New HOA laws in Texas that property owners should be aware of
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Texas HOA FAQs
More than 21,000 homeowners associations exist in Texas, with residents paying $9.5 billion a year to maintain their communities, according to the
. Those 2,093,000 homes are generally valued at least 4% more than other homes.
Here’s everything you need to know about buying a home in an HOA in Texas.
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Since 2015, the Texas legislature has made a number of changes to Chapter 209 of the Texas property code, adding due process protections such as notice and hearing for violations.
The latest changes, Senate Bill 1588 enacted by the 2021 Texas Legislature, has 27 sections that modify three chapters of the Texas Property Code. It took effect on Sept. 1, 2021. The changes include:
- Fees are capped at $375 for an initial resale certificate and at $75 for an updated resale certificate.
The Texas Real Estate Commission was required to create a database of Texas HOAs. You can now access it at hoa.texas.gov.
- HOAs are required to file a management certificate with the county clerk identifying who is responsible for managing its operations.
- HOAs that have at least 60 lots or have contracted with a management company are required to maintain a website with management certificates and a meetings calendar.
- Homeowners have new protections from negative credit reporting when an HOA fine or fee is in dispute. HOAs are required to give a detailed report on what they owe and offer a payment plan before it goes on their credit report.
- HOAs can no longer require access to lease agreements, and are only allowed to request a tenant’s contact information and lease beginning and end dates.
- HOAs are required to obtain multiple bids for neighborhood projects over $50,000.
- HOAs are barred from prohibiting pool safety enclosures, the installation of security measures, or religious displays.
HOA boards are required to provide members with timely notice about meetings.
Improvements with some conflicts of interest within HOA architectural review boards, as well as due process and additional legal avenues in dispute resolution.
This story was originally published September 23, 2022 at 5:00 AM.
