Homeowners associations technically go by the name “property owners’ associations” in Texas. They’re formally defined in Section 202.001 of the Texas Property Code as “…an incorporated or unincorporated association owned by or whose members consist primarily of the owners of the property covered by the dedicatory instrument and through which the owners, or the board of directors or similar governing body, manage or regulate the residential subdivision, planned unit development, condominium or townhouse regime, or similar planned development.
This definition means that a Texas HOA is a legal entity that represents a number of homeowners and their properties, and which governs several kinds of activity and permissions that can occur within that area of land. They operate using a variety of documentation, such as:
HOAs are typically led by a group or board of directors. They can be nonprofit corporations or even unincorporated. You can see this distinction for each HOA on the Secretary of State’s website. A Homeowner’s Association Management Certification Database also provides more public information about each association.
HOAs are an interesting, complicated additional layer to the homebuying and homeownership process. They add standards, rules, responsibilities, restrictions and regulations that normally wouldn’t exist for someone who owns a home on their own.
However, despite their burdensome reputation, HOAs can serve an important purpose. They provide guidance and oversight for a community’s property-related activity. They also help maintain higher standards of living and property values.
If you’re considering buying a home in Texas that is part of an HOA, it isn’t something to fear. What’s important is to research and understand the legal ramifications that come with owning an HOA home. Read your charter’s papers thoroughly before purchasing so that you’re not surprised by any technicalities you may meet.
One of the major questions about HOAs (apart from the fees) is what laws relate to them. A number of federal laws impact HOAs across the board, including critical items, such as the Fair Housing Act, the United States Bankruptcy Code, and even the Freedom to Display the American Flag Act.
Texas homeowners or those planning to purchase a home within an HOA should keep several vital resources bookmarked and handy.
The Texas Property Code has multiple chapters that pertain to HOAs.
Other laws that either directly or indirectly pertain to Texas HOAs include:
Once you understand what Texas HOA life is like, you can become an informed and committed member of an HOA community and benefit from all of the positives that it has to offer.