The 82nd Texas State Legislature made substantial changes to the law governing homeowner associations. Many of these changes will directly affect the board of directors and the work that the boards perform for their associations. HOA/POA boards need to know that action is required of them and their property managers to comply with these changes to the law, and that the new requirements were effective January 1, 2012. This is not a detailed analysis but a checklist for board education and action.
One major change was to expand the definition of dedicatory documents to include all governing documents, not just the restrictive covenants, but association bylaws, rules, guidelines and policies (e.g., collection and payment plan policies, guidelines for the use of common facilities, pool and tennis court rules), and the requirement that any and all dedicatory instruments be properly recorded. Governing documents that were not recorded with the county by January 1 will not be effective until they have been properly filed .
As a result of bills passed by the 82nd Texas Legislature, Home Owner/Property Owner Associations should:
- Prepare, adopt, file & implement policies for:
- Payment Plans (HB1228)
- Document Retention (HB2761)
- Records Production and Copying (HB2761)
- Prepare, adopt & file guidelines for:
- Display of Certain Religious Items (HB1278)
- Rainwater Recovery Systems (HB3391)
- Solar Energy Devices (HB362)
- Roof Shingles (HB362)
- Display of Flags (HB2779)
- Verify all dedicatory instruments are filed and posted (HB1821)
- Create new internal procedures to:
- Change internal procedures regarding:
- application of partial payments (HB1228)
- collections process relative to lien filings (HB1228)
- Change standard documents:
- TPC 209.006 notice language before enforcement action
- resale certificate content (HB1821)
- absentee ballot language (HB2761, SB472)
- Verify:
- Contracts with attorneys do not use contingent collections (HB1228)
- Consider:
- expanding voting options for owner voting (HB2761, SB472)
- Understand:
- notice requirements for formal action (HB2761, SB472)
- rules and conduct of unannounced meetings (HB2761, SB472)
- rules and conduct of executive sessions (HB2761, SB472)
- content of meeting minutes (HB2761, SB472)
- non-judicial foreclosures no longer allowed (HB1228)
Failure to comply with the new laws could result in the HOA/POA's inability to collect delinquent assessments and other related fees. It will also preclude enforcement of rules and policies currently in place.
Above links are to PDF versions but text and Word formats are also available at http://www.legis.state.tx.us/. [At the Texas Legislature Online web page, under Search Legislation select "82(R)- 2011" from the drop down list (not the default "82(1)..."), check Bill Number and type in the bill reference (e.g., "HB 1228"), select the Text tab, and open one of the Enrolled files, either as a PDF, Text, or Word file.]
A PDF copy of this list is here.
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