2011 Texas Laws Affecting HOA’s
During the last Texas legislative session in 2011, several new state laws were passed that substantially changed the operations of HOA’s within Texas. Residents that live within managed communities should be aware of these laws to ensure that the operations of their communities are in compliance. All of these laws are now in effect. The summary of each new law is very general. For specifics and exceptions, refer to the House or Senate bill or the Texas Property Code to read the law in its entirety.Just click on the bill number to access the entire text.
Two other websites you might be interested in:
Also, the Greater Houston Chapter of the Community Associations Institute (CAI) has launched the free HOA Hotline, which is a resource for homeowners owning homes/units in condominium, townhome and subdivision community associations and have questions about the operations of their association.
The Hotline is staffed with local non-attorney experts knowledgeable in community association best practices. Homeowners can contact the Hotline by calling 832/251-1874, or via email at hoahotline@caihouston.org
SB 101 – Relating to wording in non-judicial foreclosure notice for members of the military
SB 472 (not condos) – Effective 9/1/11 – Relating to voting practices (Texas Propery Code 209.0041) elections and amendment provisions, declarations may be amended by 67% of the Owners (or less stated in the declaration). (Texas Property Code 209.00593 & .00592) Electronic and absentee ballots votes are valid if the ballots meet certain requirements.
HB 8 – Effective 6/17/11 – Relating to private transfer fees. (Texas Prop. Code Chap. 5, subchap. G) Certain types of transfer fees are prohibited with general exceptions for most HOA transfer fees.
HB 362 – Effective 6/20/11 – Relating to solar energy panels and shingles. (Texas Property Code 202.010) HOAs must permit owners to install solar panels with certain permissable limitations. (Texas Property Code 202.011) HOAs must allow owners to install shingles of certain materials made to resist wind and hall, provide heating/ cooling efficiency, or generate solar energy.
HB 364 (condos only) – Relating to requiring owners to provide appraisal districts any change of address within 90 days; permits a municipality to condemn a condo for economic development purposes if the economic development is a secondary purpose resulting from the elimination of urban blight
HB 1228 (not condos) – Effective 1/1/12 – Relating to mandatory payment plans, priority of payments, third party collections, eliminates nonjudicial foreclosure, vote to add or remove foreclosure remedy, notice to certain lien holders. (Texas Property Code 209.0091) Prior notice of foreclosure must be sent to junior lienholders. (Texas Property Code 209.0092) Non-judicial HOA foreclosures prohibited. (Texas Property Code 209.0093) Foreclosure provisions can be added or removed by owners from declaration. (Texas Property Code 209.0094) Confirms prior law that HOA lien notices and similar instruments affect title to property. (Texas Property Code 209.0062) Mandatory application of payments schedule. (Texas Property Code 209.0062) Payment plans required and guidelines are mandated. (Texas Property Code 209.0063) States HOA must apply owners’ payments in the following order: delinquent assessments, current assessments, attorney fees or third party collection costs, other attorney fees, fines, other amounts. (Texas Property Code 209.0064) Required notice to owner prior to turning delinquent accounts over to a third party collection agent and certain contingency fee arrangements made unenforceable against an owner.
HB 1278 – Effective 6/20/11 – Relating to the display of religious symbols. (Texas Property Code 202.018) HOAs must allow an owner to display religious items on his front door or doorframe, with certain permissible limitations.
HB 1821 – Effective 1/1/12 – Relating to Resale certificates, mandatory payment plan, online subdivision info. (Texas Prop. Code 202.006) unrecorded HOA dedicatory instruments are of “no effect.” (Texas Prop. Code 207.006) An HOAs dedicatory instruments must be posted on an HOA “publicly accessible” HOA website that must include copies of all governing documents of the HOA (i.e., declaration, bylaws, rules, articles and all amendments). (Texas Prop. Code 207.003) New requirements and time frames for resale certificates are established.
HB 2761 (not condos) – Effective 1/1/12 – Relating to open meetings & records, notice to owners for meetings, recount provisions, voting methods, declarant transition of board, mandatory annual meeting. (Texas Prop. Code 209.0059) Owners may not be disqualified from voting for any reason. (Texas Prop. Code 209.00591 & .00592) owner director qualifications are void; all owners may run for the Board except if convicted of a felony or crime of moral turpitude, (Texas Property Code 209.00593) directors may not be appointed to positions whose terms have expired, (Texas Property Code 209.014) HOAs must hold annual meetings or owners may themselves call an election meeting. (Texas Property Code 209.005) HOAs must adopt and file an open records policy; open records procedures established. (Texas Property Code 209.005m)HOAs must adopt a records retention policy; certain statutory time frames established. (Texas Property Code 209.009) No HOA foreclosure for copy charges related to books and records. (Texas Property Code 209.00594) Only election vote tabulators allowed access to ballots. (Texas Prop Code 209.00593 & .00592) Electronic and absentee ballots votes are valid if the ballots meet certain requirements. (Texas Prop. Code 209.00591c) Establishes time frame when non-declarant owners must be elected to the Board. (Texas Prop. Code 209.0058) Secret Ballots are prohibited. (Texas Prop. Code 209.0057) HOAs must conduct a recount of an election vote if requested by an owner. (Texas Prop. Code 209.0056) HOAs must give owners notice of an HOA-wide election or vote. (Texas Property Code 209-0051) Board Meetings (regular and special) must be open to owners, with some exceptions.
HB 2779 – Effective 6/20/11 – Relating to flagpoles. (Texas Property Code 202.011) HOAs must permit owner to display the US, Texas or military branch flag, with permissible limitations.
HB 3391 – Effective 9/1/11 – Relating to rainwater harvesting devices. (Texas Property Code 202.007d) HOAs must permit owners to install and use rain-harvesting devices if they meet certain architectural requirements.