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Aerial view of homes in the Harrington Mills subdivision on Saturday, April 8, 2023, in Plano.<\/p>\n
Smiley N. Pool\/Staff Photographer<\/p>\n
If you\u2019ve ever been told you cannot paint your house a certain color, install a type of fence or store your trash cans in public view on non-trash pickup days, chances are your neighborhood is governed by a homeowners association.<\/p>\n
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When people buy or rent a home in an HOA-governed neighborhood, they are asked to pay dues and sign a contract. This contract enables residents to access community amenities while granting the HOA the right to enforce regulations. Some of these regulations can be related to sanitation and cleanliness of the neighborhood, while others focus on aesthetics.<\/p>\n
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However, sometimes disputes<\/a>\u00a0arise between HOAs and homeowners, even resulting in lawsuits. Everything from unpaid fees to mismanagement<\/a> of finances can be seen in Texas cases.<\/p>\n One reader asked Curious Texas, \u201cWhy is there not more government oversight on HOAs?”<\/p>\n Here\u2019s what we found out.<\/p>\n What is an HOA? <\/p>\n Homeowners associations<\/a> are community organizations made up of property owners, with many being considered\u00a0nonprofits. They are governed by an elected board and funded by dues paid by property owners.<\/p>\n Article continues below this ad<\/p>\n Make Dallas News a preferred source so your search results prioritize writing by actual people, not AI.<\/p>\n <\/p>\n Add Preferred Source<\/p>\n <\/a><\/p>\n HOA boards outline restrictions and conditions in contracts, which homeowners and renters must sign and comply with when moving into the neighborhood. The HOA’s elected board members enforce<\/a> these regulations, including how the HOA should govern itself and regulations on how property can be used and maintained.<\/p>\n Texas is home to more than\u00a021,000<\/a> homeowners associations, according to the most recent data from Foundation for Community Association Research.<\/p>\n Dallas<\/a> and Grand Prairie<\/a> feature interactive maps on their city websites showing where current HOAs operate.<\/p>\n Article continues below this ad<\/p>\n Is there government oversight on HOAs? <\/p>\n There are a number of Texas laws regarding HOAs, but the state government does not have enforcement power.<\/p>\n The Texas Secretary of State website<\/a> says no state agency regulates homeowners associations. The office cannot “investigate or regulate the internal activities of\u00a0HOAs and cannot take action against them for failing to comply with their governing documents and bylaws.”<\/p>\n Gregory Fell, attorney and founder of the Fell Law Firm, represents home, condominium and townhouse owners in Dallas-Fort Worth who pursue legal action against their associations. Fell said although there are laws regarding HOAs under Texas state property law, there \u201creally is no state or governmental oversight.\u201d He said they are governed by a \u201cprivate contract\u201d between homeowners and the HOA board,\u00a0giving the HOA power to enforce the contract’s rules. HOAs are also able to fine residents who do not comply. Fell said these can quickly snowball and result in a lien on the property.<\/p>\n Article continues below this ad<\/p>\n In Fell\u2019s work, he sees two main disputes when it comes to fines and regulations: members not paying their dues \u2014 whether because of personal hardships or moving and not informing the HOA\u2014 and disagreements with fee increases. As for\u00a0regulations, Fell sees disputes related to construction of fences, pools and other property modifications HOAs might argue were not approved by the board.<\/p>\n His advice to homeowners? \u201cBe proactive when you realize there is a dispute, because the financial stakes will get higher and higher,\u201d Fell said.<\/p>\n He also suggests residents be aware of the rules set by their\u00a0HOA.<\/p>\n Related: Does your HOA have too much power? What homeowner associations can and can’t do<\/a><\/p>\n Article continues below this ad<\/p>\n What do the Texas laws regarding HOAs entail? <\/p>\n Within the Texas Property Code, the Texas Residential Property Owners Protection Act details<\/a> rights for residents and outlines requirements for HOA board governance. Under these laws, homeowners have a right to transparency over items such as financial documents and election procedures.<\/p>\n HOA powers are limited. If the act is violated by an HOA, the property owner can sue the HOA in a justice of the peace court or a civil lawsuit in a district court.<\/p>\n Fell said the laws lay out the procedures HOAs must follow before taking enforcement action. However, townhouse and condominium associations have their own subsections under the law, he added. Although fairly similar, residents should check which association their home is governed by.<\/p>\n Article continues below this ad<\/p>\n Since many HOAs are nonprofits, they must also comply with nonprofit laws under Texas Business Organizations Code, according<\/a> to the Texas State Law Library.<\/p>\n Related: North Texas HOA tried to kick out Black residents. Some are now suing for discrimination<\/a><\/p>\n Does the federal government have any power over HOAs? <\/p>\n Beyond the aforementioned, and minimal, state\u00a0regulations, associations’ also\u00a0need to comply with the federal government\u2019s\u00a0Fair Housing Act<\/a>, which says they must avoid discrimination while enforcing rules and offering benefits of membership as well as reasonable accommodations.<\/p>\n Article continues below this ad<\/p>\n The U.S. Department of Housing and Urban Development refers these cases to the Justice Department for litigation, though in some cases, this\u00a0litigation<\/a> has been paused under the Trump administration.<\/p>\n