Violations and fines are the most prevalent reasons for disputes between homeowners and homeowners associations (HOAs). HOAs enforce penalties to ensure residents follow regulations designed to maintain property values and raise the quality of life in the community. Residents often challenge these fines because they get caught by surprise. Texas’ latest bill promoting transparency in HOA fines hopes to address this.
Texas House Bill 614, made effective on Jan. 1, 2024, aims to demystify the enforcement of these fines by requiring HOAs to adopt a comprehensive policy outlining fine imposition. The HOA must comply with this change if authorized to levy a fine.
Key changes
The new law hopes to provide clarity for both homeowners and HOAs by mandating clear, detailed information on violations and procedures related to them. These take the form of and are made possible through:
- Transparent policy: HOAs must adopt an enforcement policy that details the restrictive covenants, fines for each violation and hearing procedures.
- Notification and accessibility: HOAs must post a copy of the policy on their publicly accessible website and send it to each homeowner annually via mail or email.
Additional strategies for HOA board members
While clear policies are critical to fair enforcement, HOA board members can also avoid disputes with:
- Comprehensive record-keeping: HOAs must maintain comprehensive records, such as invoices, transaction receipts and building permits, which are accessible to homeowners.
- Educational requirements for board members: HOA board members must complete short courses on financial management, governance and legal responsibilities.
Ensure you’re meeting all legal requirements to avoid liabilities and promote fairness in the community. Consulting an HOA law attorney is advisable when disputes arise.