New bills from the 84th Texas legislative session are already affecting what homeowners associations across the state can, cannot and must do, and more changes are on the way.
The majority of bills about HOAs that made their way past Gov. Greg Abbott’s desk and into state law are single-amendment items that have already taken effect.
However, SB 1168, a large bill containing 27 sections amending or adding to the Property Code, will not go into effect until Sept. 1. Most of these affect notices, voting procedures, meetings and foreclosure policy.
Effective immediately
• Homeowners can lease and rent property without HOA interference. Associations can no longer impose special fees or dues related to renting, require HOA approval for rental applicants or require homeowners to provide documents relating to renting a property. Signed by the governor on June 19.
• HOAs can no longer prohibit homeowners from installing and maintaining a standby electric generator. Generators must meet certain standards. HOAs can install speed feedback signs and solar-powered LED stop signs in their areas. Associations must pay for installation and maintenance as well as receiving approval by the governing body that maintains the road.
Effective Sept. 1
Giving notices
• HOAs are no longer required to collect return receipts from certified mail when giving notice. Verified mail with evidence of mailing is legally sufficient.
• HOAs can adopt alternative methods for giving official notice to residents. Residents must choose to opt in and cannot be required to use these methods if there is already a method prescribed by law.
Voting and elections
• Notice must be given 20 days before a vote or election that does not take place at a regular meeting of owners.
• HOAs can now use secret ballots for voting.
• Ten days before absentee ballots are sent in an election, HOAs must give notice giving owners the option to run. This only applies to associations with more than 100 lots. Notice must have instructions and a deadline by which to apply.
• Time to request a recount is extended to the 15th day after the announcement of the results. An invoice is given and the request for recount is considered withdrawn if the invoice is not paid by deadline.
• HOAs are not required to provide an owner with more than one official voting method, however owners must be allowed to vote by proxy or with an absentee ballot.
• Any rules or laws that restrict access to ballots and votes do not extend to court orders.
• People in developments of 10 or fewer lots cannot vote in an HOA if they are not subject to the HOA’s rules.
HOA boards and meetings
• Convicted felons may now serve as HOA board members if the conviction is more than 20 years old.
• HOA rules cannot require all board members to live within its jurisdiction, but can specify that a certain number of members must do so.
• Board meetings can now be held by phone or over the Internet. Methods for all owners to listen and participate must be provided.
• Boards have to give notice before voting on lending or borrowing money, adopting or amending charters, approving an annual budget, selling or purchasing real property, filling vacancies on the board, electing an officer or constructing improvements other than repair, replacement and enhancement of existing improvements.
Fines, foreclosures and payment plans
• A deadline must be given for remedying certain fixable violations for offenses that have not already received notice in the previous six months. Fines cannot be assessed if the violation is fixed by the deadline
• HOAs with a right of foreclosure have the power of sale needed for expedited foreclosures.
• HOAs may send notice to any lienholder on the property instead of just the one listed on a deed.
• Payment plans can now extend beyond the previous limit of 18 months
• HOAs cannot foreclose on properties due to fines owed for a recount from an election
