In Texas and elsewhere, it is not uncommon to live in a homeowner’s association or HOA. There are many benefits to a HOA; however, board members and members of the association often experience changes to the state laws and regulations. As such, it is essential to keep current with new or changed laws, as this could create HOA compliance issues.
Changes for Texas HOAs
While some years see more drastic changes, this year’s laws, specifically three, are much more manageable. For the most part, HOAs may simply need to check to ensure that their current policies as well as governing documents are compliant with these three new laws.
Three major laws
The first law addresses assessment lien filings. In particular, it states that the association must provide three separate monthly notices of delinquency before filing a lien document. For board members, this means preparing an amended collection policy that reflects this new law and the procedures outlined in it.
The second law is entitled Anti-Discrimination Based on Section * Status. In other words, this means that Texas HOAs cannot have any restriction for the method of payment for a tenant. This law seeks to provide added protection for tenants that rely on assistance to pay for their housing. As a result, board members should review their dedicatory instruments to ensure compliance.
The third and final law focuses on fines and enforcement. Specifically, it states that HOAs need to adopt an enforcement policy with regards to levying fines, and it must include the general categories for restrictive covenants the HOA can assess fines, a schedule of fines for each category of violation and information regarding hearings and the verification process. This law will require HOAs to adjust their enforcement policy to ensure compliance.
Ensuring compliance is essential for HOAs. Therefore, it is important to be clear of any and all major and minor changes to verify that an HOA is in compliance. A legal professional could help ascertain this and determine any steps necessary to take.