Texas Law Governing Homeowners Associations

The Texas Nonprofit Corporation Act, Tex. Bus. Chapter 22 of the Code governs not-for-profit organizations in terms of business structure and procedures. Homeowners` associations in Texas must be organized as nonprofit businesses under the Texas Business Code. Tex. Support. Code §204.004. Let us repeat this in plain language! HOAs are organizations made up of landowners who govern the area where the landowners live. These private associations run by the community are primarily responsible for the management of the site, the maintenance of common areas and the application of community rules that owners must follow. We built/bought a house in June 2020. At the time of the contract, we were told that our HOA fee would be $600 per year. The client/developer (Gehan) changed in April/May 2021. It`s now October 2021, and we`re told our HOA fees are increasing to $1180 per year, which is an increase of almost 100%.

I believe our developer scammed buyers by deliberately underestimating our costs to begin with, as well as negligently by underfunding our HOA. What are the owners` remedies? The declarations typically require that the property be managed by a nonprofit in Texas, which in turn is managed by a board of directors elected by the owners. It is this company that we usually call HOA. What Texas homeowners need to know about HOA rules and laws. Condominium corporations are subject to a different section of Texas law, so they are not affected by most of the provisions of these new laws. Whether you live in a condo or neighborhood with a homeowners` association (HOA) or are considering doing so, it`s important that you understand Texas` HOA laws. Being part of a Texas homeowners` association brings great benefits, but also responsibilities, challenges, and sometimes legal disputes. Federal and Texas regulations that are likely to impact Texas HOAs, condominium corporations, co-operatives, and nonprofits include: While the intention to be part of Texas HOAs is to have well-managed communities, homeowners sometimes find that HOAs exceed their boundaries.

You are not alone when you have an argument with your HOA. For a high-level overview of how homeowners` associations work in Texas, check out the links below. The topics they cover, such as assessments, meetings, votes, and seizures, are explained in more detail in the other pages of this guide. Note: Condominium owners` associations differ in Texas law from homeowners` associations. The main focus of this guide is on communities of owners. Under the following link, you will find laws that apply specifically to condominium corporations. The HOA thus regulates a condominium or a neighborhood. But Texas law, in addition to HOA government documents, also set limits on the authority of an HOA. A HOA is not above the law! The HOA must follow its own government documents.

For example, an HOA cannot impose restrictions on the use of property that is not included in the declaration or articles. Texas Homeowners Association Law is an essential guide to all Texas and state laws that govern the administration and operation of Texas homeowners` associations, and is the only comprehensive legal reference manual written specifically for directors, officers, and owners of Texas homeowners` associations. Chapter 202 of the TPC applies specifically to the enforcement of restrictive agreements, and Chapter 204 governs the powers of associations in shared apartments. Many homeowners` associations in Texas are founded as non-profit corporations. This means that these are commercial entities officially incorporated under Texas law and registered with the Secretary of State. That`s why our librarians often refer to the Texas Nonprofit Act when asking about the functions of an HOA. Texas Cooperative Association Act, Tex. Bus. Org. Code §251.001, ff.: The Law recognizes and provides a legal framework regarding the general purpose of cooperative associations in Texas, including associations formed to purchase and maintain real estate. Small thing, but does that mean we have to change the government documents so that the architectural committee is called ARA instead of VAC? I loved the improvements that help the owners. In my opinion, stricter restrictions and accountability for HOAs should have been implemented a long time ago.

Thank you to the Legislative Assemblies for your care and support of the homeowners. Texas HOA Owners` Guide – A guide designed to help community members find the laws that govern Texas associations. The first step is to inform your HOA of your dispute. Involving a lawyer at this stage can help with the process because the lawyer can fully hear your side of the story, read and analyze the HOA`s government documents, and contact your HOA to try to resolve any concerns while defending you. .