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.
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.
Once you buy a home that's part of an HOA, you automatically become a member of the HOA. HOA rules are legally binding, and you must adhere to all rules and regulations in the governing document. Yes, there are bylaws that you may not like, but there are no HOA loopholes.
Texas House Bill 614: Balances power between HOAs and homeowners. To help address the problem of homeowners not being aware, or unclear about HOA rules, how they may have broken them, and what the financial penalties are, Texas passed house bill 614, in January 2024.
In 2021, the Texas Senate passed Bill 1588, which placed restrictions on HOA authority over fencing. This legislation ensures that if you own a property, your HOA cannot categorically deny you the right to a fence installation.
The governing documents should stipulate the conditions under which the property owners' association may access the premises. It's also important to mention here that HOAs must provide the homeowner with written notice at least one to two weeks before entering the property unless there is an emergency.
Texas law places no limit on how much or how often assessments may increase. Any caps or restrictions will likely be found in the association's governing documents. Articles of incorporation or bylaws often limit the maximum amount that can be charged without approval by the general vote.
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.
Notably, Texas HOA's with 60 or more lots are legally required to have an HOA Website, ensuring transparency and accessibility for all members. The HOA Website Law in Texas is designed to facilitate better communication and provide a centralized location for important association information.
Depending on the organizational form of the entity, however, the home or property owners' association may not be required to register with the secretary of state.