Duties of Management Company
In Texas, homeowners associations (HOAs) and condominium associations (COAs) often hire management companies to handle the day-to-day operations and administrative tasks associated with running the community. These companies act as agents of the association, working under the direction of the association’s board of directors. Below are some of the core functions a management company might perform for an HOA or COA in Texas:
Administrative Services
- Communications: Managing communication with residents, including newsletters, announcements, Notice of fines, Deficiency notices for unpaid annual dues or special assessments.
- Record-Keeping: Maintaining the association’s records, including minutes of board meetings, financial records, contracts, and correspondence.
- Meeting Coordination: Organizing and facilitating association meetings, including preparing agendas, setting up meeting spaces, conducting annual elections, annual meetings, conducting special assessment meetings, and distributing meeting notices and materials.
- Compliance: Ensuring that members of the Association comply with the community’s governing documents and restrictive covenants.
Financial Management
- Accounting: Managing the association’s finances, including accounts payable and receivable, aiding in financial aduits, and producing financial statements and reports
- Dues Collection: Collecting monthly or annual HOA fees from homeowners, managing delinquencies, and, if necessary, initiating collection actions in accordance with the governing documents and state laws.
Property Management
- Maintenance and Repairs: Overseeing the maintenance and repair of common areas and amenities, including hiring and supervising contractors and vendors.
- Inspections: Conducting regular inspections of common areas and, in some cases, individual units (particularly in COAs) to ensure compliance with the community’s architectural standards and maintenance requirements.
- Contract Management: Negotiating and managing contracts for services such as landscaping, pool maintenance, security, and other services required for the community.
Enforcement of Rules and Regulations
- Rule Enforcement: Implementing the community’s rules and regulations, including notifying homeowners of violations and working with the board to address non-compliance.
Legal Compliance and Advisory
- Legal Liaison: Acting as a liaison between the association and legal counsel on matters requiring legal attention, including litigation, document review, and compliance issues. Move often than not, the management company will supply the legal counsel for the HOA or COA.
It’s important to note that the management company’s role is to implement the decisions of the COA or HOA board of directors, not to make those decisions, though this line becomes grey in many situations. The board retains the ultimate authority over the association’s governance. Bad Management companies will overly enforce compliance issues with the members and create contentious issues with the Board of Directors and Community members at large. It is normal to sue both the management company and the Association if litigation is necessary.
Julian Nacol
Nacol Law Firm P.C.
Dallas HOA Attorney
(972) 690-3333
Open Meeting Requirements for Homeowner Associations : Understanding Texas Property Code Section 209.0051
Does your homeowner association make major decisions without any input or accountability being held? Can the Board of Directors make such decisions during a closed executive session?
In Texas, homeowner associations (HOAs) play a significant role in managing and maintaining residential communities. One of the key legal requirements that govern HOAs is Texas Property Code Section 209.0051, which outlines the open meeting requirements that associations must follow. Understanding these rules is essential for both HOA board members and homeowners to ensure transparency and compliance with state law.
What is Texas Property Code Section 209.0051?
Texas Property Code Section 209.0051 is a provision within the Texas Residential Property Owners Protection Act that mandates open meeting requirements for HOAs governing subdivisions. This law is designed to promote transparency and homeowner participation in association decisions.
Key Open Meeting Requirements
Board Meetings Must Be Open to Homeowners
HOA board meetings must generally be open to all homeowners, allowing them to observe discussions and decisions that affect the community. This requirement ensures transparency and fosters homeowner engagement.
Notice Requirements
HOAs must provide homeowners with advance written notice of board meetings. The notice must include the date, time, location, and general subject matter of the meeting. Notices should be provided at least 144 hours (six days) in advance for regular board meetings and at least 72 hours (three days) in advance for special meetings.
Matters Requiring an Open Meeting
HOAs must hold open meetings for discussions and decisions related to:
- Adoption or amendment of homeowner association rules, bylaws, or regulations
- Approval of the annual budget and financial expenditures
- Assessment increases and special assessments
- Election of board members and appointment of officers
- Major contracts or agreements affecting the community
- Changes to architectural guidelines or community standards
- Any other matter that requires a vote by the board, unless it falls under executive session exceptions
Permissible Closed Sessions (Executive Sessions)
While most HOA board meetings must be open, certain topics may be discussed in a closed executive session. These include:
- Pending or anticipated litigation
- Contract negotiations
- Enforcement actions against homeowners
- Personnel matters
- Consultation with the association’s attorney.
After an executive session, any decisions made must be summarized in the open meeting minutes without disclosing confidential details.
Electronic and Telephonic Meetings
HOAs may hold board meetings electronically or via teleconference, provided they comply with the notice requirements and allow homeowners to listen in or participate as required by law.
Meeting Minutes and Record-Keeping
HOAs must keep written minutes of open meetings, documenting decisions and discussions. Homeowners are entitled to review these records upon request, ensuring continued accountability and transparency.
Why This Matters to Homeowners
For homeowners, understanding Section 209.0051 is crucial because it guarantees their right to stay informed and engaged in community governance. It ensures that HOA boards cannot make major decisions in secrecy and provides an opportunity for residents to voice concerns and opinions.
Compliance and Enforcement
Failure to comply with Texas Property Code Section 209.0051 can lead to legal challenges and disputes between homeowners and the HOA board. Homeowners who believe their HOA has violated open meeting laws may seek remedies under state law, including legal action if necessary.
Texas Property Code Section 209.0051 is an important safeguard for homeowners, promoting transparency and accountability in HOA governance. Whether you are an HOA board member or a homeowner, understanding these open meeting requirements helps ensure that decisions affecting your community are made fairly and in compliance with the law.
If you have questions about HOA meetings or need legal guidance on HOA-related matters, consulting with a qualified attorney can help you navigate your rights and obligations effectively.
Dallas Texas HOA Attorneys
Nacol Law Firm P.C.
(972) 690-3333
NACOL LAW FIRM P.C.
8144 Walnut Hill Lane
Suite 1190
Dallas, Texas 75231
972-690-3333
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Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization