Mr. Chairman, 

 I will not argue that Developers have the right to invoke rules related to architectural controls and protect their interests while they are selling houses.  However, the continued enforcement of these rules beyond the development phase of any neighborhood is where things go terribly wrong.
   I am referring primarily to subdivisions with no gates, clubhouses, parks or pools, and no real property in common.  Drainage Easements or public roadway medians do not equate to owning “real property”, nor do these elements justify the existence of mandatory Memberships and Dues payments.  Many neighborhoods were initially built outside of city limits, and later annexed by a city.  We now pay City and County Taxes to maintain public right of ways and infrastructure such as streetlights and garbage pickup and Building permits/building inspections, but the mandatory dues continue to go UP.  My association claims it is for “legal fees”. 
The largest builders in North America have built many neighborhoods without any common properties, yet they impose the same boiler-plate mandatory association rules  on the purchasers of basic housing.  In some cases – such as mine- there are MULTIPLE TIERS of mandatory associations,  A homeowner can obtain  approval from one association, and have another association sue them for doing the work that was approved by the first association. I cannot see the need for one, much less two- mandatory associations when there is no real property, especially after the City annexed and now provides the services that seemed to justify the existence of mandatory associations in the first place.
     A SOLUTION to this problem is to legislate a UNIVERSAL term limit for developer-created Mandatory Associations.   I suggest a maximum of 5 years from the sale of the first Home.  When the developer “turns over” the association to the homeowners, there should be a universal standard for homeowners where they Ratify the rules and adopt the existence of a mandatory Homeowners Association BY VOTE of the property owners. 
At least 51% of the property owners should be required to approve the extension of the Mandatory Association, and Ratification of the rules.   MANDATORY PARTICIPATION of the owners, with an approval rating of at least 51% of ALL OWNERS should be required to establish a mandatory Association after the developer’s control ends. 
I believe that a universal expiration of developer-created Mandatory Associations in non-Gated communities would put an end to the vast majority of the horror stories we have heard.  These huge housing mills turn out neighborhoods where the laws of the land (The CC&R’s) have never been ratified by the governed, nor were they created by duly elected representatives of the governed.  We have unknowingly entered into agreements to pay eternal servitude to Dictatorships controlled by the Management industry and foreclosure predators.  THIS IS UNCONSCIONABLE and must be declared as such with LEGISLATION!!!
I ask that the legislature place a burden on - US - the current property owners living in these associations. 
Please!!! 
Burden US with the chore of RATIFYING the existence of our  Mandatory Associations.  Burden us with obtaining signatures from at least 51% of our fellow property owners in each association to save them from extinction.  Make a universal law that applies to all Property Owners Associations, a provision similar to those found in § 201.004 –201.007.  
( http://tlo2.tlc.state.tx.us/statutes/py/py0020100.html ) (repeal  § 201.0051, put an end to these developer-created dictatorships!)
 The Association Management industry has declared that we “Voluntarily agreed” to the terms and conditions found in these Mandatory Homeowners Associations.  Since we allegedly agreed and moved into them voluntarily - knowing what we were getting into – and the vast majority  of us “Love our Associations” (I heard CAI Lawyer William Gammon Say “95%” in Testimony at this hearing), then we will surely flock to the polls to save them from extinction! 
The people living in mandated associations must have the responsibility to periodically participate in them, or lose the privilege of wielding the powers of Private Government.   These regimes must be wanted and fully supported by 51% of the owners.  The will of the people should be measured at least once every 5 years and -  IF participation to this extent is not possible due to apathy or dissent of the majority, then abolish the powers of Government from these unpopular and unsupported Mandatory Associations as the rule, not the exception.
I ask that, as a solution to the growing problem of un-wanted mandatory Associations, This Legislature should declare that automatic renewals for all Mandatory Associations are Unconscionable as a consequence of  perpetuities (Violates Article 1 section 26 of the Texas Constitution).  All Mandatory Association renewals should require a majority Vote of the owners as a universal standard. 
The statutory creation of assessment lien for a debt that might occur in the future may be defined as "Bill of Attainder".   The placement of "empty contractual liens" on property intended for the use as Homesteads equates to "Bills of Attainder", expecting the future homeowners to violate the rules and, therefore, these contractual liens provide a means to punish them through foreclosure. 
These liens never clear, but the assessments cannot be claimed as taxes, either.  No legitimate local government could apply an "empty lien" on property because it appears to violate Article 1 section 16 of the Texas Constitution AND Article I, Section 9, paragraph 3 of the United States Constitution, which provides that: "No Bill of Attainder or ex post facto Law will be passed."  But the Developers have the power to "legislate" Bills of attainder in their "purchase agreements" that establish a private government called a property owners association.
See the handout – 6 Points – solving HOA Problems

1. REQUIRE  all existing mandatory associations over 5 years old, especially non-gated communities with no common real property,  to submit a petition showing that at least 51% of the owners wish to extend the mandatory status.  Associations that fail to be ratified by 51% shall become NULL AND VOID on Dec 31, 2003, and the declarations that established these regimes shall be considered ABANDONED. 

2. Require that all of the rules in every mandatory association be ratified by at least 51% of the owners for the rules to be effective and enforceable after Dec 31, 2003.

3. Require the owners to petition to extend all mandatory associations each 5 years after the initial ratification. 

4. Render unconscionable the automatic renewal of any mandatory association and require that all renewals of mandatory associations follow a universal petition process similar to the one found in property code §201.004- 201.007 (excluding § 201.0051).

5. Render unconscionable the creation of "empty liens" on homestead properties and take away the use of foreclosure as a weapon against homeowners. 

6. REPEAL LITIGATION AMBUSH STATUTE  from Prop Code 209 ( S.B. 507):

Sec. 209.007.  (d)  The notice and hearing provisions of Section 209.006 and
7-26     this section do not apply if the association files a suit seeking a
8-1     temporary restraining order or temporary injunctive relief or files
8-2     a suit that includes foreclosure as a cause of action. 

Thank you, 
Richard Craig
Coalition of Homeowners for Rights and Education 

              The Texas Constitution - Article 3 - LEGISLATIVE DEPARTMENT
Section 22 - DISCLOSURE OF PRIVATE INTEREST IN MEASURE OR BILL; NOT TO VOTE
A member who has a personal or private interest in any measure or bill, proposed, or pending before the Legislature, shall disclose the fact to the House, of which he is a member, and shall not vote thereon.

Senator John Carona violated the Constitution by Voting on SB 507 on May 27*, 2001, because he has a personal interest in this Measure and should have disclosed this fact, and abstained from voting on it:

Community Associations Institute Insider Senator John Carona of Dallas - 
According to the senate journal for (Sunday May 27)* 2001, Senator Carona voted on SB 507: http://www.capitol.state.tx.us/sjrnl/77r/html/5-27.htm

CONFERENCE COMMITTEE REPORT ON SENATE BILL 507 ADOPTED 
Senator Carona called from the President's table the Conference Committee Report on SB 507. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2001. 

Senator Carona moved to adopt the Conference Committee Report on SB 507. 

Senator Lindsay at 8:05 p.m. was recognized to speak against the motion to adopt the Conference Committee Report. 

Question-Shall the Conference Committee Report on SB 507 be adopted? 
(Senator Armbrister in Chair) (Senator Ogden in Chair) (President in Chair) 

Senator Lindsay at 10:20 p.m. yielded the Senate floor. 

Question-Shall the Conference Committee Report on SB 507 be adopted? 

The Conference Committee Report was adopted by the following vote: 
Yeas 17, Nays 1, Present-not voting 1. 

Yeas: Armbrister, Brown, Carona, Duncan, Ellis, Fraser, Jackson, Lucio, Madla, Moncrief, Ogden, Shapiro, Sibley, Staples, Van de Putte, Wentworth, Zaffirini. 
 Nays: Lindsay. 
 Present-not voting: Mr. President. 
 Absent: Barrientos, Bernsen, Bivins, Cain, Gallegos, Harris, Haywood, Nelson, Shapleigh, Truan, West, Whitmire. 
 -------------------- 
Senator Carona has a personal interest in SB 507, he is and was at the time of this vote the chairman of a huge HOA managment company:
http://www.principal-mgmt.com/ProComm/ProComm.htm

http://www.principal-mgmt.com/Bios/John%20Carona.htm

I discovered that Senator Carona was the Registered Agent for Procomm on June 6, 2001, while signing papers to execute a lawsuit against Procomm for Negligence, and a contributor to Litgation Ambush used by Sonterra Property Owners Association, Cause of action 
CAUSE NO. 2000-CI-107379 IN THE DISTRICT COURT 
SONTERRA PROPERTY OWNERS ASSOCIATION, INC. VS. RICHARD WOODROW CRAIG and GERMAINE CRAIG 
IN THE 45TH JUDICIAL DISTRICT COURT BEXAR COUNTY, TEXAS. 

New STATUTE protects HOA LITIGATION AMBUSH Tactics:

6-11           Sec. 209.006.  NOTICE REQUIRED BEFORE ENFORCEMENT ACTION.
6-12     (a)  Before a property owners' association may suspend an owner's
6-13     right to use a common area, file a suit against an owner , other than
6-14     a suit to collect a regular or special assessment or foreclose
6-15     under an association's lien, charge an owner for property damage,
6-16     or levy a fine for a violation of the restrictions or bylaws or
6-17     rules of the association, the association or its agent must give
6-18     written notice to the owner.

I recommend striking the words "other than" from this paragraph.  Under no circumstances should a HOA have  authority to commit litigation ambush.

ITEM #2: 209.006 is meaningless with this provision:

S.B. No. 507, Sec. 209.007.  (d)  The notice and hearing provisions of Section 209.006 and
7-26     this section do not apply if the association files a suit seeking a
8-1     temporary restraining order or temporary injunctive relief or files
8-2     a suit that includes foreclosure as a cause of action. If a suit
8-3     is filed relating to a matter to which those sections apply, a
8-4     party to the suit may file a motion to compel mediation.  The
8-5     notice and hearing provisions of Section 209.006 and this section
8-6     do not apply to a temporary suspension of a person's right to use
8-7     common areas if the temporary suspension is the result of a
8-8     violation that occurred in a common area and involved a significant
8-9     and immediate risk of harm to others in the subdivision.  The
8-10   temporary suspension is effective until the board makes a final
8-11   determination on the suspension action after following the
8-12   procedures prescribed by this section.

The intent of 209.006 is to protect homeowners from being ambushed with lawsuits. By allowing section Sec. 209.007 (d), section 209.006 is voided and the occurrence of "litigation ambush" remains a threat to homeowners. 

I recommend striking the following words from this section:

The notice and hearing provisions of Section 209.006 and
7-26     this section do not apply if the association files a suit seeking a
8-1     temporary restraining order or temporary injunctive relief or files
8-2     a suit that includes foreclosure as a cause of action. 

Change this so ALL HOA directors must be filled by duly elected members, appointments shall not last more than 1 year without an election in any Mandatory HOA. 

204.004. Property Owners' Association 

(a)A property owners' association is a designated representative of the owners of property in a subdivision and may be referred to as a "homeowners association," "community association," "civic association," "civic club," "association," "committee," or similar term contained in the restrictions. The membership of the association consists of the owners of property within the subdivision.

(b) The association must be nonprofit and may be incorporated as a Texas nonprofit corporation. An     unincorporated association may incorporate under the Texas Non-Profit Corporation Act (Article 1396–1.01 et seq., Vernon's Texas Civil Statutes).

(c) The association's board of directors or trustees must be elected or appointed in accordance with the applicable provisions of the restrictions and the association's articles of incorporation or bylaws.

*Correction on Date – was originally stated as May 22