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Last year, Texas passed House Bill 614, which requires HOAs to be more transparent about fees charged to homeowners. The new law went into effect on Jan. 1, 2024. HOAs are mandated by law to provide property owners with a catalog outlining prohibited items, a fine timetable, and details on the conduct of hearings.
(D) Quorum. Twenty-five percent of the members represented by person or by proxy shall constitute a quorum at a meeting of the members. If less than 25% of the members are represented at a meeting, a majority of the outstanding members so represented may adjourn the meeting from time to time without further notice.
There must be at least three people on the Board of Directors. If an association's governing documents do not state how many people must serve on the Board of Directors, Texas law says that the number will be equal to the initial number of directors listed in the Articles of Incorporation.
All communities differ, and larger HOAs may have bigger boards while smaller ones have fewer members. On average, an HOA's board is comprised of three to five members.
Homeowners associations in Texas must be incorporated as nonprofit organizations under the Texas Nonprofit Corporation Act. Meanwhile, inium associations may be organized as for-profit or nonprofit corporations. The association must file the Articles of Incorporation with the Texas Secretary of State.
Disclosure Requirements Disclosure is mandated by law, often through public records and real property records. Before purchasing a home, buyers must receive a set of documents detailing the HOA's health, such as its covenants, conditions, restrictions, bylaws, rules, and financial statements.
HOA Rights in Texas The Collection of Fees Known as "Assessments" or "Dues" ... Enforcing Community Rules and Regulations. Access to Common Areas and Shared Facilities. The Right to Create Bylaws. Host Meetings. Property Owners' Associations Must Be Transparent. Fair and Consistent Enforcement of Rules and Regulations.
House Bill 614 guarantees your right to a hearing before the HOA board to contest the violation or the proposed fine. This ensures a fair and transparent process where you can voice your concerns and advocate for your interests.
Certificates are filed in the county where the property is located and electronically in the Homeowners' Association Management Certificate Database. They often include contact information, mailing address, and website where governing documents can be found.
Eligibility. In general, Texas law does not contain any specific requirements for someone to be eligible to serve on the Board of Directors. A director doesn't even have to be a member of the organization. However, many property owners' associations create their own eligibility requirements in the governing documents.