Texas Property Code Chapter 204: POA Powers and Petitions

Quick Answer

Texas Property Code Chapter 204 is a short, separate chapter that gives a property owners' association in certain large-county residential subdivisions listed powers and a petition process to extend, add to or modify deed restrictions. It is not the Residential Property Owners Protection Act, which is Chapter 209. The key threshold is that Chapter 204 applies only if the subdivision sits in a county that meets one of three population tests in § 204.002(a), and a petition needs approval from owners of at least 75 percent of the real property unless the original restrictions set a smaller percentage.

At a Glance

What the Law Says

Where Chapter 204 applies

Section 204.002(a) says the chapter "applies only to a residential real estate subdivision, excluding a condominium development governed by Title 7" that is located in whole or in part in one of three kinds of county:

• a county with a population of 3.3 million or more;
• a county with a population of not less than 315,000 and not more than 351,000 that is adjacent to the Gulf of Mexico and adjacent to a county of 3.3 million or more; or
• a county with a population of 275,000 or more that is adjacent to a county of 3.3 million or more and contains part of a national forest.

Under (b), the chapter "applies to a restriction regardless of its effective date." Under (c), it does not apply to portions of a subdivision zoned for or containing a commercial structure, an industrial structure, an apartment complex or a Title 7 condominium.

The association

Section 204.004(a) describes a property owners' association as "a designated representative of the owners of property in a subdivision," whose membership "consists of the owners of property within the subdivision." Under (b), the association "must be nonprofit and may be incorporated as a Texas nonprofit corporation." Under (c), the board "must be elected or appointed in accordance with the applicable provisions of the restrictions and the association's articles of incorporation or bylaws."

Petition to extend, add to or modify restrictions

Section 204.005(a) gives the association "authority to approve and circulate a petition relating to the extension of, addition to, or modification of existing restrictions." Key rules:

• The petition is effective if approved by owners, "excluding lienholders, contract purchasers, and the owners of mineral interests, of at least 75 percent of the real property in the subdivision or a smaller percentage required by the original dedicatory instrument," and filed as a dedicatory instrument with the county clerk (b).
• For a multi-section subdivision with one association, approval may be measured section by section or across all properties in the association's jurisdiction (c).
• An approved petition "is binding on all properties in the subdivision or section, as applicable" (d).
• The association must notify all record owners in writing; notice may be hand-delivered or sent by regular mail to the owner's last known address in the association's ownership records, and one co-owner's signature can reflect the approval of multiple owners (e).

Section 204.008 lists how a proposal may be adopted: by written ballot that states the substance of the amendment and the receipt deadline; at a members' meeting with written notice of its purpose delivered to each owner; by door-to-door petition circulation; by a method the existing restrictions permit; or by a combination.

Which rule wins

Under § 204.003(a), an express designation in the original restrictions that sets a number of owners for extension or modification "prevails over the provisions of this chapter." Subsection (b) flips that for certain subdivisions (those in the third county type, other than a gated community with private streets) if the original designation requires more than 75 percent, or bars modification for a period that has not expired. Under (d), a document that provides for extension or renewal but not modification may still be modified under the chapter.

Creating an association where none exists

Section 204.006 allows a petition, through a petition committee formed under § 201.005, to add or modify restrictions "for the sole purpose of creating and operating a property owners' association with mandatory membership, mandatory regular or special assessments, and equivalent voting rights." It applies where existing restrictions provide for no association and require more than 60 percent approval. Owners of at least 60 percent of the real property must approve. If approval is not reached within one year of forming the petition committee, the petition is void.

Effect on lienholders

Under § 204.007, approved changes bind lienholders, except for assessment increases where the assessment lien is not subordinated to purchase money or home improvement liens. A buyer at a foreclosure sale, or by deed from a foreclosing lienholder, "is bound by the assessment increase" (c).

Board powers

Section 204.010(a) says, "unless otherwise provided by the restrictions or the association's articles of incorporation or bylaws," the board may do things such as adopt and amend bylaws; adopt budgets and collect regular and special assessments; hire and terminate managing agents; institute, defend or settle litigation; impose interest and late charges; and, "if notice and an opportunity to be heard are given, collect reimbursement of actual attorney's fees and other reasonable costs" relating to violations. It also covers insurance, indemnification of directors and officers, and written architectural guidelines where the association holds architectural authority. Under (b), these powers are in addition to other powers granted by law.

Architectural control authority

Section 204.011 vests architectural control in the association automatically when the committee's term expires, when the last building site is completed and sold, when the designated committee assigns authority in writing, or when an assignee abandons it for more than one year. Subsection (d) sets a narrower path for a civic association where no property owners' association exists.

What This Means in Practice

For boards and managers

Step one is to confirm the subdivision is in a county covered by § 204.002(a). Our reading: the first test describes the state's very largest county by population, but county populations change, so confirm with counsel which counties qualify today. If Chapter 204 does not apply, use the amendment process in your declaration and Chapter 209 (see § 209.0041).

Step two is to read the declaration. Section 204.003(a) lets the declaration's own voting designation prevail in most cases, so the 75 percent default is a fallback, not a floor.

Keep the petition file: the notice mailing record, the ownership list used, the signatures or ballots, and the county clerk filing receipt. Filing with the county clerk is part of when a petition becomes effective.

For owners

If your subdivision is covered, a petition that meets § 204.005 binds your lot even if you did not sign. You are entitled to written notice of a proposal circulated by the association.

What the chapter does not say, and open questions

• It states no remedy or penalty in the sections we read, and no challenge deadline.
• Our reading: Chapter 204 and Chapter 209 can both apply to the same large-county subdivision. Chapter 209 covers a different list of association duties, and we did not find a section making one yield to the other. Confirm with counsel.
• We did not read § 204.009 (Texas Nonprofit Corporations) for this page.
• Whether a particular subdivision meets the "gated community with private streets" exception in § 204.003(c) is a fact question for counsel.

Timeline

Related Texas Law

• § 209.0041: amending a declaration under Chapter 209
• Chapter 216: older subdivision covenant amendment
• Chapter 209: the Residential Property Owners Protection Act
• Chapter 202: construction and enforcement of restrictive covenants
• Business Organizations Code Chapter 22: nonprofit corporation law

Board Checklist

• Confirm in writing, with counsel, that your county meets a § 204.002(a) test.
• Read the declaration's amendment clause and note any required percentage or lock-out period.
• Decide the adoption method under § 204.008 and document it.
• Send written notice of the proposal to every record owner by hand delivery or regular mail.
• Track approvals against total real property, excluding lienholders, contract purchasers and mineral owners.
• File the approved instrument with the county clerk as a dedicatory instrument.
• Check the board's § 204.010 powers against the bylaws before relying on them.
• Confirm who holds architectural authority under § 204.011.

Frequently Asked Questions

Is Chapter 204 the same as the Texas HOA protection act?

No. The Residential Property Owners Protection Act is Chapter 209. Chapter 204 is a separate chapter with its own county-based scope.

What vote does Chapter 204 require to amend deed restrictions?

Owners of at least 75 percent of the real property, or a smaller percentage required by the original dedicatory instrument (§ 204.005(b)).

Does Chapter 204 apply to condominiums?

No. Section 204.002(a) and (c) exclude condominium developments governed by Title 7.

Can an association be created by petition?

Yes, in the circumstances in § 204.006: owners of at least 60 percent of the real property must approve within one year of forming a petition committee.

Do all owners have to sign?

No. An approved petition is binding on all properties in the subdivision or section (§ 204.005(d)), and one co-owner's signature can reflect approval of multiple owners of a property (§ 204.005(e)).

Does an approved amendment bind the mortgage lender?

Generally yes, except for assessment increases where the assessment lien is not subordinated to purchase money or home improvement liens (§ 204.007).

Where This Comes From

We read the text of §§ 204.001 through 204.008, 204.010 and 204.011, including amendment history notes, on the Texas.Public.Law mirror of the Texas Property Code, which states that it was verified against the official site on May 26, 2025. The official statute site is at statutes.capitol.texas.gov. We did not read § 204.009 or later amendments, if any.

Where We Stand

Our position: we are neutral on Chapter 204. It is a narrow, geography-limited chapter, and its main practical effect is a clear petition path and a list of board powers that many declarations already grant. From a management view, the risk is not the law but sloppy petition records. Tip: build a signed-approval ledger tied to the county ownership list before the first notice goes out. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.

How APM Helps

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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.