2023 Texas Legislative Update: Issues Affecting Texas Homeowners’ Associations and Condominium Owners' Associations

The 2023 Texas Legislative Session has come to a close. New laws affecting homeowners’ associations and condominium owners’ associations will take effect on September 1, 2023. Winstead was actively involved in the 2023 Texas Legislative Session, with attorney Teddy Holtz serving as a member of the CAI Texas Legislative Action Committee (TLAC). TLAC educated legislators concerning unfavorable bills and worked to secure passage of Senate Bill 1668, which acts as a cleanup bill to SB 1588, enacted during the 2021 Texas Legislative Session.

Below is a summary of the changes, or steps, that are necessary to conform your governance documents to the statutory changes resulting from the 2023 Texas Legislative Session. In our analysis, we distinguish between the need to revise existing governance documents vs. the need to adopt a new policy. For example, SB 614 applies only to residential (homeowners’) associations subject to Ch. 209 of the Property Code which has the authority to levy fines. The new law requires associations with fining authority to adopt an enforcement policy regarding the levying of fines that includes general categories of restrictive covenants for which the association may assess fines and a schedule of fines for such violations. While most associations currently have a Fine and Enforcement Policy in place, the new requirements resulting from this legislative session likely render those policies outdated and not in compliance with Texas law. As such, an Amended and Restated Fine and Enforcement Policy that complies with the requirements listed in SB 614 should be adopted. For new associations with fining authority or associations that wish to start levying fines, adoption of a compliant Fine and Enforcement Policy will be required.

Finally, SB 1668 provides a carveout that board members, board members’ spouses, or persons residing in a board member’s dwelling may serve on an architectural review committee if no qualified individuals apply for such position after the Association has solicited applicants. This change was in response to SB 1588’s requirement that prohibited board members, board members’ spouses, or persons residing in a board member’s dwelling from serving as an architectural reviewer, and the change will help associations ensure that their architectural review committees are fully staffed.

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Click here for a printable quick reference guide.

Contacts:

Bob Burton  I  512.370.2869  I  rburton@winstead.com

Teddy Holtz  I  713.650.2738  I  tholtz@winstead.com

Alex Valdes  I  512.370.2842  I  avaldes@winstead.com

 

Disclaimer: Content contained within this news alert provides information on general legal issues and is not intended to provide advice on any specific legal matter or factual situation. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional counsel.