The 88th Texas Legislative Session has reached its conclusion. Several bills have passed that will require actions from POAs. Learn more about the actions POAs will need to prepare to take in the months ahead with our action items update below.
Single-Family and Condominium Bills
HB 998 – Relating to the provision of property owners’ association insurance by the FAIR Plan Association in certain areas.
HB 998 amends the Texas Insurance Code. The bill defines “property owners’ association insurance” as “property and liability insurance covering common areas and facilities of a homeowners’ or condominium owners’ association.” HB 998 allows the Texas Department of Insurance to include in its Fair Access to Insurance Requirements Plan the delivery of POA insurance in underserved areas if its commissioner makes a determination that POA insurance is not reasonably available in the voluntary market to a substantial number of insurable risks.
Action Items: Check with your insurance professional on possible new policies available
HB 1193 – Relating to prohibiting housing discrimination by a property owners’ association against a residential tenant based on the tenant’s method of payment.
HB 1193 adds Sec. 202.024 to the Texas Property Code and prohibits POAs from adopting or enforcing a dedicatory instrument that restricts, or has the effect of restricting, a property owner from renting a dwelling to a person based on the person’s method of payment. The bill defines “method of payment” as a Section 8 housing voucher or any other housing/rental assistance or subsidy.
Action Items: Contact your POA legal counsel regarding any questions related to this bill
HB 1558 – Relating to the extension or amendment of deed restrictions in certain older subdivisions.
HB 1558 creates Chapter 216 of the Texas Property Code. Chapter 216 will govern subdivisions described by a recorded map or plat filed before 1947. Chapter 216 will offer subdivisions located in municipalities with a population of two million or more a procedure to amend restrictions.
Action Items: Contact your POA legal counsel regarding any questions related to this bill
Single-Family Only Bills
HB 614 – Relating to property owners’ association fines.
This bill adds Sec. 209.0061 to require POAs to adopt an enforcement policy with specific provisions including each category of restrictive covenants for which fines may be assessed; a schedule of fines for each category of violation; and information regarding the hearing provided for under Sec. 209.007. POAs would be required to file the policy with the county clerk, post the policy on the POA’s website and annually send a copy of the policy to homeowners within the POA.
Action Items: Update Fine Policy
HB 886 – Relating to requirements to file a property owners’ association assessment lien.
This bill changes the requirements for POAs filing assessment liens against property owners. This bill amends Sec. 209.0094 which would require certain conditions before a lien could be filed. The POA would be required to provide two separate monthly notices of delinquency. The first notice can be sent by first class mail or by email. The second notice must be sent via certified mail, return receipt requested, to the property owner’s last known mailing address, as reflected in the records maintained by the POA. The POA would also not be able to file the assessment lien before the 90th day after the second delinquency notice was sent.
Action Items: Update Collection Policy
Note: All bills except HB 614 go into effect immediately or on September 1, 2023. HB 614 goes into effect January 1, 2024.
