Homeowners Associations (HOAs) in Texas are separate stand-alone entities (non-profit corporations) used by developers and Master Planned Communities to establish and enforce rules, regulations, and Covenants, Conditions, and Restrictions (CC&Rs), as well as to manage and oversee HOA financials, facilities, amenities and other improved or managed areas.
Once an owner purchases property within the community, that owner automatically becomes a mandatory member of the HOA, and must pay assessments to, and abide by, the rules of the HOA. In return, the homeowner/member is able to participate in the HOA’s governance through eventual Board Elections and/or possible Committee participation as well as being able to use the amenities offered by the HOA and participate in HOA functions, provided that they are in good standing with the HOA.
Once an owner sells, or otherwise transfers interest in the property owned within the HOA, the owner ceases to be a member of the HOA and loses all rights previously held.
Based on Texas law (other States may be different) these stand-alone HOA entities themselves may ultimately own, or manage the amenities, common areas and other facilities. Under the common HOA structure used in Texas, individual homeowners do not have a personal ownership interest in HOA facilities and do not participate in the day-to-day operations or management of the HOA unless elected to the Board of Directors or appointed to a Committee. This legal entity setup is done to protect the developer and homeowners from legal liabilities/lawsuits that might arise from the operation and use of the facilities.
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