HB 1349

Overall Vote Recommendation
Yes
Principle Criteria
neutral
Free Enterprise
positive
Property Rights
positive
Personal Responsibility
positive
Limited Government
positive
Individual Liberty
Digest
HB 1349 amends the Texas Property Code, specifically provisions related to condominium unit owners’ associations and their management practices. The bill introduces a formal definition of "management company" as an entity or individual contracted to provide administrative or operational services on behalf of a condominium association governed by Chapter 82 of the Property Code. This clarifies the role of third-party management firms in condominium governance.

A significant provision of HB 1349 is the requirement that certain condominium associations make their governing documents—referred to as dedicatory instruments—available online. This applies to associations with at least 60 units or any association that has engaged a management company. These documents must be posted on a website maintained by either the association or its management company and must be accessible to all members of the association. This requirement increases transparency and ensures that unit owners and prospective buyers can easily access the rules that govern their communities.

The bill also revises the content requirements for management certificates, which associations must record with county clerks. New requirements include listing the website where the governing documents can be accessed, the contact information for any contracted management company, and a disclosure of fees charged to unit buyers or sellers during a property transfer. These updates ensure that stakeholders—particularly new and prospective homeowners—are fully informed about the financial and administrative structure of the association.

Overall, HB 1349 aims to enhance transparency, improve homeowner access to important information, and foster accountability in the governance of larger condominium communities or those managed by third-party firms.
Author (4)
Chris Turner
Jared Patterson
Stan Gerdes
Salman Bhojani
Co-Author (2)
Janie Lopez
Penny Morales Shaw
Fiscal Notes

According to the Legislative Budget Board (LBB), no fiscal implications to the State of Texas are anticipated. The Texas Real Estate Commission (TREC), which may interact with or provide oversight in matters related to property owners’ associations, is a self-directed, semi-independent agency. As such, it operates outside of the traditional legislative budgeting process and is statutorily prohibited from imposing any costs on the state’s General Revenue Fund. Therefore, implementation of the bill is not expected to generate new expenses or require additional appropriations at the state level.

Likewise, the bill is not projected to have a fiscal impact on local government entities. The obligations established by HB 1349—such as the online publication of dedicatory instruments and expanded requirements for management certificates—apply specifically to private condominium associations and their management companies rather than state or local governmental bodies. Consequently, the legislation does not impose any new mandates or financial responsibilities on local governments.

In summary, HB 1349 is a regulatory transparency measure that enhances access to information for property owners without necessitating public expenditures. It maintains fiscal neutrality for both state and local governments.

Vote Recommendation Notes

HB 1349 is a well-calibrated extension of earlier pro-property owner reforms (notably SB 1588 from the 87th Legislature) and reflects considerable efforts aimed at improving transparency and accountability within property owners’ associations, particularly condominium associations. The bill modernizes statutory requirements by mandating that associations with either 60+ units or a contracted management company must publish dedicatory instruments online, thereby granting unit owners easier and more consistent access to governance documents.

In addition to enhancing public access, HB 1349 expands the disclosure obligations within management certificates filed with county clerks and the Texas Real Estate Commission (TREC), ensuring that prospective buyers are informed about applicable fees and management structures. This is a notable step toward empowering individual property owners and promoting transparency in housing transactions, both key components of protecting individual liberty and property rights.

The bill also introduces practical governance provisions. It clarifies that associations may fill architectural review authority vacancies with otherwise ineligible individuals only after a public solicitation of candidates has occurred and no eligible parties remain. It further allows associations to regulate fencing to preserve easement access, with reasonable carveouts for safety-sensitive individuals (e.g., law enforcement personnel or those with confidentiality protections). These additions reflect a balanced approach—preserving the autonomy of associations while safeguarding individual property rights and due process.

Importantly, HB 1349 imposes no fiscal impact on state or local governments, avoids expanding government authority, and strengthens rather than weakens private contractual governance. The bill is tightly scoped, non-intrusive, and promotes fairness in private community management. For these reasons, it aligns with liberty-oriented legislative principles, and Texas Policy Research recommends that lawmakers vote YES on HB 1349.

  • Individual Liberty: The bill increases transparency by requiring certain condominium associations to make governance documents (detailed in their dedicatory instruments) publicly accessible via an internet website. This gives homeowners direct and timely access to the rules that govern their property, allowing them to make more informed decisions and assert their rights more effectively. In doing so, the bill enhances individuals’ ability to know and challenge association actions, which supports their autonomy and personal freedoms within private communities.
  • Personal Responsibility: The bill promotes responsible behavior among associations and homeowners by mandating greater disclosure, especially regarding management contacts and resale-related fees. Homebuyers are given the tools to thoroughly understand the costs and rules before purchasing, fostering a culture of due diligence and accountability. Associations, in turn, are expected to maintain updated, publicly available records, encouraging better internal governance and communication.
  • Free Enterprise: The bill does not impose market restrictions or introduce regulatory burdens on businesses or individuals engaging in property transactions. Rather, it fosters fair competition and informed consumer choices by requiring disclosure of fees and management structures. Transparency of costs (such as the $375 cap on resale certificates) allows potential buyers to compare communities more effectively, promoting healthy competition among property associations and management companies.
  • Private Property Rights: Access to governing documents and clear disclosure of transfer-related fees strengthens homeowners’ ability to assert and protect their property rights. Moreover, the bill introduces safeguards for property owners who may face enforcement actions from associations while a management certificate is missing or outdated. This protects owners from unjust penalties and reinforces due process. Additionally, the bill includes narrowly defined provisions for when fencing can be regulated, ensuring association rules don’t arbitrarily infringe on homeowners’ use of their property.
  • Limited Government: The bill maintains the principle of limited government by placing the responsibility for compliance on private associations and not creating any new government enforcement bodies. It requires only that associations electronically file existing documents with the Texas Real Estate Commission (TREC), which merely hosts the information without regulatory oversight or investigation. The bill avoids state overreach while ensuring the public has the tools to monitor and protect their private rights within the framework of existing civil law.
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