Texas Legislature Passes Homeowners Association Reform – H.B. 2761 (Garza/West)

AUSTIN, TX – May 27, 2011 – (RealEstateRama) — The Texas House of Representatives passed HB 2761 which requires Texas Home Owners Associations to operate openly. Under HB 2761, HOAs may no longer foreclose on an assessment lien if the debt consists solely of fines assessed by the association, attorney’s fees incurred by the association solely associated with fines assessed by the association or amounts added to the owner’s account for open record requests. The bill places all Texas Home Owners Associations subject to Open Meetings, Open Records and records retention. The Bill also reforms HOA elections by establishing the right for homeowners to vote in HOA elections, the right to run for the board and procedures for open voting.

“The purpose of HB 2761 is to ensure that Texas HOAs operate with transparency and openness. The bill empowers homeowners with the right to Open Meetings, access to records, and voting rights without restrictions,” said Representative Garza.

The bill which passed the House unanimously was amended in the Senate by Senator Royce West to provide added protections during HOA elections. The House concurred with these additions on Thursday May 26th, 2011 sending the bill forward to Governor Rick Perry.

“In my meetings with constituents prior to the legislative session, in communities such as The Villages of Westcreek and Alamo Ranch, HOA reform was among the top concerns voiced by residents. They wanted open governance by HOAs and this bill aims to deliver just that.” said Representative Garza.

These reforms were modeled after the Open Government Acts because most HOAs have government-like authorities, such as the ability to set assessment fees, maintenance of roads, the ability to foreclose for non-payment of assessments etc.

“In the last weeks of the session, I worked with Senator West (Chairman of the Senate Committee on Intergovernmental Relations) and Representative Burt Solomons (fellow member of House Committee on Business and Industry) on the final version of the bill which strengthened the homeowner’s protections in the bill. With the Senate amendment to HB 2761, HOAs may no longer foreclose solely for fines and attorney fees,” said Representative Garza.

Protections for homeowners in HB 2761:
-Open HOA Meetings
-Mandatory records retention policy for all Texas HOAs of over 14 lots
-Open access to records by written request
-A mandatory election for a new board, if an HOA fails to call a regular meeting
-Requires meetings be held in the same county as the HOA
-Establishes that an HOA may not foreclose for fees owed for requests for records
-Eliminates certain rules which restrict voting rights and the right to run for the board of HOAs

MORE ABOUT HB 2761:

The Bill Analysis for HB 2761 can be found at:
http://www.legis.state.tx.us/tlodocs/82R/analysis/html/HB02761S.htm

The text of HB 2761 can be found at:
http://www.legis.state.tx.us/tlodocs/82R/billtext/html/HB02761S.htm

MORE ABOUT REP. JOHN V. GARZA:
John V. Garza represents Texas House District 117, which is located in far west and southwest Bexar County. His parents USAF S/SGT Arthur and Maria D. Garza were originally from the Westside of San Antonio. As a military family, the Garza’s traveled extensively and globally before finally settling back to their Westside San Antonio home in 1967. Rep. Garza graduated from Edgewood ISD’s John F. Kennedy High School in 1973. He then attended The University of Denver where he received his Bachelor’s degree in Mass Communication in 1977. John married a South San West Campus graduate, Debra A. Garza, in 1980 and has raised five children. He is also the proud grandfather of two grandchildren. The Garza’s currently live and work in District 117 and have always been active in serving and ministering to families in their community.

FOR MORE INFORMATION:
Rep. Garza or a spokesperson may be reached at his Capitol Office (512) 463-0269

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