The maximum special assessment that a HOA in Texas can impose is five percent of the current year's budgeted gross expenses, though a community vote may be required to approve this. However, the vote must be approved by a majority of the members in the community.
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.
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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.
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.
(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.
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 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.
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.