Texas HOA & CIC
Governance
Educational governance frameworks for volunteer board members of Texas planned developments, homeowners associations, and condominium communities.
Educational Notice: This information is educational in nature and should not be construed as legal advice. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.
Texas Governance Law
Texas community associations are governed by the Texas Property Code. The applicable chapter depends on when the community was created and its legal structure.
Texas Residential Property Owners Protection Act
Governs planned developments, subdivisions, and property owners associations. Establishes board authority, open-meeting requirements, record-inspection rights, election procedures, enforcement, and lien processes.
Primary HOA governance statute for Texas
Uniform Condominium Act
Governs condominiums created after January 1, 1994. Addresses unit ownership, association authority, governance requirements, assessments, and operational standards for condominium associations.
Primary Texas condo statute (post-1994)
Texas Condominium Act
Applies to condominiums created before January 1, 1994. Many older Texas condominium associations still operate under Chapter 81 frameworks alongside their recorded declarations.
Older condominium statute (pre-1994)
Statutory text available at statutes.capitol.texas.gov. This information is educational in nature and should not be construed as legal advice. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.
Key Areas for Texas Boards
Educational summaries of the governance areas Texas board members encounter most frequently.
Board Authority & Fiduciary Duty
- Texas board members owe fiduciary duties to the association — duty of care, duty of loyalty
- The business judgment rule generally protects good-faith board decisions
- Boards must act within the scope of authority granted by governing documents
- Conflicts of interest must be disclosed; affected directors should recuse
- Personal liability risk increases when directors act outside their authority or in bad faith
Open Meetings
- Chapter 209 requires board meetings to be open to all members
- Notice of board meetings must be provided at least 72 hours in advance
- Annual member meetings require at least 10 days advance notice
- Members have the right to speak on agenda items before board votes (reasonable time limits apply)
- Executive session is permitted for specific topics: legal advice, personnel matters, pending litigation, contract negotiations
Elections & Voting
- Election procedures are primarily governed by the association's bylaws and Chapter 209
- Cumulative voting is permitted unless prohibited in the governing documents
- Proxies are generally permitted unless restricted by governing documents
- Members have the right to nominate candidates from the floor unless restricted
- Election challenges should be addressed through the procedures in the governing documents
- Recent legislative updates (2021) modified certain election and voting requirements
Records Access
- Chapter 209 provides members the right to inspect association records
- Records subject to inspection include: governing documents, financial records, meeting minutes, contracts
- Associations may charge reasonable fees for copying records
- Certain records are exempt from inspection (e.g., individual owner account information may have privacy protections)
- Associations must respond to record requests within a reasonable time
- Denying legitimate record requests may expose the association to legal liability
Enforcement
- Chapter 209 establishes due-process requirements before fines can be imposed
- Members must receive written notice of the alleged violation
- Members have the right to a hearing before a committee before fines are assessed
- Fine amounts must be authorized by the governing documents and/or state law
- Associations may place liens for unpaid assessments following required notice procedures
- Liens for fines alone have more restrictive requirements than assessment liens
- Boards must follow consistent enforcement to avoid selective-enforcement claims
Reserve Funding
- Texas does not mandate reserve funding for HOAs under Chapter 209
- Reserve funding is generally governed by the association's governing documents
- Inadequate reserves are a leading indicator of governance failure — CICSC strongly recommends funded reserve plans
- Reserve studies help boards project long-term capital expenditure needs
- Underfunded reserves often result in special assessments that harm community trust and property values
- Condominium associations under Chapter 82 may have different reserve obligations
Insurance
- Texas associations should maintain property and liability insurance at minimum
- Directors and Officers (D&O) liability insurance protects board members acting in good faith
- Governing documents typically specify minimum insurance requirements
- Insurance renewal should be reviewed annually by the full board, not delegated entirely to management
- Fidelity/crime insurance (employee dishonesty coverage) is recommended for associations with significant reserves
- Consult a licensed insurance professional for coverage recommendations — CICSC does not provide insurance advice
Vendor & Procurement
- Board members owe a duty of care in vendor selection — document your process
- Competitive bidding for significant contracts is a governance best practice, even when not required
- Management contracts should be reviewed annually and contain clear performance standards
- Vendor conflicts of interest must be disclosed and recusal is required for affected board members
- Contract termination provisions should be understood before signing
- Chapter 209 establishes certain restrictions on management company authority and contract terms
This information is educational in nature and should not be construed as legal advice. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.
Governance Standards & Templates
Download CICSC governance standards and templates applicable to Texas boards.
Credential Your Texas Board
The CIC-BOS certification equips Texas board members with governance knowledge, fiduciary frameworks, and operational standards — built on best practices and applicable to Texas community association governance.
Texas Governance Articles
In-depth guides to the statutes and procedures Texas board members need to know.
Board Meetings Under Chapter 209
Read Article →Texas Law / MeetingsOpen Meetings Under § 209.0051
Read Article →Texas Law / ElectionsCandidate Solicitation Under § 209.00593
Read Article →Texas Law / Board FundamentalsBusiness Organizations Code Chapter 22
Read Article →Enforcement & ViolationsHOA Hearing Rights: § 209.007
Read Article →Legal FrameworkShort-Term Rental Regulations
Read Article →