Texas HOA Special Assessments: When They Are Legal and How to Challenge Them

A Texas HOA special assessment can add hundreds or thousands of dollars to a homeowner’s annual obligations. Understanding when they’re legal - and when they’re not - matters. For Texas homeowners facing unexpected HOA fees, knowing your rights under Texas Property Code can make the difference between paying an improper assessment and successfully challenging it. This guide explains what Texas HOA special assessments are, when your HOA can legally impose them, and what steps you can take if you believe an assessment violates your rights.

What is a Texas HOA Special Assessment?

Most homeowners understand their regular HOA dues - the monthly or annual fee that funds ongoing community operations and maintenance. A special assessment is different. It’s an additional, unscheduled charge levied by the HOA board to cover unexpected expenses or fund capital projects that weren’t anticipated in the annual budget.

The distinction matters legally. While regular assessments are typically authorized by a community’s governing documents and occur predictably, special assessments in Texas are subject to specific statutory requirements designed to protect homeowners from arbitrary or improper charges. Examples of expenses that might trigger a special assessment include emergency roof repairs, parking lot resurfacing, foundation repairs to a common building, replacement of aging HVAC systems in shared facilities, or litigation costs.

When Can a Texas HOA Legally Levy a Special Assessment?

Authorization in Governing Documents

Before an HOA can levy any special assessment, it must have explicit authority to do so. That authority comes from your community’s Declaration of Covenants, Conditions and Restrictions (CC&Rs) and bylaws. Some communities grant the board broad discretion to assess for necessary expenses. Others require specific triggering events or specific types of projects. Your first step in challenging an assessment is reviewing what your governing documents actually say.

Texas Property Code Section 209.006 - Notice and Vote Requirements

Texas Property Code Section 209.006 imposes strict procedural requirements on certain special assessments. If the HOA proposes a special assessment that, when combined with other assessments levied in the same fiscal year, exceeds 5 percent of the HOA’s budget for that year, the HOA must provide members with detailed notice and must hold a member vote. The statute requires:

• Written notice to all members at least 30 days before the vote
• A description of the proposed special assessment, including the purpose, the estimated cost, and the proposed term of payment
• Information about each member’s right to vote and the voting procedures
• A member vote in which members have one vote per lot (unless the community’s documents provide otherwise)
• Approval by a majority of votes cast (unless the documents require a different threshold)

Many homeowners first discover that an improper assessment was imposed when they realize the HOA never gave them notice or never held a vote. Section 209.006 compliance is one of the strongest grounds for challenging a special assessment.

Reserve Fund Requirements - Section 209.0062

Texas Property Code Section 209.0062 requires HOAs to maintain adequate reserve funds for capital repairs and replacements. The statute mandates that HOAs conduct reserve studies and maintain funding levels that meet the study’s recommendations. When an HOA fails to adequately fund reserves over time, it often results in a sudden, large special assessment when a major repair or replacement becomes necessary. If your HOA imposed a special assessment for a capital expense but hasn’t conducted a proper reserve study or has systematically underfunded reserves, this is leverage in your challenge.

Procedural Requirements Texas HOAs Must Follow

Board Vote and Authorization

The HOA board must formally vote to approve the special assessment. The vote should be documented in the meeting minutes. If you request the minutes and find no record of a board vote, that’s a significant procedural defect. Additionally, board members must disclose conflicts of interest, and any member with a material interest in the project should typically recuse themselves from voting.

Notice Requirements

Your HOA must provide timely, written notice of the special assessment to all homeowners. The notice must include the purpose of the assessment, the total cost, how much each homeowner must pay, and when payment is due. If the assessment exceeds 5 percent of the budget, Section 209.006 notice requirements apply. Notice sent to the wrong address, notice given too close to the payment due date, or notice that lacks required information can all be grounds to challenge the assessment.

Member Meeting and Voting Rights

Depending on the size of the assessment and the governing documents, homeowners may have the right to vote on the special assessment before it becomes final. Under Section 209.006, assessments exceeding 5 percent of the annual budget require a member vote. Even if your assessment is smaller, review your CC&Rs and bylaws - many communities require or allow member votes on all special assessments. If the HOA failed to hold a required meeting or vote, these are actionable defects.

What Happens if You Don’t Pay

Many homeowners ask whether they can simply refuse to pay a special assessment. The short answer is no - but the HOA cannot immediately resort to extreme collection measures. Texas Property Code Section 209.0064 sets out a minimum notice requirement before the HOA can turn your account over to a collection agency or attorney.

Before taking formal collection action, the HOA must send you a 30-day written notice that informs you of the delinquency, the amount owed, and the deadline to pay. This notice must be sent via certified mail or personal delivery. Only after this 30-day window has passed can the HOA refer your account for collection or attorney action. This 30-day notice requirement creates an important opportunity: if you are challenging the legality of the assessment, you should take action within this window.

HOA Foreclosure for Unpaid Assessments

Texas law does allow an HOA to foreclose on a homeowner’s property for unpaid assessments, but the process is not simple and the HOA must follow strict procedural rules. The HOA cannot proceed directly to foreclosure - it must follow the notice and cure procedures required by its documents and by Texas law. If a homeowner challenges the assessment before a foreclosure sale occurs, that challenge can invalidate the foreclosure. This is another reason why it’s critical to act quickly if you believe the assessment is improper.

Attorney Fee Recovery if You Prevail

Texas Property Code Section 209.010 addresses attorney fees in disputes between homeowners and HOAs. If a homeowner prevails in a legal action challenging an improper special assessment - whether through litigation or arbitration - the homeowner may be entitled to recover reasonable attorney fees and costs from the HOA. This provision levels the playing field for individual homeowners facing well-funded HOA boards. If you have a strong challenge to the assessment, the possibility of fee recovery makes it more economically feasible to hire an attorney and pursue the claim.

How to Challenge a Special Assessment

Review Your CC&Rs and Bylaws

Start by carefully reading your community’s Declaration of Covenants, Conditions and Restrictions and bylaws. Look for language about when and how special assessments can be levied. Does the HOA board have unlimited authority, or are there limits? Are member votes required? What notice must be provided? Your governing documents may contain grounds for challenge that your HOA violated.

Verify Notice and Voting Compliance

Obtain copies of all notices sent regarding the special assessment. Check the dates against your governing documents and Section 209.006 requirements. If the notice was sent by regular mail rather than certified mail, lacked required information, or gave insufficient time for you to vote, document this carefully. If a vote was required and never occurred, or if you were not properly notified of voting procedures, this is strong evidence of improper procedure.

Demand Financial Records and Reserve Study Documentation

Texas homeowners have the statutory right to inspect HOA financial records, including budgets, reserve studies, and documentation of how the special assessment was calculated. Request these documents in writing from the HOA. If the HOA cannot produce a proper reserve study, or if financial records show the reserve fund could have covered the expense, you have evidence that the assessment was unnecessary or improperly justified.

Send a Written Objection

Do not ignore the special assessment. Send a written letter via certified mail to the HOA board objecting to the assessment, stating your specific reasons, and requesting that the board reconsider or withdraw it. This creates a paper trail and shows the board that you are serious. Many HOAs will reconsider an assessment if a homeowner raises legitimate procedural or legal concerns.

Explore Mediation

Before pursuing litigation, ask the HOA if it will participate in mediation. Many HOA disputes can be resolved more quickly and affordably through mediation than through the courts. Mediation also allows both parties to reach a compromise - perhaps a reduction in the assessment or a longer payment term.

Consult with an Attorney

If the HOA does not respond or refuses to reconsider, and the assessment is substantial, contact a homeowner attorney to evaluate your claim. If you prevail, you may recover attorney fees under Section 209.010, which makes hiring an attorney more affordable. You can consult a Texas HOA attorney through our directory to find local representation.

Key Texas Statutes Governing Special Assessments

• Section 209.006: Requires notice and member vote for certain special assessments exceeding 5 percent of annual budget
• Section 209.0062: Requires HOAs to maintain adequate reserves and conduct reserve studies
• Section 209.0064: Requires 30-day written notice before referring delinquent assessment to collection
• Section 209.010: Allows prevailing homeowners to recover attorney fees in HOA disputes

For the complete text of Texas HOA law, visit the Texas Legislature Online and search for Property Code Chapter 209.

Frequently Asked Questions About Texas HOA Special Assessments