.012
Restrictive Covenants Granting Easements to Certain Property Owners’ Associations
209.013
Authority of Association to Amend Dedicatory Instrument
209.014
Mandatory Election Required After Failure to Call Regular Meeting
209.015
Regulation of Land Use: Residential Purpose
209.016
Regulation of Residential Leases or Rental Agreements
209.017
Justice Court Jurisdiction
209.0041
Adoption or Amendment of Certain Dedicatory Instruments
209.0042
Methods of Providing Notices to Owners
209.0051
Open Board Meetings
209.0052
Association Contracts
209.0055
Voting
209.0056
Notice of Election or Association Vote
209.0057
Recount of Votes
209.0058
Ballots
209.0059
Right to Vote
209.0061
Association Policy
209.0062
Alternative Payment Schedule for Certain Assessments
209.0063
Priority of Payments
209.0064
Third Party Collections
209.0065
Credit Reporting Services
209.0091
Prerequisites to Foreclosure: Notice and Opportunity to Cure for Certain Other Lienholders
209.0092
Judicial Foreclosure Required
209.0093
Removal or Adoption of Foreclosure Authority
209.0094
Assessment Lien Filing
209.00505
Architectural Review Authority
209.00591
Board Membership
209.00592
Voting
209.00593
Election of Board Members
209.00594
Tabulation of and Access to Ballots

Accessed:
Jun. 5, 2024

§ 209.0052’s source at texas​.gov