Posted on by Friends of Pine Hollow
NEW TEXAS LAW FOR HOMEOWNERS AND HOA’S BEGINNING SEPTEMBER 1, 2022:
• 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 goes into effect on September 1, 2022
As an expert in real estate law and homeowners' association regulations, I can confidently delve into the details of the Senate Bill 1588 that took effect in Texas on September 1, 2022. This bill significantly impacted homeowners and homeowners' associations (HOAs) by introducing several key provisions aimed at protecting homeowners' rights and outlining regulations for HOAs.
Let's break down the concepts and provisions mentioned in the article:
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Perimeter Fences: Homeowners across Texas gained the right to install a perimeter fence around their property for enhanced security, irrespective of HOA restrictions. However, HOAs can enforce guidelines regarding the material used for the fence, requiring homeowners to seek approval for the material but not for the installation of the fence itself. Replacement of existing fences does not mandate prior approval.
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Pool Fences and Security Measures: Homeowners are allowed to install perimeter fences around their pools and security cameras/motion sensors on their property without prior approval from HOAs. However, HOAs can restrict security measures outside of the homeowner's property through their covenants.
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Display of Religious Items: HOAs are barred from restricting homeowners from displaying religious items on their property, except if these items violate laws, contain offensive content, pose public health/safety threats, or are offensive to the public, excluding their religious nature.
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Resale Certificate Fees and Timelines: The bill caps resale certificate fees at $375 for initial certificates and $75 for updated ones. It also mandates a shorter deadline of 5 days for HOAs to deliver these certificates to homeowners. Homeowners can pursue legal action against HOAs for up to $5,000 if the certificates aren't delivered promptly.
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HOA Board Regulations: Several regulations now govern the functioning of HOA boards, including conducting budget amendments in open public meetings, obtaining bids before awarding contracts exceeding $50,000, and disallowing certain individuals, like current board members or their household members, from serving on architectural review committees (ACCs).
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Delinquency and Credit Reporting: HOAs can report late payments to credit agencies but cannot charge a fee for doing so. Homeowners now have a 45-day window instead of the previous 30-day period to resolve any delinquencies. HOAs are required to issue a notice, termed "209 notice," before reporting a delinquency to a credit agency.
This comprehensive legislation aimed to strike a balance between safeguarding homeowners' rights and empowering HOAs to enforce necessary regulations within defined boundaries.
