Homeowners and board members may have a hard time grasping Texas HOA laws. After all, there are plenty to sift through, and it’s not always easy to verify which ones apply to associations. Here, we enumerate the laws in Texas that all HOA members should know.
The Importance of Understanding Texas HOA Laws
First of all, why should homeowners and board members even understand the HOA laws in Texas? As with any other law, understanding HOA laws allows members to protect their rights and stay away from potential liability.
Board members have a duty to run the association. It goes without saying that the HOA board must do so in a manner that aligns with state laws in addition to the governing documents. Breaching the law could result in serious legal consequences for both the HOA and its board.
For homeowners, knowing HOA laws in Texas helps them discern when their association is acting outside its scope of authority. For instance, if an HOA has a rule that they have no authority to enforce in the first place, homeowners can challenge the rule.
What are the Texas HOA Laws and Rules?
Several statutes in the Lone Star State can apply to associations. Here are the different Texas HOA laws that members should know.
Texas Condominium Act
The Texas Condominium Act applies to condominiums created before January 1, 1994. It is found under Title 7, Chapter 81. This Act tackles several topics, such as the formation and termination of COAs, the management of condo records, insurance, and voting.
Texas Uniform Condominium Act
The Texas Uniform Condominium Act applies to condominiums created after January 1, 1994. However, if the condo association elects to be governed by this Act, it can also apply to condominiums created before January 1, 1994. This would require an owner vote and an amendment to the declaration.
The Texas Uniform Condominium Act can be found under Title 7, Chapter 82. Its applicability extends to residential, commercial, and industrial condominiums. Topics under this Act include the powers of the condominium association, meetings, condo board members, quorums, voting, assessments, and maintenance.
Texas Property Code
The Texas Property Code applies to property owners associations (POAs) in Texas. Texas law recognizes homeowners associations as POAs. This Act can be found under Title 11, Chapters 201 to 215.
This Act covers several topics, including restrictive covenants, disclosure of information, the association’s responsibilities, and protections for homeowners. It also includes a chapter on master mixed-use POAs.
Construction And Enforcement Of Restrictive Covenants
Chapter 202 of the Texas Property Code covers the construction and enforcement of restrictive covenants. It focuses on how HOAs can enforce and initiate legal proceedings to uphold the restrictions. It also covers prohibited restrictions.
Texas Residential Property Owners Protection Act
Chapter 209 of the Texas Property Code establishes the guidelines for governing and operating HOAs. It covers various topics, including association records, notice before enforcement actions, hearings before the board, and foreclosure restrictions.
Texas Cooperative Association Act
The Texas Cooperative Association Act applies to cooperative associations and is found under Title 6, Chapter 251. This Act covers formation and governance, management, membership, voting rights, meetings, and association records.
Texas Nonprofit Corporation Act
The Texas Nonprofit Corporation Act applies to nonprofit corporations, which HOAs usually are in Texas. Condominiums, on the other hand, can file as a nonprofit or for-profit corporation. This Act can be found under Title 2, Chapter 22.
The Texas Nonprofit Corporation Act covers a wide range of subjects, including the corporation’s powers, governing documents, members and management, and corporation records and reports.
Texas Fair Housing Act
The Texas Fair Housing Act is the state equivalent to the federal Fair Housing Act. It can be found under Title 15, Chapter 301. This Act offers protection against housing discrimination. Protected classes include race, color, sex, religion, national origin, and familial status.
HOA State Law vs HOA Bylaws
While both state law and an HOA’s bylaws govern homeowners associations, they are not one and the same. State law takes precedence over bylaws and other governing documents. If a provision in the bylaws conflicts with state laws, the latter always wins.
Another difference is that legislative bodies enforce state law. On the other hand, the HOA board enforces the bylaws.
Homeowners associations must ensure that their governing documents, including the bylaws, align with federal and state laws. More often than not, this requires the help of a lawyer or management company.
Texas HOA Laws Frequently Asked Questions
Navigating the laws in Texas can come as a challenge for homeowners associations. Here are some frequently asked questions that might help make it easier.
How do you form an HOA in Texas?
In Texas, most homeowners associations operate as nonprofit corporations. For this reason, an HOA must file Articles of Incorporation with the Secretary of State to incorporate.
Do HOA governing documents need to be recorded in Texas?
Yes. According to Section 202.006, HOAs must record their governing documents, such as the CC&Rs and bylaws. Doing this makes them accessible and available to the public, including homeowners.
Can an HOA impose fines for violations in Texas?
Homeowners associations in Texas can generally impose fines for violations of the rules. According to Section 209.006, HOAs must send written notice of the violation and allow homeowners to cure the violation before issuing fines. Homeowners must also be given the opportunity to attend a fair hearing.
Do homeowners have a right to inspect HOA records in Texas?
According to Section 209.005 and Section 215.0135, members have a right to examine the HOA’s books and records. This promotes transparency and accountability. After all, homeowners should know how the HOA is using their fees.
Can an HOA place a lien on my home in Texas?
Yes, an HOA may place a lien on a home if the homeowner defaults on their dues payments. Section 209.0094 outlines the notice requirements for assessment liens.
Can an HOA foreclose in Texas?
Yes, an HOA may foreclose on a home in Texas to recover unpaid fees from the homeowner. Homeowners associations must adhere to the laws on foreclosure found under Section 209.009, Section 209.0091, Section 209.0092, Section 209.0093, Section 209.0094, Section 209.010, and Section 209.011.
A Professional Touch
Given the number of Texas HOA laws, homeowners and board members may understandably find it hard to go through all of them. Plus, it requires a certain background in law. Associations can make things easier by hiring an HOA management company or lawyer.
Preferred Association Management Company offers exceptional HOA management services to communities in Central Texas. Call us today at 512-918-8100 or contact us online to learn more!
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