Can an HOA Raise Dues Without a Vote in Texas?
As a homeowner in a community governed by a homeowners association (HOA), it’s crucial to understand the HOA’s authority regarding financial matters, particularly when it comes to raising dues. In Texas, the rules governing HOAs are laid out in the Texas Property Code. This article delves into the specific regulations surrounding HOA dues increases in Texas, clarifying whether HOAs can impose such increases without the approval of homeowners.
HOAs play a significant role in maintaining and enhancing the quality of life in planned communities. They enforce rules and regulations, provide services such as lawn care and snow removal, and manage common areas. To cover these expenses, HOAs collect dues from homeowners. However, the process of raising dues is subject to specific legal requirements.
HOA Dues Increases in Texas
In Texas, an HOA can only raise dues through a vote of the homeowners. The Property Code outlines the procedures that HOAs must follow when proposing a dues increase. These procedures include providing homeowners with written notice of the proposed increase and the date, time, and location of the vote. The notice must also state the specific amount of the proposed increase.
The vote on a dues increase must be held at a duly noticed meeting of the homeowners. The Property Code requires a quorum of at least 50% of the homeowners to be present at the meeting for the vote to be valid. A simple majority of the homeowners present and voting is required to approve a dues increase.
Exceptions to the Voting Requirement
There are limited exceptions to the voting requirement for HOA dues increases in Texas. One exception applies to HOAs that are governed by a “declaration of covenants, conditions, and restrictions” (CC&Rs) that was recorded before September 1, 1993. These CC&Rs may give the HOA the authority to raise dues without a vote of the homeowners.
Another exception applies to HOAs that have a “budget deficit.” A budget deficit occurs when the HOA’s expenses exceed its income. In such cases, the HOA may raise dues without a vote of the homeowners, but only to the extent necessary to cover the deficit.
Tips for Homeowners
If you are concerned about a proposed HOA dues increase, there are steps you can take to protect your interests. First, review the HOA’s governing documents, including the CC&Rs and bylaws, to determine if the HOA has the authority to raise dues without a vote.
Second, attend the meeting where the dues increase is being voted on. This will give you an opportunity to voice your concerns and vote against the increase if you believe it is unreasonable. You may also want to consider contacting other homeowners in your community to discuss the proposed increase and coordinate your efforts.
FAQs
Q: Can an HOA in Texas raise dues without a vote?
A: Generally, no. HOAs in Texas must obtain approval from homeowners through a vote before raising dues.
Q: What are the exceptions to the voting requirement?
A: Exceptions include HOAs with CC&Rs recorded before September 1, 1993, and HOAs with a budget deficit.
Q: What should homeowners do if they are concerned about a proposed dues increase?
A: Homeowners should review the HOA’s governing documents and attend the meeting where the increase is being voted on. They may also want to contact other homeowners to discuss the proposed increase.
Conclusion
In Texas, HOAs generally cannot raise dues without a vote of the homeowners. The Property Code establishes specific procedures that HOAs must follow when proposing a dues increase. Homeowners should be aware of their rights and take steps to protect their interests when faced with a proposed dues increase.
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