Thursday, December 15, 2011

HOA Reforms

House Bill 2761, coauthored by Representative Garza, is one of the most current HOA reform bills passed by the Texas Legislature. This new piece of legislation changes the way HOAs are run by requiring Homeowners Associations to have open records, meetings, and elections for HOA residents. While this new bill takes HOA regulation in the right direction, it is essential to be familiar with your rights as homeowners, to know the new laws presiding over HOAs, and to be involved in making sure that your HOAs abide by Texas law.

House Bill 2761
Open Records:
  • Upon request, HOA records are accessible to all HOA residents. Accessible records include financial records and attorney files.
    • To access copies of records, HOA residents must:
      • Submit their request via certified mail.
      • Pay for the requested copies.
    • In response to request, HOAs must:
      • Provide copies of records within 10 days, or notify HOA residents of the delay and give notice on when requested copies will be obtainable.
      • Upon request, HOA records are accessible to all HOA residents. Accessible records include financial records and attorney files.
  • Important notes on open records:
    • HOAs are required to keep residents' records on file in HOA neighborhoods that exceed 14 lots.
    • HOAs are prohibited from foreclosing on residents' homes based on unpaid fees for requested records.
Open Meetings:
  • All HOA meetings must be open to HOA residents, and upon resident request, HOAs are required to give information on each meeting time and location. HOAs must also mail a notification of meetings 10 days prior to meeting dates, or must post a notification 72 hours before meetings. In the exception that HOA board members must hold an executive meeting in private, HOAs are required to take minutes and notes to be reviewed by HOA residents.
Open Elections:
  • All HOA residents may vote in an HOA election, and anyone may run for a position on an HOA board. Under the new legislation, HOAs must represent the entire HOA residency in elections. HOAs may notify residents of voting dates 60 days prior to an election, or by a minimum of 10 days before an election.
If your local HOAs are not abiding by these new Texas laws, take action and get involved by informing your local judge. It is up to you to help make sure that your HOAs are properly serving your neighborhoods.