The Texas Residential Property Owners Protection Act plays a major role in how homeowners associations operate across the state. It offers structure, rights, and safeguards to both homeowners and HOA boards. Understanding this Act helps all parties navigate their responsibilities and avoid disputes.
What is the Texas Residential Property Owners Protection Act?
The Texas Residential Property Owners Protection Act, found in Chapter 209 of the Texas Property Code, outlines rules that homeowners associations must follow. The law applies to mandatory HOAs that manage planned communities with recorded deed restrictions. It does not cover condominiums, which follow different sections of Texas law.
The purpose of this Act is to balance the power between HOA boards and homeowners. It also ensures more fairness, better transparency, and consistent processes across Texas communities.
Definitions in the Texas Residential Property Owners Protection Act
To understand the provisions of the Act, it is important to first define key terms under Texas Property Code 209. According to this Act:
- An association refers to the HOA or property owners association. In Texas. HOAs fall under property owners associations.
- The board means the elected body that manages the HOA. Other terms include the HOA board, association board, and board of directors.
- An assessment is the fee that homeowners pay to fund the HOA’s operations. It’s also referred to as fees or dues.
- The governing documents include the declaration (or CC&Rs), bylaws, and rules.
Key Provisions Under the Chapter 209 Texas Residential Property Owners Protection Act
Board members should study Texas law or enlist the help of a lawyer to understand their responsibilities better and protect owner rights. That said, the Texas Residential Property Owners Protection Act covers the following:
Board Meetings
The Act promotes transparency by requiring HOAs to give advance notice of board meetings. The law requires:
- A written notice at least 72 hours before regular meetings.
- Clear details on the date, time, location, and agenda.
- Posting notices in common areas or on available websites.
Board meetings must be open to all members, except in specific executive sessions. The law allows executive sessions so that the board can discuss legal matters, enforcement actions, or private financial details.
Records Access
The law gives homeowners the right to access HOA records. Associations must keep detailed records, including financials, minutes, and contracts. Homeowners can request copies by submitting a written request. The board must respond within 10 business days and make records available within 15 more business days.
Associations may charge a reasonable fee for these copies. They may also limit access to certain sensitive records, such as private account data or legal communications.
Collection of Assessments
The Act outlines how associations can collect unpaid assessments. It sets rules that the board must follow before pursuing serious actions like foreclosure. These rules include:
- Sending a written delinquency notice that includes the amount owed, late fees, interest, and a 30-day opportunity to cure the debt.
- Offering a payment plan for at least 3 months.
- Informing the homeowner of their right to a hearing.
Additionally, associations cannot foreclose for fines alone. The law only permits foreclosure after following the proper process and giving the homeowner a fair chance to respond.
Payment Plans
Under Section 209.0062, HOAs must offer payment plans to delinquent owners. The plan must allow repayment over a minimum of 3 months.
It may include interest and collection costs, but not attorney fees unless the owner defaults. An HOA can only deny owners a payment plan if they failed to fulfill a previous one within the last two years.
Fines and Enforcement
The Act outlines a specific process for issuing fines. An HOA must send a written notice to the homeowner before levying monetary penalties. This notice must include the fine amount, the specific violation, and the owner’s right to a hearing.
In Texas, homeowners have 30 days to request a hearing. If a hearing is scheduled, the board must give at least 10 days’ notice of the date and time. This process provides homeowners a chance to correct the violation or challenge the claim.
Texas law does not automatically give HOAs the authority to issue fines. This authority must be outlined in the governing documents.
Amendments to Rules and Restrictions
For rules to be enforceable, the association must have adopted them properly. To do this, the Act requires that:
- The board holds an open meeting to discuss proposed rule changes.
- Homeowners receive notice of the meeting and the proposed changes.
- After approval, the association must record the amendment in the county records.
For changes to the declaration, most associations require a vote from the membership. The CC&Rs or declaration typically outlines the percentage necessary to approve the amendment.
Foreclosure Protections
One of the most important protections under this Act involves foreclosure. Associations cannot foreclose on a home without following strict guidelines. The law requires the following:
- A 30-day notice of default and intent to foreclose.
- An opportunity to pay the debt or enter a payment plan.
- Board approval before initiating foreclosure.
- Judicial foreclosure if the property qualifies for homestead protection.
Associations must record a notice of lien before foreclosure and follow all due process requirements. These protections aim to ensure fairness and prevent the loss of a home due to small debts.
Elections and Board Governance
The Texas Residential Property Owners Protection Act also includes detailed rules about how HOAs must run board elections. These rules cover the following:
- Open nominations for board positions.
- Secret ballot voting for contested races.
- Clear notices of upcoming elections.
- Rules on who qualifies to vote or serve.
Associations must also follow rules about board structure and term limits, especially in newer developments where the builder still controls the board. After a certain number of homes are sold, the developer must hold a transition meeting to turn over control to homeowners.
Management Certificates
Associations must file a management certificate with the county clerk. The certificate must list the following:
- The name and address of the HOA.
- Contact information for the manager or managing agent.
- Recording data for the governing documents.
- Website address, if available.
This Act also requires associations to update the certificate as necessary. This ensures that homeowners and other parties will know how to get in touch with the HOA and access records.
Architectural Review Committees
The Texas Residential Property Owners Protection Act limits the power of architectural review committees. These groups must follow standards and procedures as outlined in the governing documents. Committees must also adhere to reasonable timelines for reviewing owner requests.
Furthermore, committee members must base their decisions on the actual guidelines. There is no room for bias or personal opinions. For denials of requests, the ARC must provide a reason and allow the owner to file an appeal.
Access to Community Amenities
The Act allows HOAs to limit access to pools, parks, and other amenities for owners who are delinquent on dues. That said, the governing documents must clearly state these restrictions. Additionally, the board must enforce these consistently and fairly.
Associations must notify owners of the restriction. They must also inform owners how they can regain access to these amenities.
Legal Action and Dispute Resolution
The Texas Residential Property Owners Protection Act encourages associations to go through dispute resolution before going to court. This gives both the HOA and the homeowner the right to request mediation. Either party can make the first move. Both parties then share the cost unless one party refuses to participate.
Unenforceable HOA Rules
Finally, the Act outlines specific unenforceable rules within an HOA. These unenforceable rules cover the following:
- Solar panels
- Drought-resistant landscaping
- Religious displays
- Display of the U.S. or Texas flag
- Political signs
- Security measures (including security cameras)
- Standby electric generators
- Swimming pool enclosures
- Certain roofing materials
- Firearms and ammunition
- Lemonade stands
Legal Assistance
The Texas Residential Property Owners Protection Act protects homeowner rights and keeps associations accountable. It is imperative to understand the provisions of this Act, especially for volunteer leaders. When in doubt, it is a good idea to hire a lawyer or HOA management company for assistance.
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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