It is assumed for the purposes of this article that the fines levied by the HOA referenced herein are proper, valid, and do not violate the Texas Property Code or other applicable statutes. This article is in relation to residential subdivision homeowner’s associations governed by Texas Property Code Chapter 209.

There are three principal (though not the only) ways an HOA may remedy the fines on a homeowner’s account: (1) file a lien against the property; (2) report the delinquency of an owner to a collection agency; and (3) file suit on the homeowner. 

Liens 

After an HOA has placed fines on your account, they may seek to place a lien on your property in order to secure payment when the property is sold. Pursuant to Tex. Prop Code Sec. 209.009:

“A property owners’ association may not foreclose on a property owners’ association’s assessment lien if the debt securing the lien consists solely of:

1. Fines assessed by the association;
2. Attorneys fees incurred by the association solely associated with fines assessed by the association; or
3. Amounts added to the owner’s account as an assessment under Section 209.005(i) [records reproduction requests] or 209.0057(b-4) [charges to a homeowner for vote recounts].

While Texas law does not automatically grant HOAs the authority to create liens, the HOA can create that authority if it is granted in their governing documents. The documents should specify (if any) which types of charges may be subject to a lien (e.g., past-due assessments, fines, attorneys fees, etc.).

Collections (see Tex. Prop. Code. Sec. 209.0064)

An HOA may also seek recourse by reporting delinquencies to a collection agency. An HOA cannot hold a homeowner liable for fees incurred by the HOA for retaining a collection agency to collect the outstanding balance unless the HOA sends the homeowner notice via certified mail that:

“(1) specifies each delinquent amount and the total amount of the payment required to make the account current; 

(2) if the association is subject to section 209.0062 or the association’s dedicatory instruments contain a requirement to offer a payment play, describes the options the owner has to avoid having the account turned over to a collection agent, including information regarding availability of a payment plan through the association; and 

(3) provides a period of at least 45 days for the owner to cure the delinquency before further collection action is taken.”

Filing Suit

Lastly, an HOA may seek to enforce a restrictive covenant and obtain monetary damages from a homeowner. Pursuant to Tex. Prop. Code Sec. 202.004(b)-(c): 

“(b) a property owners’ association or other representative designated by an owner of real property may initiate, defend, or intervene in litigation or an administrative proceeding affecting the enforcement of a restrictive covenant or the protection, preservation, or operation of the property covered by the dedicatory instrument.

(c) a court may assess civil damages for the violation of a restrictive covenant in an amount not to exceed $200 for each day of the violation.”

If an HOA files a suit of this nature, they are typically seeking specific performance, meaning they are asking the court to force the owner to do or stop doing a specific action in order to comply with the governing documents. However, as stated in subsection (c) above, the HOA can also seek payment of fines in the amount of $200 for each day of the violation.

In conclusion, while this list is not comprehensive, there are a variety of ways an HOA can seek to collect overdue fines on your homeowner’s account. If you have any concerns about the actions of your HOA, please contact us.

Dallas HOA Attorneys
Nacol Law Firm P.C. 
(972) 690-3333

Disclaimer: The information provided in this article is in no way intended to constitute legal advice. The information provided is merely an overview of the relevant law. Do not act on this information. Always consult an attorney for legal advice.