89th Legislature Regular Session

HB 517

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
HB 517 amends Chapter 202 of the Texas Property Code to restrict the authority of property owners' associations (POAs) from penalizing homeowners for discolored or brown vegetation during periods when residential watering restrictions are in effect. These watering restrictions are typically issued by municipalities, water utilities, or other authorized entities during drought conditions or water supply shortages. The bill introduces Section 202.008, which provides that POAs may not assess fines for noncompliance with aesthetic landscape requirements when such noncompliance is the direct result of complying with mandated water conservation efforts.

The bill specifically prohibits POAs from issuing fines for violations of restrictive covenants that require lawns or vegetation to be green or prohibit them from being discolored during a period when a homeowner’s property is subject to a residential watering restriction. Furthermore, this prohibition on fines remains in effect for 30 days after the restriction is lifted. This grace period acknowledges that vegetation may take time to recover once regular watering resumes.

The intent of the legislation is to protect homeowners from conflicting mandates—obligating them to comply with public water conservation measures while simultaneously facing punitive actions from their POAs. By doing so, the bill reinforces the principle that public conservation strategies should not place private homeowners in legal or financial jeopardy from private associations acting under aesthetic codes.

The original version of HB 517 and the Committee Substitute version share the same core purpose—limiting property owners' associations (POAs) from assessing fines related to lawn discoloration during periods of residential watering restrictions. However, there are a few notable differences in structure and clarity between the original and substituted versions.

In the originally filed version, the language prohibits a POA from assessing a fine both during a watering restriction and for a “reasonable period of time” afterward. This wording leaves ambiguity as to what constitutes a “reasonable period,” potentially requiring judicial interpretation or leading to inconsistent enforcement among POAs.

The substitute version resolves this ambiguity by replacing “reasonable period of time” with a clear and enforceable time frame—specifically, 30 days after the watering restriction is lifted. This change improves clarity for both homeowners and POAs and ensures consistent application of the rule across different jurisdictions.

Structurally, both versions include the same definition for “residential watering restriction” and apply the same general prohibition on fines. Overall, the Committee Substitute refines and clarifies the original bill without altering its intent, providing stronger legal certainty.
Author
Caroline Harris Davila
Carrie Isaac
Ellen Troxclair
Angie Chen Button
Shelley Luther
Co-Author
Salman Bhojani
Aicha Davis
Maria Flores
Vikki Goodwin
Joanne Shofner
Sponsor
Charles Schwertner
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 517 would have no fiscal implications for the State of Texas. This means that the enforcement or implementation of the bill’s provisions would not require any new expenditures or lead to a loss in state revenue. The measure simply limits private property owners' associations from levying fines under certain drought-related circumstances, without involving state enforcement mechanisms or financial resources.

Furthermore, the fiscal note affirms that no fiscal impact is anticipated for units of local government either. This is consistent with the nature of the legislation, which affects only the conduct of private property owners’ associations and not the operations or finances of municipalities, counties, or special districts. The bill neither mandates nor restricts any activity or service provided by local government entities.

Because the bill imposes a regulatory limitation on POAs rather than creating a new regulatory body or funding mechanism, it avoids triggering any significant administrative or compliance costs. Overall, HB 517 is a cost-neutral measure with policy implications for property governance but no measurable budgetary consequences for state or local government operations.

Vote Recommendation Notes

Texas Policy Research recommends that lawmakers vote YES on HB 517 for its defense of homeowners’ rights against unreasonable interference by property owners’ associations (POAs). This bill addresses a recurring source of frustration for Texans—being fined by their POA for failing to maintain green grass during city-mandated watering restrictions. It corrects this unfairness by prohibiting POAs from issuing such fines while the restrictions are in effect and for 30 days afterward, giving homeowners time to recover their lawns without facing punitive action.

This legislation is a meaningful step toward limiting the unchecked authority of POAs, which frequently act as quasi-governments with little oversight and disproportionate enforcement power. Many Texans have grown tired of these associations penalizing them for normal life circumstances or compliance with broader public policies, especially in matters of environmental conservation, like drought response.

Importantly, HB 517 does not grow government, does not cost taxpayers a dime, and does not create new regulations for individuals or businesses. It imposes a boundary on private associations that have long operated with too much latitude and too little accountability. Instead of expanding the state’s role, it affirms the rights of homeowners to be free from double-jeopardy-style enforcement: forced to either break public law or HOA rules, but punished either way.

By protecting homeowners, upholding property rights, and limiting private overreach—all without expanding government—this bill embodies key liberty principles and provides long-overdue relief from one of the most irritating fixtures of modern Texas suburbia: the overzealous POA.

  • Individual Liberty: This bill enhances personal freedom by protecting homeowners from coercive or punitive actions by private associations during drought conditions. It affirms that individuals should not be punished for complying with lawful water conservation measures. By doing so, it defends the right of people to live without undue interference in their day-to-day decisions about their property, especially when those decisions are driven by compliance with state or local environmental rules.
  • Personal Responsibility: The bill maintains personal responsibility by not absolving homeowners of their obligations entirely—it simply ensures they are not penalized when compliance with drought-related watering restrictions makes it impossible to meet a POA’s aesthetic demands. The 30-day grace period after restrictions are lifted reflects a reasonable expectation that homeowners will restore their lawns once they are legally allowed to.
  • Free Enterprise: While the bill doesn’t directly touch commerce or business regulation, it indirectly supports market fairness by reducing unnecessary costs and administrative headaches for homeowners. It could also help stabilize property values in communities where excessive POA enforcement creates tension or discourages residency.
  • Private Property Rights: This is perhaps the most affected principle. The bill reasserts that private ownership comes with autonomy, especially over natural elements like landscaping that are clearly influenced by outside conditions. It draws a line around what POAs can and cannot control, reinforcing that a homeowner’s right to comply with public conservation laws outweighs the aesthetic preferences of a neighborhood association.
  • Limited Government: Importantly, the bill does not increase government power—it restrains the authority of POAs, which, while private, often operate with government-like enforcement powers. It imposes no new taxes, programs, or agencies, and requires no government intervention to enforce. This is a textbook example of limited, targeted legislative action that defends individual rights without growing the state.
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