What's an HOA and do you have to join? What Texas law says about homeowners associations

Did you recently purchase your first home? Congratulations. 

Owning a home is a big responsibility, and it can be more burdensome if your new neighborhood is part of a homeowner association and you’re not familiar with the association's laws and regulations. 

Here’s what you need to know. 

What is an HOA?  

Texas law refers to HOAs, or homeowners association, as property owners association. 

Tex. Prop. Code § 202.001 (2) defines the organization 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 law has two tiers: HOAs for condominium owners and HOAs for homeowners in neighborhood subdivisions. 

Can you refuse to join an HOA in Texas?

Not really. When you buy a property in an HOA-governed community, you are obliged to become a member of the association and abide by its rules and regulations, which you cannot legally decline.

If you’re dealing with a voluntary HOA, you may have the option not to join the HOA, but you could still be prone to certain rules and restrictions that are included in your property deed or local ordinances. Be sure to ask your realtor about these options.

According to the Foundation for Community Association Research, about 75.5 million Americans live in a HOA neighborhood. More than 75 percent of new housing built for sale is part of a community association. If you’re buying a home in 2024, you’re likely to live in a neighborhood with an HOA. 

According to the Community Association Institute, 1 in 3 owner-occupied homes in Texas are governed by more than 21,000 associations operating in the state.

How much are dues for HOA in Texas?

HOA dues in Texas can vary widely depending on the specific community, its amenities, and the services provided. According to the American National Bank of Texas, average HOA dues in Texas range from around $100 a year to more than $1,000 per month, but they can be higher in some communities with more extensive amenities or services. Check with the HOA management or review the community's financial documents for accurate information on dues.

According to USA TODAY, most homeowners pay between $200 and $300 per month on HOA fees, although the national average is $191, according to the U.S. Census Bureau’s 2021 American Housing Survey.

Can an HOA charge a fine for violations?

An HOA can be picky about what fines it charges homeowners. The idea of an HOA is to keep the neighborhood as tidy as possible. That’s not a bad thing, but there are some common things for homeowners to look out for that can lead to common violations, including:

• Lawn care
• House color 
• Playground equipment 
• Vehicles on property 
• Fencing
• Decorations, including flags 
• Mailbox color 
• Additions to property (i.e., sheds, garages, inlaw suites, etc.)

What is the new law about HOA in Texas?

Last year, Texas passed House Bill 614, which requires HOAs to be more transparent about fees charged to homeowners. The new law went into effect on Jan. 1, 2024.

HOAs are mandated by law to provide property owners with a catalog outlining prohibited items, a fine timetable, and details on the conduct of hearings. The information must be posted to their website and given annually to residents via delivery, first-class mail, or email.

HOA fines could cost thousands of dollars

Property owners have complained about fees dolled out for what could be considered minor infractions. According to ABC 13 in Houston, Kathleen Lowe was fined $250,000 by her HOA in 2022 for feeding ducks in the neighborhood.

In Mesquite, Finda Koroma lost her home to foreclosure after the homeowner’s association board voted to foreclose on her house and sold it to recoup a $3,542.64 debt, according to KERA. Koroma was planning to sell the house to help boost her retirement. She worked as a home health nurse who lost work during the pandemic because her clients were mostly elderly people. 

How can an HOA file foreclosure?  

According to Texas law, the process is known as judicial foreclosure. 

This process entails initiating a legal action against the property owner in either a district or county court situated where the property resides, determined by the outstanding debt. If the court decides in favor of the association, it will mandate a sheriff or constable to auction off the property publicly, following Rule 309 of the Texas Rules of Civil Procedure. Any dues owed to the association will be deducted from the proceeds of the sale.

How to file a complaint against an HOA in Texas

To file a complaint against a homeowners association in Texas, you can typically follow these steps:

1. Review Governing Documents: Start by reviewing the HOA's governing documents, such as the bylaws, covenants, conditions, and restrictions (CC&R). These documents often outline the procedures for filing complaints and any dispute resolution mechanisms.
2. Contact the HOA: If your issue is not resolved through informal means, such as discussing it with your HOA board or management company, you may need to formally file a complaint. Contact the HOA board or management company in writing to detail your complaint and request resolution.
3. Attend HOA Meetings: Many HOAs hold regular meetings where residents can voice concerns or complaints. Attend these meetings to bring up your issue in person and seek resolution.
4. Mediation or Arbitration: Some HOA governing documents require mediation or arbitration to resolve disputes. If this is the case, follow the procedures outlined in the governing documents.
5. Contact the Texas Attorney General's Office: If you believe the HOA has violated state laws or regulations, you can contact the Texas Attorney General's Office to file a complaint. The Attorney General's Office may investigate the matter and take appropriate action if necessary.
6. Consult an Attorney: If your efforts to resolve the issue are unsuccessful, you may want to consult with a real estate attorney who specializes in HOA matters. They can provide legal advice and guidance on your options for further action.

Residents share experiences with HOAs on social media

Property owners on social media have shared their experience with HOA’s rules. Even HBO’s John Oliver has a special report on HOAs.