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Committee hears mixed testimony on HOA transparency bill; industry and homeowner groups disagree over penalties and enforcement

April 15, 2025 | Committee on Business & Commerce, Senate, Legislative, Texas


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Committee hears mixed testimony on HOA transparency bill; industry and homeowner groups disagree over penalties and enforcement
Senate Bill 25 86, introduced by Senator Flores and carried in committee by Senator Nichols, would require homeowners associations (HOAs) to publish governing documents, rules and enforcement policies to a state-maintained website (hoa.Texas) no later than the seventh day after they are filed. The bill proposes civil penalties ($1,000 for the first day and $500 per day thereafter) for failure to file and would prohibit HOAs from recouping such penalties directly through association membership fees.

Testimony revealed divergent views. The Texas Realtors policy director testified neutrally: realtors welcome earlier access to documents for prospective buyers but said the bill needs technical fixes because the Texas Real Estate Commission (TREC) does not currently exercise regulatory authority over HOAs. Representatives of HOA trade groups (Community Associations Institute/TLAC and Texas Community Association Advocates) opposed the bill primarily because of the proposed fines and feasibility concerns for volunteer-led POAs; they said the underlying documents are already public (county records, resale certificates and association websites where required) and argued the new penalty structure is onerous for volunteer-run nonprofit associations that may lack funds to pay daily fines.

Witnesses also described how current law already requires certain disclosures in management certificates recorded in county property records and creates some enforcement paths (e.g., small-claims actions or limitations on collections when required records are not timely filed). Testimony from homeowners’ and consumer-advocacy representatives emphasized the need for improved transparency for buyers but acknowledged the implementation challenges identified by POA representatives.

The committee closed public testimony and left the bill pending.

Ending: Testimony focused on balancing transparency for buyers and the practical burdens on volunteer associations; committee left SB 25 86 pending for further drafting and agency clarity on enforcement roles.

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Scribe from Workplace AI
Scribe from Workplace AI