At the beginning of September, several new HOA laws when into effect in Texas. The reform laws were passed by the Texas Legislature and aim to help balance the power and right between property owners and their associations. The goal is to create a more harmonious atmosphere between residents and associations and clear up ongoing confusion between each group about the expectations and responsibilities they must uphold.
The new Texas HOA Laws include:
- The capping of fees for subdivision information at $375 and updated resale certificates at $75.
- The Texas Real Estate Commission (TREC) will create a central database of Texas HOAs by December 1, 2021. The database will be publicly accessible, and HOAs that have filed management certificates in county records before December 1 are required to file with TREC by June 1, 2022.
- HOAs that have a contract with a management company or at least 60 lots are required to maintain websites that include management certificates, meeting information, and important notifications.
- Dedicatory instruments with certain contact information and management certificates are required to be filed with the county by HOAs.
- When a fine or fee is being disputed by a property owner, they have new protections from negative credit reporting. HOAs are also required to give the homeowner a detailed report of charges and offer them a payment plan before reporting the delinquency.
- Certain conflicts of interest within HOA architectural review boards are prevented.
- HOAs are only allowed to request tenant’s contact information and lease start and end dates. They are not allowed to require access to lease agreements.
- For contracts and services over $50,000, HOAs must solicit bids.
- Certain pool safety enclosures, security measures on an owner’s private property, and religious displays cannot be prohibited by HOAs.
- Property owners are required to be provided with timely notice about meetings from the HOA board.
- In dispute resolution and additional legal avenues regarding a dispute with an HOA, there are improved due processes.
For more information on the new Texas HOA laws that have gone into effect, click here. If you have questions about how these changes affect your community or how we can help you manage your HOA, contact Prism Realty Management. Give us a call at 512-676-5842 — we’d be happy to talk to you about who we are, the services we offer, and our process.
