House Bill 614: Texas Law Limits Fines For HOA Violations

With the new year comes new laws for homeowners associations. Effective January 1, House Bill 614 seeks to promote transparency and accountability regarding fines for HOA violations.

What Is House Bill 614?

Under the provisions of the new law, HOAs must have policies that consist of detailed information. This includes outlining general categories of restrictive covenants for which fines may be imposed, establishing a fine schedule for each violation category, and providing clarity on the procedures for hearings.

Tray Bates, Vice President of Government Affairs at the Texas Realtors Association, emphasizes the law’s role in demystifying the enforcement process. “It also spells out a schedule for what fines are available for enforcement, so you’re not surprised by maybe the first notice or the second notice or fine that happens,” Bates notes.

Starting January 1, 2024, House Bill 614 clarifies HOA fines related to issues such as overgrown landscaping, parking violations, house alterations, and more. The legislation aims to improve communication within HOAs and eliminate surprises in the enforcement of fines.

House Bill 614 requires HOAs to adopt a comprehensive policy outlining fine imposition. It also mandates a specific breakdown for each violation category. Furthermore, owners must easily access these policies online. Alternatively, HOAs must distribute the policies to owners via hand delivery, mail, or email.

For Potential Homeowners

Bates emphasizes ongoing efforts for HOA reform. The rapid population growth in Texas only makes HOA reform more important and urgent. With that, Bates advises prospective homeowners to thoroughly examine HOA rules. He asserts that the new legislation facilitates access to these rules at the start of the purchasing process.

“I would really focus on understanding what the HOA rules are before you sign on the dotted line so that you understand what you’re walking into,” Bates advises. He further emphasizes the importance of informed decision-making in navigating the intricacies of JHOA regulations.