In Texas, all homeowners’ associations are governed by the Texas Residential Property Owners Protection Act. This document lists out all the rules and regulations that all HOAs must follow. Condominium associations are governed by a separate law called the Uniform Condominium Act.
Homeowners’ Association Rights
All HOAs can draft their bylaws regarding the governing of the association as well as the rules and regulations that homeowners must abide by so long as they are consistent with the Texas Residential Property Owners Protection Act and all state and local laws. Mandatory homeowner participation in the association is up to the discretion of the board of directors and must be outlined in the community bylaws.
In the event of overdue fees, the board of directors can impose liens on the property. If the account delinquency is caused by more than just overdue fees or attorney costs regarding overdue fees, the board of directors can even foreclose on the property regardless of on-time mortgage payments. In the event of foreclosure, the owner can redeem property up to 180 days after the post-foreclosure notice. The owner must repay the HOA for the price paid at the foreclosure sale plus interest, reasonable attorney fees, and any assessments and maintenance costs levied after the sale.
All board meetings are required to be open to association members. The board of directors may, however, request a closed executive session when discussing sensitive information such as account delinquencies. Once the closed session is over, all discussions must be generally summarized, as to not give away sensitive material, and added to the official minutes.
HOA Board Responsibilities
The board of directors will be responsible for maintaining all community records and financial information. Legally, all records must be made available to HOA members upon request unless they contain sensitive information such as attorney files.
If an HOA manages more than 14 lots, it is required to keep certain documents on file and available to homeowners:
Financial records must be kept on file for 7 years.
Account records of current owners must be kept on file for 5 years.
Minutes of all official meetings must be kept on record for 7 years.
Tax return and audit information must be kept on file for 7 years.
Before any fines or liens are enforced, the board of directors is required to send written notice via verified mail. The owner can then request an official hearing before a committee to plead their case.
Community associations are required to hold an annual homeowners’ meeting to discuss the budget and other community matters. If the board of directors fails to hold an annual meeting, it is the responsibility of the owners to immediately elect a new board of directors.
Texas Residential Property Owners Protection Act
If you are setting up a new community HOA or just looking to refresh your knowledge, the full text of the Texas Residential Property Owners Protection Act is available in full online. It thoroughly outlines the rules and regulations that HOAs in the state of Texas must follow.
To ensure that your community association is being run following all state and local laws, it helps to have a professional on your side. CSM has a team of experienced professionals that have worked with communities in almost every state in the US. Specializing in HOA financial management, we can help your board of directors manage association finances, write and submit documents, and prepare for audits. If you have any questions regarding state HOA laws and regulations, give us a call at (865) 315-7505, contact us online or email us at email@example.com.