What is an HOA annual budget and what rights do members have in Texas?

Short Answer

A Texas HOA annual budget is the association's plan for projected revenues and expenses for the upcoming year, including maintenance, operations, and reserve funding. While best practice is for the HOA to provide the budget to all homeowners, whether the budget must be mailed, distributed, or published depends largely on the association's governing documents. Under Texas Property Code §209.005, HOA members have the right to inspect and obtain copies of association financial records, including the annual budget, generally within 10 business days after submitting a written request.

Relevant Texas Law

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Tex. Prop. Code §209.005 — Gives HOA members the right to inspect and obtain association records and seek court relief if access is improperly denied.
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Tex. Prop. Code §209.0051 — Requires most HOA board meetings to be open to members, establishes notice requirements, and limits closed sessions.

What this means for homeowners

You have the right to inspect the HOA's budget and financial records. Use them to understand how your assessments are being spent and whether reserves are adequate.

Submit a written request for a copy of the current annual budget
The HOA must make it available within 10 business days
Review the reserve funding — inadequate reserves often lead to future special assessments
Compare year-over-year budgets to identify unusual increases
Request prior-year financial statements to verify the HOA is following the budget

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What this means for board members

Texas law requires financial transparency. Maintain organized records and respond to budget requests within 10 business days.

✓ Prepare and adopt an annual budget before the new fiscal year
✓ Make the budget available to members upon written request within 10 business days
✓ Include reserve funding in the budget to plan for capital replacements
✓ Document the budget adoption in board meeting minutes
✓ Provide financial statements at annual meetings

Common Mistakes to Avoid

✕ Not preparing a formal annual budget
✕ Failing to respond to budget record requests within 10 business days
✕ Not funding reserves, leading to large special assessments when capital repairs are needed