Can my HOA charge interest and late fees on delinquent assessments in Texas?
Short Answer
Yes, if the governing documents authorize it. Texas law does not set a statutory cap on interest or late fees for HOA assessments — the rate and amounts are set by the deed restrictions or adopted assessment rules. If the governing documents are silent, the HOA may have limited authority to charge interest or fees.
Relevant Texas Law
- § Tex. Prop. Code §209.0062 — Requires HOAs with more than 14 lots to offer payment plans before recording an assessment lien.
- § Tex. Prop. Code §209.0063 — Governs how HOA payments must be applied.
- § Tex. Prop. Code §209.008 — Governs attorney's fees and collection costs.
What this means for homeowners
Interest and late fees can add significantly to what you owe. Check your governing documents to verify the rates are authorized.
- Request an itemized statement showing principal, interest, late fees, and attorney fees
- Check your deed restrictions for the authorized interest rate and late fee amounts
- If the governing documents do not specify an interest rate, challenge the interest charges
- Dispute inflated fees in writing before paying
- Request a payment plan to stop additional interest from accruing
Verify your Texas HOA's interest and fee charges are authorized
Ask the AI assistantWhat this means for board members
Only charge interest and fees authorized by the governing documents. Charges without governing document authority are unenforceable.
- ✓ Confirm the interest rate and late fee amounts are in the deed restrictions or adopted rules
- ✓ Apply charges consistently to all delinquent accounts
- ✓ Apply payments first to the oldest assessment before applying to fees and interest
- ✓ Include interest and fee amounts in payoff statements
- ✓ Do not charge attorney fees as an assessment unless authorized by the governing documents
Common Mistakes to Avoid
- ✕ Charging interest without a rate specified in the governing documents
- ✕ Applying payments to fees and interest before the delinquent assessment principal
- ✕ Charging attorney fees as part of the assessment lien without governing document authority
People Also Ask
What is the maximum interest rate a Texas HOA can charge?
Texas law does not set a specific maximum for HOA assessment interest. The rate is set by the governing documents. Courts have found excessive or undisclosed interest charges unenforceable.
Can a Texas HOA charge attorney fees for collection?
Yes, if the governing documents authorize it. Many Texas deed restrictions allow the HOA to add attorney fees to the amount owed. These fees can be included in the lien if authorized.
Related Questions
This topic is covered in detail in: → HOA Liens & Foreclosure Guide
Last reviewed: 2026-05-09 · Version 2026.2