Big belts, big hats, and big attitudes. Things tend to be bigger in Texas. But when it comes to HOA websites, size doesn’t matter.

Whether your community has 100 members, or 4,000 members, Texas HOAs need to have a functional website.

Table of contents

• Is the Texas website law new?
• What specific documents need to be on the website?
• Why was this law passed?
• Is it safe to have all of this information online?
• What else should we know about record keeping?

Is the Texas website law new?

No. Senate Bill 1588, which introduced several key requirements for HOA websites, went into effect on September 1, 2021.

Sec. 207.006. of the Texas Property Codestates that HOAs must have a website if:

(1)  the property owners’ association of a subdivision is composed of at least 60 lots; or

(2)  a property owners’ association has contracted with a management company.

Furthermore, the association has to post the current version of “dedicatory instruments relating to the association or subdivision,” and those filed in the county deed records, on the website.

It probably goes without saying, but the documents must be available to association members.  

We’re resharing this information because it never hurts to have a refresher on HOA laws. Plus, new members may not be aware of these requirements.  

What specific documents need to be on the website?

Does everything have to go on the website? Not exactly, but most records are required to be available through the website unless they are considered confidential. Approved documents include:

• Essential information
  • The association’s name
  • Management certificate
  • Governing documents (declarations, bylaws, rules, regulations)
  • Contact information for board members and the management company

Then there are the dynamic records like:

• Annual budgets
• Reserve fund information
• Notice of board meetings
• Agendas
• Minutes
• Architectural review processes and guidelines

Why was this law passed?

The Texas Property Code serves as the cornerstone of property laws in the Lone Star State, governing both residential and commercial real estate transactions, landlord-tenant relationships, and property rights.

When it comes to HOAs (or POAs), the Texas Property Code regulates the establishment, governance, and operation of associations of homeowners, including rules for membership, assessments, covenants, and enforcement actions.

It aims to protect the rights of owners, promote fair and transparent transactions, and promote orderly and harmonious neighborhood development.

So, what does all that have to do with a website? Well, websites are generally seen as convenient and accessible communication platforms. You only need a computer or smartphone, and internet connection to access a site, and virtually everyone has been on a website before.   

By posting HOA documents online, associations are giving owners 24/7 access to essential community information such as budget details or meeting minutes.

Owners have a legal right to see most association records. However, in the past, they would have to speak to a person and sometimes wait weeks to see the information they asked for.  It is a slow and inefficient process that is not only frustrating for owners, but also takes valuable time from admins or board members.   

Posting documents online creates more transparency and accountability. Yes, it takes some effort to update records, but it’s much easier (and more affordable) to do that than print out 20 copies of the same budget.

When owners can see how the HOA is performing, good or bad, they are more likely to show up to meetings, ask productive questions, and get involved.

Is it safe to have all of this information online?

Yes, provided you consider security when creating your website. HOAs are strongly encouraged to have a password-protected section on the site where owners can log in and access association records.  

HOA Sites can ensure security and compliance and build a solution that meets all of your needs.

Not only will your community get a professional and functional website, but you can enjoy other useful features like online payments, reports, calendars, event registration and bulk messaging.  

By incorporating these elements, your website not only meets legal requirements but also enhances the overall community experience.

You can certainly hire a different website designer, or pay for a DIY website, but not all options will cater to the specific needs of HOAs.

What else should we know about record keeping?

The Texas Property Code has additional rules when it comes to storing and accessing HOA record keeping.

For example, Texas law requires a property owners’ association composed of more than 14 lots to implement a records retention policy.

A records retention policy identifies important records and states how long they must be kept. Section 209.005(m) of the Texas Property Code establishes mandatory retention times for some records, including:

• Certificates of formation, bylaws, restrictive covenants, and all amendments (permanent retention)
• Financial records, tax returns, and audits (7 years)
• Meeting minutes (7 years)
• Account records of current owners (5 years)
• Contracts of one year or more (4 years from the end of contract term)

Additionally, most residential subdivisions are required to provide owners with access to the books and records of the association if they submit a written request. An owner can either request to inspect the records in person or request copies of specific documents.

The association can charge a fee for copies if they have created a records production and copying policy that specifies the charges in advance.

Records must be requested in writing by certified mail. The association must respond within 10 business days. That deadline can be extended up to 15 additional days if the association provides a proper written notice.

That’s a lot of tedious admin work for both parties. A website can save staff and owners time and money by hosting the records. Owners can review them whenever they’d like, and they don’t need to ask permission to see them.

Confidential records

As mentioned earlier, not every record can be shared with owners. Confidential records must be protected and viewed only by those authorized to do so. The association may rightfully deny access to these documents, except by court order or an affected individual’s consent. 

Confidential records include:

• Attorney files and records
• Rule violations committed by a specific owner
• Financial information, including nonpayment of dues, belonging to a member
• An owner’s contact information, except for their mailing address
• Information about the association’s employee, including their personnel file

Conclusion

Texas is not the only state to pass HOA website laws. Florida, Nevada and Wisconsin all follow similar legislation. The intent is to establish transparency for owners, and ensure associations remain accountable.

HOA websites are beneficial to board members and association staff as well. Owners can be directed to the website when they ask to see certain documents. As a result, workloads are lightened, allowing staff to focus on more complex tasks.  

If you have more questions about website compliance, or would like to upgrade your current site to something more modern and practical, don’t hesitate to contact us.