Dues increased before ballot vote & approval

Started by SusanB42 • 6 replies • 179 views

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SusanB42 (Texas)
Posts: 21

Posted:

Thank you all for your responses on the right of the board to increase our annual dues. According to TX Property Laws, the Board can only increase 10%. So this year our assessment increased by 36%. I was just informed that the reason for the increase ($100) is for future legal fees for rewriting our Deed Restrictions / Restrictive Covenants which have been in effect since 1986. Nothing of consequence has changed in all of these years that could not be addressed with our By-Laws. Yes, I was an officer and member of the Board for 25 years. We maintained our own property and street fronts. We joined together to help out our neighbors and kept the HOA in great order. Friends, neighbors and the city officials were all a supportive part of our lives. Now and in the last 5 years, all of the homeowners are not so neighborly. The Officers --- well another matter for another day. We are a small HOA of less than 25 homes. So I was hoping to find a Texas HOA law that prevents the Board from wasting our money for no apparent reason.

SheliaH (Indiana)
Posts: 6,964

Posted:

Nothing of consequence? I know you were on the board for 25 years, but if you were paying attention, you know there have been A LOT of changes in the people who now make up your community, city and state law,, building codes, tastes in everything from fence material to controlling invasive species (that cute tree you saw at the garden may grow something gargantuan that will invade your neighbor's yard)

You also know the bylaws typically dictate how the community is run while the CCRS usually dictate how the common areas are used. Depending on how your documents should be amended, you don't necessarily have to address everything all at once. It doesn't mean not addressing them at all.

It's great that your neighbors work together in making the community a great place to live, but none of you will be there forever. It may be that things have happened that the CCRS don't address at all but no one's noticed until recently

All of that said, you don't say how much your current assessments are, what they cover and the last time they were increased. You didn't say what the board has in mind for amendment proposals, so I would agree that unless that question's answered (and perhaps a few more), the increase might not be justified.

You can go to your Texas state website and find current state law (start with a search for assessment increases). Note you may need to check if the statute applies to all HOAs or those established after a certain date. If yours is older, you may need to check what your documents (usually the bylaws) have to say.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

MichaelS56 (Minnesota)
Posts: 858

Posted:

Goggle New Texas HOA laws and you will see what the new laws in Texas are. You may want to look at previous years to see what laws were passed that HOA's need to adjust to.

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By SusanB42 on 02/08/2025 10:07 AM
According to TX Property Laws, the Board can only increase 10%.

I see nothing in either the Texas Condo statutes or TPC 209 that has any such limit.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By SusanB42 on 02/08/2025 10:07 AM

So I was hoping to find a Texas HOA law that prevents the Board from wasting our money for no apparent reason.

Well, it appears that your board thinks it has a good reason. You simply disagree with that reasoning and their decision.

As you should be aware, corporate statutes give broad authority to the board to run the affairs of the association as they see fit (or with a majority vote of the board). Any limitations to this authority would be within your governing documents.

Perhaps you can propose an amendment to your governing documents to limit the amount a board may raise the assessments without membership approval.
Inflation tends to be about 5% so a number of 5 to 10 percent shouldn't have too much opposition.

My Association is in a reverse situation. For us to raise assessments it requires 2/3 membership approval.
I would not suggest that high of an approval amount or you may find maintenance and repairs being deferred.

SusanB42 (Texas)
Posts: 21

Posted:

SheliaH, Thank you. I have the current by-laws. In fact I typed the by-laws a few years ago to submit to the Attorney for publication. So I know the by-laws. I have typed the Restrictive Covenants CCRS and know that as old as this document is, the basic covenants still apply and cover all of the rules for this area. The Texas 209 does not address my question about the Officers/Members of the Board and Directors (I do know the difference) sending out the 2025 assessment/dues amount that is designated for the FUTURE possibility of re-writing the Restrictive Covenants CCRS that are still applicable to our small HOA. The re-writing the Restrictive Covenants CCRS was voted down last year. We are responsible for our own trees & landscape and sidewalks. Our utilities have decreased due to upgrading to LED lighting. Streets have been resurfaced and in good repair for another 10 years. Oh, and our streets are our common areas. I am in contact with the city staff and have direct contact with the leaders of the community.

DeanJ
Posts: 1,786

Posted:

Wow, you must be governed by the only board in the US that loves to raise fees for not reason.

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