Many single-family home communities and most townhome communities are regulated and controlled by Homeowners Associations (HOA), also known as Property Owners Associations. Whether you rent or own, if you live in a neighborhood that is subject to an HOA, you are bound by its terms and conditions.
Most HOA’s were established by the real estate developers who originally built the subdivision. Where a community has recreational facilities, such a swimming pool, playgrounds, event facilities, common greenspace, and security provisions, the developers have put in place a nonprofit corporation in order to maintain these facilities. These features enhance the desirability of the community and increase property values. Texas law allows for the creation of HOAs, non-profit corporations, to collect assessments, maintain the common areas and amenities, and impose design and architectural restrictions, to insure conformity and integrity of the neighborhood.
When an HOA is formed, developers will file deed restrictions with the county clerk’s office that set forth the powers and operations of the HOA. There is usually a Board of Trustees, made up of volunteer residents in charge of the HOA, and many times there will be a professional management to oversee the day to day operations, such as collecting assessments and contracting with vendors to maintain the amenities.
NOTE: HOAS PUT LIMITATIONS ON YOUR PROPERTY OWNERSHIP RIGHTS!
The deed restrictions may be wide reaching that usually include architectural standards and maintenance requirements that must be adhered to by the homeowners. For any changes or improvements to any home, approval must first be obtained from the HOA. Other regulations may include parking restrictions, landscaping and lighting requirements. If assessments are not paid the HOA can typically put a lien on your home, and in extreme cases may be able to foreclose. In addition, state law, set forth in Texas Property Code, Title 11, regulates what an HOA can and cannot do, and gives certain rights to homeowners.
If you are considering buying a home in a neighborhood regulated by an HOA, you must be informed of such. It is strongly recommended that you obtain a copy of the HOA rules, regulations and restrictions before you close on your house. Read them to make sure that you are comfortable with the limitations and restrictions that you will have to live if you buy in the neighborhood.
In the following blogs we will discuss the specific powers of the HOA.
Elliott Klein is a trustee of the HOA in his community. If you have any problems or concerns about your HOA, contact the Law Office of Elliott Klein for a consultation.
For more detailed information on Texas Homeowners Associations laws can be found at: https://www.hopb.co/texas