Texas Laws - Property Code

(i) A property owners' association board must adopt a records production and copying policy that prescribes the costs the association will charge for the compilation, production, and reproduction of information requested under this section. The prescribed charges may include all reasonable costs of materials, labor, and overhead but may not exceed costs that would be applicable for an item under 1 T.A.C. Section 70.3. The policy required by this subsection must be recorded as a dedicatory instrument in accordance with Section 202.006. An association may not charge an owner for the compilation, production, or reproduction of information requested under this section unless the policy prescribing those costs has been recorded as required by this subsection. An owner is responsible for costs related to the compilation, production, and reproduction of the requested information in the amounts prescribed by the policy adopted under this subsection. The association may require advance payment of the estimated costs of compilation, production, and reproduction of the requested information. If the estimated costs are lesser or greater than the actual costs, the association shall submit a final invoice to the owner on or before the 30th business day after the date the information is delivered. If the final invoice includes additional amounts due from the owner, the additional amounts, if not reimbursed to the association before the 30th business day after the date the invoice is sent to the owner, may be added to the owner's account as an assessment. If the estimated costs exceeded the final invoice amount, the owner is entitled to a refund, and the refund shall be issued to the owner not later than the 30th business day after the date the invoice is sent to the owner. (11987)

(j) A property owners' association must estimate costs under this section using amounts prescribed by the policy adopted under Subsection (i). (11988)

(k) Except as provided by Subsection (l) and to the extent the information is provided in the meeting minutes, the property owners' association is not required to release or allow inspection of any books or records that identify the dedicatory instrument violation history of an individual owner of an association, an owner's personal financial information, including records of payment or nonpayment of amounts due the association, an owner's contact information, other than the owner's address, or information related to an employee of the association, including personnel files. Information may be released in an aggregate or summary manner that would not identify an individual property owner. (11989)

(l) The books and records described by Subsection (k) shall be released or made available for inspection if: (11990)

(1) the express written approval of the owner whose records are the subject of the request for inspection is provided to the property owners' association; or (11991)

(2) a court orders the release of the books and records or orders that the books and records be made available for inspection. (11992)

(m) A property owners' association composed of more than 14 lots shall adopt and comply with a document retention policy that includes, at a minimum, the following requirements: (11993)

(1) certificates of formation, bylaws, restrictive covenants, and all amendments to the certificates of formation, bylaws, and covenants shall be retained permanently; (11994)

(2) financial books and records shall be retained for seven years; (11995)

(3) account records of current owners shall be retained for five years; (11996)

(4) contracts with a term of one year or more shall be retained for four years after the expiration of the contract term; (11997)

(5) minutes of meetings of the owners and the board shall be retained for seven years; and (11998)

(6) tax returns and audit records shall be retained for seven years. (11999)

(n) A member of a property owners' association who is denied access to or copies of association books or records to which the member is entitled under this section may file a petition with the justice of the peace of a justice precinct in which all or part of the property that is governed by the association is located requesting relief in accordance with this subsection. If the justice of the peace finds that the member is entitled to access to or copies of the records, the justice of the peace may grant one or more of the following remedies: (12000)

(1) a judgment ordering the property owners' association to release or allow access to the books or records; (12001)

(2) a judgment against the property owners' association for court costs and attorney's fees incurred in connection with seeking a remedy under this section; or (12002)

(3) a judgment authorizing the owner or the owner's assignee to deduct the amounts awarded under Subdivision (2) from any future regular or special assessments payable to the property owners' association. (12003)

(o) If the property owners' association prevails in an action under Subsection (n), the association is entitled to a judgment for court costs and attorney's fees incurred by the association in connection with the action. (12004)

(p) On or before the 10th business day before the date a person brings an action against a property owners' association under this section, the person must send written notice to the association of the person's intent to bring the action. The notice must: (12005)

(1) be sent certified mail, return receipt requested, or delivered by the United States Postal Service with signature confirmation service to the mailing address of the association or authorized representative as reflected on the most current management certificate filed under Section 209.004; and (12006)

(2) describe with sufficient detail the books and records being requested. (12007)

(q) For the purposes of this section, "business day" means a day other than Saturday, Sunday, or a state or federal holiday. (12008)

Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002. (12009)

Amended by: (12010)

Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 6, eff. September 1, 2007. (12011)

Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 2, eff. January 1, 2012. (12012)

Sec. 209.0051. OPEN BOARD MEETINGS. (12013)(1-click HTML)

(a) This section does not apply to a property owners' association that is subject to Chapter 551, Government Code, by application of Section 551.0015, Government Code. (12014)

(b) In this section, "board meeting": (12015)

(1) means a deliberation between a quorum of the voting board of the property owners' association, or between a quorum of the voting board and another person, during which property owners' association business is considered and the board takes formal action; and (12016)

(2) does not include the gathering of a quorum of the board at a social function unrelated to the business of the association or the attendance by a quorum of the board at a regional, state, or national convention, ceremonial event, or press conference, if formal action is not taken and any discussion of association business is incidental to the social function, convention, ceremonial event, or press conference. (12017)

(c) Regular and special board meetings must be open to owners, subject to the right of the board to adjourn a board meeting and reconvene in closed executive session to consider actions involving personnel, pending or threatened litigation, contract negotiations, enforcement actions, confidential communications with the property owners' association's attorney, matters involving the invasion of privacy of individual owners, or matters that are to remain confidential by request of the affected parties and agreement of the board. Following an executive session, any decision made in the executive session must be summarized orally and placed in the minutes, in general terms, without breaching the privacy of individual owners, violating any privilege, or disclosing information that was to remain confidential at the request of the affected parties. The oral summary must include a general explanation of expenditures approved in executive session. (12018)

(c-1) Except for a meeting held by electronic or telephonic means under Subsection (c-2), a board meeting must be held in a county in which all or part of the property in the subdivision is located or in a county adjacent to that county. (12019)

(c-2) A board meeting may be held by electronic or telephonic means provided that: (12020)

(1) each board member may hear and be heard by every other board member; (12021)

(2) except for any portion of the meeting conducted in executive session: (12022)

(A) all owners in attendance at the meeting may hear all board members; and (12023)

(B) owners are allowed to listen using any electronic or telephonic communication method used or expected to be used by a board member to participate; and (12024)

(3) the notice of the meeting includes instructions for owners to access any communication method required to be accessible under Subdivision (2)(B). (12025)

(d) The board shall keep a record of each regular or special board meeting in the form of written minutes of the meeting. The board shall make meeting records, including approved minutes, available to a member for inspection and copying on the member's written request to the property owners' association's managing agent at the address appearing on the most recently filed management certificate or, if there is not a managing agent, to the board. (12026)

(e) Members shall be given notice of the date, hour, place, and general subject of a regular or special board meeting, including a general description of any matter to be brought up for deliberation in executive session. The notice shall be: (12027)

(1) mailed to each property owner not later than the 10th day or earlier than the 60th day before the date of the meeting; or (12028)

(2) provided at least 72 hours before the start of the meeting by: (12029)

(A) posting the notice in a conspicuous manner reasonably designed to provide notice to property owners' association members: (12030)

(i) in a place located on the association's common property or, with the property owner's consent, on other conspicuously located privately owned property within the subdivision; or (12031)

(ii) on any Internet website maintained by the association or other Internet media; and (12032)

(B) sending the notice by e-mail to each owner who has registered an e-mail address with the association. (12033)

(f) It is an owner's duty to keep an updated e-mail address registered with the property owners' association under Subsection (e)(2)(B). (12034)

(g) If the board recesses a regular or special board meeting to continue the following regular business day, the board is not required to post notice of the continued meeting if the recess is taken in good faith and not to circumvent this section. If a regular or special board meeting is continued to the following regular business day, and on that following day the board continues the meeting to another day, the board shall give notice of the continuation in at least one manner prescribed by Subsection (e)(2)(A) within two hours after adjourning the meeting being continued. (12035)

(h) Except as provided by this subsection, a board may take action outside of a meeting, including voting by electronic or telephonic means, without prior notice to owners under Subsection (e), if each board member is given a reasonable opportunity to express the board member's opinion to all other board members and to vote. Any action taken without notice to owners under Subsection (e) must be summarized orally, including an explanation of any known actual or estimated expenditures approved at the meeting, and documented in the minutes of the next regular or special board meeting. The board may not, unless done in an open meeting for which prior notice was given to owners under Subsection (e), consider or vote on: (12036)

(1) fines; (12037)

(2) damage assessments; (12038)

(3) initiation of foreclosure actions; (12039)

(4) initiation of enforcement actions, excluding temporary restraining orders or violations involving a threat to health or safety; (12040)

(5) increases in assessments; (12041)

(6) levying of special assessments; (12042)

(7) appeals from a denial of architectural control approval; (12043)

(8) a suspension of a right of a particular owner before the owner has an opportunity to attend a board meeting to present the owner's position, including any defense, on the issue; (12044)

(9) lending or borrowing money; (12045)

(10) the adoption or amendment of a dedicatory instrument; (12046)


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