New Laws Effective Jan. 1 Include HOA Fines, Building Permit Fees, and Tax Appraisal Databases
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Tighter guardrails for homeowners’ associations, periodic reauthorization of municipal building permit fees, and the creation and maintenance of tax appraisal databases for each jurisdiction are among the new laws that became effective Jan. 1.
While the Texas Legislature doesn’t return to session until January 2025, that doesn’t mean lawmakers get to take a year off. The Dallas City Council and other North Texas municipalities are already preparing their legislative priorities for the upcoming session.
Thirty bills approved last year became effective this month, and here’s a look at how they’ll affect local property owners and real estate professionals.
Homeowners Association Fines
House Bill 614 governing HOA fines is said to provide more transparency about policies and create a balance of power between associations and homeowners.
For example, an HOA must adopt an enforcement policy regarding the levying of fines with general categories of restrictive covenants outlining how the fines can be assessed and how hearings will be conducted.
Tray Bates, vice president of government affairs with Texas Realtors, told KHOU that the law spells out a schedule for what fines are available for enforcement.
“So you’re not surprised by maybe the first notice or the second notice or fine that happens,” Bates told the Houston TV station. “Sometimes it’s a matter of lack of communication that happens in some HOAs, and the intent of this bill is to make sure that that communication happens.”
CandysDirt.com published in December the story of Finda Koroma, whose Mesquite HOA foreclosed on her home and sold it at auction because she owed the association $3,500 in overdue fees.
The HOA was within its legal rights to take such action but perhaps better communication could have resulted in a simpler solution.
New Laws on Builder Permit Fees
House Bill 1922, sponsored by Republican Sen. Paul Bettencourt, covers the reauthorization of building permit fees, defined as charges from a municipality as a condition to constructing, renovating, or remodeling a structure.
The new law effective Jan. 1 states that a building permit fee is abolished on the 10th anniversary after it is adopted or most recently reauthorized under the governing body that adopted or reauthorized the fee. Public hearings must be held when a fee is reauthorized.
The Texas Municipal League provided brief commentary on the bill but it doesn’t appear to be controversial.
“All cities should determine when they adopted or reauthorized their building permit fee schedules to determine if or when they must act to preserve their current fees,” the TML website states. “Many cities reauthorize their city permit fee schedules as part of their annual budget process. Such reauthorization or approval may comply with HB 1922.”
HB 1922 was not among the bills that Dallas Builders Association director of government affairs David Lehde brought to our attention in September.
Dallas Development Services is reviewing its building permit fee schedule and is set to revisit the matter before the City Council on Jan. 24.
Tax Appraisal Internet Database
Another of the bills that became effective this month is House Bill 796, which requires that tax appraisers in each Texas appraisal district create and maintain an internet database regarding protest hearings conducted by the appraisal review board.
Also sponsored by Bettencourt, the bill provides a more transparent process for protesting property taxes. The searchable database will allow property owners to track the status of their protest hearings, KHOU reported.
Last year’s Dallas County protest process was a bit of a debacle, in large part due to a ransomware attack at Dallas Central Appraisal District. Several other jurisdictions were hacked shortly thereafter and many North Texas governments spent millions in their 2024 budgets to protect against cyberattacks.
View a full list of the 30 Texas laws that became effective Jan. 1.
