Texas HB 614 (2023): HOA Fine Schedule and Enforcement Policy Law (Property Code 209.0061)

Quick Answer

Texas House Bill 614 (88th Legislature, 2023) added Property Code § 209.0061, which requires a property owners' association that is authorized to levy fines to adopt a written enforcement policy with categories of covenants that can be fined, a schedule of fines for each category, and information about owner hearings. The policy must be shared with owners and posted on any public association website. The law took effect January 1, 2024 and applies to fines that become due on or after that date.

The new section is § 209.0061, not § 209.0060. It does not cap fine amounts.

At a Glance

What the Law Says

The bill adds one section, § 209.0061, with four operative subsections.

• Who is covered (a). The section "does not apply to a property owners' association that is not authorized by the association's dedicatory instrument to levy a fine."
• Required policy (b). The board "shall adopt an enforcement policy regarding the levying of fines." The policy "must include": (1) "general categories of restrictive covenants for which the association may assess fines"; (2) "a schedule of fines for each category of violation"; and (3) "information regarding hearings described by Section 209.007."
• Board discretion (c). The policy "may reserve the board's authority to levy a fine from the schedule of fines that varies on a case-by-case basis."
• Delivery to owners (d)(1). The association must give a copy to an owner of each property, either by (A) posting it on an Internet website maintained by the association or its agent and "accessible to members of the association," or (B) annually sending a copy, alone or with routine communications, by hand delivery, first-class mail to the owner's last known mailing address, or email to an address the owner provided.
• Public website (d)(2). The association must "make the policy available on any publicly accessible Internet website maintained by the property owners' association or an agent acting on behalf of the association."

Section 2 of the bill says § 209.0061 "applies only to a fine that becomes due on or after the effective date," and a fine that became due earlier "is governed by the law in effect immediately before." Section 3 sets the effective date: "This Act takes effect January 1, 2024."

What This Means in Practice

For boards

The bill asks for three components in writing. The policy needs categories, not a line item for every covenant. A board might group violations such as landscaping, architectural, parking and nuisance (our examples, not the statute's), then set a fine amount or an escalating amount for each group. The schedule must cover "each category of violation" the policy lists, so a category with no listed fine is a gap.

The policy may reserve case-by-case authority. If the board wants flexibility, the policy should say so expressly, because subsection (c) is phrased as something the policy "may reserve." Our reading: without that reservation, the schedule is the schedule.

The hearing information requirement points to § 209.007. Under that section as amended in 2021, an owner entitled to a cure opportunity may request a hearing before the board, the association sends an evidence packet at least 10 days ahead, and a late packet means an automatic 15-day postponement (see our pages on the 2021 omnibus bill and the hearing section). The policy should describe how to request and attend that hearing.

On delivery, the website option and the annual-mailing option are alternatives, but the public-website duty in (d)(2) is separate. An association with a public website must make the policy available there even if it also mails it. Our reading: an association with a members-only portal and no public website can satisfy (d)(1) by posting on the portal and has no public-website duty to meet.

For owners

You should be able to find the fine schedule without requesting it, either on the association's website or in an annual communication. Fine schedules do not replace notice and hearing rights. The § 209.006 certified-mail notice and the § 209.007 hearing still apply before a fine is levied, as described in our pages on those sections.

Related limits on fines under Chapter 209

• A board may not vote on fines except in an open meeting for which owners got prior notice (§ 209.0051(h)(1), as amended in 2021).
• A debt consisting solely of fines, or attorney's fees tied only to fines, cannot support foreclosure (§ 209.009).
• In the payment priority order, "reasonable fines" are applied after assessments and attorney's fees (§ 209.0063(a)).

What the law does NOT say

• It does not set a maximum fine, a cap on continuing violations, or a requirement that fines be "reasonable." (The word "reasonable" in § 209.0063(a) concerns payment priority.)
• It does not say the policy must be recorded in the county records. Whether the policy is a "dedicatory instrument" subject to the recording rule in § 202.006 is an open question for counsel.
• It does not say how often the policy must be revised or require owner approval of the policy. The board adopts it.
• It does not say what happens to a fine levied without a compliant policy. The section states no consequence.
• It does not affect fines that became due before January 1, 2024.

Timeline

The governor's approval line is blank on the enrolled copy we read, so we state no signing date.

Related Texas Law

• § 209.006: certified-mail notice before a fine.
• § 209.007: owner hearing before the board.
• § 209.0051: votes on fines must be in an open meeting.
• § 209.0063: fines are paid after assessments and attorney's fees.
• Foreclosure limits: no foreclosure for fines alone.
• 2021 SB 1588: the hearing and notice changes that the policy must reflect.
• Chapter 209 overview, the Texas HOA laws complete guide and Texas HOA law changes 2021 to 2025.

Board Checklist

• Confirm whether the declaration or other dedicatory instruments authorize the association to levy fines. If not, § 209.0061 does not apply.
• Adopt a written enforcement policy by board action with categories of covenants, a fine schedule for each category and hearing information.
• Decide whether to reserve case-by-case discretion and say so in the policy.
• Post the policy on a member-accessible website or send it to every owner annually by hand, first-class mail or email.
• Post it on any publicly accessible association or management-company website.
• Apply the policy only to fines that become due on or after January 1, 2024, and check older fines against prior law.
• Keep the certified-mail notice and board hearing steps in place before any fine.
• Ask counsel whether the policy should be recorded as a dedicatory instrument.

Frequently Asked Questions

Which section did HB 614 add to the Property Code?

Section 209.0061, titled "Association Policy; Fines." The bill does not add a § 209.0060.

What must a fine policy include?

General categories of restrictive covenants for which fines may be assessed, a schedule of fines for each category of violation, and information about the hearings described by § 209.007.

Can the board still vary a fine case by case?

Yes, if the policy reserves that authority. Subsection (c) says the policy may reserve the board's authority to levy a fine from the schedule that varies on a case-by-case basis.

How must the policy reach owners?

By posting it on a member-accessible website maintained by the association or its agent, or by annually sending a copy by hand delivery, first-class mail or email. It must also be on any publicly accessible association website.

When did the fine policy requirement start?

The act took effect January 1, 2024, and applies only to fines that become due on or after that date.

Does the bill limit how large a fine can be?

No. Section 209.0061 requires a schedule but sets no maximum amount.

Does an association that cannot fine owners need a policy?

No. The section does not apply to an association not authorized by its dedicatory instrument to levy a fine.

Does this replace the notice and hearing requirements?

No. The policy must include information about § 209.007 hearings, and the § 209.006 notice and § 209.007 hearing rights remain separate requirements.

Where This Comes From

We read the enrolled version of H.B. 614 (88th Legislature, Regular Session), including its vote certifications and effective-date section, at H.B. 614 enrolled text, the enrolled S.B. 1588 (2021) text of §§ 209.0051(h), 209.0063(a) and 209.007, and the current text of § 209.009, for the related-limits section. Interpretations labeled "our reading" are ours.

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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.