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.
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.
The board may, without membership approval, levy a special assessment up to five percent (5%) of the current year's budgeted gross expenses, subject to certain requirements.
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.
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.
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.
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.
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.