07/25/2022
NEW TEXAS LAW FOR HOMEOWNERS AND HOA’S BEGINNING SEPTEMBER 1, 2021, THIS IS IMPORTANT TO KNOW FOR YOUR SELLERS AND BUYERS!
• Senate Bill 1588:
• Homeowners anywhere in Texas will be allowed to put up a perimeter fence around their property for added security (front, sides, and/or back of homeowner’s property). The law specifically states that homeowners associations (HOA’s) cannot restrict it (i.e: New fence/gate around homeowner’s front yard/driveway). Homeowners associations are allowed to enforce covenants which mandate the type of fence material that must be used. If required by the HOA, homeowners must obtain prior approval for the material of any new fence being built, but not the fence itself. Replacement of established fences (i.e: backyard fences) with existing material, do not need prior approval.
• Homeowners are allowed to install a perimeter fence around their pool, as well as security cameras and motion sensors on their property without prior approval. HOA’s are allowed to enforce covenants which prohibit homeowners from installing security measures outside of the homeowner’s property.
• HOA’s are prohibited from restricting homeowners who display religious items on their property. HOA’s may only enforce covenants which prohibit religious items that violate a law, contain graphic language, pose a threat to public health/safety, or are offensive to the public (other than its religious content).
• Resale certificate fees are now capped at $375 and updated resale certificate fees at $75. Deadline for HOA to deliver such certificate is now 5 days as opposed to 7. Homeowners are now permitted to seek a judgement against HOA for no more than $5,000 for failure to deliver certificate in a timely manner.
• If your HOA board makes a budget amendment, they must do it now at an open public meeting.
• Any HOA must obtain bids before awarding any contract more than $50,000.
• The bill prohibits a person from serving on an architectural review committee (“ACC”) if the person is: 1) a current board member; 2) a current board member’s spouse; or 3) a person residing in a current board member’s household.
• If you are late paying your HOA dues, your HOA can still report you to a credit reporting agency but they can’t charge you the fee to do that. You now have 45 days instead of 30 days to cure a delinquency. HOA must now send homeowner requisite enforcement action “209” notice prior to reporting to credit agency.
Bill has been passed and went into effect on September 1, 2021.
