Can my HOA impose daily fines for ongoing violations in Texas?

Relevant Texas Law

• §
  Tex. Prop. Code §209.006 — Requires written notice, a chance to cure certain violations, and hearing rights before many HOA fines or enforcement actions.
• §
  Tex. Prop. Code §202.004 — Governs enforcement of deed restrictions and prohibits arbitrary or discriminatory enforcement actions.

What this means for homeowners

Daily fines can accumulate quickly. Check your governing documents to know the per-day rate and whether there is a cap. Address violations promptly to stop the accumulation.

1. Review the governing documents for the per-day fine rate and any cap
2. Correct the violation as quickly as possible to stop fines from accruing
3. Request an itemized fine statement to verify the daily rate being charged
4. If no per-day rate is in the documents, challenge the basis for daily accumulation
5. Attend the board hearing to request a reduced fine given your cure efforts

What this means for board members

Daily fines must be authorized in the governing documents and must not be unconscionable. Document each day of continued violation.

• ✓ Confirm the per-day fine rate is specified in the CC&Rs or adopted enforcement policy
• ✓ Follow the full notice and hearing process before daily fines begin
• ✓ Document each day of continued violation with dated inspections
• ✓ Consider whether the cumulative fine is proportionate to the violation
• ✓ Stop accruing daily fines once the violation is cured

Common Mistakes to Avoid

• ✕ Imposing daily fines without a per-day rate specified in the governing documents
• ✕ Continuing daily fines after the violation is cured
• ✕ Not stopping the fine clock on the date the correction is made

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