Understanding HOAs in Texas

When you buy a home in Texas, you have to deal with many aspects, such as closing costs, title commitments, and whether or not the community has a homeowners association, also known as HOA.

With additional fees, laws, and varying regulations, HOAs add a complicated layer to the homeownership process that can be difficult to understand. Whether you're already in an HOA in Texas or considering joining one, you must understand the HOA laws in Texas.

What is an HOA?

Homeowners' associations are technically called "property owners' associations" in Texas. They're formally defined in Section 202.001 of the Texas Property Code as "…an incorporated or unincorporated association owned by or whose members consist primarily of the owners of the property covered by the dedicatory instrument and through which the owners, or the board of directors or similar governing body, manage or regulate the residential subdivision, planned unit development, condominium or townhouse regime, or similar planned development.

This definition means that a Texas HOA is a legal entity that represents several homeowners and their properties and governs several kinds of activity and permissions that can occur within that land area. They operate using a variety of documentation, such as:

Articles of Incorporation: These are legal documents (also called a Certificate of Formation) required to form the corporation if the HOA is a legal entity. Articles of Incorporation prove the HOA's legal existence and are retained over time.

Subdivision Plats: These help clarify the precise land layout of an HOA. Plats include establishing common areas, defining each lot's location, addressing easements, and using non-possessed land.

Bylaws: These oversee how the HOA itself operates over time. Bylaws detail day-to-day behavior and management and lay out guidelines for elections, meetings, etc.

Declarations of Covenants, Conditions, and Restrictions: These items define the permissions and responsibilities of each member of a Texas homeowners association. They explain how owners can use their property, including what they can build and maintenance standards.

HOAs are typically led by a group or board of directors. They can be nonprofit corporations or even unincorporated.

Understanding Texas HOAs

HOAs are a fascinating, complicated additional layer to the homebuying and homeownership process. They add standards, rules, responsibilities, restrictions, and regulations that usually wouldn't exist for someone who owns a home on their own.

However, despite their burdensome reputation, HOAs can serve an essential purpose. They provide guidance and oversight for a community's property-related activity. They also help maintain higher standards of living and property values.

If you're considering buying a home in Texas that is part of an HOA, it isn't something to fear. What's important is to research and understand the legal ramifications of owning an HOA home. Read your charter's papers thoroughly before purchasing so you're not surprised by any technicalities you may meet.

Important HOA Laws in Texas

One of the significant questions about HOAs (apart from the fees) is what laws relate to them. Several federal laws impact HOAs across the board, including critical items like the Fair Housing Act, the United States Bankruptcy Code, and even the Freedom to Display the American Flag Act.

Texas homeowners or those planning to purchase a home within an HOA should keep several vital resources bookmarked and handy.

The Texas Property Code has multiple chapters that pertain to HOAs.

• Chapter 202 addresses aspects of the HOA itself, such as its structure and restrictions.
• Chapter 209 addresses the governance of the HOA itself as a separate entity.
• Chapter 22 of the Texas Business Organization Code is helpful for HOAs that operate as nonprofits.

Other laws that either directly or indirectly pertain to Texas HOAs include:

• Texas Condominium Act and Texas Uniform Condominium Act govern how associations within condominium communities can operate.
• Texas Fair Housing Act protects buyers and their right to purchase homes without discrimination.
• Senate Bill 1588 recently modified 27 sections about HOAs or property owners' associations, ranging from forbidding restrictions of pool installations to authorizing property owners to sue associations.

Once you understand what Texas HOA life is like, you can become an informed and committed member of an HOA community and benefit from all of its positives.