Texas HB 1193 (Property Code 202.024): HOA Rental Bans Based on Section 8 Vouchers

Quick Answer

Texas House Bill 1193 (2023) added Property Code § 202.024. It says a property owners' association "may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from renting a dwelling to a person based on the person's method of payment." Section 8 housing choice vouchers and other housing assistance are named as methods of payment. The law took effect September 1, 2023.

At a Glance

What the Law Says

The new section has two subsections.

• Definition, (a): "method of payment" includes payment made in whole or in part by "a housing choice voucher under Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1437f)," or by "any other federal or state or local housing assistance provided to a person or to a property owner on behalf of a person, including rental vouchers, rental assistance, or rental subsidies from a nongovernmental organization."
• Prohibition, (b): a property owners' association "may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from renting a dwelling to a person based on the person's method of payment."

Two verbs matter. The association may not "include" such a provision in a dedicatory instrument, which reaches new or amended declarations, bylaws and rules. It also may not "enforce" one, which reaches provisions already in the documents. The word "includes" in subsection (a) means the list of voucher and assistance types is not the only thing that counts as a method of payment.

The bill is a single new section with a single effective date. It contains no transition clause and no enforcement mechanism of its own.

What This Means in Practice

For boards

• Read your declaration, leasing rules and any tenant-screening policy for language that bars or limits rentals to people paying with vouchers, government assistance, or nonprofit rental help. Under § 202.024(b), such a provision cannot be enforced.
• The bar applies to a provision "based on the person's method of payment." Our reading: it targets rules that look at how rent is paid. Rules about other topics, such as lease length, owner-occupancy caps or tenant registration, are not addressed by this section. Whether a given rule is "based on" method of payment is a question for counsel.
• Do not read the section as a duty to accept any particular tenant. It limits association restrictions. It does not say anything about an owner's own screening choices, which are outside the text.
• Review any amendment proposals so a new instrument does not "include" a prohibited provision.

For owners and landlords

If your community documents appear to bar renting to voucher holders or people using rental assistance, § 202.024(b) says the association may not enforce that provision. The section does not state a penalty or a procedure. What steps to take if an association keeps enforcing such a provision is an open question for a Texas attorney.

What the law does not say

• It does not define "dedicatory instrument" in this section. That term is defined elsewhere in Chapter 202, which we did not re-read for this page.
• It does not say it overrides leasing restrictions in general. Associations can still have other leasing rules to the extent other law and the governing documents allow.
• It does not set fines, fees or a court procedure for violations.
• It does not say whether associations organized as condominiums are covered. The text says "a property owners' association" and has no exclusion, unlike some other sections of Chapter 202. Confirm with counsel for a condominium.

Timeline

Related Texas Law

• Chapter 202: what HOAs cannot restrict
• § 209.016: association lease rules
• Tarr v. Timberwood Park Owners Ass'n (short-term rentals)
• JBrice Holdings v. Wilcrest Walk Townhomes Ass'n
• H.B. 614: fine schedule and enforcement policy
• Texas HOA laws complete guide

Board Checklist

• Pull your declaration, bylaws, rules and leasing policy and search for any text tied to how rent is paid.
• Check tenant registration or approval forms for questions about vouchers, assistance programs or payment source.
• Stop enforcing any provision that restricts renting based on method of payment, and ask counsel how to clean up the document.
• Keep leasing rules that address other subjects separate and reviewed by counsel.
• Brief the management company or compliance contact so staff do not apply a voucher ban.
• Calendar a document review before any amendment vote so no new instrument includes such a provision.

Frequently Asked Questions

Does H.B. 1193 let an HOA ban Section 8 tenants?

No. Section 202.024(b) says an association may not include or enforce a provision in a dedicatory instrument that prohibits or restricts an owner from renting to a person based on the person's method of payment, and a Section 8 housing choice voucher is named as a method of payment.

Does the section cover assistance other than Section 8?

Yes. The definition reaches "any other federal or state or local housing assistance," including rental vouchers, assistance or subsidies from a nongovernmental organization, whether paid to the person or to the owner on the person's behalf.

Does it apply to rules that already existed before September 1, 2023?

The text says the association may not "enforce" such a provision, and the bill has no clause limiting it to new documents. Our reading is that an older provision cannot be enforced after the effective date. Confirm with counsel.

Can an HOA still limit rentals in other ways?

This section addresses only restrictions based on method of payment. Other leasing rules are governed by other law and your governing documents. See the lease rules page and the short-term rental cases on this site.

Is there a fine or penalty for an association that violates it?

The section states none. What remedies an owner might have is an open question for a Texas attorney.

Does the law require an owner to rent to a voucher holder?

No. The section is aimed at what an association may include or enforce in a dedicatory instrument. It does not address an owner's own decisions.

Where This Comes From

We read the enrolled text of H.B. 1193 (88th Legislature, Regular Session), including the bill's passage votes and effective-date clause, at capitol.texas.gov. The enrolled copy shows a blank governor approval line, so we did not verify a signing date. We did not separately read the current published text of § 202.024 or the definitions in Chapter 202.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Texas attorney before acting.