Association’s Extension of Declaration Ruled Valid

This case involved a dispute between two association members (jointly referred to as “Owner”) and their property owners association (“Association”) over the validity of an amendment to Association’s declaration that purported to extend the term of the declaration to 2024.

Owner contended the procedure followed by Association for the adoption of the amendment did not comply with the requirements for amendments set forth in the declaration and therefore, was invalid and did not extend the term of the original declaration. Accordingly, Owner refused to pay annual assessments in 2014-2018 and then filed suit against Association in 2018 seeking a declaratory judgment that: (i) the original declaration had not been validly extended; (ii) the amended declaration was not valid and binding on Owner or their property; and (iii) that Association no longer had a right to charge Owner for assessments or to put a lien on their property for unpaid charges. In response, Association contended the amendment to the declaration was valid and enforceable and Association had the right to recover the unpaid assessments plus attorney’s fees from Owner.

The language contained in Section 7.3 of Association’s declaration set forth the requirements for amending the declaration and stated, in part:

This declaration may be amended during the first twenty (20) year period by an instrument signed by not less than ninety percent (90%) of each class of members, and thereafter by an instrument signed by not less than seventy-five percent (75%) of each class of members. Any amendment must be recorded in the Deed Records of Kendall County, Texas.

Owner contended that the above provision required the amendment document to be signed by the requisite number of association members (at least 90%), and then the same document had to be recorded.

In adopting the amendment, Association sent letters to each of the members asking them to: