With the passage of the latest HOA laws the ever resourceful industry still maintains control of communities, the ability to impose HOA onerous fines, legal fees, and entry fees, handling fees, resale certificate fees, transfer fees, special assessments, community enhancement fees, covenant compliance inspection fee, expedited fees, delivery fees, and convenience fees that will continue to drive homeowners out of community association they can no longer afford.

Heated Debate 

A frustrated Rep. Burt Solomons, R-Carrollton, pulled his SB 142 substitute bill down after Rep. Phil King (R-Weatherford) introduced amendments that stripped out requirements to hold open meetings, to keep records, and would still allow HOA management companies and HOA attorneys to divert homeowner payments in a fee pyramiding scheme for the benefit of the attorneys and management companies.   State Rep. Burt Solomons, R-Carrollton argued that the industry (naming names) amendments would put into law "some of the worst business practices out there”.

In the days that followed the demise of the SB 142 omnibus bill, a series of individual Senate amended house bills came back for house consideration with the same industry written amendments; ending the possibility of making homeowners' associations and management companies more accountable.

•  HB1228 – Rep. Harold Dutton, D–Houston whose stand-alone bill originally contained only an expedited judicial foreclosure provision became the newly amended omnibus industry bill of the day with seven major changes.  With the passage of HB 1228 the flawed Senate versions of “Priority of Payment” and lucrative “Alternative Payment Plan” provisions allows HOA vendors unethical business practices to continue business as usual. 
  
• HB 1821 – Rep. Rodney Anderson, R-Dallas, codifies Resale Certificates into Texas law, adding at least $1,000 (no limitation on charges) to the price of a home every time one is sold; claiming a significant spot in the array of lucrative HOA management schemes. 

The elite group of HOA industry attorneys/debt collectors that captured the market of unsustainable pyramid payment plans, as the quick preferred option to HOA homestead foreclosures, will continue to see business  thrive.  But for the lack of significant funds to save their home the owner has little choice.

Payment plans are generally unaffordable and conditioned upon the homeowner signing an Agreed Judgment.  When a payment is missed (as anticipated) under the payment plan, the HOA attorney adds more fees then submits the agreed judicial judgment to a judge, as a default judgment.

“Like the last self-serving industry blunder, lawmakers have codified new laws to regulate consumers instead of industry,” said Janet Ahmad, National President of Homeowners for Better Building .

When it comes to legislation that might regulate developers, builders or their HOA management company partners and attorneys; clearly hands-off orders have been issued by Homebuilder Bob Perry and the affiliated HOA management industry, concluded Ahmad.
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Home Owners for Better Building is a member of the Texas HOA Reform Coalition – www.hoareformcoalition