Homeowner’s Associations (HOAs) play a significant role in managing and maintaining the standards of communities like subdivisions. But, establishing one in Texas requires a careful process, which starts with forming a valid petition committee. This committee introduces, modifies or extends the regulations within the association.
It’s essential to form this committee correctly to avoid any legal complications.
Committee members taking necessary steps
In Texas, a petition committee must consist of three homeowners from the proposed subdivision. But it’s important to note: the committee shouldn’t include lienholders, contract purchasers and owners of mineral interests. Including these individuals could disrupt the HOA formation process and invalidate the committee.
Once the committee is in place, the next task is to file a notice, which should include:
- A statement indicating the formation of a committee for a specific goal. This could be to create, change or add rules in the association.
- The names and addresses of the people on the committee.
- The name of the subdivision that the rules apply to, along with where to find related documents.
All committee members must sign this notice before a notary or an official who can authorize it. If the signing isn’t done correctly or the notice is missing details, it could invalidate the notice, leading to delays or potentially stopping the formation process of the HOA.
Seeking professional assistance
After the committee is formed and the notice is filed, the next step is to get the green light from homeowners to create the HOA. The committee needs the approval of 60 percent of the homeowners. If the committee fails to secure enough support, this could cause delays in forming the HOA or even hinder its formation. Gathering support can be challenging, as it involves circulating the petition, tallying votes and keeping track of all the details—all while following state laws. On top of that, there are other requirements like writing the HOA’s bylaws and deciding its governance structure.
Given these complexities, consulting with a legal professional can be beneficial. They can help gather the necessary documents and provide guidance in the process of setting up the HOA.