New HOA laws are going into effect that will lower the power of HOAs. It's great news for all those Texans that felt their HOAs were going too far! The Texas Senate passed Senate Bill 1588 which goes into effect on September 1, 2022. Thanks to my good friends at Alamo Title for breaking this down:

Fences

Homeowners anywhere in Texas can 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 cannot restrict it (i.e: New fence/gate around homeowner’s front yard/driveway). But HOAs still have a role in the type of fence material 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. They can also install security cameras and motion sensors on their property without prior approval. HOA’s are allowed to prohibit homeowners from installing security measures outside of the homeowner’s property.

Religious Items

HOA’s cannot restrict homeowners displaying 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 Documents Are Less Expensive

Resale certificate fees capped at $375. 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.

Board Stuff

When 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.

A person cannot serve 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.

Late Fees

New HOA laws are going into effect that respond to the pandemic. 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.