Homeowners’ associations (HOAs) are crucial for maintaining community standards, helping ensure shared amenities remain in top condition and fostering neighborhood harmony.
When homeowners fall behind on their dues, HOAs can face financial hardships. They may seek recovery of delinquent payments, but they must follow Texas law.
What HOAs are due
Generally, HOAs may charge assessments, which fund essential services like landscaping, security and maintenance. These fees should be clearly outlined in the association’s governing documents. Homeowners are obligated to pay. If they don’t, HOAs may take steps to seek payment.
Payment plans and collections
Texas law requires HOAs with more than 14 lots to offer structured payment plans for delinquent homeowners. Plans range from three to 18 months, allowing homeowners to catch up without excessive penalties. HOAs must also follow strict allocation rules when applying payments, prioritizing overdue assessments before attorney fees or fines.
Legal notice requirements
Before escalating collection efforts, HOAs must provide written notice via certified mail, detailing the delinquent amount and available payment options. If dues remain unpaid, HOAs may place a lien on the property and, in extreme cases, pursue foreclosure. However, the law imposes limitations on foreclosure actions to help ensure due process.
Fines for delinquent homeowners
Texas HOAs may be permitted to impose fines for nonpayment, but they must follow state guidelines. Texas law requires HOAs to establish clear policies on violations resulting in fines. For delinquent dues, they must offer a payment plan before pursuing liens or foreclosure. In contrast, fines can be imposed separately based on clear HOA policies.
Following the law and implementing fair collection practices can help recover delinquent fees and preserve community relationships. Legal support for HOA collection practices can add another layer of security.