Introduction
Welcome to the comprehensive guide on the major laws affecting Texas Homeowners Associations (HOAs) and Condominium Owner Associations (COAs) in 2023. As KRJ Management, we understand the importance of staying informed about these legal changes and their implications for your community. In this guide, we’ll walk you through the three significant laws that have been enacted during the 88th Texas legislative special session: HB 886, HB 614, and HB 1193.
Why Familiarize Yourself with These New Laws?
Before delving into the specifics of each law, it’s essential to understand why board members and residents should be well-versed in these legislative changes. Texas state laws take precedence over any governing documents that your HOA or COA may have in place. These documents may have evolved over time, leading to various interpretations. Therefore, it is crucial to remember that state laws are the ultimate authority in governing your community. Here’s why:
- Compliance with Texas Property Code: To ensure your association operates within the bounds of the law.
- Alignment with Governing Documents: To guarantee that your policies align with state laws and foster consistency and fairness.
- Informed Decision-Making: To empower your board to make informed decisions that benefit your community.
Now, let’s delve into the specifics of the three major laws impacting your association in 2023.
1. HB 886 (Assessment Lien Filing)
Effective Date: September 1, 2023 Applicability: Single-family residences
Overview: HB 886, also known as Assessment Lien Filing, introduces significant changes to the process of filing liens for assessment debts within single-family residential property owners associations (POAs).
Key Provisions:
- Prior to filing an assessment lien, the association must send three separate monthly notices of delinquency to homeowners.
- The notices must include details of the amount owed, homeowner’s rights, and a 30-day period for payment without additional charges.
Implications: This law aims to provide homeowners with a fair opportunity to address outstanding dues and prevent sudden liens. If your POA allows liens for nonpayment of assessments, this law necessitates sending two written notices before filing a lien.
2. HB 1193 (Anti-Discrimination Based on Section 8 Status)
Effective Date: September 1, 2023
Overview: HB 1193 prohibits Texas associations from including or enforcing restrictions in dedicatory instruments that prohibit or restrict property owners from renting dwellings to individuals based on their payment method, including Section 8 housing vouchers.
Implications: Starting from September 1, 2023, Texas POAs must accept all forms of payment, ensuring equal access to housing for all residents, regardless of their payment method.
3. HB 614 (Fines and Enforcement Policy)
Effective Date: January 1, 2024 Applicability: Single-family residences
Overview: HB 614, also known as “Fines and Enforcement Policy,” mandates all Texas HOAs to establish enforcement policies detailing types of restrictions and the schedule of fines for each violation.
Key Provisions:
- The policy must include general categories of restrictive covenants, a schedule of fines for each category of violation, and information regarding hearings.
Implications: This legislation enhances clarity in HOA policies, ensuring communities remain compliant and consistent in enforcing rules.
Honorable Mentions
While the above-mentioned laws have a more significant impact, it’s essential to be aware of other laws that may affect your association, such as HB 2024, HB 998, and HB 2022. These laws cover topics ranging from warranties for residential construction to insurance coverage and contractor liability.
Conclusion
Staying informed about these legislative changes is crucial for your association’s smooth operation. Before making any policy updates, consult your legal counsel. At KRJ Management, we are committed to providing expertise and solutions for implementing these updates seamlessly in your community. Contact us today, and let’s simplify property management together.