An HOA board member breach of fiduciary duty happens when that board officer fails to fulfill their legal responsibilities to the community—either inadvertently or intentionally. This can take many forms, such as: Board members refusing to work together. Not adhering to the governing documents.
House Bill 614 is a significant step towards a more balanced and equitable relationship between HOAs and homeowners in Texas. By clearly outlining fining procedures and ensuring your right to due process, this HOA law empowers you to navigate your HOA community with confidence.
To prove negligence in the context of HOA liability, homeowner must prove that a legal duty exists, the association breached it, and there were damages resulting from the breach. In most formation documents, the HOA is required to properly maintain common areas, giving rise to a legal duty.
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.
Texas law places limits on HOA power, including restrictions on their ability to prohibit certain types of construction like solar panels and rules against unreasonable fines or foreclosure practices. The exact limitations are outlined in state statutes, which are intended to protect homeowners' rights.
HOA board members in Texas can be sued personally if they engage in negligent, willful misconduct, bad faith, fraud, criminal activity or actions beyond their board authority.
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.
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.
With the exception of some confidential topics, regular and special board meetings of property owners' associations must be open to all members.