During the 2021 legislative session, Texas REALTORS® is advocating for issues to protect homeowners, including legislation that seeks to bring balance to homeowners associations.
What’s the Issue?
HOAs exist to enhance neighborhoods and increase property values. However, HOAs are increasingly taking on functions that local governments traditionally provide. The Texas Legislature has addressed HOA issues a number of times over the past 20 years, yet property owners and buyers still voice concerns over actions taken by HOAs.
HOA Bills in the Legislature
Two REALTOR®-supported bills, House Bill 3367 and Senate Bill 1588, are advancing through the legislative process. These bills would make several pro-homeowner changes:
- Limit how much an HOA and/or HOA management company can charge for a resale certificate fee. There is currently no limit.
- Provide HOA members with an appeal process to resolve disputes with the HOA. There is currently no appeal process required.
- Increase transparency by requiring HOAs to post their managing documents, meeting notices, agendas, and minutes online for members to access. This is not currently required.
- Require HOA management certificates to include a phone number, email address, and website. This is not currently required.
- Create a publicly accessible statewide database of HOA information. No such database currently exists.
Position of Texas REALTORS®
Texas REALTORS® joins Texas homeowners in supporting efforts to reform laws governing HOAs to ensure HOA operations are transparent and resident-friendly. House Bill 3367 and Senate Bill 1588 address several of the most common complaints related to HOAs. This legislation provides an appropriate balance between private property rights and agreed-upon community standards.
Visit ngskmc-eis.net/issues to see more of the association’s priorities for the 87th Texas Legislature.
Legislative Advertising by Texas REALTORS® | 1115 San Jacinto Boulevard, Suite 200 | Austin, TX, 78701 | Travis Kessler, CEO
This could be one of the best and most needed bills in the history of Texas Realtors. The HOA’s are getting way to greedy and their management companies provide terrible service to HOA members. Press on with this.
Agreed. Our HOA board is talking about installing cameras throughout the neighborhood and passing on that cost. No statistics presented that its necessary, no cost projections. Etc. Time to rein this in.
Long overdue. Glad that this has finally hit the radar by our legislation.
I am SO happy to see this! Their fees should be public knowledge, and they should absolutely have some restrictions put on them. Lately, it seems like the biggest money grab. Absolutely ridiculous.
I absolutely agree. Fees should be public knowledge and sellers should disclose the HOA fees for resale and title transfer (whether capital contributions, beautification fees or other fees) on the MLS listing and the Seller’s Disclosure. These fees should be voted on by HOA Boards when possible. The exception might be when they are thrown in by the developer into the Declaration. That probably needs regulation.
HOA’s in resort communities (South Padre Island) are making it increasingly difficult for out of town property owners to rent their properties via VRBO, etc. The HOA requires a homeowner to be present at the guard gate to meet the renters. Some owners live out of town 80 miles and some are out of state. This rule makes it very difficult to comply. Some resort property owners do not use a local property management company, instead they use a janitorial/ cleaning/maintenance service. Members on the HOA have openly stated they want to make it exceedingly difficult for homeowners to rent… Read more »
And this is bad why? If I live in a restricted covenant community and I pay my dues I don’t want some inconsiderate home owner that has a weekend home renting out the place to partiers all of the time keeping me up at night. A home is not for short term rental, nor investment. It is there to live in. We have had a lot of problems with a short term rental in our community, including several domestic disturbances. The people come thinking it is party time and throw big bashes throwing litter into the neighbors yards. This not… Read more »
Keep your fingers crossed that these pass. What a win for Homeowners, I personally know of one HOA that switched to a management company and the fees just about tripled. No notice until the closing table. OUCH!!!
As a former HOA board member and current property manager, these changes are absolutely needed. HOAs function as quasi-governmental entities, not a non-profit. As such, their operations should be subject to Open Meetings Act rules and homeowners should be able to appeal decisions against them to a municipal, small claims, or county court. In some unincorporated areas, HOA board members can wield more power than locally elected officials and have zero accountability to the public!
Amen.
All good stuff, long overdue…. they should also have to publicly list fees charged and be transparent. Why is this not being addressed. In addition to the resale certificate…. beautification fees, reserve fees, transfer fees, and whatever other fees they give random names too that are being charged to the seller or buyer during a sale. You know the ones that are buried somewhere in the small print of the CC&R’s that few actually read all of …. then get hit with a surprise at the closing. List them all on the website, etc.
Additional concerns include the lack of responsiveness to property owners when information is requested or fees that are charged for property owners to receive their own records. An owner should be able to request their current information and standing without going through and paying third party vendors. The cost of fee related administrative tasks over an above manditory HOA annual or monthly dues is too powerful.
Yes – this is a MUST on the list for everyone!
This is a great idea. People living in communities with HOA’s have little voice in the process. Also the amount of money charged for a resale certificate is outrageous in some communities. I am defiantly behind this bill.
Most people who live in HOAs could care less about the process, never come to meetings, read the declarations or bylaws, respond to requests for input, or even vote on board members at annual meetings. If they got involved, they would have a lot of input.
This is badly needed. Ridiculous fees are charged for simple provisions that should be free. Some companies actually charge the seller–or usually the agent–to even send the title company the numbers that they need to be able to close. These charges are in addition to fees for a re-sale certificate and the transfer fee. People living in the neighborhood do not know about any of this until they decide to buy or sell. There is no time to object to the fees as everyone wants to close. There also needs to be some relief for some of the ridiculous requirements… Read more »
This is sooooo badly needed. Melissa Whitehead brings up important concerns I’ve had for quite a while: the fees! Buyers are often bombarded with fees and more fees. Here’s a list from a recent closing: COC Fee, HOA CAP fee, HOA Cap Fee (RSRV), HOA Management Transfer Fee, HOA Bulk Service Fee, Community Enhancement Fee, HOA Transfer Fee, plus prorated fees/dues: HOA Gate Dues, HOA dues! Yes, I read all the paperwork at purchase and pointed out to buyer what he was agreeing to pay. In a nutshell, he wanted the house. And while we’re at it: what about “foundation… Read more »
These fees have to be disclosed or they are illegal. Let the buyer beware. I can’t believe someone wouldn’t read and understand everything they are signing, or hire a lawyer to do a review for them. Buying a homes is probably the biggest investment most people will ever make, but yet they don’t even look at the documents they are signing, and then bellyache about the rules and the fees afterwards. The legislature didn’t do people as much good as you think. There is fine print that makes many of these changes moot, such as fences and religious displays. The… Read more »
A much needed change. I support and stand behind this effort to reform HOA laws.
I agree. I’d also add that there should be a progression in HOA fees regarding the amenities. As a retired household, we don’t use skateparks, tennis / basketball courts, kiddie pools, lazy rivers, club houses, etc. it would be nice to have these discounted. Additionally, before we finalized, we talked with the HOA and we’re told of upcoming builds but we’re not tons they were years down the road. New sections of our subduction are getting funding for upgraded landscaping yet the first sections are being ignored. HOA is not accountable or interested in listening to anything but their own… Read more »
This is a ridiculous statement. Move.
I believe there should not be no HOA at all your paying double the tax Some HOA neighborhoods don’t even have a park to be safe for kids. Some why pay HOA fees and still pay property tax that’s double taxation when you buy your is not your home it’s HOAs home because you have to follow the guidelines your not allow to make your home a home of your own liking you want to change your garden and plant your favorite plants or change your walk path to your driveway bigger it has to be approved by HOA. That… Read more »
Long overdue for owners’ associations (both HOAs and COAs) to have some structure and consistency in what is required, especially in posting governing documents, agendas, minutes, etc. AND to maintain a website. I am hopeful these bills pass.
Sales agents have the obligation to educate their clients as to what buying a home in a community association entails along with the positives and negatives. You are essentially entering into a contract with the other homeowners to pay assessments and follow deed restrictions. It sounds like you should have been directed to property outside of a community association or perhaps unincorporated land where your freedom is maximized.
What this doesn’t tell you is it also allow the for VOLUNTEER board member’s personal assets to be in reach of the HOA membership. Board members will quit en masse and property values will be impacted. Be careful what you wish for.
I don’t know what your management company and HOA are doing but everything on this list is provided by our management company and HOA.
While I agree that several of these items do need to be required for all HOAs, the process they are asking for is absurd. 10 year agent but ashamed of these new bills.
As a Texas Realtor and the owner of an association management company, I can agree that some of the items in the legislation were good. There should be better resources to be able to tell who manages what community and I will also say that some of the management companies charge excessive resale fees. The summary of the legislation in the article above by Texas Realtors is highlighting what I would consider to be the best parts of this legislation. However, it appears that this bill and the associated amendments that ended up passing were written by folks who have… Read more »