Must an HOA notify members of an annual assessment increase?
Yes, in Texas a property owners’ association generally must give members notice before the board considers or votes on an increase in assessments, and the meeting at which that increase is considered must be open to members.[1][2] The precise notice mechanics depend on the association’s governing documents and whether the association falls within Chapter 209 or the more specific county-based provisions in Chapter 204.[1][2]
Short answer
Under Tex. Prop. Code § 209.0051:
A board may not, unless done in an open meeting for which prior notice was given to owners, consider or vote on “increases in assessments.”Tex. Prop. Code § 209.0051(h)(5)
So, if the board is going to raise annual assessments, it must do so in a properly noticed open board meeting.[2][3]
More detail
1. Chapter 209 requires prior notice to owners for assessment increases
Texas Property Code Tex. Prop. Code § 209.0051 requires notice of regular or special board meetings to members, including the date, time, place, and general subject of the meeting.[3] The statute specifically bars the board from considering or voting on assessment increases outside an open meeting with prior notice.[2][3]
2. Chapter 204 allows annual increases unless the governing documents say otherwise
For certain associations governed by Tex. Prop. Code § 204.010, the board may, unless restricted by the declaration, articles, or bylaws, adopt budgets and collect regular assessments, and if the governing documents permit an annual increase in the maximum regular assessment without a membership vote, the board may assess the increase annually or accumulate and assess it after a number of years.[4]
That said, Chapter 204 does not eliminate the notice requirement in Tex. Prop. Code § 209.0051 for board meetings where the increase is considered.[2][4]
Practical takeaway
| Question | Answer |
|---|---|
| Must members be notified before an annual assessment increase is considered? | Yes, if the board is voting on it, the increase must be considered in an open meeting with prior notice to owners.[2][3] |
| Can the board increase assessments without a membership vote? | Sometimes, if the governing documents authorize it and no higher cap or restriction applies.[1][4] |
| Does the HOA have to give notice of the actual increase amount? | The statutes require notice of the meeting and its general subject; governing documents may impose additional notice requirements.[1][3] |
Bottom line
A Texas property owners’ association generally does have to notify members before the board considers or votes on an annual assessment increase.[2][3] Whether a separate membership vote is required depends on the association’s governing documents and any applicable county-specific provisions.[1][4]