How do HOA fees work in North Texas? HOA fees are mandatory assessments that a homeowners association collects under covenants recorded against your lot. They fund common areas, amenities, and management, they can change over time, and unpaid amounts can become a lien. Texas Property Code Chapter 209 sets the ground rules for how residential associations collect.
Associations are a large part of the Texas housing picture. According to the Foundation for Community Association Research's 2025 Statistical Review, published in March 2026, Texas had about 23,500 community associations housing roughly 6.4 million residents. In Dallas-Fort Worth, you will find them everywhere from established neighborhoods with a voluntary civic group to master-planned suburbs with pools, trails, and gated entries.
Below, The Agency Dallas explains how HOA fees work in North Texas, from what they cover to the TREC addendum and how dues differ from MUD and PID assessments.
What do HOA fees pay for in North Texas?
The recorded declaration (often called the CC&Rs) controls what dues fund. Common line items include:
- Landscaping and maintenance of entries, medians, and common areas
- Amenity centers, pools, playgrounds, trails, and sport courts
- Gates, guard staff, or patrol services in gated communities
- Common-area insurance and utilities, such as streetlights and irrigation
- Professional management, accounting, and legal fees
- Reserve contributions for future repairs and replacement
Amounts vary widely by community and amenity package. Rather than rely on an average, read the association's current budget and the resale certificate for the specific property.
How are HOA dues set, and can they go up?
Dues are typically set by the association's board under the authority of the declaration and bylaws, through an annual budget. Some declarations cap annual increases or require an owner vote for large changes, and some do not. Special assessments, a one-time charge for a specific project or shortfall, are possible if the governing documents allow them.
The seller notice required by Texas Property Code Section 5.012 puts it plainly: assessments are required, they may change, and failure to pay can lead to enforcement of the association's lien and foreclosure. That notice must be delivered before the contract binds the buyer. If it is not, the buyer may terminate within the earlier of seven days after receiving it or closing.
What does Texas Property Code Chapter 209 say about HOA fees?
Chapter 209, the Texas Residential Property Owners Protection Act, applies to residential subdivisions where membership is mandatory and the association can levy assessments. Under Section 209.003, it does not apply to condominiums, which are governed by Chapter 82. If you are shopping for a condo, our guide to what's actually different about buying a condo in Texas covers that framework.
Key owner protections in Chapter 209 include:
- Payment plans. Under Section 209.0062, associations with more than 14 lots must adopt guidelines for alternative payment schedules on delinquent assessments, with a minimum term of three months. The association need not extend a plan beyond 18 months or offer one more than once in 12 months.
- Notice before collections. Under Section 209.0064, an owner cannot be charged a collection agent's fees unless the association first sends a certified-mail notice listing the amounts owed, describing payment plan options, and giving at least 45 days to cure.
- Limits on foreclosure. Under Section 209.009, an association may not foreclose its assessment lien if the debt consists solely of fines, attorney's fees tied only to those fines, or certain other charges.
- Public management certificates. Associations must record a management certificate with the county and, according to TREC, file it electronically through hoa.texas.gov within seven days. That searchable database is a quick way to find who manages an HOA.
The Legislature revisits HOA law most sessions. A 2025 update from the law firm Winstead summarizes several changes effective September 1, 2025, including new architectural review committee rules under SB 711 and a requirement under HB 517 that associations suspend lawn and turf rules during watering restrictions and for 60 days after. For questions about a specific dispute or delinquency, talk to a Texas real estate attorney.
How does the TREC HOA addendum work when I buy?
When membership in an owners association is mandatory, Texas contracts use the TREC Addendum for Property Subject to Mandatory Membership in a Property Owners Association. TREC lists the current version as form 36-11, effective July 1, 2026. It is not for condominiums.
The addendum handles three things:
- Who gets the Subdivision Information. Paragraph A offers four choices: the seller obtains and delivers it, the buyer obtains it, the buyer already has it, or the buyer does not require it. The Subdivision Information includes the restrictions, bylaws, rules, and a resale certificate.
- Your termination right. If the seller or buyer is obtaining the information, the buyer may terminate within three days after receiving it, or before closing, whichever is first, with earnest money refunded. The buyer may also terminate if a material adverse change occurs before closing.
- Who pays association transfer charges. Paragraph C has the buyer pay association fees, deposits, reserves, and transfer-related charges up to a dollar cap the parties fill in, with the seller paying anything above it. Regular prorated dues are excluded.
Negotiate that cap deliberately.
What is a resale certificate, and what does it tell me?
A resale certificate is the association's snapshot of the property and the HOA's finances. Under Texas Property Code Section 207.003, the association must deliver the governing documents and resale certificate within 10 business days of a valid written request, may charge no more than $375 to prepare them, and no more than $75 for an update. If it misses the deadline, it may not charge the fee.
Section 207.003 requires the certificate to disclose, among other items:
- Regular assessments and any approved special assessments, plus amounts currently unpaid on the lot
- The current operating budget, balance sheet, and reserves
- Any right of first refusal or other restraint on transfer
- Pending lawsuits and unsatisfied judgments against the association
- Common-area insurance coverage
- Known violations on the lot and contact details for the managing agent
- All transfer-related fees, including who receives them and how much
Thin reserves or pending litigation can foreshadow special assessments. For a broader look at what sellers must disclose, see our guide on what disclosures Texas home sellers have to make.
Are HOA transfer fees legal in Texas?
Texas Property Code Section 5.202 generally voids private transfer fee obligations created after that law took effect, but it carves out dues, fees, and assessments paid to a property owners association under a declaration or covenant. In practice, association transfer fees are common in North Texas closings and must be listed on the resale certificate.
How are HOA fees different from MUD and PID assessments?
This is where many buyers in growing suburbs get surprised. Three different charges can apply to the same home:
- HOA dues are private assessments under recorded covenants, paid to the association, and enforced by the association's lien.
- MUD taxes are levied by a municipal utility district, a government entity that typically financed water, sewer, and drainage infrastructure with bonds. MUD taxes appear on your property tax bill. Texas Water Code Section 49.452 requires sellers to give a written notice before the contract is signed.
- PID assessments are levied by a public improvement district created by a city or county to fund improvements or services. Texas Property Code Section 5.014 requires sellers to give a signed notice before a binding contract, and the assessment can be paid in full or in annual installments.
MUD and PID charges are governmental and can be substantial, so compare the total annual cost of ownership, not just the list price or the HOA dues. Our MUD and PID disclosure guide and our post comparing new construction and resale in Dallas walk through how those numbers show up.
When our agents at The Agency Dallas review HOA fees in North Texas communities with buyers, we put dues, transfer charges, MUD taxes, and PID installments on one page so the full monthly cost is clear before the option period ends.
If you are weighing an HOA community as part of a move, our guides on how to downsize without losing what matters and which North Texas suburbs are growing fastest cover the bigger decision.
Frequently asked questions
Are HOA fees mandatory in North Texas?
If the recorded declaration makes membership mandatory and authorizes assessments, yes. Those dues run with the land and bind each new owner. Some older Dallas neighborhoods have voluntary associations instead, where dues are optional. The TREC addendum and the seller notice under Property Code Section 5.012 apply when membership is mandatory, so your contract will tell you which kind you are dealing with.
Can a Texas HOA foreclose on my home?
In limited circumstances. An association with a lien for unpaid assessments may pursue foreclosure if its governing documents allow it, but Chapter 209 bars foreclosure when the debt is made up only of fines and related attorney's fees. Owners are also entitled to a 45-day cure notice and, in most associations, a payment plan. If you receive a demand letter, talk to an attorney promptly.
How much does a resale certificate cost in Texas?
Texas Property Code Section 207.003 caps the charge at $375 for assembling and delivering the governing documents and resale certificate, and $75 for an update. The association must deliver within 10 business days of a valid request or forfeit the fee. Who pays is negotiated in the TREC HOA addendum, where the parties choose whether the buyer or seller orders it.
What is the difference between an HOA and a MUD?
An HOA is a private association that collects dues under recorded covenants to run common areas and amenities. A MUD is a political subdivision of the state that levies property taxes, often to repay bonds that built water, sewer, and drainage systems. MUD taxes appear on your property tax bill, while HOA dues are billed by the association. Many suburban homes have both.
Do HOA fees affect my mortgage approval?
Yes. Lenders generally include monthly HOA dues in your debt-to-income calculation, alongside property taxes, insurance, and any MUD or PID charges. A large special assessment or pending litigation disclosed on the resale certificate may also draw questions. Share the resale certificate with your lender as soon as you have it, and ask how they will treat each charge.
Do condominiums follow the same HOA rules?
No. Chapter 209 excludes condominiums, which fall under the Texas Uniform Condominium Act in Property Code Chapter 82. Condo resale certificates have their own statute, and Winstead reports that 2025 legislation capped condo resale certificate fees at $375. The TREC HOA addendum is also not used for condos, so expect different forms and timelines.
