Home owners associations (HOAs) are formed to improve neighborhoods and increase property values, but sometimes their actions conflict with owners’ interests. Texas Senate Bill 1588 and House Bill 3367 were passed on September 1, 2021. These changes are geared to allow more balance between the rights of property owners and their property owners’ associations. All home owners associations (POAs) had until June 1, 2022 to update by laws and be compliant with the law. Here are the changes.
Associations Must file with Texas Real Estate Commission
Home Owners Associations must file a management certificate with the county or counties. As of September 1, 2021, they must also file these certificates and any additional amendments with the Texas Real Estate Commission. Here at http://hoa.texas.gov/ will be a database for the consumer and the association. The bill also expanded on what the certificates will specify.
The required information includes:
- Any amendments to the HOA’s declaration
- A phone number and email address for the person designated as the HOA’s point of contact
- The HOA’s website, if applicable
- The amount and description of a fee or fees charged by the association relating to a property transfer in the subdivision.
HOA Fees are capped
Fees are capped for delivery of subdivision information, including the initial resale certificate (at $375) and updated resale certificates (at $75).
Dedicatory Documents required on maintained website
HOAs that have at least 60 lots or have contracted with a management company are required to make a current version of dedicatory documents available on a website maintained by the HOA or management company.
POAs cannot prohibit the following…
An association cannot prohibit security installations like cameras or a perimeter fence. POAs cannot prohibit a property owner from flying certain flags. They cannot prohibit displaying religious flags and other religious displays on the owner’s property. The installation of swimming pool enclosures that conform to applicable state or local state requirements cannot be prohibited.
Credit Reporting
Property owners have new protections from negative credit reporting when a fine or fee is in dispute, and HOAs are required to give a detailed report of charges and offer a payment plan before reporting delinquencies.
Lease Agreements
HOAs are barred from requiring access to lease agreements and are only allowed to request a tenant’s contact info and lease beginning and end dates.
Other HOA changes
HOAs are required to solicit bids for contracts for services over $50,000. HOA boards are required to provide members with timely notice about meetings. New laws improve due process in dispute resolution and provide additional legal avenues when seeking resolution from a dispute with an HOA.