New HOA Laws In Texas: House Bill 886 and 614

There are new HOA laws in Texas including House Bill 886 and House Bill 614. Both laws were signed into law in June 2023. They will affect homeowners associations when it comes to fines for enforcement, fees, and liens.

New HOA Laws in Texas on Liens: House Bill 886

One of the new HOA laws in Texas talks about the requirements of a homeowners association to place a lien on a property. Usually, HOAs are able to place a lien on a homeowner’s house when they do not pay HOA fees and assessments. In some instances, the HOA can also force the sale of the property to collect the debt.

However, House Bill 886 sets new requirements before a lien can happen. It amends Section 209.0094 of the Texas Property Code. The act takes effect September 1, 2023. What are these new requirements?

Firstly, a property owners’ association must provide delinquency notices to the HOA member. The first notice must be given by first-class mail or e-mail. Meanwhile, the second notice must be given by certified mail with a request for a return receipt. This must be sent to the property owner’s last mailing address not earlier than the 30th day after giving the first notice.

In addition, an association cannot file for an assessment lien before the 90th day after sending the second delinquency notice. However, subsections c, d, and e regarding delinquency notice requirements do not apply to associations providing a property owner covered by the Servicemembers Civil Relief Act.

House Bill 614 and HOA Fines

When it comes to fines, House Bill 614 changes Section 209.0061 of the Texas Property Code. The act takes effect on January 1, 2024. It only applies to associations that are authorized to levy fines by the governing documents. The section essentially mandates associations to create an enforcement policy for levying fines. It must include the following:

• General categories of the CC&Rs wherein the association can assess fines
• A schedule of fines for each category
• Hearing information according to Section 209.007

In addition, the policy may reserve the board’s authority to levy fines from the schedule on a case-to-case basis. Apart from this, each association shall give a copy of the policy to each property owner. They shall do this by posting the policy on a website maintained by the association or an agent acting on behalf of the association. The website must be accessible to the members.

Alternatively, the association can also send a copy of the policy annually to association members by hand delivery, first-class mail, or e-mail. The policy must also be available on publicly accessible websites, if any.