Common HOA FAQs
Understanding what it is to live in a HOA Community and how it is maintained and managed can sometimes be challenging to new home buyers who probably didn’t consider in totality all the ends and outs that comes with being a member of a HOA Association, here are some frequently asked questions that CCS hopes may help shed some light, and make your HOA experience worthwhile.
Homeowner Specific
HOA stands for Homeowners Association-Often referred to as “Property Owners’ Association” in Texas law, these organizations are composed of property owners that make and enforce rules for the properties and residents within its jurisdiction. Property owners may be required to be members of the HOA and pay certain dues, assessments, or other fees.
Covenants, Conditions and Restrictions (CC&R’s) are the governing legal documents that set up the guidelines for the operation of the planned community association as a non-profit corporation. The CC&Rs were recorded by the County recorder’s office of the County in which the property is located and are included in the title to your property. Failure to abide by the CC&R’s may result in a fine to a homeowner by the Association.
The Bylaws are the guidelines for the operation of the Association. The Bylaws define the duties of the various offices of the Board of Directors, the terms of the Directors, the membership’s voting rights, required meetings and notices of meetings, and the principal office of the Association, as well as other specific items that are necessary to run the Association as a business.
In Texas, assessments refer to what many people call "dues." Each owner in a property owners' association must make these payments. Failure to pay assessments can result in fines and serious penalties, including foreclosure.
Regular assessments are charged on a consistent basis (like monthly or yearly) to cover general maintenance and expenses.
Special assessments are charged once for a specific reason. Examples can include major repairs, unexpected events, and property enhancement projects.
Texas law places no limit on how much or how often assessments may increase. Any caps or restrictions will likely be found in the association's governing documents. Articles of incorporation or bylaws often limit the maximum amount that can be charged without approval by the general vote. Owners must typically vote to approve increases beyond this amount and any special assessments.
When a homeowner defaults on their assessments or fails to pay their special assessment, the HOA can place a lien on the property to secure the debt.
Liens make it more difficult for homeowners to sell their property, refinance or take out a second mortgage on the home.
They can’t proceed with the transaction unless they satisfy the lien first. In many cases, the HOA can take things one step further and initiate foreclosure proceedings.
Board Specific
Community association boards consist of officials elected to represent and protect the best interests of the community. Community associations are corporate entities whose board members must maintain the value of a jointly owned asset.
Community associations are social entities— neighborhoods of people who expect the board to preserve, if not improve, their quality of life. Ultimately, the role of the board is to protect and increase property value. This is accomplished by operating the association, maintaining the common property, and enforcing the governing documents.
Specifically, homeowners may elect a Board, in an elections process that is outlined in the Association’s governing documents.
The governing documents of a property owners' association will often have instructions for removing a member from the Board. If there are no instructions, the Texas Business Organizations Code states that a director may be removed by the "persons entitled to elect, designate, or appoint the director." If there was an election to appoint the director, a vote must also be taken to remove them. The number of votes to remove the director must equal the number of votes required to elect them.
HOA Management Specific
When tasks become overwhelming for the volunteer board of directors, many HOAs hire an HOA management company like Class Community Service.
An HOA management company provides various services to homeowner associations. These companies oversee the daily operations of an HOA and supervise the maintenance of amenities and common areas and staff. Basically, a homeowners association management company exists to make the lives of HOA board members easier by helping fulfill their duties and responsibilities.
These companies have years of experience and a diverse set of experts at their disposal. Therefore, they’re fully equipped to handle the various tasks associated with an HOA, whether that means collecting dues or planning the annual budget.
Self-Managing an association, especially those that are not small can be met with devasting consequences if the board is inexperienced, and the association fails to stay abreast of maintaining financial accountability, compliance requirements, as well as managing the day to day operations of the association which requires full-time attention which many volunteer board members don’t have the time to commit to.
Areas where Self-Managed HOAs often fall short is.
Lack of Communication; Time Constraints; Inadequate Skills or Experience; Failure to Adhere to Governing Documents; Delayed Maintenance; Accounting and Financial Issues; Legal Non-Compliance; Inability to Stay Neutral; Few to No Volunteers.
Falling short in these areas of management can lead to disgruntled residents, poor community support and a decline in property upkeep and value which are reasons to seek professional help from a management company like CCS who has the skills to manage your community efficiently.
Yes! Most management contracts have a clause that addresses terminating a management company’s contract with procedures the Board can follow to initiate termination. Likewise, a management company as well can terminate the relationship according to contractual guidelines.
ACC Request Specific
An ACC Request is a request from a homeowner to make modifications to their home or home exterior requiring approval through an Architectural Control Committee (ACC) or Architectural Review Committee (ARC) who reviews plans and specifications for proposed improvements ensuring requests are within the guidelines of the governing documents and follows the approval process by sending recommendations to the management company or board for a final decision.
The purpose of adhering to these guidelines are to ensure that modifications do not take away from the aesthetic appeal of the community and negatively impact property value.
Skipping the Architectural Review Request (ACC) process can result in enforcement actions, including fines, legal penalties, or the association requesting that the homeowner reverse the modification or remove additions. These actions can be costly.
Request can be made through an online portal if managed by a HOA Management Company like Class Community Service, or an Association Website if available or according to your association’s operation procedures.
Compliance Specific
Being a part of a HOA community means there are specific guidelines that must be adhered to according to your associations governing documents you signed when purchasing your home. Maintaining your homes appearance, like keeping your yard neatly cut and maintained is one of those criteria often cited.
HOA Management regularly conduct compliance drives to ensure the community is adhering to stated guidelines, when an infraction is noted such as high grass, a warning is issued with an opportunity for the homeowner to correct, failure to correct after warning can then lead to fines being assessed if not addressed.
When assessed a fine for a violation, if Managed by Class Community Service, violations will appear on your on-line portal along with a picture of the violation showing you why you were cited. You then can pay online through your portal, or in person at the association office. You will be mailed a copy of the fine, and after 90 days if you fail to pay, your account can be turned over to collections.
When dealing with a noisy neighbor you can always bring the matter to the attention of your Management Company or the Board of Directors, but most of these types of complaints are outside of the control of what management has jurisdiction to address and is what we call a “Neighbor to Neighbor Dispute.” These types of matters may require getting local law enforcement to resolve.
Class Community Service in its relationship with the community often reaches out to residents to try to deescalate matters when able.
Residents managed by Class Community Service are encouraged to report violations that infringe upon their quality of life or is an irritant or eyesore that takes away from the aesthetic appeal of the community.
CCS Community Managers do follow up on resident submitted violations.
Legal Specific
The Texas Residential Property Owners Protection Act is the state law that covers various issues such as board governance, elections and voting, record-keeping, and an owner's right to access records, protections regarding third-party collections, required notices, foreclosures for assessment liens, and regulations on leases.
When a lien is put on your home it means that collection efforts at the management level was unsuccessful, which according to Texas law must be done according to 3 attempts to collect in 30-day increments with 2 of those attempts being by certified mail. When those efforts fail your account is then turned over to the associations attorney who processes the lien to be placed on your home.
When a lien is placed on your home it would have to be settled before you can sell your home or in many instances interfere with your ability to refinance or obtain a 2nd mortgage on the lien property. The HOA may also report liens on your credit report.
If managed by Class Community Service your first point of contact should be with us or the association to ensure proper protocol is followed. You will have to pay your past due balance in full and have arrangements made with the associations attorney to execute a lien release form, once initiated you will have to file the release with the county recorder’s office.
Property owners' associations with a right to foreclose on a lien may use the judicial foreclosure process. It involves filing a lawsuit against the property owner in a district court or a county court where the property is located. This will be based on the amount of money owed. If the court rules in favor of the association, the court will order a sheriff or a constable to seize and sell the property in a public auction according to Rule 309 of Texas Rules of Civil Procedure<https://www.txcourts.gov/rules-forms/rules-standards/.> Any money owed to the association will be taken from the sale proceeds.