Many communities and neighborhoods in Texas are governed by homeowners' associations. These private organizations are responsible for maintaining communal areas and ensuring that aesthetic standards are met. Although HOAs have their own governing rules and regulations, they must adhere to state laws.
If you are an HOA manager, board member, or executive hoping to learn more about these laws, you have come to the right place. In this article, we will cover the rights and responsibilities of HOAs in greater detail and answer some of the most asked questions about these organizations.
What Is a Homeowners' Association?
Before getting into the applicable laws, rules, and regulations, let's first talk about what a homeowners' or property owners' association is.
A homeowners'association (HOA) is a community group that manages residential projectsand enforces specific rules and regulations in neighborhoods or condominium complexes.
Homeowners who live within the confines of the association are legally obligated to join the HOA and are expected to pay fees that fund maintenance, amenities, and common space upkeep.
The HOA board, which is made up of elected members, is in charge of administering the funds and making decisions about community standards, architectural guidelines, and property maintenance.
While property or condominium associationscan bring benefits such as increased real estate values and shared amenities, they can also impose strict regulations that limit residents' freedomand privacy, making it very important for them to understand and follow the bylaws of the association.
Governing Documents
In Texas, homeowners'associationsrely on a set of governing documents designed to regulate community life.
The Declaration of Covenants, Conditions, and Restrictions (CCRs) is one of these documents, and it provides key criteria such as architectural requirements and land use. Bylaws define the organization of the HOA, including how boards are elected and how meetings are held.
Moreover, the HOA's legal position is defined by the Articles of Incorporation. Rules and Regulationsis another document that contains details on a variety of topics,such as pet rules and noise control.
The aesthetics of theproperties in the neighborhood or communityare governed by architectural guidelines, and community borders and lots are defined by plat or subdivision maps. Resale certificates provide information about the property's status during sales.
Texas HOA Laws
Property owners' associations in Texas are governed by a number of laws. Let's take a look at some of the applicable Texas property codes in the section below.
Chapter 209 of the Texas Property Code
The Texas Residential Property Owners Protection Act addresses a variety of issues, including the following:
- Third-party collection protections
- Voting andelections
- Lease regulations
- Maintaining documentation
- Theadministration of aboardof directors
- Foreclosures because of unpaid fees
- Necessary notices
- The right of property owners to obtain access torecords
This chapter of Texas law was amended with Senate Bill 1588 in 2021. The revised law compels HOAs to retain certain facts on a "management certificate."
These certificates must include the name of the organization, its mailing address, the names of the individual who is in charge of the organization, as well as their contact information, and a link to the HOA's website.
These management certificates are required to be filed with the county clerk in the county in which the organization is registered. Any changes to themmust also be documented. HOAs must also file managementcertificates onlinewith the Texas Real Estate Commission (TREC).
Chapter 202 of the Texas Property Code
These lawsexamine "restrictive covenants" in general. The chapterincludes a clause relating to an association's obligation to file dedicatory instruments with the relevantcounty, as well as an itemized list of limitations.
Chapter 22 of the Texas Business Organizations Code
This set of lawsdealswith the establishment of non-profit organizations. Since many homeowners' associations tend to operate as non-profit corporations, this chapter will explain how an association should be founded and run.
In Texas, many HOAsare incorporated as nonprofit organizations. This means they are legal entities registered with the Secretary of State andestablished under Texas law.
It's important to note that some homeowners' associations are not formalized, which means that a numberofthe Texas homeowners' association laws listed in the codes abovewill not apply.
The Rights and Responsibilities of Homeowners' Associations in Texas
In Texas, HOAshave certain rights and obligations that are defined in state law as well as the governing documents of the association.
HOA Rights in Texas
First, let's take a look at some of the rights HOAs have in Texas, according to state law.
The Collection of Fees Known as "Assessments" or "Dues"
Property owners' associationshave the authority to request assessments orfeesfrom members in order to support the upkeep of common areas and pay forcommunity services.
Enforcing Community Rules and Regulations
In addition, HOAs have the authority to enforce theirrules and regulations, such as those pertaining toarchitectural guidelines, landscaping, and pet restrictions.
Access to Common Areas and Shared Facilities
Property owners' associationsare responsible for maintaining and restoring common amenities such as parks, swimming pools, and clubhouses. They also have the right to access these facilities in order to conduct the necessary upkeep.
The Right to CreateBylaws
Homeowners'associationshave the authority to develop and alter their governing documents, such as bylaws and covenants, conditions, and restrictions (CCRs).
Host Meetings
These nonprofit corporations also have the right to host meetings to discuss certain matters that pertain to the community. In addition, members have the right to attend.
Responsibilities
HOAs also have certain responsibilities.
Property Owners' Associations Must Be Transparent
Associations must be open and honest about their finances, regulations, and decisions. They must make documents and financial statements available to homeowners.
Fair and Consistent Enforcement of Rules and Regulations
Property owners' associationsmust alsoapply regulations to all homeowners in a fair and consistent manner. Discrimination in the application of rules is not allowed, and members can file lawsuits against HOAs for housing discrimination.
Annual Budgets
HOAs must set up and distribute annual budgets to residents, which cover the organization'sspending and assessments.
The Responsibility to Host Open Meetings
Homeowners' associations in Texasare required to have open meetings where residents can attend,observe, and contribute todiscussions and decisions.
Record-keeping
Community associations in Texas are required to retainrecords of meetings, financial transactions, and official communication that members may view.
Election Procedures
HOAs must create fair procedures for theelection ofthe board of directors and provide voting rights to homeowners in suchelections.
Providing Access to Governing Documents
Lastly, homeowners' associations are required tooffer membersaccess to governingdocuments so that they are familiar with the rules and regulations.
Understanding the Fines That HOAs in Texas Are Legally Permitted to Impose
If indicated in the governing documents, a homeowners' associationin Texas can levy fines on a parcelowner who violates its regulations. Keep in mind that Texas law does not explicitly state that community associations havethe authority to charge members fines.
However, the type of fine and the amount that can be charged per violation must be explicitly stated in the HOA's governing documents.
Supposethe governing documents allow for the levying of fines. In that case,a formal writtennotice must be delivered by certified mail detailing the nature of theviolation, the fee to be charged, and any rights the owner of the property hasor directivesto remedythe situation.
Can Texas HOAs Foreclose a Home Due to Non-payment?
In Texas, a property owners' associationcan foreclose on a house that is located in its community. When a homeowner fails to pay their assessments, the HOA will place a lien on the property. If a lien is not addressed, the associationmay foreclose on the property to secure the outstanding fees.
It's important to mention here that a property owners' associationcannot evict a homeowner. When the owner of the property is leasing the home to a tenant, however, the HOAmay be in a position to evict the tenant in certain cases.
Furthermore, the HOA's governing documents may contain additional authorities or limits affecting rental properties.
There are two ways to go about foreclosing a home:
- Non-judicial or expedited foreclosure. If permitted by the governing documents, residential homeowners' associationsmay seek a court order authorizing the sale of the property. However, it's important to note that sufficient notice must be provided to the homeowner, who has the option of disregarding this document by providing written notice unless they live in a condominium.
- Foreclosure by court intervention. With this method, the association willfilea foreclosure petition with the court in the county where the property being foreclosed is located. If the court rules in favor of the HOA, the home canbe seized and sold in order to pay the lien.
Property Owners' Associations in Texas May Not Impose Fines for Certain Reasons
According to federal and state law, homeowners' associations in Texas may not charge fines for the following reasons:
- Introducing solid-waste composting techniques.
- Setting up antennas andsatellite dishes.
- Exhibiting the US national,Texas,or any type ofmilitary flag as long as it is done in accordance with federal flag display law.
- Making use of drought-resistant landscaping.
- Putting in a backup electric generator.
- Roof shingle installation.
- Incorporating rain barrels or other environmentally friendly irrigation methods.
- Putting in a solar energy apparatus.
- Displaying religious objects on the front door is permissible as long as it is in accordance with Texas law and the US Constitution.
- Storing, transporting, or firing a gun as long as the resident is lawfully permitted to do so.
It's important to note here that an HOA's governing documents may contain regulations on how these items may be displayed so as not to detract from the neighborhood's aesthetics.
How to Join or Leave a Property Owners' Association in Texas
If a person buys a house in a community that is regulated by a homeowners' associationin Texas, they have tobecome a member and follow the HOA'sregulations.
At the closing of their property purchase, the new homeownershould be given documents that define the associationand the regulations it enforces.
Keep in mind that if a homeowner moves to an area that is governed by a property owners' association, they may not opt out of it. The only way to leave isby selling theirhouse or petitioning to have their residence removed. Only once the petition is granted can they leave the association.
Dissolving an HOA in Texas
There may come a time when it's best to dissolve a property owners' association. In Texas, the legal procedure for dissolving anHOA is often outlined in the organization's governing documents. If thisis not specified, a majority vote of theresidents that make up the HOAis necessary to proceed with the dissolution.
A property owners' association can be dissolved if at least 75 percent of participants agree to the dissolution. The petitioner circulator must create and distribute a petition to dissolve the association to members.
If the majority of members vote in favor of the dissolution, the association'spetition circulator then submits an affidavit to the county clerk.
Once all of the paperwork has been filed with the county clerk, the HOA is officially dissolved. Alternatively, the association will be considered dissolved on the date stated on the petition.
Complaints
If a homeowner has reservations about the restrictions or fees being charged by a homeowners' association in Texas, they can file a complaint with a number of organizations.
Fees
According to the Texas Debt Collection Act, residents may file a formal complaint in a federal or state court. Alternatively, property owners may use one of the following methods to complain about HOA fees:
Housing Discrimination
Should a property owner feel that they are being discriminated against, they can approach one of the following organizations:
Keep in mind that they can also initiate a private lawsuit and take the matter to a state or federal district court.
About DoorLoop's HOA Tools
The truth is that staying on top of things as a manager, administrator, or member of the board of directors of an HOA isn't always easy. Fortunately, property management software can help to streamline your workflow and ensure that you remain compliant with Texas HOA laws.
With DoorLoop's revolutionary technology, you can collectHOA assessments, save files, monitor and trackmaintenance operations, resolve issues, and much more. Furthermore, if you need help with accounting, DoorLoop's unique features and user-friendly platform make performing critical accounting functions a pleasure.
DoorLoop alsohas a communication platform that allows you to send outannouncements to homeowners and liaize with vendors to finalize the details of maintenance tasks.
Contact us today to learn more about DoorLoop's innovative software or get a free demo to try it out for yourself, risk-free!
Final Thoughts
When running a property owners' association, it's important to understand the Texas homeowners' association laws that govern these associations to avoid penalties.
Now that you have all the information you need, you can ensure that you remain compliant with the relevant statutes.
If you are hoping to streamline your operation and ensure greater efficiency, then you need to try DoorLoop. The best part is that you can test it out before making a commitment by signing up for a free demo.
To see what DoorLoop's HOA tools can do for you, get in touch with us today!
Frequently Asked Questions
1. Is a homeowners' association allowed to enter a resident's property in Texas?
Yes. An HOA in Texas may access a resident's home as needed for theupkeep of shared utilities orcommon spaces.
Although the home itself might not require maintenance by the HOA, some areas, such as balconies, may. The governing documents should stipulate the conditions under which the property owners' association may access the premises.
It's also important to mention here that HOAs must provide the homeowner with written notice at least one to two weeks before entering the property unless there is an emergency. The notice period should also be stipulated in the governing documents.
2. What is a resale certificate?
A resale certificate is essentially a collection of documents issued by a property owners' associationor the company that manages it. They include disclosures as well as specific details about the property in question and the association.
While each organization has its own set of rules, some obligations apply to all Texas transactions involving mandated associations. In Texas, the seller will have to provide the buyer with a resale certificate by the period specified in the purchase contract.
3. Can an HOA evict a tenant?
Yes, in some cases, an HOA may evict a tenant. Suppose a lease agreement was signed without the proper authority from the association. In that case, it may be able to evict the tenant. The grounds for evicting a tenant are most often contained in the organization's governing documents.
4. How can property management software help me manage an HOA?
Property management software can helpsimplify HOA administration by automating processes such as feecollection, financial tracking, and communication with property owners.
It allows for easy access to important documents and promotesefficient record-keeping. Furthermore, it can improve overall community administration by facilitating interaction and collaborationamong board members and residents.
