Several new REALTOR®-supported homeowners association reform laws took effect September 1. These changes will bring more balance between the rights of property owners and their property owners’ 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, 2021 are required to file with TREC by June 1, 2022.
- HOAs are required to maintain websites with management certificates and meeting information and notifications.
- HOAs that have at least 60 lots or contract with a management company 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.
- New laws improve some conflicts of interest within HOA architectural review boards.
- HOAs are barred from requiring access to lease agreements and are only allowed to request a 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.
- New laws improve due process in dispute resolution and provide additional legal avenues when seeking resolution from a dispute with an HOA.
REALTORS® made the difference
The passage of monumental HOA reform legislation wouldn’t have happened without you. Texas REALTORS® launched a call for action via email to all members 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 resulted in more than 12,500 supportive messages—a record-high response.
In addition, the website myhoastory.com collected real-world stories from homeowners and REALTORS® about the challenges they’ve faced with HOAs.