Who Oversees Texas HOAs FAQ

Q: Which State Officials Have Jurisdiction over HOAs, Management Companies, and Developers in Texas?

A: No state regulatory agency directly exercises full regulatory authority over Texas HOAs or condo associations. As incorporated entities, associations must register with the Texas Secretary of State and maintain a registered agent for service of official process. The Texas Secretary of State has authority over any nonprofit and for-profit corporations in the state concerning corporate governance matters.

Property management companies in Texas may be licensed and regulated by the Texas Real Estate Commission if the manager is involved in selling, leasing, or listing for sale any properties. Developers and contractors in Texas are not explicitly regulated at the state level, though many county and municipal governments require licensing at the local level.

Q: What can Homeowners do if an HOA is not Responsive to Complaints?

A: It's usually best to try to resolve problems with an association by talking things out or using the association's democratic processes, as outlined in the declaration. Under Texas law, members of an HOA have a right to attend board meetings and to be heard at regular member meetings.

It's generally a good idea to keep records of any written communications with the association and to take and preserve contemporary notes of any verbal communications. In the event of future retaliation, thorough records can help demonstrate when an association has acted arbitrarily or capriciously.

If a board member abuses power or acts unfairly, members can try to elect someone else for the next term. Texas law prohibits HOAs from restricting a member's right to run for a position on the board, so a dissatisfied member always has the option of running as a board member.

Many associations allow for the removal or recall of board members – sometimes for cause and sometimes without cause. The process usually involves a member petition followed by a vote of all members, with a super-majority often required. Recall or removal votes must be held by written, signed ballot.

If an HOA board fails to hold meetings at least annually, members can demand a meeting of members. If impropriety or malfeasance is suspected, reviewing the association's books and records may be helpful, as members have a statutory right to do so.

If non-judicial remedies are unsuccessful or don't address complaints, it's important to remember that an association is not the final arbiter of disputes between it and its members.

If necessary, a homeowner can bring a civil suit against an association or against another non-compliant member in the county where the development is located.

Texas courts view covenants as a contract between the homeowners and the association, which both parties have the right to enforce.

An HOA is authorized to defend suits arising from its failure to meet its obligations. Except in cases involving willful non-compliance, intentional torts, or fraudulent conduct, the association is the proper defendant rather than individual officers or board members.

A suit against an association can seek damages for money incurred by a homeowner due to the association's failure to perform its duties or "injunctive relief" – a court order compelling the association to perform duties or enforce covenants.

The Texas statutes do not specifically address remedies available to HOA and condo association members when an association fails to correct a hazardous situation.

Depending upon the relevant declaration language and the precise situation, a homeowner may be able to pursue an enforcement suit or a tort action against the association for its failure to repair and maintain common elements properly.

Q: Can a Texas Homeowners Association Suspend Voting Rights and Facility Privileges of Delinquent Owners?

If authorized by the governing documents, Texas associations are legally permitted to suspend common area and facility privileges of non-compliant members.

Before the suspension can become effective, the association must provide written notice to the affected member, including a description of the violation or property damage giving rise to the suspension and any amount claimed due to the association.

The notice must inform the member of a right to cure the violation, if applicable, and to request a hearing. An HOA board is not required to provide notice and an opportunity for a hearing if the violation upon which the suspension is based occurred in a common area and created a significant and immediate risk of harm to others.

Any provision that would prevent a member from voting in a board election or in matters concerning the rights and responsibilities of the member is void and unenforceable. Likewise, an association cannot suspend a member's right to run for the board.

Q: What Can Homeowners Do if They Are Facing Discrimination or Harassment?

A: A member who believes he or she has been harassed or discriminated against in access to housing based on race, color, religion, sex, familial status, national origin, or disability can file a complaint under the federal Fair Housing Act or Texas's Fair Housing Act.

FHA Complaints can be filed with the Office of Fair Housing and Equal Opportunity of the Department of Housing and Urban Development. Or, a civil complaint can be filed in federal district court. A complaint under the state statute can be filed with the Texas Workforce Commission.

A member who believes he or she has been harassed or discriminated against in access to public accommodations based upon a disability can file a complaint under the Americans with Disabilities Act. ADA complaints may be filed with the Department of Justice's Civil Rights Division or a civil complaint can be filed in district court.

The appropriate response to harassment will depend on the precise nature of the conduct. If the harassment rises to criminal conduct, it should be reported to the sheriff, constable, or local police department.

Suppose the harassment relates to the collection of debts by a debt collector. In that case, the harassed individual can bring a civil action under the federal FDCPA or Texas Debt Collection Act or report the harassment to the federal Consumer Financial Protection Bureau or Texas Attorney General.

Texas also recognizes a civil cause of action for stalking under which an aggrieved party can recover actual and exemplary damages resulting from harassing behavior.

Q: How Can Homeowners Amicably Resolve Disputes?

A: While it's possible for litigation to be conducted amicably, that's not what happens in the vast majority of cases. Instead, you get hard feelings, stress, and hefty legal fees. So, if possible, it's usually best to resolve disputes informally.

Sometimes, simple, polite communication is all it takes. Before sending a formal letter from an attorney demanding that the board enforce a particular covenant, an owner might talk to a board member or raise the issue at a member meeting.

Or, if there's a disagreement over whether a planned home renovation does or does not comply with the community's covenants, the owner and the board might try informally negotiating a compromise that satisfies all parties.

Community associations are designed to function as little democratic sub-societies." The system works best with high levels of community involvement and communication.

A petition signed by many homeowners can make a big impression on an HOA board – even if the community's governing documents do not give members formal power to petition the board.

Suppose an HOA-related suit ends up being necessary and does not involve collecting assessments or foreclosure of a lien. In that case, either party (i.e., the member or the association) can file a motion to compel mediation.

The parties can agree to attend an alternate dispute resolution session in any dispute.

In many situations, having a knowledgeable, neutral third party provide an informed opinion is enough to convince an otherwise obstinate board member or homeowner to reassess a contentious position.

If mediation is unsuccessful, the parties can move to litigation or agree to proceed with mandatory arbitration.