Tips for Homeowners

Many homeowners have sent emails asking for help with problems they're experiencing with their HOA. Although Texas Homeowners for HOA Reform understand and are sympathetic with the plight of homeowners, we are not able to offer any legal advice. We can however offer these suggestions and links to websites containing information that might answer some questions Texas homeowners have.

1 - Every homeowner who is a member of an HOA, whether it's voluntary or mandatory, should have a copy of the HOA's governing documents. These documents might be the Articles of Incorporation, Deed Restrictions (or sometimes called the Covenants), and the By-Laws. In associations with more than one section, each section might have its own Deed Restrictions. Make sure you have the Deed Restrictions for your section. The Deed Restrictions should be included in the closing documents when a home in a HOA is purchased. You also need a copy of any amendments to these documents as well as any policies adopted by the board. A homeowner of an HOA can request copies of these documents from their Board of Directors or the Board's managing agent. There could be a fee for copying these documents so be sure to ask about the fee when you make your request.

Read these documents carefully. If there is a cap on the dues or a limit on how much the board can increase the dues without homeowner approval, it will be contained in these documents. The Texas Statutes do not contain any laws in regard to caps or increases in HOA dues. An HOA's By-Laws should contain procedures on requirements and election of board members, recalling board members, voting procedures and requirements, procedures on amending these documents, along with many more policies and procedures specific to that HOA. The Deed Restrictions should contain the architectural requirements and procedure for approval to make modifications to a property within its HOA.

2 - The current Texas laws do offer some limited help for the homeowner. Property Code 207 contains the procedure Texas Homeowners may follow to obtain copies of their HOA's documents and statements. Below is a link to the Texas Property Codes.

http://tlo2.tlc.state.tx.us/statutes/pr.toc.htm

Clicking on this link will take you out of this website and to the Texas Legislature Online website and the page containing the Texas Statutes. Scroll down the page and click on Property Codes where you will find Property Code Chapter 207.

3 - Texas homeowners should attend the membership meetings and exercise their right to vote in electing board members and on any issues brought before the members. Keep in mind that many HOAs have a provision in the By-Laws to reject votes from homeowners with outstanding debts to the HOA or who are in violation of the Deed Restrictions.

In many HOAs a homeowner may vote for board members or issues by use of a proxy or absentee ballot. Read your HOA's governing document to learn how to do this if you're not able to attend the meetings. If you use a proxy or absentee ballot and do not vote on any board positions or issues, state that on your proxy or ballot so board members or their agents can not cast the vote for you.

We also suggest that homeowners attend the board meetings to listen to discussions on issues regarding their association. Take notes or record the meetings so you may refer to them later.

4 - Texas Homeowners for HOA Reform suggest homeowners in mandatory HOAs pay their dues in full and on time if at all possible. If a homeowner expects to be late on their dues we suggest the homeowner contact their HOA board and explain their situation. Some HOA boards are willing to work with homeowners who are not able to pay their dues on time if that homeowner contacts them as soon as possible, explains their situation, and is willing to agree to a payment schedule. The current Texas laws don't prevent an HOA from foreclosing on a home to pay for outstanding dues, regardless of the reason or circumstance. It's entirely the decision of the board unless the governing documents of the HOA say differently. If you're experiencing problems with your HOA it's important to keep your dues current. Never pay by cash without a receipt.

On payments made to an HOA a homeowner may give instructions on how to apply the money as to dues, fines or fees. However no Texas laws exist saying the board must abide by your instructions. The board may decide how the payment is applied unless the HOA's governing documents say differently. This means that if you owe your HOA for fines or fees, including legal fees, the board may apply your dues payment to the fines or fees regardless of your instructions, thus making your dues delinquent and making your home susceptible to foreclosure.

5 - Before making any modification to the home's exterior read the governing documents of the HOA to determine if architectural approval from the board is required. If approval is required the governing documents might give the procedure on how to do this. If not, then contact the board or their agent to get instructions and an application form. Be sure to get approval in writing before anything is done. If a modification is made without prior approval the board can force the homeowner to change it at the homeowner's expense or face huge legal fees.

6 - Texas homeowners should become familiar with all the Texas Property Codes. At times these laws can be hard for the layman to understand, but we suggest you read these laws as they might answer some questions. Again, below is the link to the Texas Property Codes.

http://www.capitol.state.tx.us/statutes/pr.toc.htm

Clicking on this link will take you out of this website and to the Texas Legislature Online website and the page containing the Texas Statutes. Scroll down the page and click on Property Codes.

7 - Don't make two common mistakes and assume your HOA has your correct address and that your mortgage company is paying your HOA dues because you have an escrow account included in your mortgage to pay your taxes and insurance. Many homeowners have suddenly found themselves on the verge of foreclosure because they didn't receive a statement from their HOA about paying the dues. If the HOA has an incorrect address, regardless if it's their error or not, and your dues are delinquent you may not get a notice until the HOA attorney becomes involved and is serving you notice of foreclosure. Your HOA assumes you get their letters and your lack of response only makes them more aggressive to collect the dues. By the time you are formerly served with legal action, the legal fees, penalties and court costs you will be forced to pay to keep your home out of foreclosure could be several thousand dollars in addition to the accumulated delinquent dues.

A simple phone call and a short letter will insure this doesn't happen. Call your mortgage company to confirm whether or not they pay your HOA dues from the escrow account and write a short letter to your HOA to make sure they have your correct address.

8 - If you are a member of a voluntary HOA and you've been informed that members of your association have initiated a movement to convert to a mandatory HOA, please email us for information about the pros and cons on this issue.

9 - If you feel your HOA is out of control and you want to become active in regaining control for the members then click on the link below. You'll leave this website and go to HOAdata.org. Scroll down and under the section Info on Papers you'll find a paper titled "Reclaiming your HOA."