When Can Homeowners Take Control from Developer in a Texas HOA?

Hi Nikhil,

In Texas, the transition of an HOA from developer control to homeowner governance is primarily governed by the association’s founding documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws. These documents typically outline specific conditions under which control shifts from the developer to the homeowners. Commonly, this transition occurs after a certain percentage of properties are sold, often around 75%. However, developers may extend their control by continually adding new sections to the community, thereby delaying the transition process.

Unlike some states, Texas does not have a statutory time limit capping the duration of developer control. This means that unless your HOA’s governing documents specify a deadline or percentage threshold for transition, the developer can maintain control until they choose to relinquish it or until all development phases are completed and sold.

To address this situation, consider the following steps. Carefully examine your HOA’s CC&Rs and bylaws to identify any provisions related to the transition of control. Look for clauses that specify when and how the transition should occur. Engage an attorney experienced in Texas HOA law to interpret these documents and assess whether the developer is adhering to the stipulated terms.

Initiate a dialogue with the developer to express homeowner concerns and seek a mutually agreeable timeline for transition. Organize fellow homeowners to collectively advocate for transition. Finally, stay informed about any changes in Texas legislation that may impact HOA governance and developer control.