The powers and operations of a Homeowners Association (“HOA”) in Harris County, Texas, and some adjoining counties are set forth in Chapters 204 and 209 of the Texas Property Code. These provisions apply to single-family and townhouse communities. Condominium communities are controlled by another section of the Texas Property Code, and will not be dealt with here.
The controlling document setting forth the structure of the HOA, its powers to levy homeowner assessments, and restrictive covenants are set forth in the HOA’s Declaration of Covenants, Conditions and Restrictions (“Restrictions”) which are required be filed with the county clerk’s real property records and are of public record. Once on file, the Restrictions apply to all homeowners who subsequently purchase property in the subdivision covered by the HOA. The bylaws of the HOA may also contain additional restrictions and conditions.
An HOA may initiate and defend a lawsuit to enforce the restrictive covenants. Remedies can include the HOA’s costs for repairs to comply with deed restrictions where the homeowner has failed to do so, declaratory judgments, injunctions, and attorney fees. A court may assess civil damages for the violations of a restrictive covenant, in the amount not to exceed $200/day.
An HOA is allowed to levy assessments for the development and maintenance of common areas and amenities. Such assessment are covenants that run with the land. If you purchase a home from a seller with unpaid assessments, under certain circumstances, you may now be obligated to pay those past due amounts. An HOA is allowed to assess late fees and interest on past due assessments.
For an HOA of more than 14 units, if you owe past due assessments, the HOA must have a program to allow a payment plan to pay off the debt.
An HOA may send an overdue assessment to a collection agency, and in certain circumstances, with proper notice, the homeowner may be charged collection and attorney fees.
If stated in the Restrictions, an HOA can file a lien for unpaid assessments. Such a lien will put a cloud on your title and may prevent you from selling or obtaining a mortgage until the past due amounts are paid. Such a lien may also affect your credit history.
Under certain circumstances, with proper notice, an HOA can file suit for judicial foreclosure for unpaid assessments. The foreclosure must be for unpaid assessments and cannot be solely for unpaid fines or attorney fees.
For more information on an HOA’s enforcement powers and regulations go to:
Elliott Klein is a trustee of his homeowner’s association. If you have any questions about the operation of your HOA, either as a resident or board member, contact The Law Office of Elliott Klein, PLLC, for a consultation.