New HOA Laws Now in Effect
Several pieces of the REALTOR®-supported homeowners association reform laws passed by the Texas Legislature in 2021 took effect on September 1st. These changes bring more balance between the rights of property owners and their associations.
The 87th Texas Legislature passed these changes as Senate Bill 1588, which was authored by Sen. Bryan Hughes and Rep. Chris Turner.
- Fees are capped for subdivision information ($375), resale certificates ($75), and updated resale certificates ($75).
- TREC will create a publicly accessible central database of Texas HOAs by December 1, 2021. HOAs that have filed management certificates in county records before December 1 are required to file with TREC by June 1, 2022.
- HOAs that have at least 60 lots or a contract with a management company are required to maintain websites with management certificates and meeting information and notifications.
- HOAs are required to file dedicatory instruments with the county and provide certain contact information on all dedicatory instruments and management certificates.
- Property owners have new protections from negative credit reporting when a fine or fee is in dispute, and HOAs are required to give a detailed report of charges and offer a payment plan before reporting delinquencies.
- The legislation prevents some conflicts of interest within HOA architectural review boards.
- HOAs are barred from requiring access to lease agreements and are only allowed to request tenant’s contact info and lease beginning and end dates.
- HOAs are required to solicit bids for contracts for services over $50,000.
- HOAs are barred from prohibiting certain pool safety enclosures, the installation of certain security measures on an owner’s private property, or certain religious displays.
- HOA boards are required to provide members with timely notice about meetings.
- The legislation provides improved due process in dispute resolution and additional legal avenues when seeking resolution from a dispute with an HOA.
Download a one-page version of these changes.
REALTORS® Made the Difference
The passage of monumental HOA reform legislation wouldn’t have happened without you. The association launched a call for action via email to all Texas REALTORS® as the bill was moving through the legislative process, providing a convenient way for REALTORS® to urge their representatives to support SB 1588.
The call for action on HOA reform resulted in more than 12,500 supportive messages—a record-high response!
In addition, the website myhoastory.com was an incredible tool for collecting real-world stories from homeowners and REALTORS® about the challenges they’ve faced with HOAs.
Source: Texas REALTORS®