A new state law will make it easier for condominium and homeowners associations to conduct business.
On June 19, Gov. Greg Abbott signed into law Senate Bill 1168, which changes HOA laws related to foreclosures, meetings and violation notices.
Beginning Sept. 1, HOAs throughout the state will be allowed to hold board meetings electronically or by phone as long as every board member can hear and be heard and every homeowner can listen. Notice of an electronic or phone meeting must include instructions for homeowners wishing to participate.
Boards will also be allowed to take action outside of their meetings as long as all board members are allowed a reasonable amount of time to express their opinions on the issue.The law does require boards to vote on important items at an open meeting, including issues such as selling land or adopting a deed restriction.
Under the new law the HOA must give at least 20 days’ notice to residents of an election or vote that is scheduled to happen outside of a board meeting. Any homeowner who demands a recount of a vote must do so within 15 days of the vote and must pay for the recount.
The bill also clarifies that the individual responsible for recounting the votes may not disclose how any resident voted.
Although absentee votes must be allowed, the association may opt to offer other methods, such as online or electronic voting.
SB 1168 permits an HOA to send a notice of foreclosure to any property lien holder, such as a mortgage company. The HOA is also allowed to use an expedited foreclosure process under the new law.
Also, through SB 1168, written notice of violations can now be sent by verified, rather than certified, mail. The notice must specify a reasonable date by which the owner is required to correct certain violations—including parking violations and barking dogs or other ongoing noise issues.
If the owner corrects the violation before the specified date, the HOA cannot impose a fine on the homeowner.
However, violations that cannot be corrected—such as shooting fireworks or property damage—do not fall under this provision.
At an April 14 Senate committee meeting, attorney Connie Heyer, co-chairwoman of Texas Community Association Advocates, spoke in support of SB 1168, saying it clarifies voting laws for HOAs. The TCAA serves as the public policy voice for community associations and the professionals who serve them.
“We believe SB 1168 will provide additional protections to consumers and ensure there is greater transparency in how homeowner associations are governed,” Heyer said in a June news release.
