As of September 1, 2023, some new laws from the 2023 Texas Legislative Action Committee will affect homeowners’ and condominium owners’ associations.
Below are the changes to specific bills and how they will affect COAs going forward.
House Bill 1193
Pertains to COAs & Non-Condominiums: Prevent Of Housing Discrimination Based On Method Of Payment
Change to Chapter 202 of the Texas Property Code
Representative Turner filed House Bill 1193, which protects renters against payment restrictions imposed by associations. This bill was created in response to an association that attempted to prohibit renters from utilizing housing choice vouchers (aka Section 8 Vouchers) as their payment method. While the vast majority of associations do not currently have these restrictions in place, House Bill 1193 states that an association’s method of payment must include payments made (in whole or in part) by a housing choice voucher either under Section 8 or any other federal, state, or local housing assistance provided to an individual or property owner on behalf of the individual. This assistance can include rental vouchers, rental assistance, or rental subsidies.
Senate Bill 1668
Pertains to COAs: Management Certificates, Websites, Resale Fees
TREC Management Certificate Filing Required before March 1, 2024
In response to changes imposed by Senate Bill 1588 (2021), Senate Bill 1668 is viewed as a “clean-up” bill. While this bill imposes additional requirements on COAs, much like the HOA legislation in SB 1588, it will also modify several requirements in SB 1588 to remove legal uncertainty.
Change to Chapter 82 of the Texas Property Code
Management Certificates
- COA certificates must now include statements about declaration amendments, management company contact information, and fees charged for a unit transfer.
- Any of these changes requires an amended management certificate to be recorded within 30 days. The management certificate must be filed with TREC within seven days after it is recorded.
Websites
- COAs that contain 60 units or more must maintain a website, making all dedicatory instruments (relating to the COA and filed in official public records) available on the website.
- The association or a management company must maintain this website.
- This website must be accessible to association members.
Resale Certificate Fees
- COAs may charge a reasonable and necessary fee, to be at most $375, to furnish a resale certificate.
If your HOA Board has questions about the new 2023 Texas Legislative laws for COAs, contact Prism Realty Management or visit this website. Call us at 512-676-5842 — we’d be happy to talk to you about who we are, the services we offer, and our process.
