The collection of delinquent assessments in POAs is perhaps the most sensitive function a POA undertakes. With that in mind, it is important for POAs to follow a very specific set of procedures. Those procedures are outlined by the Texas government in Sec. 209.0094 of the Texas Property Code but following the 88th Texas Legislative Session (and courtesy of HB 886) the procedure has been amended to extend the collection process.
HB 886, titled relating to requirements to file a property owner’s association assessment, amended Sec. 209.0094 by creating a 120-day period from the time of the initial notice to the time a POA is legally permitted to file a lien for delinquent assessments.
Beginning September 1, 2023, the new 120-day time period, along with the method of communication, outlined by sections (d), (e) and (f) of 209.0094 will go into effect as follows:
(d) The first notice of delinquency must be provided:
(1) by first class mail to the property owner’s last known mailing address, as reflected in records maintained by the association; or
(2) by e-mail to an e-mail address the property owner has provided to the property owners’ association.
(e) The second notice of delinquency must be provided by certified mail, return receipt requested, to the property owner’s last known mailing address, as reflected in the records maintained by the association, not earlier than the 30th day after notice is given under Subsection (d).
(f) A property owners’ association may not file an assessment lien before the 90th day after the date notice of delinquency was sent to the property owner under Subsection (e).
It is important to note, this law only applies to assessments that become delinquent after September 1, 2023. The existing law applies to delinquent assessments prior to September 1st.
As this new law takes effect, POA community managers and board members will need to work with their legal counsel to update their collections policies and ensure the timelines on notices are updated for each of their associations. To learn more about the revamped collection process, join RMWBH Shareholder Noelle Hicks for a webinar on August 22nd at 11:30 a.m.
