Texas HB3803 (McClendon) for Oversight of Property Associations

Texas is considering a law that will begin some oversight to Property Associations in Texas.  Property owners within these regulated communities need oversight of their Associations.  If you support HB3803 you can use the form letter below to write your representative.

As a citizen of your district, and a property owner in xxx Association, I’m writing about the HOA bill, HB 3803 (McClendon) which is on the Business and Industry Committee docket for hearing.

Oversight and monitoring by the attorney general is needed for this industry.  HOAs are government agencies.  Community Association Institute (CAI) even refers to these Associations as governments in their publications and magazines. These Association governments impose many regulations as to how homeowners not only develop their property but also how homeowners are to live.  Yet HOAs have no oversight.

These Associations need to be scrutinized and require this level of regulation, if not more.   Other non-profit entities in Texas do not have the powers that these Associations have.  The power of these Associations rival the city’s, except that these Associations are the complainant, judge and jury for all matters concerning the operations of the association.  There are no checks and balances within these organizations. Homeowners are at the mercy of the board, management company, and the association attorney. 

Ensuring that trust accounts, providing insurance requirements, and a surety bond for board members is established are great ideas. Especially in light of all of the problems that Nevada and Florida have been experiencing concerning the embezzlement of funds from various HOA’s and the resulting indictments of board members and developers that have captured national attention.

CAI and Texas Community Association Advocates (TCAA) tries to imply that they represent homeowners. However, the only homeowners they represent are the board members – the controllers – those in power. The vast majority of HOA residents are not represented by CAI or TCAA, therefore the residents that live within these associations need protections, protections that HB3803 provide. I support this bill and urge you to vote YES for it.

Thank you for protecting the homeowners of Texas by supporting this bill.

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