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SB 1588 - What Is It?

Posted by Gebora Realty Team August 23, 2021




As is the case with every legislative session, many new bills were passed back in April. One in particular that was passed was SB 1588. This was bi-partisan bill that changed many of the ways that HOAs were allowed to operate within our state. Here are a few of the key takeaways you should know about!

Board meetings and finances

Any and all budget amendments that the HOA would like to establish need to be done in a public forum that ALL HOA members can attend, and they must give notice of this public meeting 144 (which is up from 72) hours in ahead of time. Also, any budget item over $50,000 must be sent out for competitive bidding which helps ensure the best value for you!

Delinquent Accounts These changes create a new due process procedure which must be followed before a delinquent account can be reported. While the HOA can still send delinquent accounts to collections, it can no longer charge you for doing so which transfers the financial burden to the HOA instead of the homeowner. Also, an HOA must provide 45 (up from 30) days for the owner to take of any delinquencies before any further action can be taken.

Religious Displays

This prohibits the HOA from restricting a homeowner’s right to display or affix a religious item on the owner’s entry or property. The exception to this rule would be anything considered common property.

Security devices and fencing

An HOA can no longer restrict a homeowner from installing security devices like cameras or lights. Additionally, the homeowner has the unrestricted right to put up a perimeter fence. The HOA is still able to tell you what type of fencing is allowed.

Subdivision Information and Resale Certificates

An HOA can now only charge a “reasonable” fee, not to exceed $250, to assemble, copy, and deliver subdivision information. In addition to this, HOAs may now only charge up to $30 for a resale certificate for your home. This is major victory because some HOAs were charging excessive amounts for these items.

These changes were overall a big win for people who are members of an HOA. It provides additional protection and securities while still allowing these bodies to maintain the beauty and functionality of the neighborhoods they oversee.

For more information, check out https://legiscan.com/TX/bill/SB1588/2021


Published by Gebora Realty Team

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