My homeowners’ association has sent me several notices that my yard is not in compliance with their standards. Where does the HOA get its power?
Property owners’ associations, often referred to as homeowners’ associations (“HOAs”), are a serious point of contention for many homeowners. Some homeowners appreciate the aesthetic consistencies that HOAs promote and maintain. Others, however, complain that HOAs can kill a neighborhood’s character and uniqueness, particularly with overzealous enforcement of mundane regulations that antagonizes homeowners.
HOAs are authorized by the Texas Property Code. Texas law sets out specific guidelines for formation and operation of HOAs, including that the HOAs must operate as nonprofit entities. Each HOA operates under a set of governing documents, which typically are articles of incorporation and/or bylaws. These governing documents set forth how the HOA will operate and the rules and regulations that will be enforced on the property owners.
HOAs have considerable power under Texas law. Unless otherwise provided by the restrictions or the association’s governing documents, an HOA, acting through its board of directors or trustees, may regulate the use, maintenance, and appearance of the subdivision, adopt and amend bylaws, adopt and amend budgets for community projects, and issue and collect fines. In fact, HOA powers are so broad that they may obtain a property owners’ association assessment lien, which under extreme circumstances could serve as the basis for initiation of foreclosure proceedings. Check out Texas Property Code Section 204.010 for a complete list of HOA powers.
Texas law requires that a notice is issued before an HOA can fine a homeowner or suspend his or her right to use a common area. The notice must describe the alleged violation and inform the owner that he or she is entitled to a reasonable period of time to cure the violation. Be certain that you have received the proper notice prior to paying any HOA fines.
This article appears in September 19 • 2008.