On September 1, 2021, new laws in Texas took effect that expands the rights of homeowners living in subdivisions with a homeowners association (“HMO”) that has mandatory assessments. Some of the more significant protections afforded homeowners are:
An HMO must have a website where the Deed Restrictions and Bylaws are posted.
- If the HMO uses a management company, a management certificate must be filed with the county deed records and the Texas Real Estate Commission.
Failure to do the above may result in the HMO not being able to enforce the Deed Restrictions and Bylaws. - A person who is on the Board of Directors, or spouse of a Director, or member of a Director’s household cannot serve on the architectural committee.
- If the architectural committee denies a homeowners application there are strict time and content requirements for notice of the denial.
- A homeowner can request a hearing on the denial. Within 10 days of a homeowner disputing a denial, the HMO must set a hearing date. At the hearing the HMO must present evidence of why the application was denied. The parties may record the proceeding, and the both the homeowner and HMO may be represented by an attorney.
- The HMO is required to invite all the homeowners to attend any Board meeting where certain issues will be considered (“Open Meeting”). The statute sets forth 15 topics where an Open Meeting is required. Six days’ notice must be given for an Open Meeting.
- The HMO must give prior notice to the homeowner of any enforcement for unpaid homeowners assessments, or violations of the restrictive covenants.
- If the HMO determines there has been a violation of the restrictive covenants, the homeowner is entitled to a hearing, where the HMO must present evidence of the violation.
The above is just a brief overview of the increased protections and rights granted to homeowners who live in an HMO community.
If you feel you are being treated unfairly by your homeowners’ association, the new law gives you substantially more rights. Contact the Law Office of Elliott Klein, PLLC to review your options.