The bill amends the Property Code to enhance the powers and duties of property owners' associations in Texas. It requires these associations to adopt an enforcement policy for levying fines, which must include categories of restrictive covenants, a schedule of fines, information regarding hearings, and a restriction on imposing unreasonable fines. Additionally, the bill introduces a new section that limits the ability of associations to increase assessments unreasonably from one year to the next, unless approved by a majority vote. It also mandates that associations adopt policies regarding assessments for maintenance and improvement of common areas, which must also be approved by a majority vote.

Furthermore, the bill prohibits associations from filing assessment liens for debts that consist solely of minor fines and restricts them from enforcing provisions that unreasonably limit homeowners' rights to make minor aesthetic improvements or use common areas without majority approval. It also clarifies that associations cannot require approval for short-term rentals, thereby protecting property owners' rights in this regard. The changes aim to provide more transparency and fairness in the governance of property owners' associations while ensuring that homeowners retain certain rights regarding their properties. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Property Code 209.0061, Property Code 209.0094, Property Code 209.016 (Property Code 209)