Many homes in Texas are located in subdivisions that are governed or managed by a homeowners association, or property owners association, as they are referred to in the state statutes. A property owners’ association is a designated representative of the owners of property in a subdivision ( Tex. Prop. Code §204.004 ). The association must be a non-profit, but many are surprised to learn that no Texas state agency regulates home or property owners’ associations. Yet, disputes between homeowners and their associations are all too common. Here are some basics of how a property owner’s association in Texas functions when it comes to disputes, as outlined in the Texas Property Code. The association has the power to: (1) adopt and amend bylaws; (2)adopt and amend budgets; (3) hire managing agents and employees; (4) regulate use, maintenance, repair, replacement, and appearance of the subdivision; (5) institute, defend, settle, or compromise litigation or administrative proceedings o...
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