CERTAIN PROPERTY OWNERS' ASSOCIATIONS SUBJECT TO LAW

A property owners' association is subject to this chapter in the same manner as a governmental body: (1) if: (A) membership in the property owners' association is mandatory for owners or for a defined class of owners of private real property in a defined geographic area in a county with a population of 2.8 million or more or in a county adjacent to a county with a population of 2.8 million or more; (B) the property owners' association has the power to make mandatory special assessments for capital improvements or mandatory regular assessments; and (C) the amount of the mandatory special or regular assessments is or has ever been based in whole or in part on the value at which the state or a local governmental body assesses the property for purposes of ad valorem taxation under Section 20, Article VIII, Texas Constitution; or (2) if the property owners' association: (A) provides maintenance, preservation, and architectural control of residential and commercial property within a defined geographic area in a county with a population of 2.8 million or more or in a county adjacent to a county with a population of 2.8 million or more; and (B) is a corporation that: (i) is governed by a board of trustees who may employ a general manager to execute the association's bylaws and administer the business of the corporation; (ii) does not require membership in the corporation by the owners of the property within the defined area; and (iii) was incorporated before January 1, 2006.